analyst presentation - tofaş · analyst meeting march 2008 5 domestic market ¾the domestic market...

Bursa, 28 Mach 2008

ANALYST PRESENTATION

Analyst Meeting March 2008 2

AGENDA

2007 Performance Highlights

Domestic Market & TofaşDomestic Market Sales

Exports Performance

Other Developments

Market Outlook

Market Share

Financial Results


2006 2007

000 YTLSALES REVENUES

Domestic Exports

1,753,372

1,300,788

2,036,457

1,534,689

2006 2007

CAPACITY UTILIZATION%

71,385,0

2006 2007

PRODUCTIONUNIT

178,434212,493

2006 2007

SALES

Domestic Exports

UNIT

123,214

71,473

146,224

78,201

PERFORMANCE HIGHLIGHTS – 2007

19,1% 19,2%

16.9%15,3%


PERFORMANCE HIGHLIGHTS – 2007

GROSS PROFIT

2006 2007

000 YTL

347,637415,057

NET OPERATING PROFIT

2006 2007

000 YTL

79,342

132,101

NET PROFIT

2006 2007

000 YTL

81,875

175,819

EBITDA000 YTL

2006 2007

188,253

254,351

19,4% 66,5%

114,7% 35,1%


DOMESTIC MARKET

The domestic market sales contracted by only 4% in 2007 compared to 2006, in line with Tofas prediction which was 5%

36.93246.514

44.04037.588

54.785

78.626

64.668

41.40327.915

77.471

52.446

60.04847.490

52.72546.581

50.558

48.61441.900

23.114

100.926

63.313

29.182 42.387

47.963

Jan

Feb

Mar

Apr

May Ju

n

Jul

Aug

Sep Oct

Nov

Dec

2006 2007

2006- 2007 SALES

ADET

17.212 30.126

29.067

28.46927.662

32.569

39.643

61.745

28.24625.204

24.33613.186

39.181

23.670

20.15618.919

22.089

19.244

18.48818.896

17.18317.56411.970

9.928

Jan

Feb

Mar

Apr

May Ju

n

Jul

Aug

Sep Oct

Nov

Dec

PC LCV

Monthly Retail Sales 2007

UNIT


DOMESTIC MARKET OUTLOOK

UNIT

PC LCV

451,210

247,287

2004

227,036

138,841

2003

373,216

249,220

2006

357,465

237,288

2007

+6.8%

438,165

280,165

2005 2008/E

375,000

260,000


TOFAŞ DOMESTIC MARKET SALES

Tofas Domestic Market Share increased significantly in May with the introduction of Linea, and continued to perform with higher numbers than the same period in 2006 until the end of the year. In the Domestic LCV Market Fiat Fiorino sales started in November 2007.

