WEBCAST PRESENTATION
31.12.2024 Financial Results
• Key Highlights
- Production & Shipments
- Domestic Market
- Export
- Financial Performance
- Investments
- Outlook
KEY HIGHLIGHTS
PRODUCTION
Turkish Automotive Industry & Tofaş
- Turkish motor vehicle production descended by c.7% to 1.37mn units in 2024.
- Tofaş constituted 10.3% of the industry with a production of 140.5K units in 2024, down c.41% y/y.
- Tofaş 2024 production mix; PC: 75%; LCV: 25% (vs. 71% PC; 29% LCV in 2023).
SHIPMENTS Tofaş Total Shipment Units
- Total unit shipments of Tofaş declined by c.33%, reaching to 174K units in 2024.
- 4Q24 shipments contracted by c.44% y/y mainly due to lower exports from product transition with sequential recovery in export shipments.
SHIPMENTS
Tofaş Shipment Volumes by Business
• In 2024, the share of LCV business increased by 1.6pp y/y, constituting 34.6% of total business.
- Key Highlights
- Production & Shipments
- Domestic Market
- Export
- Financial Performance
- Investments
- Outlook
DOMESTIC LV MARKET
Segment Evolution
DOMESTIC LV MARKET
PC & LCV Retail Sales - Monthly
Source: ODD
- Total domestic LV market retail sales inched up c.1% y/y, reaching to 1.24mn units in 2024.
- i. Strong demand in 1Q driven by tax-exempt sales to disabled citizens, ii. pent-up demand from fleet customers and, iii. sales campaigns throughout the year resulted in sustained strength in demand two years in a row.
TOFAS DOMESTIC LV MARKET PERFORMANCE
Segment Evolution (Retail)
11
FIAT BRAND DOMESTIC LV MARKET PERFORMANCE
PC & LCV Combined Market Share
- Fiat brand maintained its domestic LV market leadership, despite 4.5pp y/y retreat in market share at 11.2% in 2024.
- The y/y slide is due to; i. high competition with increasing share of imports (+6.1pp y/y) amidst strong TRY and lessened local producer advantage due to lack of any revision in SCT brackets, ii. phaseout/phase-in of LCV production portfolio.
- Tofaş market share including premium brands slided down by 4.6pp y/y to 11.6% in 2024.
- LV market share of Stellantis brands contracted by 6.3pp y/y to 27.4% in 2024.
FIAT BRAND DOMESTIC LV MARKET PERFORMANCE
Light Commercial Vehicle Market Share
- Fiat brand maintained its 2nd position with an LCV market share of 20%, down 5.7pp y/y in 2024.
- Discontinuation of Fiorino (MCV) production at the end of 1H24 was the main driver of market share decline.
- LCV market share of Stellantis brands slided by 3.5pp y/y, reaching to 41.3% in 2024.
FIAT BRAND DOMESTIC LV MARKET PERFORMANCE
Passenger Car Market Share
EUROPEAN MARKET
PC & LCV Registrations
- European (EU+EFTA+UK) PC market climbed by c.1% y/y in 2024. On the other hand, BEV (batteryelectric) registrations dropped by c.6% y/y, accounting for c.14% of PC registrations.
- LCV registrations in European market (EU+EFTA+UK) increased by c.7% y/y in 2024, driven by positive results at all four main markets.
TOFAŞ EXPORTS Segment Evolution
- In 2024 Tofaş export volumes declined by c.45% y/y, reaching to 33.6K units.
- The main drivers were phase-out of MCV production and import vehicle ban at an export market in MENA region.
- Export-oriented K0 model production started in 4Q24 and set to ramp up in 2025.
TOFAŞ EXPORTS Export Volumes - Monthly
2022 2023 2024
TOFAŞ EXPORTS
Regional Breakdown
SHIPMENTS Tofaş Shipment Volumes by Model
| EXPORTS |
2024 |
2023 |
Δ |
| Tipo |
21.616 |
42.696 |
-21.080 |
Sedan
H/B and S/W
Cross |
14.478
145
6.993 |
25.242
16.324
1.130 |
-10.764
-16.179
5.863 |
| Scudo |
2.324 |
- |
2.324 |
RAM Promaster
MCV |
-
9.628 |
1.773
16.010 |
-1.773
-6.382 |
| Others |
- |
13 |
-13 |
| TOTAL |
33.568 |
60.492 |
-26.924 |
| DOMESTIC |
2024 |
2023 |
Δ |
| Egea |
83.280 |
125.054 |
-41.764 |
Sedan
H/B and S/W
Cross |
57.610 |
80.850
405
43.798 |
-23.240 |
| Doblo |
13.836 |
15.448 |
-1.612 |
| Fiorino |
25.152 |
42.242 |
-17.090 |
Imported
Vehicles |
17.958 |
18.019 |
-61 |
| TOTAL |
140.226 |
200.763 |
-60.637 |
TOTAL
SHIPMENTS |
173.794 |
261.255 |
-87.461 |
- Key Highlights
- Production & Shipments
- Domestic Market
- Export
- Financial Performance
- Investments
- Outlook
FINANCIAL PERFORMANCE
Financial Highlights
FINANCIAL PERFORMANCE
Income Statement
| mn TL |
2024 |
2023 |
Δ |
| Net Sales |
120,267 |
184,229 |
-34,7% |
Gross
Profit |
13,372 |
33,437 |
-60,0% |
| Operating Profit |
3,081 |
22,709 |
-86,4% |
| EBITDA |
9,493 |
28,395 |
-66,6% |
Profit Before
Tax |
4,890 |
26,460 |
-81,5% |
| Net Profit |
5,221 |
21,777 |
-76,0% |
Gross
Margin
% |
11.1 |
18.1 |
-7,0pp |
Operating Margin
% |
2.6 |
12.3 |
-9,8pp |
EBITDA Margin
% |
7.9 |
15.4 |
-7,5pp |
PBT Margin
% |
4.1 |
14.4 |
-10,3pp |
Net Margin
% |
4.3 |
11.8 |
-7,5pp |
FINANCIAL PERFORMANCE
Balance Sheet - Assets & Liabilities (mn TL)
Current
Assets |
31.12.24 |
31.12.23 |
Δ |
Current
Liabilities |
31.12.24 |
31.12.23 |
Δ |
| Cash and Cash Equivalents |
19.797 |
35.887 |
-16,090 |
Short-term Fin.
