sollers ifrs results 2017sollers-auto.com/common/img/uploaded/investor_relations/ifrs_res… · •...
TRANSCRIPT
03.05.2018
SOLLERS IFRS RESULTS 2017
2
1. 2017 SOLLERS STRATEGIC DEVELOPMENTS
4. SOLLERS’ JOINT VENTURES’ RESULTS
3. SOLLERS OPERATING AND FINANCIAL PERFORMANCE IN 2017
2. RUSSIAN AUTOMOTIVE MARKET OVERVIEW
3 2017 SOLLERS STRATEGIC DEVELOPMENTS
JULYAdil Shirinov is appointed CEO and President of Ford Sollers JV
UAZ launches sales of new UAZ PROFI in the most popular segment of LCV
JUNEMAZDA SOLLERS JV starts assembly of new Mazda CX-5 in Vladivostok
Ford Sollers JV: retail sales up 18% in 2017 vs. 12% growth of total Russian market
DECEMBERUAZ export sales: 46% growth in 2017 to 5.1 k units (2016: 3.5 k units)
OCTOBER DECEMBER
UAZ presents pilot version of UAZ Cargo with hybrid power unit
JULYAdil Shirinov is appointed CEO and President of Ford Sollers JV
MAZDA SOLLERS JV starts assembly of new Mazda CX-5 in Vladivostok
UAZ presents pilot version of UAZ Cargo with hybrid power unit
4 2018 SOLLERS STRATEGIC DEVELOPMENTS
FEBRUARYElena Frolova is appointed Deputy General Director for Finance and Economics of SOLLERS Group
JANUARYUAZ presents pilot version of UAZ Cargo with hybrid power unit
FEBRUARYMAZDA SOLLERS JV launches production of new crossover Mazda CX- 9
Ford Sollers JV launches new Ford Explorer for Russian market
5 NEW LCV
NEW MODELS
• UAZ PROFI – new light commercial vehicle based on UAZ Patriot platform in the mass segment of LCV
• Combines the comfort of passenger car and the payload of commercial vehicle
• Competitive price positioning will support the new segment penetration
• Start of sales in October 2017
• Price: from RUB 724 k
• New engine: ZMZ-PRO – up to 160HP
• Increased payload and wheel base: 1 500 kg & 5.9 m
• Strengthened frame and suspension
• Improved manoeuvrability & extra choice of comfort options
6
1. 2017 SOLLERS STRATEGIC DEVELOPMENTS
4. SOLLERS’ JOINT VENTURES’ RESULTS
3. SOLLERS OPERATING AND FINANCIAL PERFORMANCE IN 2017
2. RUSSIAN AUTOMOTIVE MARKET OVERVIEW
7 2015 – 2017 RUSSIAN AUTOMOTIVE MARKET, K UNITS*
• Sales of new passenger cars and LCVs in Russia increased by 12% in 2017
• Growth in all main market segments, the overall passenger car market went up by 12% in 2017
• The largest SUV+Pickup segment grew by 22% in 2017 mainly due to crossovers
• B+ segment also grew by 11%
• The growth in light commercial vehicles is due to sales of GAZ and Ford vehicles (7% and 71% growth respectively in 2017)
132
2016
208
644
162
158131
529
407
132
558
2015
394
129
1 477145
435
121
2017
1 493
1 315
-12% +12%
C SUV+PickupOther B+B
99
2015
89
12
93
11201610
2017
100 103111
+3%+8%
CDVLCV+MPV
* Source - AEB
SALES OF PASSENGER CARS SALES OF LIGHT COMMERCIAL VEHICLES
HIGHLIGHTS
8
• The market for SUVs and Pickups outperformed the overall market: +22% vs. 12% growth of total passenger car sales
• The growth due to mass SUV models like recently launched Hyundai Creta, Kia Sportage, Renault Kaptur and new Volkswagen Tiguan
• Ford improved its position on SUV segment due to successful sales of Ford Kuga and Ford Explorer
NEW SUV+PICKUP MARKET 2015 – 2017, K UNITS*
MAJOR MARKET TRENDS IN 2017
2015 – 2017 NEW SUV + PICKUP
* Source - AEB
2017 KEY PLAYERS (RETAIL SALES), K UNITS
12% 12% 9% 9% 7% 5% 5% 5% 4% 3% 3%
4,6% 0,8% -2,2% -0,7% 0,9% 2,1% -0,8% -0,6% 0,6% -0,7% -0,8%
32
7677
61 60
47
3429
