TOFAS Investor Presentation V2 · 6×q×iodqg×upd hqho &odvvlilfdwlrq 3xeolf 3$( &203$1< 29(59,(: 0dlq 6wuhqjwkv 0$,1 675(1*7+6 qg /dujhvw 5 ' &dsdelolw\ ri )&$ lq (xursh:ruog

$Page 1: TOFAS Investor Presentation V2 · 6×q×iodqg×upd *hqho &odvvlilfdwlrq 3xeolf 3$*( &203$1< 29(59,(: 0dlq 6wuhqjwkv 0$,1 675(1*7+6 qg /dujhvw 5 ' &dsdelolw\ ri )&$ lq (xursh:ruog$
TOFAŞ INVESTOR PRESENTATION

Sınıflandırma: Genel; Classification: Public PAGE 2

AGENDA

• Company Overview

• 9M 2019 Performance

• Key Highlights

• Production & Shipments

• Domestic Market

• Export

• Financial Performance

• Investments

• Outlook


COMPANY OVERVIEWShareholder Structure

37,85% 37,85%

Free float

24,3%

1968 - 2018

Founded in 1968 as a JV by Koç Holding & FCA (Fiat Chrysler Automobiles)

2018 marks the 50th anniversary of thecollaboration between Koç Holding & FCA

24.3% of outstanding shares in free floatwith ~80% foreign ownership.


COMPANY OVERVIEWMain Strengths

MAIN STRENGTHS

2nd Largest R&D Capability

of FCA in Europe

World Class Manufacturing

Gold Level

Presence in EMEA, NAFTA

& LATAM

Only Turkish Manufacturer that produces both PC & LCV

Take-or-Pay Guarantee in

Exports

Manufacturing for 4 Different Brands with 5 Different Car Lines


COMPANY OVERVIEWLocation

Istanbul

BursaHeadquarters in Istanbul

Production and R&D in Bursa

1,5 hour driving distance


COMPANY OVERVIEWPlant Structure

SUSPENSIONS

ASSEMBLY SHOP

DIE PRODUCTIONR&D

PROTOTYPES

SUPPLY CHAIN

SPARE PARTS

BODY SHOP

PRESS SHOP

PAINT SHOP

Total: 933.832 m²Covered: 352.477 m²

Area400.000 vehicles/yearwith 3 shifts labor

Capacity2017 FY: 384,198 units2018 FY: 301,750 units

ProductionBlue Collar : 5,192White Collar : 1,607Total : 6,799*as of Sep’19

Workforce


COMPANY OVERVIEWR&D

Body Design

Interior Design

E&E Design

Engine Systems

Chassis & Vehicle Dynamics

Vehicle Integration & Testing


COMPANY OVERVIEWR&D

TOFAŞ R&D CENTER

Established : 1994

Office Area : 6,140 sqmLaboratory Area : 10,420 sqm

Office/Field Employees : 457/82**average


COMPANY OVERVIEWR&D

RANKED FIRST IN R&D SPENDINGS

IN TURKEY1

2015 / 2016 / 2017

THE MOST SUCCESSFUL R&D

CENTER IN THE AUTOMOTIVE

SECTOR2

2015 / 2016

THE THIRD MOST SUCCESSFUL

R&D CENTER IN ALL SECTORS2

2015 / 2016

RANKED FIRST IN PROJECT CAPACITY

CRITERIA2

2015

1 European Commission Joint Research Center2 Republic of Turkey Science, Industry & Technology Ministry


COMPANY OVERVIEWWorld 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.

WORLDCLASSMANUFACTURING

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 plants and 400 supplier plants.

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.


COMPANY OVERVIEWProduction Model Portfolio

DOBLO

572 DifferentBody Types

FIORINO

338 DifferentBody Types

1. Panorama2. Cargo3. Combi

RAM PROMASTER CITY

USA & CANADA

FIAT EGEA / TIPO / DODGE NEON

Best Selling PC of 2016, 2017 & 2018in Turkey

FIAT EGEA / TIPO FIAT EGEA / TIPO

Hatchback Station Wagon


COMPANY OVERVIEWDoblo - 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 Tofasthat 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.