12,4

10,4 11,9

11,3 11,512,4

13,0 12,2

13,7

10,1

10,3

9,8

13,8

11,811,3

12,7

14,7

9,7

11,8

13,5

11,7

14,2

13,6

13,8

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

2006 2007

TOFAŞ MONTHLY MARKET SHARE 2007

%

TOFAŞ 2006- 2007 SALES

7.462

5.464 9.252

3.1464.772

8.036

10.254

6.710

5.152 4.452 4.7913.634

6.6305.007

3.290

8.040

14.828

2.238

4.9286.559

5.920 6.613 7.1786.565

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

2006 2007

UNIT


TOFAŞ DOMESTIC SALESJa

n

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

RENAULT TOFAŞ FORD TOYOTA

DOMESTIC PC MARKET SHARE *

18,1

11,0

10,6

6,5

6,0

16,5

7,8

7,6

%

* FOURTH IN 2006

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

RENAULT TOFAŞ FORD VW

DOMESTIC LCV MARKET SHARE *

32,1

20,1

10,5

9,0

26,7

14,6

12,29,0

%

* SECOND IN 2006

Jan

Feb

Mar Apr

May Jun Jul

Aug

Sep

Oct

Nov

Dec

RENAULT TOFAŞ FORD VW

DOMESTIC PC + LCV MARKET SHARE *

%

14,6

13,2

15,818,9

9,6 8,5

9,6

14,7

* THIRD IN 2006


TOFAŞ EXPORTS 2007

8,4348,434Minicargo

Unit 2006 2007 ∆Doblo Cargo 63,519 64,530 1,011

Doblo Panorama 38,731 35,388 -3,343

Linea 12,184 12,184

Albea-Palio 6,146 4,424 -1,722

Other CBU 1,810 144 -1,666

CKD 13,008 21,120 8,112

Total Units 123,214 146,224 23,010

Total Exports Revenue(EUR/ million) 969,5 1,164.4 194.9


TOFAŞ EXPORTS VOLUME

13.151

13.596

6.6728.500

10.876

9.53010.447

11.394

11,653

4,464

11.821

11.11115.082

6.279

15.025

10.660 10.515

12.222

9.724 10.91411.407

13.367 13.935

17.094

Jan

Feb

Mar

Apr

May Jun

Jul

Aug Sep

Oct

Nov Dec

2006 2007

UNIT

59.695 70.044 90.500

63.51976.180

192.500

2006 2007 2008/E

PC LCV

UNIT

Tofaş exports volume showed an increase of 18.7% in 2007 compared to the same period of 2006.


TOFAŞ SALES

8,434Minicargo

1,303Minicargo

283,000146,225123,214EXPORTS TOTAL

21,12013,008CKD + SKD

Local Sales (UNITS) 2006 2007 2008/E

Doblo Cargo 34,041 33,064

Doblo Panoroma 1.804 1,583

Linea 10,301

Albea – Palio 18,381 16,679

Other CBU 18,899 14,866

LOCAL SALES TOTAL 73,125 77,796 90,000

Exports (UNITS) 2006 2007 2008/E

Doblo Cargo 63,519 64,530

Doblo Panoroma 38,731 35,388

Linea 12,184

Albea – Palio 6,146 4,424

Other CBU 1,810 145

LOCAL + EXPORTS TOTAL 196,339 224,021 373,000


FERMAS SALES

2827Ferrari

46

19

2006UNIT 2007

Maserati 28

TOTAL 56


CAPACITY UTILIZATION AND PRODUCTION

48.29340.042

52.648

37.451

69.372

47.64552.826

42.650

Q1

Q2

Q3

Q4

2006 2007

Production Volume

77,3%64,0%

84,2%

59,9%

111,0%

76,2%84,5%68,2%

Q1

Q2

Q3

Q4

2006 2007

Capacity Utilization %

Tofaş production volume reached an all time high level of 212,493 units.

