General Overview

WORLD CLASS MANUFACTURING

In keeping with its attitudes towards the future and approach to sustainability, Tofaş integrates the environmental and social impact as well as the economic results of its operations into company policies. The company’s Bursa plant was one of the first three in the Fiat Chrysler Automobiles community to achieve “Gold” World Class Manufacturing status.

STRONG DEALERSHIP AND SUPPLIER NETWORK

Tofaş’s superior logistical and distribution competencies, advanced after-sales services capabilities, and the long-term and trust-based business relationships that it enters into with its dealers are all factors that constantly enhance the customer satisfaction to which the company gives such importance.

Today nearly every node in the Tofaş dealership network complies with the network’s “Integrated 3S” design specification, which means that customers can find sales, services, and spare parts at a single location. Besides selling new cars and providing after-sales services and spare parts, some Tofaş dealerships also provide customers with such additional services such as compulsory and optional insurance coverage, and vehicle financing.

In order to be nearer to their customers and also to provide them with better service, many Fiat dealerships also operate sales and services outlets at locations other than their main one. There are currently 41 such sales and service satellites in the Fiat dealership network. Besides these, there are also 33 authorized service outlets, whose operations are covered by agreements with a primary dealer and which only provide after-sales services.

Since the day it was founded, Tofaş has been contributing substantially to the growth and development of a home-grown automotive sub-industry by giving the utmost importance to localizing its procurement and manufacturing processes as much as possible. Tofaş today procures an average of 71% of its components other than engines and transmissions from domestic suppliers. The company purchases its direct materials from 151 suppliers located in 14 different cities./p>

THE BIST CORPORATE GOVERNANCE INDEX

A fundamental criterion of Tofaş’s corporate governance approach is to create sustainable value for all of its stakeholders and for its country as a whole. Tofaş was the first and only company from Turkey among 187 firms worldwide qualifying for inclusion in the “A List” of the Carbon Disclosure Project’s 2014 Climate Performance Leadership Index. Tofaş is also the first and still the only automotives company to be included in the İstanbul Stock Exchange’s BIST Sustainability Index.

Having been honored in the “Carbon and Energy Management” category at the 2015 Sustainable Business Summit and also as a result of the progress made in its compliance with corporate governance principles, in 2017 Tofaş’s corporate governance rating was raised to 9.15. This constantly improving score is evidence that Tofaş deals with all of its stakeholders in a manner that is fair, transparent, accountable, and responsible.

2017 PERFORMANCE

In 2017 Tofaş produced 384 thousand vehicles, a performance which singlehandedly accounted for 23% of the Turkish automotives industry’s total output and which easily defended the company’s standing as the sector’s leader. Despite a 3% contraction suffered by the Turkish automotive market in 2017, the brands in the Tofaş portfolio successfully increased our overall sales volume by 12.7%. The Tofaş brands in Turkey’s passenger car and light commercial vehicle market commanded a 12.8% market share last year. At 120,049 units, sales of Fiat-branded passenger cars and light commercial vehicles ranked in second place with a 12.6% market share. As the automotive firm with the highest percentage of domestic production as a component of total sales for many years, Tofaş once again defended its industry leadership in 2017 by that measure with a 91% rate.

Through exporting 271 thousand units, Tofaş singlehandedly accounted for 20% of Turkey’s total automotive exports last year. As a result of all of its operations, the company generated a foreign trade surplus of 1 billion dollars.

In 2017 Tofaş booked a total turnover worth TL 17.5 billion (up by 23% as compared with 2016) while its net profit also increased by 32% to TL 1,283 billion during the same twelve-month period. At 11.5% last year, Tofaş’s EBITDA margin was 1.9 percentage points higher year-on-year while its EBITDA amounted to TL 2 billion, were 46.5% higher.