Slide 1: Koç Holding 9M16 Earnings Presentation
Koç Holding 9M16 Earnings Presentation 8 November 2016
Slide 2: Operating Environment
9M16 Operating Environment www.koc.com.tr 2
Slide 3: Economic activity fluctuated in the third quarter
Economic activity fluctuated in the third quarter accompanied with a stronger consumer confidence and weaker business confidence GDP Industrial Production 8 130 36.0 10.0 34.0 32.0 6 125 5.0 30.0 4 120 Billion TL 28.0 0.0 % 26.0 -5.0 24.0 2 115 22.0 -10.0 20.0 0 110 18.0 -15.0 16.0 -2 105 1-2008 3-2
Slide 4: Contraction in the current account deficit ended in May
Contraction in the current account deficit ended in May with some slight widening since then September 2016 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 10.9 -5.6% 140.9 -3.8% Imports 15.3 -0.7% 197.1 -9.9% Trade Balance -4.4 14.1% -56.2 -22.2% 5 -5 -15 -25 -35 -31.0 -45 -55 -6
Slide 5: Unusually low food prices led to a decline in inflation
Unusually low food prices led to a decline in inflation in August and September 14 Annual Inflation (%) 12 10 8 6 4 2 0 01.2013 04.2013 07.2013 10.2013 01.2014 04.2014 07.2014 10.2014 01.2015 04.2015 07.2015 10.2015 01.2016 04.2016 07.2016 10.2016 CPI PPI % April May June July August September Octob
Slide 6: TL remained under pressure in the third quarter of 2016
2.50 2.70 2.90 3.10 3.30 3.50 4 6 8 10 12 14 02.01.14 02.01.14 29.03.14 29.03.14 23.06.14 23.06.14 17.09.14 17.09.14 12.12.14 12.12.14 08.03.15 08.03.15 Euro (LHS) Policy Rate (Weekly Repo) 02.06.15 02.06.15 27.08.15 27.08.15 Exchange Rates (TL) 21.11.15 21.11.15 USD (RHS) 15.02.16 15.02.16 11.05.16
Slide 7: Koç Group
9M16 Koç Group www.koc.com.tr 7
Slide 8: Koç Holding Credit Ratings
Koç Holding Credit Ratings One notch above Turkey’s Ratings Outlook government bond rating Moody’s Baa3 Stable Two notches above Turkey’s S&P BBB- Negative foreign currency rating Moody’s: Koç Holding's Baa3 issuer rating reflects the company's strong financial profile and balanced portfolio of inve
Slide 9: Energy – Koç Group Companies
Energy – Koç Group Companies Tüpraş Capacity Utilizations & White Product Yield Tüpraş&Med Complex Margins – US$/Barrel Capacity Utilizations – % White Product Yield – % Tüpraş Clean Tüpraş Inventory Med Complex 103.6 Gross / Net Gross / Net 99.5 Effect Margin 74.7 76.2 Ref. Margin Ref. Margin 4.2 4
Slide 10: Automotive – Koç Group Companies
Automotive – Koç Group Companies Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly Koç Market 14% 13% 52% 54% 25% 22% 23% 22% Share 120000 -6% -9% +13% +4% 800000 100000 -4% -31% -13% 700000 -2% +4% 600000 80000 -7% 500000 400000 60000 -9% -8% 300000 40000 200000 -
Slide 11: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly +4% 6000000 900000 +7% 5000000 800000 +5% -7% +3% 4000000 700000 +9% -2% 600000 +17% 3000000 +6% +4% +11% +4% 500000 2000000 -2% 400000 1000000 300000 200000 0 Refrigerator Wash
Slide 12: Finance – Yapı Kredi Bank
Finance – Yapı Kredi Bank Significant Profitability Acceleration Improved Fundamentals Net Income (TL bn) ROATE CET1 LDR ~x2 +540 bps 11.5% 10.7% 114% 2.4 14.0% 113% 8.6% 1.3 2015 9M16 2015 9M16 9M15 9M16 9M15 9M16 Maintained Scale Strong Operational Performance Loan Market Share Deposit Market Shar
Slide 13: Financial Results
9M16 Financial Results www.koc.com.tr 13
Slide 14: Group's Overall Financial Performance
Group’s Overall Financial Performance Consumer 9M16 Change Over TL million Energy Automotive Finance Other Durables Total 9M15 Total Combined Revenues * 47,177 29,125 12,930 18,050 6,986 114,268 4% Combined Gross Profit 3,865 3,613 4,011 8,092 1,309 20,890 14% Combined Operating Profit ** 2,144 1,92
