Koc Holding A.s. · BIST:KCHOL
Koc Holding A.s — Q1 2017 Earnings Presentation
28 slides from Koc Holding A.s's earnings presentation, May 10, 2017
Slide 1: Koç Holding 1Q17 Earnings Presentation
Koç Holding 1Q17 Earnings Presentation 10 May 2017
Slide 2: 1Q17 Operating Environment
1Q17 Operating Environment www.koc.com.tr 2
Slide 3: Positive sentiment abroad has been supporting financial markets in Turkey from February onwards
2.50 2.70 2.90 3.10 3.30 3.50 3.70 3.90 4.10 6 7 9 10 11 12 13 8 02.01.15 02.01.15 14.03.15 14.03.15 24.05.15 24.05.15 03.08.15 03.08.15 13.10.15 13.10.15 23.12.15 23.12.15 Euro (LHS) 03.03.16 03.03.16 CB Weighted Avg Funding Cost 13.05.16 13.05.16 Exchange Rates (TL) 23.07.16 23.07.16 USD (RHS) 02.
Slide 4: GDP growth recovered in Q4 thanks to government stimulus
GDP growth recovered in Q4 thanks to government stimulus; a similar momentum is carried into Q1 2017, with some improvement in confidence indicators GDP Industrial Production 7.4 8 133 8.0 7.2 5.9 6 130 6.0 5.3 4.5 3.5 3.5 4 127 4.0 2 124 % 2.0 0.0 0 121 -2.0 -1.3 -2 118 -4.0 -4 115 1-2015 2-2015 3-
Slide 5: Exports started 2017 well; current account deficit widened moderately
Although exports took off to a good start to 2017; current account deficit widened moderately due to higher commodity prices and weaker tourism revenues March 2017 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 14.5 13.6% 145.7 3.0% Imports 19.0 6.9% 202.2 0.2% Trade Balance -4.5
Slide 6: Inflation at highest level since 2008
Weakness in TL, surge in food inflation and increasing oil and commodity prices pushed inflation to highest level since 2008 18 Annual Inflation (%) 16 14 12 10 8 6 4 2 0 01.2014 04.2014 07.2014 10.2014 01.2015 04.2015 07.2015 10.2015 01.2016 04.2016 07.2016 10.2016 01.2017 04.2017 CPI PPI % October
Slide 7: 1Q17 Koç Group
1Q17 Koç Group www.koc.com.tr 7
Slide 8: Koç Holding Credit Ratings: Investment Grade Maintained
Koç Holding Credit Ratings: Investment Grade Maintained One notch above Turkey’s Ratings Outlook government bond rating Moody’s Baa3 Negative Two notches above Turkey’s foreign S&P BBB- Negative currency rating Moody’s: Koç Holding's Baa3 issuer rating reflects the company's strong financial profile
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 Med 106.4 Inventory 99.7 78.0 Gross / Net Gross / Net Complex 72.9 Ref. Margin Effect Margin 5.2 6.5 Ref. Ma
Slide 10: Automotive – Koç Group Companies
Automotive – Koç Group Companies Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly Koç Market 14% 13% 50% 52% 27% 24% 23% 24% Share 100000 -11% 200000 -8% 90000 180000 160000 -9% 80000 140000 70000 120000 -11% 100000 60000 80000 -1% 50000 +7% 60000 40000 -19% 40000
Slide 11: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly 2500000 +36% 1000000 +40% 900000 2000000 800000 +42% 1500000 700000 +25% 1000000 +45% +29% +31% 600000 500000 +44% 500000 400000 300000 0 200000 Refrigerator Washer & Dishwasher
Slide 12: Finance – Yapı Kredi Bank
Finance – Yapı Kredi Bank Profitability Acceleration Strong Operational Performance Net Income (TL mn) ROATE Cost/Income(1) CoR Revenues +298 +15% +42% bps Costs +8% (vs 11% CPI) 1.41% 1,001 +244bps 15.8% 1.12% 12.8% 41% +41% 39% 704 10.3% 501 1Q15 1Q16 1Q17 1Q15 1Q16 1Q17 1Q16 1Q17 1Q16 1Q17 Effici
Slide 13: 1Q17 Financial Results
1Q17 Financial Results www.koc.com.tr 13
Slide 14: Group's Overall Financial Performance
