Slide 1: Koç Holding 9M09 Earnings Presentation
Koç Holding 9M09 Earnings Presentation November 2009
Slide 2: Operating Environment & Koç Group
loi 9M09 OPERATING ENVIRONMENT & KOG GROUP
Slide 3: Mild Recovery in Economic Activity on the Back of Tax Reductions
Mild Recovery in Economic Activity on the Back of Tax Reductions GDP Growth Rates %,YoY Industrial Production %,YoY 10 15 4 5 10 0 5 0.3 -5 -4 -4 0 -10 -7 -6 -9 -15 -10 -9 -5 -13 -20 -10 -7.0 -18 -19 -17 -25 -21 -21 -15 -24 -30 -14.3 Jul Jul Jan Feb Jun Oct Mar Nov Dec May Sep Sep Aug Aug Apr -20 1Q
Slide 4: Historically Low Real Interest Rates amid Continued Loosening in Monetary Policy
Historically Low Real Interest Rates amid Continued Loosening in Monetary Policy 24 22 20.59% 20 18 19.12% 16 O/N 14 Compound 12 10 8.80% 8 6.98% 6 J M M J S N J M M J S N J M M J S N 2007 2008 2009 4
Slide 5: Contracting Export Markets, Improving Imbalances
Contracting Export Markets, Improving Imbalances Exports & Imports %,YoY Jan - Sep 12 Month 60 2008 2009 Foreign Trade US$ bn YoY US$ bn YoY 40 20 Exports 73.1 -31% 99.9 -27% 0 Imports 100.1 -39% 138.5 -35% -20 -30 -34 -40 Trade Balance -27.0 -54% -38.6 -49% -60 N D F O S S J J J A A M M Current Acc
Slide 6: Automotive
Automotive Sales Units, Market * January-September Sales Development, Market * Units, Monthly +7% 500000 90000 +85% 400000 +16% 80000 +30% +32% 300000 70000 +3% -8% +10% 60000 200000 -32% -18% 50000 -38% -37% -36% 100000 40000 30000 0 Light Com m ercial 20000 Passenger Cars TOTAL Vehicles 10000 0 20
Slide 7: Consumer Durables
Consumer Durables White Goods Sales Units, Market January-September White Goods Sales Development, Market Units, Monthly -5% +22% 5000000 +11% -13% +8% 600000 4000000 -7% 500000 -18% -6% 3000000 -10% -2% 400000 -28% -30% 2000000 +2% -7% 1000000 300000 0 200000 Washing Refrigerator Dishw asher Oven T
Slide 8: Finance
Finance YTD 3Q09 vs 2Q09 YTD 3Q09 vs 2Q09 9M09 Loan Growth 9M09 Deposit & YKB Sector YKB Sector AUM Growth YKB Sector YKB Sector Total Loans -3% 1% -1% 1% TL Loans -4% 4% 1% 1% Total Deposits -2% 6% 3% 2% FC Loans ($) 0% -3% -1% 3% TL Deposits -10% 5% -1% 1% Consumer Loans 5% 5% 1% 3% Mortgages 12%
Slide 9: Energy
Energy Tüpras Product Yields % Opet Market Share Development % 20 17.3 68.2% 73.2% 16.5 16.3 16.1 18 15.2 14.9 14.6 16 13.5 12.8 14 11.5 12 10 31.8% 8 26.8% 6 4 2 0 White Products Black Products 2005 2006 2007 2008 9M09 9M08 9M09 Gasoline Diesel 9
Slide 10: Financial Results
loi 9M09 FINANCIAL RESULTS
Slide 11: Robust Financial and Operational Performance Despite the Ongoing Macro Challenges
Robust Financial and Operational Performance Despite the Ongoing Macro Challenges Revenues TL32,648mn (US$20,808mn) 26% YoY decline in TL terms and 42% in US$ terms Operating Profit TL2,794mn (US$1,781mn) 43% YoY decline in TL terms and 56% in US$ terms 9M08 figure includes the one-off gains
Slide 12: Main Financial Indicators
Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 30.Sep.09 30.Sep.09 30.Sep.09 30.Sep.08 %, TL %, US$ Revenues 15,271 20,808 32,648 43,997 T -26 T -42 Gross Profit 3,116 4,246 6,662 6,827 T -2 T -24 EBITDA 1,618 2,204 3,459 5,534 T -37 T -51 Operating Profit 1,307 1,781 2,794 4,928
Slide 13: Revenues Stood at TL 32.6 billion with the Largest Contribution Coming From the Energy Segment
Revenues Stood at TL 32.6 billion with the Largest Contribution Coming From the Energy Segment Revenues TLmn Share of Segment Revenues % 26% Automotive 43,997 13% 32,648 Energy 54% Durables 15% Finance 9M08 9M09 Other 13% 5% Segment Contribution to Revenues TLmn 36% 27,757 17,636 22% 3% 3% 15% 5,379
