SOLLERS COMPANY OVERVIEW

Transcription

1 SOLLERS COMPANY OVERVIEW

2 1. CORPORATE STRUCTURE GROUP PRODUCTION FACILITIES 2. FY2015 MARKET OVERVIEW FY2015 OPERATING RESULTS 3. 2M2016 OPERATING RESULTS SHAREHOLDER EQUITY AND STOCK INFORMATION 2

3 CORPORATE STRUCTURE CONTROLLED ASSETS PARTNERSHIPS* SSANGYONG UAZ FORD SOLLERS SOLLERS-BUSSAN MAZDA SOLLERS SOLLERS-FINANCE Distribution of SsangYong vehicles Production & Distribution of UAZ vehicles, engines and parts 50/50 JV Full-scale partnership for production & distribution of Ford vehicles 50/50 JV Industrial partnership for vehicles production 50/50 JV Industrial partnership for production of Mazda vehicles 50/50 JV JV with Sovkombank offers a full range of car leasing services Production was stopped in 2015 Production sites: UAZ & ZMZ Production sites: Vsevolozhsk, Naberezhnye Chelny, Elabuga Production site: Vladivostok Production site: Vladivostok In December 2015 SOLLERS sold its 50% stake in SOLLERS-ISUZU JV to Isuzu Motors Limited and Sojitz Corporation * Partnerships are equity-accounted under IFRS 3

4 SOLLERS GROUP PRODUCTION FACILITIES SOLLERS operates 6 production facilities in Russia including directly owned UAZ and ZMZ assets and JV s with Ford and Mazda Ford Sollers Vsevolzhsk St. Petersburg region Focus, Mondeo Up to 160 K units p.a. Far East Production site ZMZ Nizhniy Novgorod region Petrol and diesel engines Up to 300 K units p.a. MOSCOW Vladivostok Mazda CX-5, Mazda 6 Up to 100 K units p.a. UAZ Ford Sollers Elabuga Ford Sollers N. Chelny Ulyanovsk Elabuga Naberezhnye Chelny UAZ SUV s, LCV s Up to 110 K units p.a. Transit, Explorer, Kuga, S-Max, Galaxy Up to 75 K units p.a. EcoSport, Fiesta Up to 115 K units p.a. directly controlled assets joint ventures Overall SOLLERS capacity (directly owned or through JVs) exceeds 500 K units per annum 4

5 1. CORPORATE STRUCTURE GROUP PRODUCTION FACILITIES 2. FY2015 MARKET OVERVIEW FY2015 OPERATING RESULTS 3. 2M2016 OPERATING RESULTS SHAREHOLDER EQUITY AND STOCK INFORMATION 5

6 FY2014-FY2015 RUSSIAN AUTOMOTIVE MARKET, K UNITS* SALES OF PASSENGER CARS SALES OF LIGHT COMMERCIAL VEHICLES % % Other B B+ C SUV+Pickup LCV+MPV CDV FY2014 FY2015 FY2014 FY2015 The largest SUV-segment decreased by 40.5% in FY2015 vs. the overall market declined by 35.8% The lowest decline in B and B+ class car sales of -18.0% in aggregate MARKET TRENDS * Source - AEB 6

7 FY2014-FY2015 SOLLERS RETAIL SALES (UAZ AND SSANGYONG), K UNITS* UAZ RETAIL DOMESTIC SALES AND EXPORT SALES SSANGYONG SALES % % Export sales Hunter LCV+MPV 5 Patriot+Pickup FY2014 FY2015 FY2014 FY2015 KEY TRENDS The SsangYong SUV and Pickup sales dropped by 79.2%. The negotiations on brand repositioning in Russia are in progress UAZ increased its LCV+MPV market share from 16,8% in 2014 to 24,1% in 2015 UAZ market share on SUV+Pickup segment grew from 3,0% in 2014 to 4,7% in 2015 * Source AEB, Company source 7

8 FY2015 FORD SOLLERS JV SALES, K UNITS* FORD SOLLERS JV RETAIL SALES % Other B C D LCV+MPV SUV+Pickup FY2014 FY2015 KEY TRENDS Sales of Ford vehicles dropped by 41.5% in The depreciation of Russian Rouble, the fall in demand for C-segment cars, high costs associated with substantial expansion and upgrade of the model range in 2014 and 2015, have significantly affected the margins of the joint venture The partners have developed a set of measures which will help to strengthen the market position and increase profitability of the joint venture Since February Ford Sollers JV has gradually improved its sales and market share mainly due to model launches of Ford Fiesta, new Ford Mondeo and facelifted Ford Focus * Source - AEB 8

9 FORD SOLLERS JV STRUCTURE CHANGES On March 31, 2015, Ford and SOLLERS agreed certain changes to the JV structure and the shareholders agreement that will allow both parties to continue to support Ford Sollers in the near term and to provide a platform for future growth in the perspective market Under the agreements, Ford provides additional financial support to the joint venture to facilitate the continued development of the business and achievement of its strategic objectives Ford gained a controlling interest in the joint venture through the acquisition of preference shares that give Ford a majority of voting shares and the power to control certain significant decisions of the joint venture. Ford will consolidate the financial results of the joint venture effective March 31, 2015, whereas there is no affect on SOLLERS financial statements Ford and SOLLERS will each retain 50% of the ordinary shareholding in the joint venture The agreements also provide for each partner to redeem, or have redeemed, SOLLERS 50% interest in the JV at a value over USD 135 mln Ford and Sollers are working jointly as partners, to improve the business outlook for the Ford Sollers joint venture given the challenging and fluid environment it is facing Ford Sollers is expanding its manufacturing presence and vehicle lineup through to better meet the needs of Russian customers. This will put the JV in a position to thrive when the market recovers Ford Sollers launched four more new models in 2015, including all-new Ford Mondeo, followed by the new Ford Focus, Ford Transit (CKD assembly) and new Ford Fiesta Ford Sollers increases component and raw material localization in Russia to reduce costs and lower foreign exchange exposure and started local production of engines in December, 2015 We believe the Russian market likely has significant potential in the longer term. In the short term, however, Russia remains an extremely volatile and challenging market * Source - AEB 9

