Slide 1: Koç Holding 1Q20 Earnings Presentation
Koç Holding 1Q20 Earnings Presentation 22 May 2020
Slide 2: Timely Response to COVID-19 Pandemic
Timely Response to COVID-19 Pandemic Social Response Business Response Health & safety come first Maintaining balance sheet strength is top priority Agile and flexible working structure: Remote working, sustained customer service, focus on digital channels and e-commerce Internal assessments & str
Slide 3: Solid Net Cash Position and Financial Flexibility
Solid Net Cash Position and Financial Flexibility Dividend Income (TL mn) Koç Holding Net Cash Position ($ mn) 2,692 2 715 2 2,548 673 2 ~445 1,228 1,291 1 1,073 512 433 3 ~-270 ~242 2016 2017 2018 2019 Apr'20 YE19 1Q20 April - May Adj. 1Q20 Adjustments Decline in 2020 mainly due to lack of dividend
Slide 4: Disciplined Approach
Disciplined Approach Strong US$ 2.8 bn gross cash → 78% in hard currency, 22% in TL US$ 2.2 bn total debt Cash Position (Solo) US$ +715 mn net cash including YKB AT1 (US$ +445 mn adjusted net cash) Stable 3 Eurobonds totaling US$ 2.25 bn as of March 31 - Mar’19: US$ 750 mn, 6 yrs, 6.5% coupon (to pr
Slide 5: Energy
Energy Sales Volume, Domestic Market (mn tons) Aygaz (‘000 tons) +8% Sales Volume Ranking: #1 Energy Segment 472 -7% Share (-) (+) 438 241 Operating 213 -62% 2 Profit 1 +6% 8 8 +7% Cons. 154 155 -28% 1 Net Income 69 62 Diesel Jet Fuel Gasoline LPG 2M19 3.29 0.66 0.34 0.59 1Q19 1Q20 2M20 3.55 0.66 0.
Slide 6: Automotive
Automotive Sales Units, Domestic Market (‘000) Export Units, Turkey (‘000) Koç Koç Share 20% 16% 56% 59% 16% 20% 28% 24% Share 42% 35% Automotive Segment +41% -14% Share (-) (+) 320 +45% 276 Operating Profit 1 2 65% +26% +64% Cons. Net Income 1 14% Passenger Light Heavy TOTAL Cars Commercial Commerc
Slide 7: Consumer Durables
Consumer Durables Sales Units1, Market (mn) Export Units, Turkey (mn) +3% Consumer Durables Segment +3% Share (-) (+) 4.8 4.9 +9% Operating 2 25% +11% Profit 2 +3% Cons. 1 3% Western Eastern Net Income Turkey S. Africa Europe Europe 3M19 1.5 8.9 3.0 0.5 3M19 3M20 3M20 1.7 9.2 3.3 0.5 TL mn, combined
Slide 8: Finance
Finance YKB Profitability YKB Operational Performance Net Income (NI) & ROTE Cost/Income CoR Pre-Provision Profit (PPP) (TL mn) Finance Segment +23% 3,676 Share (-) (+) 13.3% 1 34.9% 36.2% 2.68% PPP 2,995 11.4% 2.19% Operating 2 70% Profit -9% NI 1,241 1,129 Cons. 1 16% Net Income 1Q19 1Q20 1Q19 1Q2
Slide 9: Group’s Overall Financial Performance
Group’s Overall Financial Performance Consumer 1 TL mn, 1Q20 Energy Automotive Finance Other One-offs Total Durables Combined Revenues2 29,045 17,855 9,028 10,945 3,826 - 70,699 y/y -18% 10% 14% -10% 7% - -6% 3 Combined Operating Profit -1,491 1,543 599 1,674 63 - 2,388 y/y nm 30% 33% 6% nm - -43% C
Slide 10: Consolidated Net Income
Consolidated Net Income Consolidated Net Income (TL mn) 3,380 3,470 779 190 11 91 -826 -156 1Q19 Energy Auto Cons. Durables Finance Other 1 One-Offs 1Q20 1Q19 1Q20 1 Other Other Other Other 5% -128% Finance Finance Finance Finance 59% 614% Cons. Durables Cons. Durables Cons. Durables Cons. Durables
Slide 11: Wrap-Up
Wrap-Up Disciplined risk management principles and balance sheet strength ensuring resilience against volatility Solid liquidity position Value creation and diversifying businesses further always a key priority www.koc.com.tr 11