Slide 14: Energy and Finance had the Highest Contribution to EBITDA
Energy and Finance had the Highest Contribution to EBITDA EBITDA Consumer Consolidated Energy Automotive Finance Other TL mn Durables Total 9M09 1,289 437 660 898 174 3,459 EBITDA TLmn Segmental EBITDA Breakdown % Automotive 37% 5,534 13% Energy 11% 3,459 37% Durables 3,880 Normalized 19% Other Fina
Slide 15: Improved Margins in Energy, Consumer Durables and Finance Segments
Improved Margins in Energy, Consumer Durables and Finance Segments Segment Contribution to EBITDA TLmn 33% 90% 1,919 1,767 16% 1,289 24% 32% 898 773 576 660 437 499 Normalized 174 112 Energy Autom otive Durables Finance Other 9M08 9M09 EBITDA Margin by Segment % 124.7 21.5 18.0 13.2 10.7 10.4 9.7 10
Slide 16: Best Operating Profit Performance Registered in the Consumer Durables Segment
Best Operating Profit Performance Registered in the Consumer Durables Segment Operating Profit Consumer Consolidated Energy Automotive Finance Other TL mn Durables Total 9M09 1,032 295 509 830 128 2,794 Operating Profit TLmn Segmental Operating Profit Breakdown % Automotive 43% Energy 11% 4,928 37%
Slide 17: Positive Performance in Normalized Net Income
Positive Performance in Normalized Net Income Normalized net income increased by 13% YoY TL342mn FX loss in 9M08 vs TL24mn FX gain in 9M09 TL60mn decline in net interest expense YoY Net Income TLmn 55% 2,526 13% 1,133 1,000 Normalized 9M08 9M09 17
Slide 18: Strong Margin Performance Despite the Challenging Operating Environment
Strong Margin Performance Despite the Challenging Operating Environment EBITDA Margin % EBITDA Margin excl. Finance % 12.6 10.6 12.0 9.6 8.7 9.0 8.8 Normalized 7.8 Normalized 9M07 9M08 9M09 9M07 9M08 9M09 Operating Profit Margin % 11.2 8.6 7.9 7.4 Normalized 9M07 9M08 9M09 18
Slide 19: Strong Liquidity and Balance Sheet Management
Strong Liquidity and Balance Sheet Management Koç Holding Stand-Alone 30.09.2009 Net Cash Position Total Debt: ~US$ 0.3 bn Total Cash: ~US$ 1.02 bn Net Cash: ~US$ 720 mn 2010-2013 Redemption Schedule US$ 300 mn – to be paid in equal annual installments of US$ 75 mn each January Consolidated Net Debt
Slide 20: Strong Resilience Against FX Volatility
Strong Resilience Against FX Volatility Koç Holding Stand-Alone FX Position YE08 1H09 9M09 US$ + 334mn US$ + 290mn US$ + 285 mn Koç Holding Consolidated FX Position Weighted by Effective FX Position Ownership 3Q08 YE08 1H09 9M09 1H09 9M09 US$ - 4.2bn US$ - 2.2bn US$ - 2.3bn US$ - 2.5bn* US$ - 1.3bn
Slide 21: Risk Management & Efficiency Measures
Risk Management & Efficiency Measures Strict cost cutting measures and efficiency gains Stringent risk management measures Strong balance sheet and liquidity management Further streamlining of management processes Optimum capacity utilization rates Effective working capital management
Slide 22: Q&A
& A | www.koc.com.tr | 22
Slide 23: 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 24: Shareholder Structures as of September 2009
Shareholder Structures as of September 2009 Koç Holding (*) Koç Family: 69.51% Free Float: 21.35% Vehbi Koç Foundation: 7.15% Koç Pension Fund: 1.99% Consumer Energy Automotive Finance Other Durables Tüpraş Ford Otosan Arçelik Tat Konserve KH share: 42.70%(**) KH share: 38.46% Koç Financial Services
Slide 25: For Further Questions, Please Contact
For Further Questions, Please Contact : investorrelations@koc.com.tr Funda Güngör, Coordinator Investor Relations Strategic Planning Group fundag@koc.com.tr +90 216 531 0535 Asli Selçuk, Manager Investor Relations Strategic Planning Group aslii@koc.com.tr +90 216 531 0537 Neslihan Aycil, Associate I