SUBSIDIARIES
KOÇ FIAT KREDİ DEVELOPS THE ONLINE PROJECTS THAT IT CARRIES OUT. IN DOING SO, IT FOCUSES ON ENHANCING THE CUSTOMER EXPERIENCE AND ON STREAMLINING ITS OPERATIONAL ENVIRONMENT.
Our company’s transactions with its related parties are presented in the note 27 of the financial report.
KOÇ FIAT KREDİ FİNANSMAN A.Ş.
Tofaş controls a 99.9% stake in Koç Fiat Kredi (KFK), a company known for its customer-focused approaches, service quality, flexibility, innovativeness, dynamic business processes, and efficient applications. KFK supplies financing for consumers purchasing not only Fiat vehicles but also the Alfa Romeo, Jeep, Ferrari, Maserati, and Iveco models that are sold in Turkey. The company similarly finance second-hand purchases as well. KFK supplies credit products that are offered to consumers at places where the brands that it serves are sold. This means that it can provide financial solutions that enable consumers to complete purchases while still on the dealership’s premises.
In 2018 KFK continued to maintain its share of financing sales of the brands that it serves while also improving its overall service quality. Last year the company lent a total of TL 1,693.9 million to finance purchases of 34,268 vehicles. With this performance it financed 62% of Tofaş’s retail sales and 40% of its total sales.
Finance companies that are active in Turkey’s automotive market have been increasing their share of vehicle-financing loans over the years. As of December 2018, they provided 60.6% of such loans. In 2018, KFK supplied a 9.2% share of all the vehicle-financing credit extended by finance companies in Turkey.
Practices and processes that enhance the customer experience-focused
The company maintains its competitiveness through innovative products, services, and business processes that are supported by means of the mobile apps that it develops and the online projects that it carries out. In doing so, it focuses on enhancing the customer experience and on streamlining its operational environment.
HIGHLIGHTS |
2018 |
Outstanding Portfolio (TL million) |
2,262.0 |
Outstanding Financed (units) |
83,612 |
Penetration (excluding big fleet sales) |
61.6% |
Penetration (total Tofaş sales) |
39.6% |
Loan applications (units) |
132,943 |
Financed units (total) |
34,268 |
Financed units (Tofaş) |
28,370 |
Financed units (2nd-hand + Iveco) |
5,898 |
Financed amount (total) (TL million) |
1,683.9 |
Profit before tax (TL million) |
83.0 |
The company funds its loan portfolio mainly by means of its own borrowings and through marketable security issues. As of end-2018, the total value of such resources amounted to TL 2.3 billion. The outstanding nominal value of the company’s security issues as of the same date was TL 355 million.
In 2018 the company’s short-term national (TR) and long-term national (TR) credit ratings were confirmed at A1+ and AA respectively.
At an extraordinary general meeting of the company that was held on 28 December 2018 a decision was taken to pay a dividend on 31 December 2018. As a result of deliberations it was unanimously decided:
- That TL 50,000,000 of the extraordinary reserves set aside pursuant to the Turkish Commercial Code is to be paid out to shareholders as a cash dividend on 31 December 2018 at the rate of TL 1.11 (net) for each share of stock;
- That, pursuant to article 519 of the Turkish Commercial Code, TL 5,000,000 is to be set aside as a second-order statutory reserve.
The dividends were paid on 31 December 2018.
The annual general meeting for 2018 is to be held on 25 February 2019. The Board of Directors is of the opinion that any amounts remaining after the 2018 dividend has been paid and statutory reserves have been set aside should be retained in the company as an extraordinary reserve. Due to the effects of the 2018 dividend payment, the company’s shareholders’ equity amounts to TL 157.7 million.
Financing resources
KFK funds its fixed-interest Turkish lira lending portfolio by means of TL and FX borrowings and marketable security issues. The liquidity generated through FX funding is converted into TL liquidity through derivative trading. In this way the company not only creates TL funding but also protects itself against interest- and exchange rate risks. The company satisfies part of its funding requirements by issuing marketable securities.
In the second quarter of 2018, KFK issued securities worth a nominal TL 155 million worth through a private placements. No other securities were issued at any other time during the reporting period.
Information about the company’s security issues during the year:
Issue date |
Maturity |
Nominal |
Brokerage House |
04.05.2018 |
30.04.2020 |
TL 100.0 million |
Yapı Kredi Yatırım |
06.06.2018 |
01.02.2019 |
TL 55.0 million |
Yapı Kredi Yatırım |
As of end-2018, the outstanding nominal value of the company’s security issues was TL 2,269.9 million.
FER MAS OTO TİCARET A.Ş.
Fer Mas Oto Ticaret A.Ş. was founded in 2005. Tofaş controls a 99.4% stake in the company.
Fer Mas represents and provides after-sales services for both Ferrari and Maserati in Turkey. The company engages in intensive communication activities in line with its efforts to effectively position both badges in the Turkish market.
Fer Mas positions the Ferrari brand as a passionate automobile and lifestyle that is the preferred choice of A++ consumers who appreciate its philosophy.
Maserati, sales of which took off with the introduction of its SUV model in 2016, is positioned among Turkish consumers as a prestigious name and saloon car that offers driving enjoyment. Perfectly embodying the concept of “luxury sports car”, Maserati appeals to a highly exclusive customer group with models characterized by distinctive approaches to design and quality as well as superior performance.
Ferrari
Winning the International Engine of the Year Award for the third year running, Ferrari’s 3.9-liter twin-turbocharged V8 488 Pista was put on sale in Turkey in 2018.
Ferrari’s V8 GT Portofino, the successor of its California T model, was also introduced to the Turkish market in May of 2018.
In the 2018 round of the Testa Rossa awards, which recognize various categories of “best performers” among Ferrari dealers throughout the world, Fer Mas took second place internationally in the “Aftersales Services” category.
In 2018, a total of eighteen Ferraris were sold in Turkey.
Maserati
Having strengthened its sales and services network with the Ankara Birmot, Bursa Mengerler, and Antalya Birmot dealerships that were opened in 2017, a total of 55 Maserati-badged vehicles were sold in 2018.
Throughout 2018, Maserati’s official drivers took part in driving tests that were conducted in Bodrum, Ankara, Antalya, Bursa, and İstanbul. In addition to these appearances, Maserati also staged and took part in other events during the year.
