Slide 1: Koç Holding 2011 Earnings Presentation
Koç Holding 2011 Earnings Presentation 9 March 2012
Slide 2: Operating Environment
2011 Operating Environment www.koc.com.tr 2
Slide 3: Negative mood in financial markets in Q4 2011 replaced by better outlook
1.80 2.00 2.10 2.20 2.30 2.40 2.50 2.60 1.90 5 6 7 8 9 10 12 13 11 04.01.10 04.01.10 31.01.10 31.01.10 27.02.10 27.02.10 26.03.10 26.03.10 22.04.10 22.04.10 19.05.10 19.05.10 15.06.10 15.06.10 12.07.10 12.07.10 08.08.10 08.08.10 04.09.10 04.09.10 01.10.10 01.10.10 28.10.10 28.10.10 24.11.10 24.11.10
Slide 4: Economic activity signaled a relative slowdown in last quarter of 2011
Leaving behind a very strong year, economic activity started to signal a relative slowdown in the last quarter of 2011 GDP Growth (Quarterly, %) Industrial Production 25 135 30.0 10.0 8.2 20 28.0 15 125 5.0 10 26.0 3.7 5 Billion TL 0.0 24.0 0 115 % 22.0 -5 -5.0 -10 20.0 105 -15 -10.0 -20 18.0 -25 95
Slide 5: Widening current account deficit the main weakness in Turkish economy
Rapid widening in current account deficit has been the main weeakness in Turkish economy in 2011 Jan 2012 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 10.4 8.6% 135.8 17.5% Imports 17.4 2.8% 241.3 26.5% Trade Balance -7.0 -4.7% -105.5 40.4% Current Account Balance (%, ratio to
Slide 6: TL weakness, tax hikes and administered prices increased inflation in 4Q11
Together with TL weakness, tax hikes and administered price increases led to an increase in inflation in 4Q11 16 Annual Inflation (%) 14 12 10.43 10 8 9.15 6 4 2 0 04.2010 01.2011 01.2010 02.2010 03.2010 05.2010 06.2010 07.2010 08.2010 09.2010 10.2010 11.2010 12.2010 02.2011 03.2011 04.2011 05.2011
Slide 7: Koç Group Core Sectors
2011 Koç Group Core Sectors www.koc.com.tr 7
Slide 8: Energy
Energy Tüpraş Capacity Utilization – % Tüpraş Net Margins vs Med Complex Margins – US$/Barrel 5.29 79.9 77.1 4.51 5.5 7.5 2.89 69.6 74.4 1.17 2010 2011 2010 2011 Crude Others Tüpraş Net Margin Med Complex Gross Margin Aygaz Net Sales – TLmn Opet Market Share Development – % 5,456 18.9 18.6 17.8 17.4
Slide 9: Automotive
Automotive Sales Units, Market * – January-December Sales Development, Market * – Units, Monthly Koç Market 20% 20% 53% 54% 18% 22% 30% 30% Share 180000 -13% 1000000 +15% 160000 900000 800000 +16% 140000 700000 120000 600000 +55% +44% +38% +35% -14% 500000 +8% 100000 +2% -5% -5% -5% 400000 80000 +93
Slide 10: Consumer Durables
Consumer Durables Sales Units, Market * – January-December Sales Development, Market * – Units, Monthly +19% 7000000 700000 +24% +21% +18% +14% 6000000 +22% 5000000 600000 +23% +15% +14% +17% +27% +29% +11% 4000000 +13% +23% 500000 +22% 3000000 +23% 400000 2000000 300000 1000000 200000 0 Washing 100
Slide 11: Finance
Finance Deposit Growth – YoY Loan Growth – YoY 20% 28% 30% 13% YKB Sector YKB Sector Yapı Kredi Bank Leading ROAE level (22%) and highest tangible ROAE (24%) among private banks Solid net income of TL2.3 bn with only annual growth among private banks (2%) – Sustained revenues driven by highest c
Slide 12: Financial Results
2011 Financial Results www.koc.com.tr 12
Slide 13: Financial Performance
Financial Performance Revenues TL75,741mn (US$45,354mn) 41% YoY increase in TL terms and 26% in US$ terms Operating Profit TL5,490mn (US$3,287mn) 34% YoY increase in TL terms and 20% in US$ terms EBITDA TL6,525mn (US$3,907mn) 29% YoY increase in TL terms and 16% in US$ terms Profit Befor
Slide 14: Main Financial Indicators
Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 31.Dec.2011 31.Dec.2011 31.Dec.2011 31.Dec.2010 %, TL %, US$ Revenues 32,613 45,354 75,741 53,812 p 41 p 26 Gross Profit 4,805 6,683 11,160 9,192 p 21 p 9 EBITDA 2,810 3,907 6,525 5,066 p 29 p 16 Operating Profit 2,364 3,287 5,490 4,1
Slide 15: High Revenue Growth Mostly Supported by Energy & Automotive Sectors