COMPANY OVERVIEWMini Cargo - Fiorino

New FIAT Fiorino is launched in 2016 to be produced until 2021 with a total project capacity of 53,000 in 2017.

PSA has discontinued production at the end of 2017, which is not included in this figure.


COMPANY OVERVIEWFiat 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.


COMPANY OVERVIEWFiat 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.


COMPANY OVERVIEWFiat Egea / Tipo - Hatchback & Station Wagon

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.

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.

Hatchback

Station Wagon


COMPANY OVERVIEWBrands & Products - Wide product range with 6 brands

LOCAL PRODUCTION

Doblo Fiorino Egea Sedan Egea HB Egea SW

IMPORTED VEHICLES

500 500 X 500 L Punto Panda 124 Spider

Scudo Ducato Ducato Ducato Fullback

Giulietta 4C 4C Spider Giulia Stelvio

Renegade Cherokee G. Cherokee Wrangler New Compass

Ghibli Levante Quattroporte

488 California GTC4 Lusso


COMPANY OVERVIEWDealer Network

73 Dealers - 102 Sales Points & 127 Service Points

Bayburt

Hatay

KocaeliSakarya

Edirne

Kırklareli

İstanbulTekirdağ

Çanakkale

Balıkesir

Bursa

Yalova

İzmir

Manisa

Aydın

Muğla

Antalya

Burdur

Denizli

Uşak

Kütahya

Bilecik

Eskişehir

Afyon

IspartaKonya

Ankara

Bolu

Karaman

Mersin

Adana

Van

Hakkari

Ağrı

IğdırErzurum

Kars

ArdahanArtvinRize

TrabzonGiresunOrduSamsun

SinopKastamonu

Bartın

Zonguldak

ŞırnakMardin

ŞanlıurfaKilis

SiirtBatman

Bitlis

Muş

Diyarbakır

Bingöl

Antep

MaraşNiğde

Kayseri

Aksaray

Nevşehir

Kırşehir

YozgatKırıkkale

Çankırı

Karabük

ÇorumAmasya

Tokat

Sivas

Gümüşhane

Erzincan

Malatya

Tunceli

Elazığ

Düzce

Osmaniye

Adıyaman

1 Ferrari, 4 Maserati, 17 Alfa Romeo & Jeep Dealers


• Company Overview

• 9M19 Performance

• Key Highlights

• Production & Shipments

• Domestic Market

• Export

• Financial Performance

• Investments

• Outlook


Healthy free cash flow (2x net income) with robust PBT margin of 7.5% in 9M19 on the back of; i.FX, ii. cost optimization with disciplined pricing, iii. efficient net working capital management

Best performer in domestic market share improvement with Fiat, the only brand registering YoYvolume growth in passenger car market, thanks to leading position of Egea model in 9M19.

Signs of improvement in domestic light vehicle market with upwards revision in our 2019 outlook.This is supported by lower interest rates, which could be sustained by new financing incentives incollaboration with state banks, effective as of Oct. 1, 2019.

Pricing discipline at a challenging domestic operating environment with the new emissionregulations, effective as of Oct. 1, 2019.

Stabilization in total shipment volumes on YoY basis (up ~1%) in 3Q19, excl. expiry ofOpel/Vauxhall contract, thanks to lower pace of YoY export volume contraction (down 6% YoY)in 3Q.

KEY HIGHLIGHTS


PRODUCTIONTurkish Automotive Industry & Tofaş

Turkish Automotive Production - ytd

1.167K

1.550K

362K

735K1.057K

20,3% 19,5%

15,6%17,9% 18,0%

Sep-18 Dec-18 Mar-19 Jun-19 Sep-19

Turkey Tofaş %Source: OSD

Tofaş Production

62K 65K 56K76K

59K

237K

190K

3Q18 4Q18 1Q19 2Q19 3Q19 9M18 9M19

In 9M19, total Turkish motor vehicle production declined by 9% YoY, to 1.06mn units.