UNITS

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Production Utilization %

Capacity Expansion + 150,000 Units

46% 47% 43%51%

58%65%

71%

93 %

85%

2000 2001 2002 2003 2004 2005 2006 2007 2008 E

UNITS

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

Production Utilization %Production Utilization %

Capacity Expansion + 150,000 Units

46% 47% 43%51%

58%65%

71%

93 %

85%

2000 2001 2002 2003 2004 2005 2006 2007 2008 E


INVESTMENT EXPENDITURES

306.0

10.0

150.0

53.0

93.0

2007

EUR million

2008/E 2009/E

Capacity Expansion and other 145.0 50.0

Linea 60.0 10.0

Minicargo 45.0 5.0

263 150.0 160.0

TOTAL 400.0 225.0


TOFAŞ GROUP HUMAN RESOURCES

7,939

5,3714,3794,4304,1004,205

2002 2003 2004 2005 2006 2007

2002 - 2007 Group Total Employee Numbers


TOFAŞ GROUP HUMAN RESOURCES

926

138

170

University Graduate Other

2007 White Collar Education Level

2002 - 2007 Blue Collar

6.639

4.285

3.4833.5263.2073.318

2002

2003

2004

2005

2006

2007

Blue Collar

2002 - 2007 White collar

1.2341.032

849858844839

2002

2003

2004

2005

2006

2007

White Collar

267

207

126139131126

2002

2003

2004

2005

2006

2007

R & D

2002 - 2007 R&D


FINANCIAL RESULTS - 2007

TRY million 31.12.2006 31.12.2007 ∆Net sales 3,054.2 3,571.1 516.9

Gross Profit 347.6 415.1 67.5

Net operating profit 79.3 132.1 52.8

Income before tax 178.6 213.7 35.1

Net profit 81.9 175.8 93.9

EBITDA 188.3 254.4 66.2

% 31.12.2006 31.12.2007

EBITDA margin 6.2% 7.1%

Gross profit margin 11.4% 11.6%

Net operating margin 2.6% 3.7%

Profit before tax margin 5.8% 6.0%

Net profit margin 2.7% 4.9%



4.1%

4.9%

1.7%

9.5%

5.4%

2007 1. ÇEYREK

38.6

29.3

35.1

12.4

68.3

717.1

2007 1. ÇEYREK

4.9%

5.5%

4.6%

13.0%

7.7%

2007 2. ÇEYREK

68.9

44.1

49.2

41.0

117.1

897.9

2007 2. ÇEYREK

6.0%

7.4%

5.1%

12.4%

8.8%

2007 3. ÇEYREK

71.5

49.0

60.0

41.2

100.8

815.0

2007 3. ÇEYREK

4.7%

6.1%

3.3%

11.3%

6.6%

2007 4. ÇEYREK

75.4

53.4

69.4

37.5

128.9

1,141.1

2007 4. ÇEYREKTRY million

Net sales

Gross Profit

Net operating profit

Income before tax

Net profit

EBITDA

%

EBITDA margin

Gross profit margin

Net operating margin

Profit before tax margin

Net profit margin



∆30.12.200731.12.2006Non Current Assets

TRY million

Current Assets 31.12.2006 30.12.2007 ∆Cash and Cash Equivalents 518.4 437.9 -80.5

Inventory 157.1 284.2 127.1

Trade Receivables 505.5 686.1 180.6

Other Current Assets 80.8 64.5 -16.3

Fixed Assets 1,127.2 1,498.7 371.5

Other non current assets 29.8 204.9 175.1

Total Assets 2,418.8 3,176.3 757.5



∆31.12.200731.12.2006Long Term Liabilities

TRY million

Short Term Liabilities 31.12.2006 31.12.2007 ∆Short Term Financial Liabilities 13.0 51.0 38.0

Short Term portion of Long Term Financial Liabilities 57.9 123.8 65.9

Trade Payables 784.6 908.3 123.7

Other Short Term Liabilities 94.0 121.8 27.8

Long Term Financial Liabilities 376.5 665.0 288.5

Other Long Term Liabilites 74.8 145.3 70.5

Equity 1,018.0 1,161.1 143.1

Total Equity and Liabilities 2,418.8 3,176.3 757.5



-75.3

34.2

784.6

80.9

157.1

505.5

31.12.2006

104.5

29.8

3.7

376.5

70.9

518.4

31.12.2006

50.0104.592.067.5Other Liabilities

46.692.0-6.81.7TOTAL

681.9

110.1

195.4

442.1

31.03.2007

4.5

50.1

5.0

347.2

82.7

379.3

31.03.2007

787.4

76.8

242.8

553.0

30.06.2007

-70.9

21.2

10.4

552.5

75.0

454.0

30.06.2007

665.5

61.5

289.2

511.3

30.09.2007

-144.5

138.3

15.5

637.9

79.1

418.7

30.09.2007

908.3

34.7

284.2

686.0

31.12.2007

-167.2

204.9

29.9

665.0

174.9

437.9

31.12.2007TRY million

Net Financial Position

Cash & cash equivalents

S.T. Financial Liabilities

L.T. Financial Liabilities

S.T. Consumer Loans

L.T. Consumer Loans

TOTAL

Net Working Capital

Trade Receivables

Inventory

Other Receivables

Trade Payables


KOÇ FIAT CREDIT

In 2007;13.700 loans were given50% of total of Tofaş Sales through financing20% of total of Tofaş sales

Were sold by Koç Fiat Credit

2008 targets;25.000 loans are targetedFinancing 28% of total of Tofaş salesCreating a gap between KFK financed loans and bank financed loansCommunicating with customers registered in KFK database and creating additional sales potentialNew and additional payment alternatives


OTHER DEVELOPMENTS

Project 263

A loan agreement of EUR 450 million was signed in Geneva on March 4th, 2008 for the financing of expenditures and investments used in development and production of 263 Project. The loan carries a 10year term with two years of non payment. The total burden of theloan is all inclusive Euribor+1.275.


OTHER DEVELOPMENTS

Fiat Bravo was introduced in 29.02.2008.


OTHE DEVELOPMENTS

Fiat Fiorino Combi was introduced in 24.03.2008.


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 causeactual results to differ materially. Neither Tofas nor any of its directors, managers or employees nor any other person shall haveany liability whatsoever for any loss arising from use of this presentation.

analyst presentation - tofaş · analyst meeting march 2008 5 domestic market ¾the domestic market...

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