Slide 12: Disclaimer
Disclaimer This presentation does contain forward-looking statements that reflect the Company management’s current views with respect to certain future events based on the base-case assumptions. Although it is believed that the expectations reflected in these statements are reasonable, they may be a
Slide 13: ANNEX
ANNEX www.koc.com.tr 13
Slide 14: Strong Positioning via Diversified Structure
Strong Positioning via Diversified Structure Net Asset Value Breakdown by Sector YE19 1Q201 Other Other 14% Auto 15% (PC & CV Mfg) Auto 27% Finance (PC & CV Mfg) Fi nance 18% 26% 14% Cons . Auto Cons. Dura bles (Other) Auto Durables 10% 10% (Other) 10% 10% Oi l & Ga s Refi ning Oil & Gas Di s tribut
Slide 15: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators 1Q20 TL mn 1Q19 1Q20 Y/Y € mn $ mn Revenues 34,262 39,436 15% 5,866 6,471 Gross Profit 4,389 7,083 61% 1,054 1,162 Operating Profit 1,945 1,061 -45% 158 174 Profit Before Tax 843 2,743 225% 408 450 Net Income Before Non-controlling Interest 717 2,873 300% 427 4
Slide 16: Combined Net Income – Consolidated Net Income
Combined Net Income – Consolidated Net Income Normalized Combined Net Income (TL mn) -90% y/y nm +46% +17% +5% nm nm +76% 3,394 3,606 2,047 1,183 1,266 1,324 811 215 252 0 -240 -6 -90 -2,456 Energy Auto Cons. Durables Finance Other 1 One-Offs Total Normalized Consolidated Net Income (TL mn) -89% y/y
Slide 17: Unlisted Companies
Unlisted Companies FY19 Koç Hol di ng Revenues Opera ting Profi t1 EBITDA Book Va l ue (SHE) TL mn Di rect Sha re FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 Arçel i k LG Kl i ma 5.00% 955 849 55 62 70 81 277 331 Bi l kom 69.94% 2,331 3,297 107 148 108 150 116 206 Düzey 31.21% 1,759 1,946 -3 37 1 53 17
Slide 18: 2020 Expectations of Listed Koç Group Companies
2020 Expectations of Listed Koç Group Companies TÜPRAŞ 2019A 2020E Latest 2020E 1 ARÇELİK 2019A 2020E Latest 2020E 1, 2 Sector Revenue 19% 10-15% n.a. Med Complex ($/bbl) 1.7 1.5-2.5 1.0-2.0 EBITDA Margin 10.5% ~10.5% n.a. Tüpraş LT EBITDA Margin -- >11.5% n.a. Net Margin ($/bbl) 3.7 4.5-5.5 3.0-4.0
Slide 19: Production Suspensions at Listed Koç Group Companies
Production Suspensions at Listed Koç Group Companies Company Duration Reason Disruptions in trade and Eskişehir plant: between 23 March to 27 April Ford Otosan problems in the supply Kocaeli plants: between 23 March to 4 May chain Disruptions in trade and TürkTraktör between 23 March to 20 April pro
Slide 20: Shareholding Structures
Shareholding Structures Koç Holding Koç Family: 64.3%1 Free Float: 26.5% Vehbi Koç Foundation: 7.3% Koç Pension Fund: 2% Consumer Energy Automotive Finance Other Durables Tüpraş Ford Otosan Arçelik Yapı Kredi Bank Tat Gıda EYAŞ: 51% KH: 38% KH: 41% KH: 9.02% KH: 44% Free float: 49% Ford Motor Co.2:
Slide 21: Koç Holding Contacts
Koç Holding Contacts investorrelations@koc.com.tr www.koc.com.tr IR Application Nursel Ilgen, CFA, Coordinator Investor Relations nurseli@koc.com.tr +90 216 531 0414 Neslihan Aycıl, Manager Investor Relations neslihana@koc.com.tr +90 216 531 0516 Sinem Baykalöz, Manager Investor Relations sinemb@koc