Tofaş constituted ~18% of the industry with a production of 190.5K units in 9M19 (down 20% YoY).

3Q19 production volume contraction of Tofas has slowed down further to 5% YoY to 58.6K units (2Q19: -17% YoY;1Q19: -33% YoY).

Recovery in domestic shipments coupled with deceleration in export volume contraction were the drivers ofslow-down in contraction.

Tofaş 9M19 production mix; PC: 57% and LCV: 43% vs. 55% PC and 45% LCV in 9M18.

(YoY change) -5%


SHIPMENTSTofaş Total Shipment Volumes

21,1K8,7K

20,6K 14,6K 17,1K 12,3K

70,3K

52,7K

50,8K44,3K

58,5K

47,5K

91,4K

61,4K

71,4K

58,9K

75,6K

59,8K

2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Export

Domestic

(YoY change)

The retreat in total shipments decelerated to 2.6% YoY in 3Q19, reaching to 59.8K units (vs. 17% YoY slide in2Q19), corresponding to 19% YoY slide in 9M19 (vs. -25% in 1H19).

In 3Q19, total unit shipments were up 1% YoY, excl. expiry of Opel/Vauxhall agreement.

The notable recovery in domestic volumes with more favorable base for exports supported the slow-down inYoY contraction in 3Q19.

-2.6%


SHIPMENTSTofaş Shipment Volumes by Business - 9M19

In 9M19, the most significant change in the mix was observed in domestic shipments with ~19% YoY increase inpassenger car mix reaching to 78%, mainly due to the incentive scheme.

34,4K78,2%

9,6K21,8%

PC LCV

DOMESTIC 80,3K53,4%

70,0K46,6%

PC LCV

EXPORT114,6K59,0%

79,7K41,0%

PC LCV

TOTAL+ =


Exports 9M19 9M18 Δ Domestic Market 9M19 9M18 Δ

Linea - 1.481 -1.481

Tipo Sedan 16.396 18.757 -2.361 Egea Sedan 30.521 20.803 9.718

Tipo HB & SW 52.547 71.772 -19.225 Egea HB & SW 1.441 1.814 -373

Doblo 44.411 52.189 -7.788 Doblo 5.101 8.875 -3.774

Cargo/Combi 40.973 45.231 -4.258 Cargo/Combi 4.805 8.093 -3.288

Panaroma 3.438 6.958 -3.530 Panaroma 296 782 -486

GM (Opel, Vauxhaul) - 11.956 -11.956

RAM Promaster City 9.979 9.782 -170

MCV Fiat 26.984 28.196 -1.212 Fiorino 3.963 10.023 -6.060

Cargo/Combi 19.094 19.044 50 Cargo/Combi 3.817 9.235 -5.418

Panaroma 7.890 9.152 -1.262 Panaroma 146 788 -642

Others 38 29 9 Imported Vehicles 2.976 4.140 -1.164

Exports Total 150.355 193.048 -42.693 Domestic Total 43.964 47.088 -3.124

Total Shipments 194.319 240.136 -45.817

SHIPMENTSTofaş Shipment Volumes by Model


DOMESTIC MARKETSegment Evolution (9M)

476,6K

150,7K

627,3K

362,5K

101,0K

463,5K

228,6K

52,7K

281,3K

Passenger Cars Light Commercial Vehicles Total9M17 9M18 9M19

2Q19 Domestic LV MarketTOTAL: 106.7K (-45% YoY)

PC: 87.6K (-43% YoY)LCV: 19.1K (-54% YoY)

-47,8%

3Q19 Domestic LV MarketTOTAL: 86.2K (-22% YoY)

PC: 72.3K (-17% YoY)LCV: 13.9K (-41% YoY)

Source: OSD

-36,9%

-39,3%


DOMESTIC MARKETPC & LCV Retail Sales - Monthly

35,3

K 47,0

K

73,8

K

76,0

K 85,4

K

83,7

K

82,3

K

72,5

K

71,4

K

91,8

K

100,

9K

136,

2K

35,1

K 47,0

K

76,3

K

71,1

K

72,8

K

51,0

K

52,7

K

34,3

K

23,0

K

21,6

K

58,2

K

77,7

K

14,4

K

24,9

K

49,2

K

31,0

K

33,0

K 42,7

K

17,9

K

26,2

K 42,0

K

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2017 2018 2019

Total domestic market retail sales declined by 39.3% YoY, reaching to 281.3K units in 9M19. Initial signs ofrecovery has been observed with September LV demand up by 82.4% YoY.