High Revenue Growth Mostly Supported by Energy & Automotive Sectors Revenues – TLmn Share of Segment Revenues – % 41% 75,741 53,812 Energy 63% Automotive 14% Durables 11% FY10 FY11 Finance Other 5% 8% Segment Contribution to Revenues – TLmn 51% 47,541 31,412 32% 23% 20% 27% 10,233 8,434 7,767 6,834
Slide 16: EBITDA Improved by an Additional 1/3
EBITDA Improved by an Additional 1/3 EBITDA – TLmn Segmental EBITDA Breakdown – % 29% 6,525 5,066 Energy Automotive 44% 16% Durables 14% Other 2% FY10 FY11 Finance 25% Segment Contribution to EBITDA – TLmn EBITDA Margin by Segment – % 68% 2,808 30.6 27.2 7% 1,669 29% 6% 1,525 1,626 1,000 53% 12.3 88
Slide 17: 34% Increase in Total Operating Profit
34% Increase in Total Operating Profit Operating Profit Consumer Inter segment Energy Automotive Finance Other TOTAL TL mn Durables eliminations FY11 2,414 774 665 1,518 22 97 5,490 Operating Profit – TLmn Segmental Operating Profit Breakdown – % 34% 5,490 Energy 45% 4,102 Automotive 14% Other 0.4%
Slide 18: Stronger Export Revenues & Diversification of Geographical Risks
Stronger Export Revenues & Diversification of Geographical Risks Combined Exports – US$mn Consolidated Exports – US$mn 31% 14,511 30% 9,926 11,073 7,641 FY10 FY11 FY10 FY11 Combined International Sales – US$mn Consolidated International Sales – US$mn 34% 17,852 32% 11,994 13,315 9,068 FY10 FY11 FY10
Slide 19: Increasing Investments in Lucrative Business Lines
Increasing Investments in Lucrative Business Lines Combined Investments – TLmn Segmental Investments Breakdown – % 73% 2,894 Energy Automotive 39% 1,676 33% Other FY10 FY11 7% Finance Durables 9% 13% www.koc.com.tr 19
Slide 20: Slight Margin Contraction due to Higher than Anticipated Revenue Growth
Slight Margin Contraction due to Much Higher than Anticipated Revenue Growth EBITDA Margin – % Operating Margin – % 9.4 7.6 7.2 8.6 FY10 FY11 FY10 FY11 Net Income Margin – % 3.2 2.8 FY10 FY11 www.koc.com.tr 20
Slide 21: Solid Net Cash Position at the Holding Level
Solid Net Cash Position at the Holding Level Consolidated Debt Remains at 0.9 Times EBITDA Koç Holding Stand-Alone 31.12.2011 Net Cash Position Total Debt: ~US$ 0.15 bn Total Cash: ~US$ 0.73 bn Net Cash: ~US$ 578 mn 2012-2013 Redemption Schedule US$ 150 mn – to be paid in equal annual installments o
Slide 22: Resilient Against FX Volatility
Resilient Against FX Volatility Koç Holding Stand-Alone FX Position 2010 2011 US$ + 323mn US$ + 281mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 2010 2011 2010 2011 US$ - 2.9bn US$ - 3.0bn* US$ - 1.7bn US$ - 1.5bn * The natural hedging mechanisms due to FX linke
Slide 23: Targets
2012 Targets www.koc.com.tr 23
Slide 24: Main Macro Assumptions
Main Macro Assumptions 2012 GDP ($billion) 815 Growth (GDP, %) 4.0 Inflation (CPI, year-end, %) 6.5 USD/TL (year-end) 1.75 USD/TL (average) 1.78 EUR/TL (year-end) 2.36 C/A Balance (Ratio to GDP, %) -7.8 Brent Petrol (US$ / Barrel) 110.5 www.koc.com.tr 24
Slide 25: Koç Holding Targets
Koç Holding Targets 2012 Consolidated Total Assets (TL bn) 113.9 Consolidated Revenues (TL bn) 82.9 Consolidated Operating Profit (TL bn) 4.8 Consolidated EBITDA (TL bn) 6.0 Combined Exports (US$ bn) 15.4 Combined Investments (TL bn) 6.5 www.koc.com.tr 25
Slide 26: Q&A
Q&A www.koc.com.tr 26
Slide 27: 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 28: Shareholder Structures as of December 2011
Shareholder Structures as of December 2011 Koç Holding Koç Family: 68.51% Free Float: 22.35% Vehbi Koç Foundation: 7.15% Koç Pension Fund: 1.99% Consumer Energy Automotive Finance Other Durables Tüpraş Ford Otosan Arçelik Tat Konserve SPV share: 51.00% KH share: 38.46% Koç Financial Services KH shar
Slide 29: For Further Questions, Please Contact
For Further Questions, Please Contact : investorrelations@koc.com.tr Funda Güngör Akpınar, Coordinator Winner 2010 Best IR Investor Relations Website Award fundag@koc.com.tr +90 216 531 0535 Neslihan Aycıl, Associate Investor Relations neslihana@koc.com.tr +90 216 531 0516 Winner World Finance - * 2