Tofaş aims to sustain its profitable growth by deploying a value-creating management model that is continuously being improved.
SALES
Tofaş’s home-market sales increased numerically by 20.3% year-on and totaled TL 148,786 units. Last year the company’s total sales revenues rose by 121% and reached TL 65,545 million.
SALES (UNITS) |
DOMESTIC SALES |
CHANGE |
EXPORT SALES |
CHANGE |
TOTAL |
CHANGE |
|||
2021 |
2022 |
% |
2021 |
2022 |
% |
2021 |
2022 |
% |
|
Passenger vehicles |
74,944 |
100,722 |
34.4 |
45,536 |
39,109 |
-14.1 |
120,480 |
139,831 |
16.1 |
LCV |
47,365 |
48,064 |
1.5 |
66,941 |
82,376 |
23.1 |
114,306 |
130,440 |
14.1 |
Total |
122,309 |
148,786 |
21.6 |
112,477 |
121,485 |
8.0 |
234,786 |
270,271 |
15.1 |
SALES (UNITS) |
2021 |
2022 |
CHANGE (UNITS) |
Domestic Sales |
122,309 |
148,786 |
26,477 |
Manufactured |
115,982 |
142,338 |
26,356 |
Egea Sedan |
49,183 |
68,668 |
19,485 |
Egea HB |
21,677 |
27,988 |
6,311 |
Doblò |
28,865 |
24,321 |
-4,544 |
Fiorino |
16,257 |
21,361 |
5,104 |
Imported |
6,327 |
6,448 |
121 |
Ducato |
2,243 |
2,383 |
140 |
Fiat 500 |
635 |
165 |
-470 |
Jeep® |
2,906 |
2,346 |
-560 |
Ulysse |
0 |
2 |
2 |
Scudo |
0 |
232 |
232 |
Alfa Romeo |
172 |
880 |
708 |
Panda |
235 |
84 |
-151 |
Maserati |
101 |
312 |
211 |
Ferrari |
35 |
44 |
9 |
Exports |
112,477 |
121,485 |
9,008 |
Tipo |
16,278 |
7,890 |
-8,388 |
Tipo HB and SW |
29,246 |
30,452 |
1,206 |
Doblò |
37,697 |
32,806 |
-4,891 |
Ram Doblo |
11,064 |
27,755 |
16,691 |
Fiorino |
18,180 |
22,574 |
4,394 |
Others |
12 |
8 |
-4 |
Total |
234,786 |
270,271 |
35,485 |
SALES (TL THOUSAND) |
2021 |
2022 |
CHANGE % |
Export Sales |
14,643,275 |
29,903,470 |
104.2 |
Domestic Sales |
14,264,210 |
34,038,696 |
138.6 |
Other Income from Operational Activities |
776,820 |
1,603,188 |
106.4 |
Total |
29,684,305 |
65,545,354 |
120.8 |
EXPORTS
Tofaş registered an 8% year-over-year increase in its export unit sales and shipped a total of 121,485 vehicles abroad. With this performance, the company controlled a 12.3% of Turkey’s total export volume. Although passenger vehicle exports were down by 15.2% in 2022, light commercial vehicle exports increased by around 24.1%. Taken together, this translates into an 8.0% increase in export performance. The drop in passenger vehicle exports is attributable supply-side shortages as well as to a rapid market shift towards electrics and hybrids. The growth in commercial vehicle exports was supported by surging e-commerce volumes and by sales to North American markets.
Tofaş’s 2022 export revenues were up by 109.6% year-on and reached TL 29,903 million in value.
FINANCIAL RESULTS
As of end-2022, Tofaş had total assets of TL 40.3 billion, total equity of TL 11.3 billion, and a net cash position of TL 5 billion.
(TL million) |
2021 |
2022 |
CHANGE (%) |
Total Current Assets |
16,170 |
33,385 |
106.5 |
Total Fixed Assets |
7,304 |
6,991 |
-4.3 |
Total Assets |
23,473 |
40,376 |
72.0 |
Total Short-Term Liabilities |
13,758 |
26,069 |
89.5 |
Total Long-Term Liabilities |
3,972 |
2,993 |
-24.7 |
Total Liabilities |
17,730 |
29,062 |
63.9 |
Total Equity |
5,743 |
11,314 |
97.0 |
Total Resources |
23,473 |
40,376 |
72.0 |
Net Cash |
-3.5 |
5.1 |
243 |
Tofaş’s total sales revenues amounted to TL 65.5 billion in value. EBITDA grew by 94.5% year-on and reached TL 11.3 billion. This growth was driven by strong home-market performance, disciplined cost control, and production flexibility.
Supported by a strong cash position and improvements in net financing costs, Tofaş’s pretax profit was up by 143.8% year-on in 2022 and reached TL 8.6 billion.
With the effects of deferred tax income, the company’s net profit was up by 160.9% year-on and amounted to TL 8.6 billion.
