Ford Otosan Company Presentation

Company Presentation
April 2015
About Ford Otosan
Page 2
Company Profile
Key Performance Indicators, 2014
Revenues
$5.5 billion
Export Revenues
$3.5 billion
EBITDA
$387 million
Profit Before Tax
$179 million
Net Profit*
$272 million
ROE
Ford Motor Co.
41.04%
Ford Otosan
Koç Group
41.04%
21.6%
EBITDA margin
Free Float
7.1%
17.92%
Annual Production Capacity
415,000
Gölcük
290,000
Yeniköy
110,000
İnönü
15,000
Paid-in Capital: TL 350,910,000
9,762
Traded on Borsa Istanbul since 13 January 1986
Blue Collar
7,192
Ticker: FROTO.IS
White Collar
2,570
Total Employees
* Net profit is higher than profit before tax due to the establishment of a deffered tax asset in line with the investment incentives granted by the government.
Page 3
Ford Otosan at a Glance
Pioneer of Turkish
•
First Turkish passenger car Anadol (1966)
automotive
•
Turkey’s first domestic diesel engine Erk (1986)
•
Turkey’s first private R&D center in automotive (1961)
•
First export of Turkish automotive to the US (2009)
Strong value
•
Export leader in Turkish automotive; 2nd largest exporter overall
contribution
•
Turkey’s 2nd largest industrial enterprise
•
Highest installed production capacity and employment in Turkish automotive
Leadership and
•
12 consecutive years of industry leadership (2002-2013)
scale
•
Widest product range in Turkish automotive
21% of Turkey’s total
56% of Turkey’s total
62% of Turkey’s total
automotive production
commercial vehicle production
commercial vehicle exports
Page 4
Key Player in Ford Motor Company Universe
Robust sales
• Highest commercial vehicle market share of Ford in Europe
performance
• Ford’s 5th biggest market in Europe (UK, Germany, Italy, France, Turkey)
Leading
manufacturing hub
• Lead manufacturing plant of Ford Transit globally
• Single source of Ford Transit Custom & Tourneo Custom
• Single source of Ford Transit Courier & Tourneo Courier
• One of the two production centers globally for Ford Cargo heavy trucks
Engineering and
R&D power
• Global engineering lead for Cargo heavy trucks and related powertrains
• Global support for diesel powertrain engineering
• Global support for light commercial vehicle development
• Listed among the world’s top 1500 companies by R&D investment
(EU R&D Investment Scoreboard)
Page 5
Brief History
Fi rs t automotive
production starts i n
Turkey under
l i cense agreements
i n a heavily
protected domestic
economy.
First Years
1928 – Vehbi Koç is
assigned as Ankara
Ford dealer
1959 – Otosan is
founded as Ford
assembler in Turkey
1960 – Otosan’s first
production: Ford
Consul
1966 – Otosan
produces the first
Turkish car Anadol
Turkey ta kes first
s teps to l iberalize
i ts economy a nd
i ntegrate with the
res t of the world.
1980s
1982 – İnönü Plant
opens
1983 – Cargo
production starts
1983- Ford Motor Co.
increases its share in
Otosan to 30%
1985 – Production of
Ford Taunus
1986 – Otosan
produces Turkey’s
first diesel engine ERK
Cus toms Union is
s i gned with the EU
i n 1996. Exports
s ta rt to i ncrease.
Incentives a re
i ntroduced for
production in
Turkey.
1990s
Turkey becomes a major
hub i n automotive
production and moves up
the va l ue chain, from a n
a s sembly center to full
product development and
ma nufacturing with
focus on R&D.
2000-2010
1992 – Production of
the new generation
Transit
2001 – Gölcük Plant opens
1993 - Production of
Ford Escort
2003 – New Cargo launches
1997 – Ford assumes
41% equity in ‘Ford
Otosan’
1998 – Ford Otosan
spare parts
distribution center
opens
2002 – Transit Connect launches
2003 – Transit Connect
‘International Van of the Year’
2007 – Gebze Engineering
Center opens
2007 – Transit
‘International Van of the Year’
2009 – First vehicle export to NA
2010 – Ford Otosan’s 50 th
Anniversary
1967 – Otosan
produces its first
Transit
2010 – Transit Connect
‘N.A. Truck of the Year’
Page 6
Turkey i s the 17th
l a rgest auto
ma nufacturing hub
i n the world and 7th
l a rgest among EU
countri es.