Source: OSD


TOFAS DOMESTIC MARKET PERFORMANCESegment Evolution (Retail)

42,5K

36,6K

79,1K

28,3K

21,5K

49,7K

33,1K

9,6K

42,7K

Passenger Cars Light Commercial Vehicles Total

9M17 9M18 9M19

3Q19 Domestic Retail LV Shipments

TOTAL: 11.6K (+9% YoY)

PC: 9K (+44% YoY)LCV: 2.6K (-40% YoY)

Source: OSD

+17%

-55%

-14%


TOFAŞ DOMESTIC MARKET PERFORMANCEPC & LCV Retail Sales - Monthly

4,0K

5,4K

9,6K

9,5K 10

,5K

10,9

K

11,0

K

9,8K

10,0

K 11,3

K

12,4

K

18,6

K

4,3K 5,

3K

8,7K

8,1K 8,

8K

5,3K 6,

0K

3,1K 1,

8K

2,6K

6,4K

12,3

K

2,1K

3,9K

8,4K

5,1K 5,

6K 6,6K

2,1K

3,3K

6,1K


2017 2018 2019

Tofaş domestic retail sales had outperformed total domestic LV demand with 14% YoY pullback in 9M19 vs. 39%contraction in domestic LV demand during the same period.

Source: OSD


FIAT BRAND DOMESTIC MARKET PERFORMANCEPassenger Car Market Shares

Passenger car market share of Fiat brand had expanded by 6.7pp YoY, reaching to 14,5% in 9M19.

Fiat Egea maintained its market leadership, owing to its improved value proposition as a local PC in 9M19.

Fiat was the only brand that registered YoY volume growth in domestic PC market in 9M19.

17,5%

14,5%

10,2%

6,9% 6,0% 5,4% 5,3%

RENAULT FIAT VW TOYOTA HYUNDAI HONDA PEUGEOT

9M19

16,5%

10,3%

7,8% 7,4%5,8% 5,6% 5,3%

RENAULT VW FIAT HYUNDAI TOYOTA HONDA DACIA

9M18

Source: ODD Source: ODD



FIAT BRAND DOMESTIC MARKET PERFORMANCELight Commercial Vehicle Market Shares

Domestic LCV market share of Fiat brand was down 3pp YoY in 9M19.

The main driver is relatively more attractive PC pricing due to the incentive scheme.

34,8%

18,2%

10,4%7,0% 5,7% 5,3%

FORD FIAT VW PEUGEOT MERCEDES RENAULT

9M19

31,2%

21,2%

12,8%

6,7% 6,2%3,5%

FORD FIAT VW RENAULT MERCEDES CITROEN

9M18

Source: ODD Source: ODD



FIAT BRAND DOMESTIC MARKET PERFORMANCEPC & LCV Combined Market Shares

Fiat brand has significantly improved its market share with 4.5pp YoY increase, reaching to 15.2% in 9M19.

Tofaş market share including premium brands expanded by 4.4pp YoY to 15.7% in 9M19.

15,2% 15,2%

10,2% 9,3%

5,9% 5,6%

RENAULT FIAT VW FORD TOYOTA PEUGEOT

9M19

14,4%

10,9% 10,9% 10,7%

6,0% 5,1%

RENAULT VW FORD FIAT HYUNDAI TOYOTA

9M18

Source: ODDSource: ODD



EUROPEAN MARKET PC & LCV - 9M19

European PC market descended by 1.6% YoY in 9M19, with slight deceleration from 1H (-3%), driven by 15% YoYgrowth in September thanks to low base. All main markets had posted contraction, except Germany in 9M19.The contraction in C segment was higher at ~10% YoY during the same period.