10 FY2014-FY2015 MAZDA SOLLERS JV RETAIL SALES, K UNITS* MAZDA SOLLERS JV RETAIL SALES 36-32% FY FY2015 Mazda6 Mazda CX-5 STRATEGIC OUTLOOK In September 2015 the partners signed a Memorandum of Understanding aimed at establishing an engine plant at MAZDA SOLLERS JV production site The joint venture will possibly increase the production volume of Mazda vehicles under new joint arrangements SOLLERS obtains a guaranteed dividend returns from the production activity of the joint venture. The shareholder structure of the JV remains unchanged 50%*50% * Source - AEB 10

11 9M2014-9M2015 SOLLERS-BUSSAN WHOLESALES, K UNITS* SOLLERS-BUSSAN WHOLESALES 10-29% 7 Toyota LC Prado 9M2014 9M2015 STRATEGIC OUTLOOK The project for production of Toyota LC Prado at SOLLERS-BUSSAN JV was accomplished according to its initial time schedule in June 2015 SOLLERS is negotiating with a number of prospective partners considering joint activities at SOLLERS-BUSSAN production site * Company source 11

12 1. CORPORATE STRUCTURE GROUP PRODUCTION FACILITIES 2. FY2015 MARKET OVERVIEW FY2015 OPERATING RESULTS 3. 2M2016 OPERATING RESULTS SHAREHOLDER EQUITY AND STOCK INFORMATION 12

13 2M2015-2M2016 RUSSIAN AUTOMOTIVE MARKET, K UNITS* SALES OF PASSENGER CARS SALES OF LIGHT COMMERCIAL VEHICLES -21% -10% Other B B+ C LCV+MPV SUV+Pickup 2 1 CDV 2M2015 2M2016 2M2015 2M2016 MARKET TRENDS Sales of new passenger cars and LCVs in Russia decreased 13.4% YoY in February, showing an improvement in the market s dynamics The largest SUV-segment decreased by 14% in 2M2016 vs. the overall market declined by 21% * Source - AEB 13

14 2M2015-2M2016 SOLLERS RETAIL SALES (UAZ AND SSANGYONG), K UNITS* UAZ RETAIL DOMESTIC SALES AND EXPORT SALES SSANGYONG SALES 4,7 +9% 5,2 1,3-57% 2,2 2,1 0,6 2,6 3,1 LCV+MPV SUV+Pickup 2M2015 2M2016 2M2015 2M2016 KEY TRENDS The SsangYong SUV and Pickup sales dropped by 57%. The negotiations on brand repositioning in Russia are in progress The retail sales of UAZ Patriot went up by 12% in 2M2016 due to model upgrade and favorable price positioning The retail sales of UAZ LCVs and MPVs declined by 2% in 2M2016 outperforming the market, which contracted by 6% * Source - AEB, Company source 14

15 2M2015-2M2016 FORD SOLLERS JV SALES, K UNITS* FORD SOLLERS JV RETAIL SALES +77% 5,7 1,0 3,2 0,2 0,9 0,3 0,6 1,3 2M2015 1,4 0,4 0,6 2,4 2M2016 Other B C D LCV+MPV SUV+Pickup KEY TRENDS Ford sales growth accelerated to 144% YoY in February after a 25% increase in the preceding month. The growth is the result of both low base effect of the preceding year and the launch of several new models in the 2H2015 * Source - AEB 15

16 SHARE PERFORMANCE AT MOEX TICKER: SVAV Stock exchange data at % Market capitalisation (RUB mln.) 14,051 63% Shares (mln.) Price at (RUB) 410 V. Shvetsov Free-float Security List* I * Since June 02, 2014, SOLLERS shares have been admitted to security list Level I at MOEX 16

17 APPENDIX 1: FY2014-FY2015 SOLLERS CONSOLIDATED WHOLESALES, K UNITS k units FY2014 FY2015 Change UAZ 51,3 57,5 12,2% UAZ Hunter 4,4 4,6 6,0% UAZ Patriot 20,6 23,5 14,1% UAZ LCV, MPV - old model range 22,7 24,3 7,0% UAZ LCV, MPV - new model range 3,6 5,1 41,7% SSANG YONG 21,4 2,9-86,4% 17

18 APPENDIX 2: 1H2014-1H2015 SOLLERS CONSOLIDATED WHOLESALES, K UNITS k units 1H2014 1H2015 Change UAZ 20,3 23,4 15,3% UAZ Hunter 1,8 1,8 0,0% UAZ Patriot 8,1 9,3 14,8% UAZ LCV, MPV - old model range 8,9 10,2 14,6% UAZ LCV, MPV - new model range 1,5 2,1 40,0% SSANG YONG 12,6 1,1-91,3% 18

19 APPENDIX 4: 1H2014-1H2015 IFRS FINANCIAL RESULTS mln rubles 1H2014 1H2015 Change Revenue ,5% EBITDA ,2% EBITDA margin 12,1% 11,4% -0,7% Operating profit ,9% Operating margin 9,9% 7,9% -2,0% Share of loss of Ford Sollers JV, including impairment and recognition of financial instrument (1 713) (4) -99,8% Share of result of other JVs and associates ,9% Net profit ,4% Net debt as of / ,7% Net debt as of / ,5% 19

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