2010+
2011 – Transit Connect
NYC Taxi launches
2012- Launch of Ford
Custom
2013 – Ford Otosan’s
12 th year of market
leadership
2013 & 2014- JMC
Truck Technology
Licensing Agreement
2014 – Yeniköy Plant
opens
2014 – Launch of new
Ford Transit and Ford
Courier
Plants and Facilities
Page 7
Locations
Sancaktepe Parts Distribution Center (1998)
Sancaktepe Engineering Center (2015)
s
Kocaeli Plants: Gölcük Plant: Transit (2001), Custom (2012)
Page 8
Yeniköy Plant: Courier (2014)
İnönü Plant (1982)
Gölcük Plant - Lead manufacturing plant of the new generation Transit
Yeniköy Plant
Assembly Shop
Paint Shop
Body Shop
Opened in 2001
Ford Transit and Ford Custom production
1,600,000 m2 total area; 340,000 m2 covered area
290k units annual production capacity (160k Transit & 130k Custom)
Page 9
Tool & Die
Press Shop
Yeniköy Plant - The single production center of Ford Courier in the world
New production facility at Gölcük plant site for Ford Courier
110k annual production capacity; 70,000 m2 covered area
Production of Ford Courier started in March 2014.
Official opening ceremony took place on May 22nd, 2014
Environment and disabled-friendly plant
Page 10
İnönü Plant - One of the two global production centers for Ford Cargo
Opened in 1982
Cargo heavy truck, powertrain and engine production:
-
7.3L / 9.0L I6 Diesel engines for Cargo heavy truck
-
2.2L 4-cyl. Duratorq TDCI engines for Transit
15k units truck (2014-end), 66k units engine, 140k units powertrain production capacity; 79,000 m2 covered area
Page 11
Sancaktepe Parts Distribution Center - 96% Fill rate
Opened in 1998
25,000 m2 warehouse: Largest of its kind in Turkey
4th largest warehouse capacity among Ford’s parts distribution centers in Europe
Home to the Company’s spare parts, marketing, sales and after sales operations
Page 12
Sancaktepe Engineering Center – Turkey’s largest R&D Center
Center of Excellence for heavy trucks and heavy duty diesel powertrain for large trucks
Global engineering lead for Ford Cargo heavy trucks and related powertrains
Global support for diesel powertrain engineering
Global support for light commercial vehicle development (B- & C-car derived Integrated Style Vans)
Page 13
Products
Page 14
Ford Transit
Longest-running model in Ford of Europe’s product range
Over 7 million units produced globally since its launch in 1965
Manufactured by Ford Otosan since 1967
Ford Otosan is the lead manufacturing plant of Transit globally
160k units annual production capacity
All-New Transit launched in March 2014
>450 different model variants
Chassis Cab
Loading Capacity:
3.3 tons – 4.7 tons
Van
2001
2007
Minibus
Loading Capacity:
9.5m 3 - 15.1 m 3
Market share details available on page 47
Page 15
Seating Capacity:
11+1 / 17+1
Ford Custom
Ford Otosan is the single global source of Ford Custom
Launched in October 2012
130k units annual production capacity
"International Van of the Year" 2013
First vehicle in its segment to achieve a maximum five-star Euro NCAP rating
Tourneo Custom (People Mover)
Long and Short Chassis
8+1 Seating Capacity
4.97m – 5.34 m
Transit Custom (Commercial)
Loading Capacity:
5.9 m 3 - 7.2 m 3
Loading Capacity:
6.8 m 3 - 8.3 m 3
Market share details available on page 47
Page 16
Ford Courier
Based on Ford’s global B-segment platform, Courier is Ford’s first vehicle in the compact van segment.
Courier is the smallest member of the all-new Transit range with an overall length of 4.16 metres.