LCV markets remain healthy in EU, up 4.5% YoY in 9M19, despite 9% YoY retreat in September related with WLTPemissions testing regime, which became effective on Sep 1, 2019.

European PC Market

Source: ACEA

European LCV Market

3.52

7K

2.67

3K

1.91

1K

1.66

3K

1.49

2K

1.04

3K

3.43

9K

2.74

0K

1.86

2K

1.64

1K

1.46

8K

965K

Rest ofEurope

GERMANY UK FRANCE ITALY SPAIN

Jan-Sep 18

Jan-Sep 19

-2,5%

+2,5%

-2,5%-1,3%

-1,6%

-7,4%

480K

335K

274K

206K

126K 16

1K

484K

355K

287K

230K

134K 16

5K

Rest ofEurope

FRANCE UK GERMANY ITALY SPAIN

Jan-Sep 18

Jan-Sep 19

+0.8%

+5,9%

+4.5%+11,2%

+6,9%+1.9%

Source: ACEA

+4,5%(YoY 9M19)

Total EuropeanLCV Market

Total EuropeanPC Market

-1,6%(YoY 9M19)


TOFAŞ EXPORTSSegment Evolution – 9M19

121,9K

84,9K

206,8K

106,6K

86,4K

193,0K

80,3K70,0K

150,3K

Passenger Cars Light Commercial Vehicles Total

9M17 9M18 9M19

-24,7%-18,9%

-22,1%

In 9M19, Tofaş export volume contraction decelerated to 22% YoY at 150K units (vs. 27% YoY decline in 1H19). In3Q19, excluding Opel/Vauxhall agreement, the YoY slide stood at 6%.

Ongoing demand weakness at our core PC markets remains the main driver of lower export volumes.


TOFAŞ EXPORTSExport Volumes - Monthly

19,8

K

29,8

K

29,0

K

23,8

K 27,1

K

24,1

K

24,4

K

9,2K

19,7

K 22,4

K

22,3

K

19,2

K

15,6

K

26,2

K 28,2

K

23,4

K

24,0

K

22,9

K

19,0

K

10,2

K

23,5

K

19,4

K

20,4

K

11,0

K13,2

K 15,8

K

15,3

K

19,5

K

21,0

K

17,9

K 21,1

K

6,8K

19,6

K


2017 2018 2019


TOFAŞ EXPORTSVolume Breakdown

36,8%

8,9%6,9%

7,1%

5,7%

4,3%

2,4%

8,5%

6,4%5,9%

4,4%

Italy

France

Spain

Poland

Germany

Portugal

UK

Rest of Europe

US-Canada

MENA

Other

Total Units:

150K

9M19

38,3%

9,4%10,5%

5,0%

6,1%

2,4%

4,6%

2,3%

8,1%

5,1%

4,6%

3,6%

Italy

France

Spain

Poland

Germany

Portugal

Belgium

UK

Rest of Europe

US - Canada

MENA

Other

Total Units:

193K

9M18


FINANCIAL PERFORMANCETofaş Financial Highlights (9M19)

Shipments - Units

193K

150K

47K

44K

240K

194K

9M18

9M19

Export Domestic

Revenue - Mn TL

10.977

10.225

2.848

3.205

13.825

13.429

9M18

9M19

Export Domestic

EBITDA - Mn TL

1.892

1.815

9M18

9M19

Profit Before Tax - Mn TL

1.013

1.008

9M18

9M19

-4% -1%

-3%-19%


1.205642

1.301 963 1.255 987

3.846

3.691

3.478

3.019

4.034

3.171

5.050

4.3334.779

3.981

5.289

4.159

2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Export

Domestic

In 3Q19, total revenue slided by 4% YoY to 4.2bn TL due to lower export revenues despite robust domesticperformance.

Domestic revenue growth were driven by a combination of shipment growth coupled with disciplined pricing.

Export revenue were negatively impacted by stronger TRY and lower export volumes.