YEARS |
EBITDA |
PROFIT BEFORE TAX |
NET PROFIT |
|||
|
TL thousand |
Change % |
TL thousand |
Change % |
TL thousand |
Change % |
2018 |
2,532,578 |
24.40% |
1,290,894 |
5.00% |
1,330,423 |
3.70% |
2019 |
2,479,757 |
-2.10% |
1,456,555 |
12.80% |
1,481,639 |
11.40% |
2020 |
3,025,512 |
22.00% |
1,830,776 |
25.70% |
1,784,170 |
20.40% |
2021 |
5,794,126 |
91.50% |
3,512,216 |
91.80% |
3,281,316 |
83.90% |
2022 |
11,269,849 |
94.50% |
8,562,231 |
143.80% |
8,562,191 |
160.90% |
INVESTMENTS & R&D EXPENDITURES
Tofaş’s total investments amounted to EUR 46 million in value during 2022, much of it on Egea-related projects.
|
2018 |
2019 |
2020 |
2021 |
2022 |
Total investments (EUR million) |
95 |
106.6 |
108.3 |
100 |
46.1 |
2022 INVESTMENTS |
(EUR MILLION) |
Egea Family |
28.7 |
Doblò |
11.9 |
Structural |
3.3 |
Minicargo |
2.2 |
Total |
46.1 |
DIVIDENDS
In 2022 Tofaş paid out a record-breaking lump-sum gross dividend of TL 3.2 billion out of its 2021 profits. This is the highest dividend the company has ever in its history paid out of prior-year profits. In the five years between 2018 and 2022, Tofaş paid out a total of TL 6.8 billion in dividends. For 2022, Tofaş management anticipates paying out a total gross dividend on the order of TL 3,000 million, which corresponds to 35% of its projected 2022 net profit.
CORPORATE GOVERNANCE RATING
The implementation of corporate governance principles as a dynamic process made necessary by developments in capital markets is a matter of decisive and increasing importance for Tofaş. Having committed itself to compliance with the Capital Markets Board’s published corporate governance principles and adopted corporate governance as an inhouse corporate culture, Tofaş conducts its operations making such improvements and changes as emergent conditions may require.
Tofaş takes a sustainable approach in the conduct of its corporate governance practices in keeping with the principles of transparency, accountability, fairness, and responsibility as spelled out in the Capital Markets Board’s Corporate Governance Communique.
Saha Kurumsal Yönetim ve Kredi Derecelendirme Hizmetleri A.Ş., a corporate governance and credit rating services provider, periodically reviews and updates Tofaş’s corporate governance rating. According to a Saha-issued 26 October 2022 corporate governance report, Tofaş had been assigned a corporate governance rating of 9.26 based on a review of the company’s performance as of that date.
SHARE PERFORMANCE
With their average trading value up by 121% in 2022, Tofaş’s shares significantly outperformed the 98% rise in Borsa İstanbul’s BIST 100 index last year. On the basis of their twelve-month performance however, Tofaş shares gained 138% in value in 2022 while the BIST 100 index was up by 197%.
SUBSIDIARIES & AFFILIATES
Information about Tofaş’s related-party sales and purchases is provided in footnote 27 to the 2022 financial statements.
Koç Fiat Kredi Finansman A.Ş.
Koç Fiat Kredi provides financial-solution services for all of the automotive brands as well as for the second-hand vehicles and spare parts etc offered for sale through Tofaş. With its ability to provide conventional customers with one-stop and fast service without their having to leave the dealer’s premises as well as online and with its own operational strengths KFK provides individual and commercial customers with financing support.
In 2022, TL 4.52 billion worth of credit was disbursed by the company in order to finance purchases of 21,000 vehicles. Koç Fiat Kredi finances 21.5% of Tofaş’s retail sales and its loan portfolio as of 31 December 2022 was worth TL 4.80 billion. Last year Koç Fiat Kredi continued to fund this portfolio by means of bank loans and marketable security issues, the total value of both of which as of year-end was TL 4.12 billion. The securities issued had a nominal value of TL 542.5 million. Koç Fiat Kredi’s A1+ Short-term national (TR) and AA Long-term national (TR) credit ratings were once again confirmed in 2022 with stable outlooks in both cases.
In 2021 the company launched a project to update headquarters and dealership infrastructure so that operations can be managed more effectively at the individual-unit level. This project is intended to shorten additional development and maintenance processes and make them more productive while also generating savings in licensing fees. Another goal is to leverage Koç Fiat Kredi’s recruitment of a next-gen workforce. The first two phases of the project, both dealing with after-sales processes, were completed in 2022. Pre-sale processes will be dealt with in the third and last phase of the project, planned to get under way in 2023. Another project paralleling the modernization project and concerned with a one-stop self-service mobile app that allows customers to take care of all of their business on their own was also completed in 2022.
Koç Fiat Sigorta
The “Koç Fiat Sigorta” initiative that arose in line both with anticipated developments in customers’ automotive-industry expectations and with Tofaş’s own mobility priorities was transformed into a new business unit and Koç Fiat Kredi subsidiary under the oversight of the Tofaş Mobility Solutions Division.
Koç Fiat Sigorta is a good example of how inhouse entrepreneurship can create brand-new business lines for Tofaş. With the launch of this subsidiary, Tofaş has taken an important step in line with its vison of delivering end-to-end excellence in the customer experience by offering insurance coverage for their mobility as well as other needs. With the potential to become Turkey’s biggest insurance agency, Koç Fiat Sigorta will be providing customers with whatever mobility-related insurance products and services they may need through Tofaş’s nationwide dealership network and other channels. Through its Customer CareCenter, Koç Fiat Sigorta will be able to provide policy-related information the moment a claim arises and to stand by customers throughout the claim-resolution process. Koç Fiat Sigorta will also be looking to play a role in the creation and development of future mobility-insurance products and services.
Fer Mas Oto Ticaret A.Ş.
Fer Mas was set up in 2005 as a subsidiary in which Tofaş controls a 99.4% stake. The company represents the Ferrari and Maserati badges in Turkey and provides both with after-sales services.
In 2022, Tofaş’s Ferrari dealerships sold 44 cars in Turkey while its Maserati dealerships sold 314.
In 2022 Fer Mas services relocated to new premises in İstanbul Vadi Koru. In their new home, a dedicated 375 m2 area has been set aside for the exclusive use of Ferrari and Maserati customers. There is also a 1,200 m2 body & paint repairs shop and a 1,125 m2 mechanical repairs shop.