Ford Otosan is the single global source of Ford Courier
Production started in March 2014
Launched in May 2014
110k units annual production capacity
Tourneo Courier
(People mover)
Transit Courier Combi Van
(Commercial)
Market share details available on page 47
Page 17
Transit Courier Van
(Commercial)
Ford Trucks
Manufactured at Ford Otosan’s İnönü Plant since 1983
Road truck, construction and trailer series
Cargo 1846T – 2013 International Truck of the Year 3rd place
Market share details available on page 47
Page 18
A Full Line of Cars
Page 19
Major Product Acceleration
2014
Connect
Courier
Focus
Transit
2015
Galaxy
Mondeo
C-Max
2016
EcoSport
Edge
Page 20
Mustang
Ford Otosan’s Value Proposition
• Domestic industry leader for 12 consecutive years (2002-2013)
Scale & growth
• Largest manufacturer and exporter of commercial vehicles in Turkey
• Increased capacityand fully revamped products to grow volumes and profitability
• Technology licensing agreements delivering royalty fees with strong growth potential
Resilience &
efficiency
• Large-scale export program; best proxy to European recovery
• High capacity utilization: Above European and Turkish industry average
• Efficient, flexible and low-cost manufacturing and engineering competency
Strong balance
sheet & prudent
risk management
• Strong cash generation capacity
• Solid financial performance
• Natural hedge of fx-payables due to fx-denominated export revenues
Shareholder
value creation
• Sustainable dividend policy
• Strong relative share performance
• Commitment to good corporate governance
Page 21
Turkey’s Export Leader in Automotive
US$ 3.5 billion export revenues in 2014
Exports (000 units)
222
219
213
185
227
205
177
164
141
Turkey’s export leader in automotive for
192
4 consecutive years
129
US$ 2.0 billion net exporter in the last
75
five years (2010-2014)
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Vehicles and spare parts exported to
73 countries in 5 continents
Export Revenues (US$ Bn)
62% of Turkey’s total commercial vehicle
exports is done by Ford Otosan
3.8
3.8
3.5
3.4
3.5
3.3
Export receivables are easy to manage as
2.6
2.4
2.1
2.1
Ford of Europe is the single counterparty
1.8
1.0
Export receivables from Ford Motor Company
and its subsidiaries are collected within average
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Page 22
14 days
Export Performance
Courier 10%
European com m ercial vehicle m arket (Up to 3.5 tons)
In January, the European market grew for the 17th consecutive month.
Van segment grew by 7.4% yoy. (w ww.acea.be)
2014
export units
Transit
32.5%
Custom 57%
Cargo 0.5%
62%
Nov
‘14
Dec
‘14
FY14
Jan
‘15
UK
17.1%
26.6%
18.7%
21.7%
Germany
-8.6%
15%
7.3%
1.4%
Italy
8.3%
3.2%
16.4%
2.4%
Spain
14.6%
37.9%
33.2%
31.2%
France
-0.9%
7.2%
1.5%
-8.6%
Total
4.8%
13.4%
10.7%
7.4%
Ford’s com m ercial vehicle sales in Europe
Ford’s commercial vehicle sales increased 40% in February and
36% ytd.
Ford w as Europe’s No. 2 commercial vehicle brand in February and
ytd. 12.5% ytd market share w as the best in almost tw o decades.
Ford Otosan’s share in
Turkey’s CV exports, 2014
Page 23
Supplier Footprint (Global Supply)
Cargo Import Parts Procured Directly From All Continents
Transit & Courier Import Parts Mostly Procured Through Ford
Page 24
Highest Production Capacity in Turkish Automotive
Old: 330,000 (pre-investments)
New: 415,000 (2014)
Page 25
Technology Licensing & Engineering Agreements
The agreements w ith JMC have a 12-year term, starting w ith 2016 model year, to be extended every 3-years.
Ford Otosan w ill be generating royalty fees w ith strong long-term grow th potential.
Ecotorq engines
Signed on April 24th, 2013.
JMC branded vehicles manufactured in China using these engines and
the licensed products w ill be sold in China and the export markets as
agreed by the parties.
A license fee of €150 - €190 w ill be charged per product. €1 million
license fee w as collected as advance payment in 2013.
Chassis, cab and com ponents of Ford heavy trucks
Signed on July 25th, 2014.
The products and JMC branded vehicles containing these products w ill
be sold in China.
Ford Otosan w ill receive an advance license fee of €8 million. An
average license fee of €390 per Chassis and €39 per cab w ill be
charged.
Page 26
Large Distribution Network
Ford Otosan provides maintenance, servicing and repairs
through its customer-focused and innovative sales and aftersales network that spans the whole country.