FINANCIAL PERFORMANCETofaş Revenue - mn TL

(YoY change)

+54% Domestic revenue-14% Export revenue


FINANCIAL PERFORMANCETofaş Profitability - mn TL

Gross Profit

723 654 582 672550

16,7%

13,7% 14,6%12,7% 13,2%

3Q18 4Q18 1Q19 2Q19 3Q19

Gross Profit Gross Margin

Operating Profit

528406 373 440 381

12,3%

9,3% 9,8% 9,1% 9,2%

3Q18 4Q18 1Q19 2Q19 3Q19

Operating Profit Operating Margin

EBITDA

731 641 609 637 570

16,9%

13,4%15,3%

12,0%13,7%

3Q18 4Q18 1Q19 2Q19 3Q19

EBITDA EBITDA Margin

Profit Before Tax

327 278 321419

268

7,6%

5,8%

8,1% 7,9%

6,5%

3Q18 4Q18 1Q19 2Q19 3Q19

PBT PBT Margin

In 9M19, gross margin was flattish YoYat 13.4%. Optimized cost structure,disciplined pricing in domestic market(despite lower LCV mix) and weakerTRY supported gross profitability.

EBITDA margin slided by 0.2pp YoY to13.5% in 9M19, in parallel to grossmargin performance, with 4% YoYdecline, supported by strict Opexcontrol.

In 9M19, PBT margin expanded by0.2pp YoY, reaching to 7.5% 9M19,with flat PBT growth during the sameperiod. The positive impact of higheravg. FX and cost measures waspartially offset by higher financialexpense stemming from FX losses.


368311 327 325

408

298

7,3% 7,2%6,8%

8,2%7,7%

7,2%

2Q18 3Q18 4Q18 1Q19 2Q19 3Q19

Net Profit Net Profit margin

In 3Q19, net profit descended by 4% YoY at 298 Mn TL with flat YoY net profit margin of 7.2%,.

FINANCIAL PERFORMANCETofaş Net Profit - mn TL


FINANCIAL PERFORMANCETofaş Income Statement – 9M19

mn TL 9M19 9M18 Δ

Net Sales 13.429 13.824 -2,9%

Gross Profit 1.804 1.862 -3.1%

Operating Profit 1,257 1,313 -4,2%

EBITDA 1,815 1,892 -4.1%

Profit Before Tax 1,008 1,013 0.0%

Net Profit 1,031 1,004 2.7%

Gross Margin % 13,4% 13,5% -0,1pp

Operating Margin % 9.4% 9.5% -0.1pp

EBITDA % 13,5% 13,7% -0.2pp

Profit Before Tax Margin % 7.5% 7,3% +0.2pp

Net Margin % 7,7% 7,3% +0,4pp


FINANCIAL PERFORMANCETofaş Balance Sheet - Assets & Liabilities (mn TL)

Current Assets 30.09.2019 31.12.2018 Δ

Cash and Cash Equivalents 2.268 2.385 -117

Inventory 983 1.077 -94

Trade Receivables 2.150 2.097 53

S.T. Consumer Financing Loans 1.006 1.277 -271

Other Current Assets 219 252 -33

Non-Current Assets 30.09.2019 31.12.2018 Δ

Fixed Assets 2.152 2.248 -96

Intangible Assets 1.517 1.579 -62

L.T. Consumer Financing Loans 728 1.016 -288

Other Non-current Assets 1.067 1.071 -4

Total Assets 12.090 13.002 -912

Current Liabilities 30.09.2019 31.12.2018 Δ

Short-term Financial Liabilities 267 444 -177

S.T. Portion of L.T. Financial Liabilities

1.858 2.017 -159

Trade Payables 3.170 3.294 -124

Other Current Liabilities 329 343 -14

Non-Current Liabilities 30.09.2019 31.12.2018 Δ

Long-term Financial Liabilities 2.256 2.971 -715

Other Long-term Liabilities 221 226 -5

Equity 3.988 3.707 281

Total Equity & Liabilities 12.090 13.002 -912


FINANCIAL PERFORMANCETofaş Financial Position & Working Capital (mn €)