2124 22 21 20
-1,6%
3%
269
2015
62
218
278
2016
644
207
53
362
51
231
2017
529558
-5%
+22%
Russian brands Foreign brands assembled in Russia
New import0,4%
3%
9
• UAZ is #2 player on LCV+MPV market with 21% market share
• The market share is expected to increase due to the launch of UAZ PROFI in October 2017. The model is positioned in the mass segment of light commercial vehicles
• Ford Transit sales increased by 67% in 2017, the brand managed to increase its market share to 10% and became #3 player on the LCV+MPV market
NEW LCV+MPV MARKET 2015 – 2017, K UNITS*
MAJOR MARKET TRENDS IN 2017
2015 – 2017 NEW LCV+MPV MARKET
* Source - AEB
2017 KEY PLAYERS (RETAIL SALES), K UNITS
9,6
6,5
4,6
1,9 1,7 1,6 1,30,6 0,5
49,5
20,3
50% 21% 10% 7% 5% 2% 2% 2% 1% 1% 0%
0,1% -3,8% 3,7% -0,2% -0,2% -0,1% 0,5% 0,0% -0,2%0,6% 0,0%
93
11
13
7064
14 13
69
2015
11
2016
16
2017
8999
+4%+6%
Russian brands
New import
Foreign brands assembled in Russia
10
1. 2017 SOLLERS STRATEGIC DEVELOPMENTS
4. SOLLERS’ JOINT VENTURES’ RESULTS
3. SOLLERS OPERATING AND FINANCIAL PERFORMANCE IN 2017
2. RUSSIAN AUTOMOTIVE MARKET OVERVIEW
11 SOLLERS GROUP WHOLESALES
SOLLERS CONSOLIDATED WHOLESALES
SOLLERS JVS WHOLESALES
k units 2016 2017 Change
UAZ 51,1 46,5 -9,0%
UAZ Hunter 4,1 2,3 -43,9%
UAZ Patriot 19,2 15,5 -19,2%
UAZ commercial vehicles - old model range 23,3 22,0 -5,6%
UAZ commercial vehicles - new model range 4,5 6,8 51,1%
k units 2016 2017 Change
MAZDA SOLLERS JV 24,1 24,1 0,0%
FORD SOLLERS JV 44,5 54,0 21,3%
The decrease in UAZ sales volumes is due to customers’ adaptation to the reduction in state direct support
HIGHLIGHTS
12 OVERVIEW OF 2017 FINANCIAL RESULTS
RUB mln 2016 2017 Change
Revenue 35 621 35 764 0,4%
EBITDA 3 903 3 377 -13,5%
EBITDA margin 11,0% 9,4% -1,5%
Operating profit 2 269 1 788 -21,2%
Operating margin 6,4% 5,0% -1,4%
Financial instrument recognition/ revaluation and change in fair value* (1 319) (261) 1 058
Share of result of JVs 1 026 412 -614
Net profit 1 601 999 -37,6%
Net debt as of 31.12.2016/ 31.12.2017 4 740 7 609 60,5%
13 SALES STRUCTURE, RUB BLN
SALES STRUCTURE
The growth in the Group’s revenue of 0,4% due to the change in UAZ product mix and export sales growth
8
24
0
4
20
12
16
28
32
36
28,8
4,91,9
2016
27,9
6,5
1,42017
35,6 35,8
0,4%
OtherVehicles Automotive components
14 EBITDA CHANGES, RUB MLN
EBITDA CHANGES
3 903
3 377
0
3
6
9
12
15
18
21
0
400
800
1 200
1 600
2 000
2 400
2 800
3 200
3 600
4 000
2017
9.4%11.0%
2016
-13%
EBITDA EBITDA margin
EBITDA VS OPERATING PROFIT
1 354
135100
D&AOperating profit
Compensation of capitalised
expenses
Other one-off
transactions
EBITDA
1 788
3 377
1 354
15 CASH FLOW, RUB MLN
2 336 2 3061 351
1 354
588
(558)
(876)
Cash at the beginning of the year
PBT Share of profit of JVs and
associates
D&A Change in working capital
(1 320)
Additions to PPE & other
LT assets
R&D net of subsidy
Other adjustments
Prepayments deposited at
special accounts (restricted
cash)
75Dividends received
from associates
and JVs
(3 198)
3 770
(148)
Net change in debt
Cash at the end of the year
(557)
Provision movements
261 (360)(412)
Interest charge
Income tax and interest
paid
Impairment of the option
X Cash inflowX Subtotals (X) Cash outflow
Other adjustments include profit/ loss on the sale of property, plant and equipment, investments and other non-current assets
Net cash from financing activityRUB 3,770 mln.