Slide 15: Combined Revenues
Combined Revenues Combined Revenues – TLmn Segmental Combined Revenues Breakdown – % +4% 109,476 114,268 Automotive 25% Consumer Energy Durables 41% 11% Finance 9M15 9M16 Other 16% 6% Segment Contribution to Combined Revenues – TLmn -8% 51,325 +15% 47,177 +18% 29,125 25,222 +15% +10% 18,050 12,930 1
Slide 16: Combined Operating Profit
Combined Operating Profit * Combined Operating Profit – TLmn Segmental Combined Operating Profit Breakdown – % +11% 8,410 7,604 Energy Automotive 25% 23% +8% 8,179** Consumer Other Durables 0.5% 13% 9M15 9M16 Finance 38% Segment Contribution to Combined Operating Profit – TLmn +48% -24% 3,235 +37% 2
Slide 17: Combined Net Income
Combined Net Income Combined Net Income – TLmn Segmental Combined Net Income Breakdown – % +11% 6,497 Automotive 5,857 26% +7% 6,292* Energy 20% Consumer Durables 10% Other 3% 9M15 9M16 Finance 41% Segment Contribution to Combined Net Income – TLmn +48% +23% 2,657 -30% +38% 2,484* 1,840 1,795 1,705
Slide 18: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TLmn Segmental Consolidated Net Income Breakdown – % +9% Automotive 2,414 29% 2,214 +4% 2,313* Energy 19% Consumer Durables Other 11% 3% 9M15 9M16 Finance 38% Segment Contribution to Consolidated Net Income – TLmn +52% +23% 906 -34% +40% 703 690 836*
Slide 19: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$mn Combined International Sales – US$mn -1% -3% 9,991 9,853 11,710 11,339 9M15 9M16 9M15 9M16 www.koc.com.tr 19
Slide 20: Combined Investments
Combined Investments Combined Investments – TLmn Segmental Investments Breakdown – % Automotive 57% 4,410 4,218 Consumer Energy Durables 24% Other 11% Finance 9M15 9M16 2% 5% www.koc.com.tr 20
Slide 21: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 30.09.2016 Net Cash Position Total Debt: ~US$ 1.5 bn* Total Cash: ~US$ 2.1 bn** Net Cash: ~US$ 571mn Consolidated Net Debt / Cash Excl. Finance 1H16 9M16 ~US$ -3.9bn ~US$ -3.2bn * The total debt of US$ 1.5bn consists of two Eurobond issuances by
Slide 22: SPV Debt
SPV Debt Initial Loan Amount US$ 1.8 billion Remaining Debt TL 322 million Maturity of the Debt April 2017 www.koc.com.tr 22
Slide 23: FX Position
FX Position Koç Holding Stand-Alone FX Position 1H16 9M16 US$ + 45mn US$ +38mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 1H16 9M16 1H16 9M16 US$ -2.4bn US$ -2.2bn* US$ -1.0bn US$ -0.9bn * The natural hedging mechanisms due to FX linked pricing of Tüpraş invento
Slide 24: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 30.Sep.2016 30.Sep.2016 30.Sep.2016 30.Sep.2015 %, TL %, US$ Revenues 15,211 16,974 49,758 51,276 q -3 q -12 Gross Profit 2,524 2,816 8,256 7,960 p 4 q -6 Operating Profit 1,434 1,600 4,691 4,285 p 9 q -1 Profit Before Ta
Slide 25: Q&A
Q&A www.koc.com.tr 25
Slide 26: 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 27: Shareholder Structures as of 30 September 2016
Shareholder Structures as of 30 September 2016 Koç Holding Koç Family: 68.51% Free Float: 22.24% Vehbi Koç Foundation: 7.26% Koç Pension Fund: 1.99% Consumer Energy Automotive Finance Other Durables Tüpraş Ford Otosan Arçelik Tat Gıda SPV share: 51.00% KH share: 38.46% Koç Financial Services KH shar
Slide 28: For Further Questions, Please Contact
For Further Questions, Please Contact : investorrelations@koc.com.tr www.koc.com.tr IR Application Funda Güngör Akpınar, Coordinator Investor Relations fundag@koc.com.tr +90 216 531 0535 Gizem Bodur, Manager Investor Relations gizemb@koc.com.tr +90 216 531 0533 Neslihan Aycıl, Manager Investor Relat