Financial Position Sep’19 Jun’19 Dec’18 Sep’18 Jun’18 Mar’18 Dec’17Financial Assets 367 472 396 385 449 536 717KFK - Consumer Loans Granted 280 304 380 348 483 519 562KFK – Financial Liabilities 279 312 377 340 454 511 557Tofaş Financial Liabilities 427 449 525 637 528 598 730Net Financial Position -59 15 -125 -245 -50 -54 -8of which: Factoring 64 54 84 0 133 210 153

Working Capital Sep’19 Jun’19 Dec’18 Sep’18 Jun’18 Mar’18 Dec’17Trade Receivables 348 341 348 369 361 336 391Inventory 159 165 179 246 267 229 234Other Receivables 35 22 42 78 72 78 72Trade Payables 513 659 546 647 848 824 856Other Liabilities 29 29 32 35 43 85 58Net Working Capital - -160 -10 11 -191 -267 -218of which: Factoring 64 54 84 0 133 210 153

Solid net working capital management with sequential increase related with seasonality.

YoY improvement in Financial Position mainly stemmed from deleveraging with robust operating cash flowgeneration.


INVESTMENTS(mn €)

9M19 2018 2017 2016

Structural 15 29 31 55

Minicargo 9 7 13 15

Doblo & RAM ProMaster City 19 22 24 30

Egea/Tipo Sedan, HB & SW 42 37 89 252

TOTAL 84 95 157 352


OUTLOOKFY 2019

PREVIOUS NEW

Domestic Light Vehicle Market (PC+LCV) 380K-400K units 470K-490K units

Tofaş Domestic Retail Sales 60K-65K units 70K-75K units

Export Shipments 200K-220K units 200K-210K units

Production Volume 250K-275K units 260K-275K units

Investments € 120M € 120M


APPENDICES


SCRAP INCENTIVEDetails

The scrap incentive code will remain in effect until 31.12.2019

When PCs and LCVs that are 16 years old or older are scrapped and never to be used again, theowner will benefit from a SCT cancellation up to TL 15,000:

If the new vehicle pre-tax price is lower than TL 70,000, incentive will be TL 15,000

If the new vehicle pre-tax price is between TL 70,000-120,000, incentive will be TL 12,000

The incentive may be used when buying a vehicle belonging to the same class as the vehiclescrapped

For PCs, the new vehicle that will be purchased can not have an engine displacement over1,600cc

If the SCT of the new vehicle is below TL 15,000, the remaining amount can not be used topurchase another vehicle


The financing incentive will remain in effect from 1.10.2019 until 31.12.2019

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 vehiclepurchases. 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%