Liabilities |
- |
1.011 |
-1.011 |
| Inventory |
8.701 |
14.022 |
-5,706 |
S.T. Portion of L.T. Financial
Liabilities |
10.937 |
8.718 |
2.315 |
| Trade Receivables |
20.885 |
26.591 |
-5,321 |
|
|
|
|
S.T. Consumer Financing
Loans |
12.269 |
10.254 |
2,016 |
Trade Payables |
11.342 |
34.017 |
-22.675 |
| Other Current Assets |
1,063 |
600 |
463 |
Other Current Liabilities |
4.237 |
7.604 |
-3.367 |
Non-Current
Assets |
31.12.24 |
31.12.23 |
Δ |
Non-Current
Liabilities |
31.12.24 |
31.12.23 |
Δ |
| Fixed Assets |
14.484 |
12.728 |
1.756 |
Long-term Financial Liabilities |
16.964 |
7.353 |
9.611 |
| Intangible Assets |
4.163 |
6.154 |
-1.991 |
Other Long-term Liabilities |
1.078 |
1.630 |
-552 |
L.T. Cons.
Fin.
Loans |
4.612 |
3.671 |
941 |
|
|
|
|
| Other Non-current Assets |
5.684 |
3.671 |
2.013 |
Shareholders' Equity |
47.102 |
53.246 |
-6.145 |
| Total Assets |
91.660 |
113.579 |
-21.919 |
Total
Equity
&
Liabilities |
91.660 |
113.579 |
-21.919 |
- Key Highlights
- Production & Shipments
- Domestic Market
- Export
- Financial Performance
- Investments
- Outlook
INVESTMENTS (mn EUR)
|
2024 |
2023 |
2022 |
2021 |
| Structural |
16 |
18 |
12 |
10 |
| Minicargo |
1 |
2 |
2 |
11 |
| K0 |
105 |
8 |
n/a |
n/a |
| Egea/Tipo Sedan, HB & SW |
17 |
20 |
29 |
62 |
| TOTAL |
138 |
49 |
46 |
100 |
- Key Highlights
- Production & Shipments
- Domestic Market
- Export
- Financial Performance
- Investments
- Outlook
|
2024A |
2025E |
Domestic
Light
Vehicle
Market (PC+LCV) |
1.24mn units |
0.9–1.1mn units |
Tofaş Domestic
Retail
Sales |
143.7K units |
110K -
130K units |
Export
Shipments |
33.6K units |
70K -
90K units |
Production
Volume |
140.5K units |
150K –
170K units |
| Investments |
€138M |
€150M |
| PBT Margin |
4.1% |
>5% |
SUSTAINABILITY
- In November 2023, we published our 2022 Sustainability report, which provides insights about performance, strategy and progress in environmental, social and governance areas of Tofas. https://www.tofas.com.tr/Documents/2022-%C4%B1ntegrated-report-en.pdf
- ESG score of Tofas stands at 82, with a ranking position of 13th out of 290 auto/auto parts companies globally.
| Environment |
79 |
| Emissions |
87 |
| Resource use |
93 |
| Innovation |
68 |
| Social |
90 |
| Human rights |
90 |
| Product responsibility |
83 |
| Workforce |
92 |
| Community |
93 |
| Governance |
72 |
| Management |
78 |
| Shareholders |
68 |
| CSR Strategy |
45 |
|
|
- Key Highlights
- Production & Shipments
- Domestic Market
- Export
- Financial Performance
- Investments
- Outlook
SIGNING OF NEW MANUFACTURING CONTRACT
- Within the scope of Heads of Agreement on March 1st , 2023; Tofaş has signed a manufacturing agreement with Stellantis Europe granting us the right to produce in Turkey the new vehicle model "K0"'s light commercial vehicle and "combi" versions in multi-energy platforms for Stellantis brands (FIAT, Opel, Citroën, Peugeot).
- An investment of 232 million Euro (c.250 million USD) is estimated for the project with the major portion of Capex to be realized in 2024. The production will be between 2024-2032.
- The distribution right of these vehicles produced for FIAT brand in Turkey is granted to Tofas. The distribution right of other Stellantis brands (Opel, Citroen, Peugeot) in Turkey will be transferred to Tofaş if the acquisition of Stellantis Otomotiv is executed.
HEADS of AGREEMENT with STELLANTIS
- According to Heads of Agreement, Tofas will purchase 100% of Stellantis Turkiye Otomotiv shares from Stellantis for EUR400mn in cash; subject to cash/working capital closing adjustment and regulatory approval.
-
Commercial activities for all Stellantis brands in Türkiye will be consolidated under Tofaş.
-
Stellantis will allocate a production of the "K0" model to Tofaş.
-
The model is a mid-sized LCV, planned for multiple brands, with target commercial launch of 2025.
-
Fiat Egea/Tipo contract will be extended until the end of 2025.
- Production of Fiorino model will end on 31 December 2024.
- The collaboration is expected to yield notable synergies in terms of new business opportunities as well as costs.
STELLANTIS EV Strategy of Stellantis
*Forecasted LEV mix on total Stellantis passenger car and light-duty truck sales
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