INVESTOR PRESENTATION. February 2011

Transcription

1 INVESTOR PRESENTATION February 2011

2 Agenda Ford Otosan Overview Turkish Automotive Industry Overview Competitive Advantages Key Operating Data ISE Performance 2

3 Investor Presentation February 2011 FORD OTOSAN OVERVIEW

4 Company Overview Mfg. & Assy. Facilities Parts Distribution Engineering Facility Blue Collar Employees White Collar Employees Ownership Kocaeli Assembly Inonu Powertrain and Cargo Assembly Kartal Gebze 6,630+ 1, % Ford Motor Company 41% Koc Holding 18% Publicly-owned 2009 Net Sales Market Cap (as of Jan. 31, 2011) $ 3.7 Billion $ 2.9 Billion 4

5 A Brief History 1928 Vehbi Koc assigned as Ankara Ford dealer 1959 Otosan founded as Ford assembler in Turkey 1966 First passenger car (Anadol) production in Turkey 1967 Production of Transit minibus launched 1975 Transit van and pick-up added to range 1977 License agreement with Ford signed 1982 İnönü plant launched truck and engines 1983 Ford assumes 11% ownership in Otosan 1987 Ford increases ownership to 30% 1994 Ford Escort production launch 1997 Ford assumes 41% equity in Ford Otosan 2001 Kocaeli plant launched with Transit production 2002 Transit Connect production launched 2003 New Heavy Truck introduced 2004 Transit export launch 2006 New Transit launch 2007 Gebze Engineering Centre opened 2010 Ford Otosan celebrated its 50th Year Anniversary 5

6 Achievements 3 rd biggest Turkish exporter company in 2010 Domestic Market Leader for the 9 th consecutive year As of year-end, market share improvement in domestic industry Truck of the Year Award in North America One of the most profitable and highest dividend paying companies in Đstanbul Stock Exchange Şehabettin Bilgisu Environment Award (Kocaeli Chamber of Industry, 2010) Chairman s Leadership Award for Diversity, 2010 ( Let s Remove Barriers project) Environmental Leadership Award (Sludge drying unit at wastewater treatment plant) 6

7 Plant Locations İnönü Plant Parts Distribution Center 1998 Kocaeli Plant

8 Plants Kocaeli Plant Best Ford Brand Assembly Plant in Europe (*) since 2002 Transit & Transit Connect production Sea front location, integrated pier/terminal covering exports & BU imports 320,000 units annual production capacity ISO 9001 ISO İnönü Plant Best Ford Powerplant Plant Worldwide (*) since 2005 Heavy truck, engine and powertrain production Annual capacity - 10,000 trucks - 55,000 powertrains ISO 9001 ISO (*) Ford Production System Ratings 8

9 Facilities Kartal Parts Distribution Centre Marketing, Sales, Parts Operations, Warranty, Field Operations, Dealer Training and Customer Relations Center are located at this site Gebze Engineering Facility Engineering services for Ford Otosan and Ford of Europe s Product Development Centres 460+ Engineers Capacity Located in a Technopark Area and Free Zone near İstanbul 9

10 Transit Domestic Market Leader in 2010: 36.9% market share 123K units exported in 2010 International Van of the Year 2007 Award 10

11 Transit Connect Domestic Market Share in 2010: 19.5% 52K units exported in 2010 Exports to North America 11

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13 Cargo Domestic Market Share in 2010: 18.3% Exported to various markets 13

14 A Full Line of Cars 2 nd in the Domestic Market in 2010: 10.8% market share 14

15 Investor Presentation February 2011 TURKISH AUTOMOTIVE INDUSTRY OVERVIEW

16 Domestic Automotive Industry M 2010 / 1M 2011 Automotive Industry Automotive Industry (000) Units (000) Units % Ford Otosan Domestic Sales % M M M M 2011 Car Medium Commercial Vehicle Light Commercial Vehicle Heavy Commercial Vehicle Car Medium Commercial Vehicle Light Commercial Vehicle Heavy Commercial Vehicle 16

17 2011 Outlook 2011 Market Outlook (000) Units % Ford Otosan Domestic Sales Market Share Forecast for 2011 FY 15.3 % % F F Ford Otosan Others Car Medium Commercial Vehicle Light Commercial Vehicle Heavy Commercial Vehicle 17

18 Ford Otosan Market Share 20% 16% 12% 8% 4% Escort 4.0% 7.2% 5.0% 9.4% 9.6% 11.2% 9.6% Transit Connect 11.9% 11.3% Focus 15.3% 13.7% Transit 17.0% 15.5% 17.1% Jumbo New Cargo 16.8% 15.1% 14.7% 15.6% 15.3% 0% VE 83 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11F 18

19 Market Shares January YTD FY Market Rank Market Rank Share Share Total Automotive Industry 15.5% % 1 Passenger Car 10.4% % 2 LCV 19.8% % 2 MCV 32.3% % 1 Heavy Truck 23.9% % 2 19

20 Market Share in Total Automotive Industry January YTD % 13.6% FORD OTOSAN 45.9% Market Share 11.1% 13.9% 0.3 Pts. YoY Ford Fiat Renault VW Others 20

21 Market Shares January YTD 2011 Passenger Car Light Commercial Vehicle 8.3% 17.6% 10.4% 12.0% 43.7% 19.8% 8.1% 51.7% 17.3% 11.1% Hyundai Renault Ford VW Others Fiat Ford Citroen VW Others 2.7 Pts. YoY 8.0 Pts. YoY 21