Page 27
Sales:
After-Sales:
Total Dealers:
140
153
194
Efficient Production Hub
400
Ford Otosan Kocaeli Plants (Gölcük & Yeniköy)
320
320
320
320
320
320
300
250
200
140
200
140
40
Year-end Capacity ('000 units)
Kocaeli Plants (Gölcük&Yeniköy) CUR
Turkey Industry CUR*
2001
40
2002
140
2003
140
2004
200
2005
200
2006
250
2007
300
2008
320
2009
320
2010
320
2011
320
2012
320
2013
320
2014
400
45%
29%
34%
35%
80%
52%
100%
73%
117%
76%
100%
81%
93%
86%
82%
77%
54%
57%
74%
72%
90%
76%
83%
68%
86%
73%
59%
70%
*Source: Automotive Manufacturers’ Association (www.osd.org.tr )
Page 28
R&D Focused on Excellence
The largest R&D center in Turkey
Capability and infrastructure to design, develop and test a complete vehicle end-to-end, including its engine and
engine systems
Sancaktepe R&D Center
Gölcük R&D Center
İnönü PD
Located in Gölcük
1,153 R&D engineers
57 R&D engineers
140 R&D engineers
Center of Excellence for heavy trucks and
heavy duty diesel pow ertrains for large
trucks
Prototype engine manufacturing
and testing
Design studio, CAVE lab, vehicle and
engine HIL labs
The only facility to test extra heavy
engines over 13L in Turkey
Engine testing, vehicle testing and
development w orkshops
R&D Engineers
Patent Applications
1240 1277
1350
110
1024
73
814
464
205
227
299
303
558
50
570
38
80
63
57
50
39
29
307
12
3
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Page 29
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Operating & Financial Performance
Page 30
Turkish Automotive Industry (000 units)
SCT
increase
(-)
SCT
increase
(-)
907
741
SCT
incentiv es
(+)
Global
f inancial
crisis (-)
766
668
885
812
792
803
633
574
524
Turkish
f inancial
crisis (-)
203
HCV
MCV
LCV
PC
Total
393
177
2001
12
34
2002
18
35
2003
34
68
2004
30
133
2005
34
143
2006
34
129
2007
27
119
2008
31
91
2009
17
63
2010
31
85
2011
42
102
2012
35
91
2013
28
85
2014
31
85
19
138
29
95
63
227
115
451
138
439
120
373
118
357
97
305
124
370
166
510
169
594
130
556
103
665
96
587
203
177
393
741
766
668
633
524
574
792
907
812
885
803
Page 31
Turkish Market Shares (February’15 YTD)
Total Industry
Passenger Cars
17.5%
16.2%
13.0%
13.8%
11.1%
10.2%
8.0%
7.1%
6.3%
5.7%
VW
Ford
Fiat
Light Commercial Vehicles
Renault
Hyundai
VW
Renault
Medium Commercial Vehicles
Hyundai
Fiat
Ford
Heav y Trucks
33.9%
38.1%
47.3%
29.1%
21.0%
11.2%
Fiat
Ford*
* Courier and Connect
VW
7.7%
29.9%
7.7%
6.5%
Citroen Peugeot
Ford**
VW
Fiat
** Transit and Custom
Page 32
6.9%
6.2%
Mercedes Mitsubishi
9.4%
Mercedes
Ford
Scania
4.0%
MAN
3.7%
Iveco
Source: ODD and TAID
Wholesale Volume – Domestic & Export (000 units)
354
325
295
316
303
294
298
341
283
255
214
Domestic
Export
Share of Exports
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
114
141
55%
131
164
56%
113
185
62%
103
222
68%
76
218
74%
85
129
60%
127
176
58%
141
213
60%
112
205
65%
114
227
67%
91
192
68%
Page 33
2015 Guidance
Turkish Industry Volume
Tı
895K
Ford Otosan Retail Sales Volume
119K
Exports
232K
Wholesale Volume
351K
Production Volume
305K
Capex (fixed assets)
US$230 mn
Guidance updated in February 2015. According to the Capital Markets Board, companies are allowed to prov ide guidance 4 times a
y ear. Our next update will be announced as part of 1Q15 f inancial results..
Page 34