Tofas Türk Otomobil Fabrikasi Anonim Sirketi : 09.2023 Analyst Presentations

WEBCAST PRESENTATION

30.09.2023 Financial Results

1

AGENDA

• Key Highlights
• Production & Shipments
• Domestic Market
• Export
• Financial Performance
• Investments
• Outlook

2

KEY HIGHLIGHTS

• i. Good performance in domestic market, ii. higher local mix, iii. increasing financial income led to 171% y/y growth in profit before tax (PBT) and 7.8pp y/y expansion in PBT margin in 9M23.
• Fiat brand sustained its distant domestic light vehicle market leadership with a market share of 16.6% (down 2pp y/y) in 9M23. Production constraints related to refurbishment of production lines and better availability of imported vehicles impacted market share; which we expect to recover in 4Q.
• Fiat brand maintained passenger car (PC) market leadership with 14.6% market share in 9M23 (down 1.6pp y/y). Egea model had sustained local market leadership eight years in a row while Alfa Romeo and Maserati shipments surged six-foldand three-fold,respectively.
• Lower export volumes due the expiry of Doblo contract during transition period; penetration into new markets provides support to export shipments.
• Finalized the share purchase agreement of Stellantis Otomotiv for consolidation of commercial acitivities in local market. Regulatory approval process remains on track with the consolidation expected in 1Q24.
• The preliminary works for K0 model has started at the plant while the finalization of official contract remain in progress.

3

AGENDA

•Key Highlights

•Production & Shipments

•Domestic Market

•Export

•Financial Performance

•Investments

•Outlook

4

PRODUCTION

Turkish Automotive Industry & Tofaş

Turkish Automotive Production

Tofaş Production

19.7%18.1%17.9%	18.2%19.4%19.5%
16.1%			16.6% 16.8%	16.2%
1,276K			1,353K
		1,074K
922K		962K
	735K
640K	649K
303K			367K

					-6%
		-25%			187K 174K
68K	77K	61K	62K	51K
3Q22	4Q22	1Q23	2Q23	3Q23	9M22 9M23

Source: OSD

Turkey Tofaş %

• Turkish motor vehicle production ascended by c.12% to 1.07mn units in 9M23.
• Tofaş constituted 16.2% of the industry with a production of 174K units in 9M23, down c.6% y/y.
• Tofaş 9M23 production mix; PC: 72%; LCV: 28% vs. 52% PC; 48% LCV in 9M22.

5

SHIPMENTS

Tofaş Total Shipment Units

								+2%
			-10%				186K		190K
		Dom.: +20%
		Exp.: -48%					42K
							87K
	84K				67K
65K	34K		64K	58K			147K
	13K	14K
29K			15K	99K
36K	50K		50K	53K	43K
3Q22	4Q22		1Q23	2Q23	3Q23	9M22		9M23

Domestic Export

• Total unit shipments of Tofaş ascended by c.2% in 9M23, reaching to 190K units.
• Strong local shipments (+49% y/y) was offset by lower export volumes (-69% y/y), mainly stemming from cessation of Doblo production.

6

SHIPMENTS

Tofaş Shipment Volumes by Business

				59.6K
44.7K		13.9K		31.3%
30.4%		32.8%
DOMESTIC	+	EXPORT	=	TOTAL
102.5K			28.5K
		67.2%	131.0K
69.6%
			68.7%

PC		LCV		PC		LCV		PC		LCV

• In 9M23, the most notable change in shipment mix was observed in export business with 35.8pp y/y decline in LCV mix, corresponding to c.33% of export business.

7

AGENDA

•Key Highlights

•Production & Shipments

•Domestic Market

•Export

•Financial Performance

•Investments

•Outlook

8

DOMESTIC LV MARKET

Segment Evolution

	3Q23 Domestic LV Market
	TOTAL: 301.2K (+85% y/y)
	PC: 236.5K (+96% y/y)
	LCV: 64.7K (+55% y/y)
666.9K	2Q23 Domestic LV Market
	TOTAL: 320.4(+56% y/y)
	PC: 255.0K (+58% y/y)
434.8K	LCV: 65.4K (+47% y/y)
399.2K
67%
			190.7K
	123.3K	121.3K
0		57%
Passenger Cars	Light Commercial Vehicles
Source: OSD	9M21	9M22	9M23

857.6K

558.1K

520.5K

65%

Total

9

DOMESTIC LV MARKET

PC & LCV Retail Sales - Monthly

96.4K

103.9K

97.7K

111.4K

111.4K

112.5K

92.0K

96.8K

115.2K

58.5K

81.1K

64.3K

61.5K

60.0K

65.2K

79.8K

80.7K

58.5K

62.1K

65.2K

60.2K

82.3K

62.2K

43.7K

38.1K

50.9K

49.7K

54.7K

47.8K

52.2K

48.3K

57.1K

56.7K

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

2021 2022 2023

Source: ODD

• Total domestic LV market retail sales surged by c.65% y/y, reaching to 857.6k units in 9M23.
• LV sales slightly retreated q/q mainly attributable to lower demand for investment purposes on the back of implementation of more orthodox policies by new economy management, resulting in higher deposit rates and less credit availability for consumption.

10