Group’s Overall Financial Performance Consumer 1Q17 Change Over TL million Energy Automotive Finance Other Durables Total 1Q16 Total Combined Revenues * 21,707 12,166 5,086 6,840 2,373 48,171 42% Combined Gross Profit 2,256 1,427 1,509 2,939 417 8,548 42% Combined Operating Profit ** 1,673 846 363 1
Slide 15: Combined Revenues
Combined Revenues Combined Revenues – TL mn Segmental Combined Revenues Breakdown – % +42% 48,171 Automotive 25% 33,808 Energy 45% Consumer Durables 11% 1Q16 1Q17 Finance Other 14% 5% Segment Contribution to Combined Revenues – TL mn +72% 21,707 +33% +15% 12,592 12,166 9,120 +28% +9% 5,941 6,840 3,9
Slide 16: Combined Operating Profit
Combined Operating Profit * Combined Operating Profit – TL mn Segmental Combined Operating Profit Breakdown – % +102% Energy 4,035 41% 1,994 Automotive 21% Other 0% Consumer Finance Durables 1Q16 1Q17 29% 9% Segment Contribution to Combined Operating Profit – TL mn +377% 1,673 +59% +37% 1,172 846 +1
Slide 17: Combined Net Income
Combined Net Income Combined Net Income – TL mn Segmental Combined Net Income Breakdown – % +103% 2,914 Energy 36% +101% 2,888* Automotive 1,436 22% Other 1% Consumer Durables 1Q16 1Q17 Finance 8% 33% Segment Contribution to Combined Net Income – TL mn +710% +62% 1,052 956 +19% 644 589 542 +52% 233
Slide 18: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TL mn Segmental Consolidated Net Income Breakdown – % +118% 1,125 Energy 1,099* 35% +113% Automotive 515 23% Other 2% Consumer Durables 1Q16 1Q17 Finance 9% 31% Segment Contribution to Consolidated Net Income – TL mn +682% +75% 399 +22% 344 258 211 +
Slide 19: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$ mn Combined International Sales – US$ mn +29% +26% 4,004 4,477 3,111 3,545 1Q16 1Q17 1Q16 1Q17 www.koc.com.tr 19
Slide 20: Combined Investments
Combined Investments Combined Investments – TL mn Segmental Investments Breakdown – % Automotive 1,376 52% 1,126 Consumer Energy Durables 28% Other 12% Finance 3% 1Q16 1Q17 5% www.koc.com.tr 20
Slide 21: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 31.03.2017 Net Cash Position Total Debt: ~US$ 1.5bn* Total Cash: ~US$ 2.0bn** Net Cash: US$ 506mn Consolidated Net Debt / Cash Excl. Finance FY16 1Q17 ~US$ -2.7bn ~US$ -2.8bn * The total debt of US$ 1.5bn consists of two Eurobond issuances by Koç
Slide 22: SPV Debt
SPV Debt Initial Loan Amount US$ 1.8 billion Remaining Debt as of 1Q17* TL 322 million *The debt at the SPV level has been fully paid in April 2017. www.koc.com.tr 22
Slide 23: FX Position
FX Position Koç Holding Stand-Alone FX Position FY16 1Q17 US$ +31mn US$ +81mn Koç Holding Consolidated Net FX Position After Natural Hedge Net FX Position * Net FX Position After Natural Hedge** Weighted by Effective Ownership FY16 1Q17 FY16 1Q17 FY16 1Q17 US$ -1.1bn US$ -1.2bn US$ -109mn US$ -30mn
Slide 24: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change 31.Mar.2017 31.Mar.2017 31.Mar.2017 31.Mar.2016 %, TL Revenues 5,666 6,034 22,274 14,052 p 59 Gross Profit 998 1,063 3,924 2,309 p 70 Operating Profit 663 706 2,605 1,103 p 136 Profit Before Tax 523 557 2,055 748 p 175 Taxes (ne
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 31 March 2017
Shareholder Structures as of 31 March 2017 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 share: 4
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 Gülsevin Tunçay, Coordinator Investor Relations gulsevint@koc.com.tr +90 216 531 0428 Gizem Bodur, Manager Invest