Net cash used in operating activity RUB (1,121) mln.
Net cash used in investing activity RUB (2,679) mln.
16 NET DEBT POSITION, RUB MLN
4 740
7 609
0
1 000
2 000
3 000
4 000
5 000
6 000
7 000
8 000
10.5%
6.0%
7.5%
12.0%
9.0%
13.5%
15.0%
9.7%
31.12.2016 31.12.2017
7.9%
Net debt Average effective interest rate, %
NET DEBT POSITION AND EFFECTIVE INTEREST RATE
NET DEBT STRUCTURE
• Average effective interest rate increased as a result of the lower share of subsidised debt in the Group’s loan portfolio as of December 31, 2017 . The government subsidy is applied to the credit lines commenced before 2015
• Liquidity reserves up to RUB 7.1 bln. including cash of RUB 3.1 bln. and available credit facilities of RUB 4.0 bln.
RUB mln 31.12.2016 31.12.2017 Change
Long-term debt 3 420 2 830 -17,3%
Short-term debt 3 656 7 961 117,8%
Total debt 7 076 10 791 52,5%
Cash at the end of the period 2 336 2 306 -1,3%
Restricted cash - 876 n/a
Net debt 7 076 7 609 7,5%
17
1. 2017 SOLLERS STRATEGIC DEVELOPMENTS
4. SOLLERS’ JOINT VENTURES’ RESULTS
3. SOLLERS OPERATING AND FINANCIAL PERFORMANCE IN 2017
2. RUSSIAN AUTOMOTIVE MARKET OVERVIEW
18 MAZDA SOLLERS JV AND SOLLERS-FINANCE JV PERFORMANCE
6,26,0
24,1
18,1
2016
17,9
2017
24,1
Mazda6Mazda CX-5 18% 14%
26%
8%
40%
58%
11%8%
5% 12%3,297
2016
4,509
2017
Special vehiclesPassenger carsTrucksLCVOther vehicles
MAZDA SOLLERS JV FINANCIAL RESULTS*
MAZDA SOLLERS WHOLESALES, K UNITS LEASED OUT VEHICLES BY TYPE, RUB MLN
SOLLERS-FINANCE JV FINANCIAL RESULTS**
RUB mln 2016 2017
Revenue 26 355 27 490
Operating profit 2 070 662
Operating margin 8% 2%
Net profit 1 725 604
Net profit margin 7% 2%
Debt as of 31.12.2016/31.12.2017 1 432 -
RUB mln 2016 2017
Revenue 645 907
Operating profit 351 322
Operating margin 54% 36%
Net profit 263 259
Net profit margin 41% 29%
Leasing portfolio as of 31.12.2016/31.12.2017 2 633 4 101
* MAZDA SOLLERS JV 2016 net profit included subsidies related to the prior periods** SOLLERS-FINANCE JV leasing portfolio adjusted for provisions
19 JOINT VENTURES RESULTS
BREAKDOWN OF JVS’ CONTRIBUTION TO THE SHARE OF PROFIT OF JVS
The results of Ford Sollers JV are not presented due to impairment of the investment and recognition of the option in SOLLERS’ consolidates financial statement
RUB mln Current SOLLERS' stake 2016 2017 Change
MAZDA SOLLERS JV 50% 862 302 65%
SOLLERS-BUSSAN JV 50% 32 (20) -163%
SOLLERS-FINANCE JV 50% 132 130 -1%
TOTAL CONTRIBUTION 1 026 412 60%
20 STOCK INFORMATION
Market capitalisation, RUB mln. 17 169
Shares, mln. 34,27
Price at 25.04.2018, RUB 501
Security List I
300
700
500
400
600
25.04.2017 25.04.2018
STOCK EXCHANGE DATA AT 25.04.2018
SHARE PERFORMANCE AT MOEX, TICKER: SVAV
588
501