22 Market Shares January YTD 2011 Medium Commercial Vehicle Heavy Truck 32.3% 7.6% 11.0% 23.3% 9.7% 23.9% 8.2% 40.9% 43.1% Ford Mitsubishi VW Mercedes Others Mercedes BMC Ford Others 0.5 Pts. YoY 7.9 Pts. YoY 22

23 Taxes on Vehicles Passenger Cars Commercial Vehicles Engine Size Model VAT* SCT** TOTAL Engine Size Model VAT* SCT** TOTAL <1600 cm 3 Fiesta Fusion Focus C-Max Mondeo(1.6) 18% 37% 62% <3000 cm 3 Transit Van Connect Van Ranger 18% 4% 23% >2000 Mondeo(2.0) * VAT: Value Added Tax 18% 18% ** SCT: Special Consumption Tax 60% 84% 89% 117% Truck Minibus Transit Combi Connect Combi 18% 18% 9% 10% 29% 30% Cargo 18% 4% 23% Commercial Vehicles are Taxed Lower than Cars 23

24 Investor Presentation February 2011 COMPETITIVE ADVANTAGES

25 Competitive Advantages Large - Scale Export Program Strong & Committed JV Partner Support Strong Distribution Network Low Cost, Flexible Manufacturing Commercial Vehicle Product Development and Engineering Capabilities Experienced and Skilled Workforce Strong Corporate Governance Activities 25

26 Large-Scale Export Program Export Volume (000 Units) Export Revenue (US$ Billion) Transit Connect Transit Cargo & Other Export Revenue (US$ Billion) Less Dependent on Domestic Market Economies of Scale 26

27 Strong & Committed JV Partner Support Technological capability Strong and widespread position in the local market Know-How Turkey s largest and most reputable group 27

28 Strong Distribution Network Sales: 116 After-Sales: 192 Total Dealer:

29 Kocaeli Plant Capacity Utilisation Rate Year-end Capacity (000 Units) % % % 112% % % 80% 75% 54% 120% 100% 80% 60% 40% Capacity Utilisation Rate F 20% Year-end Capacity Capacity Utilisation Rate 29

30 Commercial Vehicle Product Development and Engineering Capabilities Gebze Engineering Facility in Turkey Ford Otosan is integrated into Ford s global PD organisation This facility underlines Ford s commitment to Turkey as an excellent environment for business and a rich source of well-educated engineering talent Ford Otosan s PD operations have further planned expansion 30

31 Experienced and Skilled Workforce BLUE COLLAR WHITE COLLAR Vocational College 16 % University 1 % Primary & Secondary School 8 % High school 15 % Others 8 % Ph.D. 1 % M.Sc. 28 % Technical High school 60 % B.Sc. - B.A. 63 % 31

32 Strong Corporate Governance Transparent Investor Relations Meets Capital Market Board Governance Rules Corporate Disclosure Policy Executive and Audit Committees 32

33 Investor Presentation February 2011 KEY OPERATING DATA

34 Production Volume 400 (000) Units % F Light Commercial Vehicle Medium Commercial Vehicle Heavy Truck 34

35 Wholesales Volume Domestic / Export 400 (000) Units % F Domestic Export 35

36 Revenue Domestic / Export 8,000 US$ Million 6,000 4,000 2, ,208 4,516 4,640 4,844 4,142 62% 3,702 3,455 47% 55% 69% 47% 2,109 57% 57% 46% 53% 53% 45% 38% 54% 31% 43% 43% M Domestic Export 36

37 EBITDA and EBITDA Margin EBITDA (US$ Million) % 13.2% % 11.1% % 10.1% 10.1% % 12% 9% 6% 3% EBITDA Margin 0 0% M EBITDA EBITDA Margin 37

38 Operating Profit and Operating Margin Operating Profit (US$ Million) % 8.9% 8.7% % % % 7.5% % 8% 6% 4% 2% 0% Operating Margin M Operating Profit Operating Margin 38

39 Margin Comparison with Peers at ISE M 15% 10% 5% 0% -5% -10% 10% 10% 8% 6.5% 7% 6% 1% Ford Otosan Isuzu Karsan Dogus Tofas -2% -2% -6% -15% -20% Operating Margin EBITDA Margin 39

40 CAPEX 200 US$ Million F Capacity Increase New Products Maintenance & Others 40

41 Investor Presentation February 2011 ISTANBUL STOCK EXCHANGE PERFORMANCE

42 ISE & FROTO Index Dec-00 Dec-02 Dec-04 Dec-06 Jan-08 Mar-08 May-08 Jul-08 Sep-08 Nov-08 Jan-09 Index Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Ford Otosan ISE-100 FROTO Cumulative Change(%) 2003 % % %510 ISE-100 Cumulative Change(%) %97 %165 % %564 % %671 % %223 % %611 % %926 % % 31 Jan 2011 %945 % %

43 High Dividend in the Last Years 2010 Dividend Yield: 10.6% 2009 Dividend Yield: 12.3% US$ Million $329 Million $320 Million $316 Million $330 Million $260 Million $267 Million $215 $191 $205 $176 $168 $141 $140 $139 $128 $105 $99 $60 $55 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 43

44 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 cause actual results to differ materially... Neither Ford Otosan 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.

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