FINANCING INCENTIVEDetails


Exports 3Q19 3Q18 Δ Domestic Market 3Q19 3Q18 Δ

Tipo Sedan 7.024 4.918 2.106 Egea Sedan 8.089 4.219 3.870

Tipo HB & SW 15.965 18.670 -2.705 Egea HB & SW 468 381 87

Doblo 12.852 16.563 -3.711 Doblo 1.672 1.347 325

Cargo/Combi 12.029 14.952 -2.923 Cargo/Combi 1.621 1.179 442

Panaroma 823 1.528 -705 Panaroma 51 168 -117

GM (Opel, Vauxhaul) - 2.261 -2.261

RAM Promaster City 3.660 3.988 -328

MCV Fiat 8.009 6.329 1.680 Fiorino 1.211 1.831 -620

Cargo/Combi 6.198 4.173 2.025 Cargo/Combi 1.188 1.610 -422

Panaroma 1.811 2.156 -345 Panaroma 23 221 -198

Others 2 12 -10 Imported Vehicles 832 896 -64

Exports Total 47.512 52.741 -5.231 Domestic Total 12.262 8.663 3.599

Total Shipments 59.782 61.404 -1.622

SHIPMENTSTofaş Shipment Volumes by Model - 3Q19


FIAT DOMESTIC MARKET SHAREPC Market Shares - Monthly

9,1%

6,2%

3,9%

8,6%7,8%

13,7% 12,7%14,2%

16,9%16,4% 16,6%

13,9%

10,4% 11,1%

14,1%

15,4%

13,5%

15,6%

7,9%

11,3%

17,5%17,0%

16,1%

18,4%

12,9%

17,4%

20,2%

17,5%

14,7%

19,5%

10,0%9,5%

10,0%8,4%

8,8%11,1%

11,0%11,5%

9,1% 9,5%

7,7%

10,2%

7,2%

15,7%

10,7%

5,9% 4,6%

8,5%7,5%

4,6%

3,2%

9,3%8,0%

4,9%6,5%

6,7%

4,9%

9,4%

5,0%4,4%

6,7%

5,0%

2,6% 3,1%

5,0% 5,7%4,8%

4,0%5,9% 6,7%

6,2%5,3% 5,1%

4,8% 4,0%

Jul18 Aug18 Sept18 Oct18 Nov18 Dec18 Jan19 Feb19 Mar19 Apr19 May19 Jun19 Jul19 Aug19 Sep19

Fiat Renault VW Hyundai Peugeot Toyota


FIAT DOMESTIC MARKET SHARELCV Market Shares - Monthly

19,0%18,0% 18,2%

22,1%19,9% 20,7%

18,2% 18,0%

15,6%16,6%

17,7%

23,3%

20,0% 20,2%

17,1%

35,4%

28,7% 28,7%30,1%

26,0%

33,1%

41,0%

35,1%

40,4%

35,4%34,4%

31,2%

27,6%

24,8%

36,0%

12,1%13,8%

8,8%10,5%

17,1%

9,5% 8,7%11,7%

9,6% 9,7%11,7% 10,9%

7,4%

13,6%

9,5%

5,80%3,90%

4,80% 4,80%

4,90%6,30% 5,80%

5,00%7,70% 6,60%

6,40%5,00%

11,70%

8,50%

8,00%

3,80%

6,50%

7,00% 6,70% 3,60%

5,90%4,70% 7,10%

5,90% 4,40%

7,80%

4,80% 4,40%

7,50%

4,50%


Fiat Ford VW Renault Peugeot Mercedes


FIAT DOMESTIC MARKET SHAREPC & LCV Market Shares - Monthly

11,1%

8,8%

7,3%

11,5%

10,3%

15,2%

14,0%15,1%

16,6%

16,4%

16,8%

15,4%

11,8%12,7%

14,6%

13,5%

11,9%

13,8%

7,5%

10,6%

14,8%

14,2%

13,8%16,0%

11,1%

14,9%

17,6%

16,0%

13,1%

17,4%

10,5%

10,4%9,7%

8,8%

10,6%10,7% 10,5%

11,6%

9,2%9,6%

8,4%

10,3%

7,2%

15,3%

10,5%11,1%

10,8%10,2%

10,2%

8,8%

9,8%

11,7%

10,3%

12,0%

10,4%

8,3% 8,1%

6,6% 6,4%

8,7%

6,5%

4,7%

3,1%3,5%

5,0%5,8%

5,0%4,2%

6,3% 6,6% 6,3%

5,3%6,0%

5,5%4,6%


Fiat Renault VW Ford Peugeot


CONTACT

INSTITUTIONAL INVESTOR RELATIONS

Mehmet A. Ağyüz, CFAInvestor 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


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.

DISCLAIMER

TOFAS Investor Presentation V2 · 6×q×iodqg×upd *hqho &odvvlilfdwlrq 3xeolf 3$*( &203$1< 29(59,(: 0dlq 6wuhqjwkv 0$,1 675(1*7+6 qg /dujhvw 5 ' &dsdelolw\ ri )&$ lq (xursh:ruog

Documents

TOFAS Investor Presentation V2 · 6×q×iodqg×upd hqho &odvvlilfdwlrq 3xeolf 3$( &203$1< 29(59,(: 0dlq 6wuhqjwkv 0$,1 675(1*7+6 qg /dujhvw 5 ' &dsdelolw\ ri )&$ lq (xursh:ruog