Slide 1: Koç Holding 2008 Earnings Presentation
Koç Holding 2008 Earnings Presentation March 2009
Slide 2: The world has been going through challenging times
Recessionary cycles across most of the globe The world has been Future of the economy is still bleak going through Trade volumes are shrinking, portfolio investment is dwindling, share challenging times prices are plunging Higher risk awaraness, melting assets under management and mounting w
Slide 3: Initial impact of the global financial turmoil on the Turkish Economy
The initial impact of the global financial turmoil on the Turkish Economy was limited due to : Strong structural reforms ahead of the crisis Well-capitalized banking system with sound risk management systems Strong balance sheets and cash positions in leading conglomerates However, starting fr
Slide 4: Sustainable Track Record in Overperforming the Turkish Growth Rates
Koç Holding : Sustainable Track Record in Overperforming the Turkish Growth Rates Leading conglomerate in Turkey Ranking 2007 : 186 2006 : 190 Total Sales / GDP* 9% 2005 : 358 Global 500 2004 : 389 Total Exports / Turkey’s Exports** 11% 2007 : 46 Total Share in ISE Market Cap.** 13% 2006
Slide 5: Strategic Targeting Geared Towards Efficiency, Leadership, Innovation & Reputation
Strategic Targeting Geared Towards Efficiency, Leadership, Innovation & Reputation Strategic Principles Focus on those sectors where we can create a differential competitive advantage Grow in sectors where we can leverage our strong brands & technological prowess Derive maximum benefits from e
Slide 6: Continuous Improvement in Top & Bottom Line Growth
Continous Improvement in Top & Bottom Line Growth Revenues Consolidated-US$bn EBITDA Consolidated-US$bn 4.5 : 36% R:3 6% C AGR 43.0 AG -2 0 0 8 -20 08 C 2002 34.4 36.0 2002 3.3 2.7 Normalized* 3.2 16.6 18.2 1.5 1.5 1.2 11.1 6.8 0.7 2002 2003 2004 2005 2006 2007 2008 2002 2003 2004 2005 2006 2007 200
Slide 7: Focus on Risk & Crisis Management
Focus on Risk & Crisis Management Actions taken to minimize the potential impact of the financial crisis Radical cost management as early as 2Q08 Significant improvement in net cash position US$ 770mn club loan for the use of Group companies Focus on efficiency and restructuring Areas of foc
Slide 8: Strong Performance Against the Global Turmoil in FY08
Strong Performance Against the Global Turmoil in FY08 Revenues YTL55,631mn (US$43,028mn) 19% YoY increase in YTL terms and 20% in US$ terms Operating Profit YTL5,036mn (US$3,895mn) 40% YoY increase in YTL terms and 41% in US$ terms includes YTL1,675,064,000 capital gain derived from the sale
Slide 9: Main Financial Indicators
Main Financial Indicators € Mn* US$ Mn* YTL Mn YTL Mn Change Change 31.Dec.08 31.Dec.08 31.Dec.08 31.Dec.07 %, YTL %, US$ Revenues 29,344 43,028 55,631 46,802 S 19 S 20 Gross Profit 4,238 6,214 8,034 7,446 S 8 S 9 EBITDA 3,086 4,526 5,851 4,331 S 35 S 36 Operating Profit 2,656 3,895 5,036 3,594 S 40
Slide 10: 19% Increase in Revenues Fuelled by the Surge in Energy & Finance Segments
19% Increase in Revenues Fuelled by the Surge in Energy & Finance Segments Total Revenues TLmn Share of Segment Revenues % 19% 55,631 Energy 62% Automotive 46,802 12% Durables 12% Other Finance 3% 10% FY07 FY08 Segment Contribution to Total Revenues YTLmn 32% 34,561 26,231 1% 3% 8% 23% 6,510 6,435 7
Slide 11: 35% Increase in EBITDA
35% Increase in EBITDA* EBITDA Consumer Consolidated Energy Automotive Finance Other YTL mn Durables Total FY08 1,885 659 607 936 1,765 5,851 Total EBITDA YTLmn Segmental EBITDA Breakdown % Normalized 35% Automotive 5,851 Energy 16% 45% 4,331 2% Normalized Normalized 4,091 4,176 Durables Other 15% 2
Slide 12: Largest Contribution to EBITDA From Energy & Finance
Largest Contribution to EBITDA From Energy & Finance Segment Contribution to EBITDA YTLmn 0.5% 459% 1,894 1,885 1,765 5% 12% 16% 936 804 631 659 688 607 316 Normalized Normalized 75 89 Energy Autom otive Durables Finance Other FY07 FY08 EBITDA Margin by Segment % 91.6 20.1 14.9 16.0 9.7 10.2 9.7 8.8
Slide 13: 40% Increase in Operating Profit
40% Increase in Operating Profit* Operating Profit Consumer Consolidated Energy Automotive Finance Other YTL mn Durables Total FY08 1,570 476 432 851 1,707 5,036 Total Operating Profit YTLmn Segmental Operating Profit Breakdown % Normalized Automotive 14% 40% 5,036 Energy 47% 3,594 Durables 13% Norm
Slide 14: 7.5% Normalized EBITDA Margin
7.5% Normalized EBITDA Margin EBITDA Margin % EBITDA Margin excl. Finance % 10.5 9.9 9.3 8.5 7.8 Normalized Normalized 8.7 7.5 6.9 Normalized Normalized 7.9 6.5 FY06 FY07 FY08 FY06 FY07 FY08 Operating Profit Margin % 9.1 7.7 Normalized 6.1 7.2 Normalized 6.0 FY06 FY07 FY08 14
Slide 15: Strong Cash Position
Strong Cash Position Koç Holding Stand-Alone 31.12.2008 Net Cash Position Total Debt*: ~US$ 0.7 bn Total Cash*: ~US$ 1.7 bn Net Cash: ~US$1bn * In January we made a debt repayment of ~US$400 mn, which did not change our net cash position 2010-2013 Redemption Schedule US$ 300 mn – to be paid in equal
Slide 16: Stronger Resilience Against FX Volatility
Stronger Resilience Against FX Volatility Koç Holding Stand-Alone FX Position 3Q08 YE08 + US$ 556mn + US$ 334mn Koç Holding Consolidated FX Position Weighted by FX Position Effective Ownership 3Q08 YE08 YE08 - US$ 4.2bn - US$ 2.2bn* - US$ 1.4bn * The natural hedging mechanisms due to FX linked prici
Slide 17: www.koc.com.tr
www.koc.com.tr
Slide 18: 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 19: Shareholder Structures as of December 2008
Shareholder Structures as of December 2008 Koç Holding Koç Family: 70.52% Free Float: 20.34% Vehbi Koç Foundation: 7.15% Koç Pension Fund: 1.99% Consumer Energy Automotive Finance Other Durables Tüpraş Ford Otosan Arçelik Tat Konserve KH share: 38.25%(*) KH share: 38.46% KH share: 39.14% Koç Financi
Slide 20: For Further Questions, Please Contact:
For Further Questions, Please Contact: 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, Specialist Investor Relations Strategic P