Koc Holding A.s. · BIST:KCHOL
Koc Holding A.s — Q1 2014 Earnings Presentation
27 slides from Koc Holding A.s's earnings presentation, May 13, 2014
Slide 1: Koç Holding 1Q14 Earnings Presentation
Koç Holding 1Q14 Earnings Presentation 13 May 2014
Slide 2: 1Q14 Operating Environment
1Q14 Operating Environment www.koc.com.tr 2
Slide 3: Financial markets improving from March onwards after stressful start to the year
1.80 2.00 2.20 2.40 2.60 2.80 3.00 3.20 4 5 7 8 9 10 11 12 6 04.01.10 04.01.10 07.04.10 07.04.10 09.07.10 09.07.10 10.10.10 10.10.10 11.01.11 11.01.11 14.04.11 14.04.11 16.07.11 16.07.11 17.10.11 17.10.11 Euro 18.01.12 18.01.12 Policy Rate (Weekly Repo) 20.04.12 20.04.12 22.07.12 22.07.12 23.10.12 2
Slide 4: Weak domestic demand partially offset by healthy export demand
Weakness in domestic demand on the back of deterioration in consumer confidence has been partially offset by healthy export demand GDP Growth (Annual, %) Industrial Production 125 32.0 10.0 18 30.0 28.0 115 5.0 13 26.0 Billion TL 0.0 105 % 24.0 8 -5.0 22.0 20.0 3 95 -10.0 18.0 -15.0 16.0 -2 85 1-200
Slide 5: Recovery in Europe helping exports; current account balance expected to improve
Recovery in Europe is helping exports in 1Q14 while imports are struggling on the back of weaker TL and subdued domestic demand; C/A balance is expected to improve this year March 2014 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 14.7 12.4% 155.1 0.6% Imports 19.9 -3.0% 250.4 4
Slide 6: Weak TL, tax hikes and weather push inflation higher
Weakness in TL, tax hikes and adverse weather conditions force inflation higher with inflation expectations deteriorating 16 Annual Inflation (%) 14 12 10 8 6 4 2 0 01.2010 04.2010 07.2010 10.2010 01.2011 04.2011 07.2011 10.2011 01.2012 04.2012 07.2012 10.2012 01.2013 04.2013 07.2013 10.2013 01.2014
Slide 7: 1Q14 Koç Group
1Q14 Koç Group www.koc.com.tr 7
Slide 8: Koç Holding Credit Ratings
Koç Holding Credit Ratings Ratings Outlook April 2013 April 2014 April 2013 April 2014 Moody’s Baa3 affirmed Positive affirmed S&P BBB- affirmed Stable affirmed www.koc.com.tr 8
Slide 9: Energy – Koç Group Companies
Energy – Koç Group Companies Tüpraş Residuum Upgrade Project – Realization % Tüpraş & Med Complex Net Margins – US$/Barrel 100% 95.15% 2.41 80% 60% 40% 20% 0.39 0% 1Q14 25.01.10 26.07.10 25.01.11 26.07.11 25.01.12 25.07.12 24.01.13 25.07.13 24.01.14 25.07.14 Tüpraş Med Complex Aygaz Net Sales – TLmn
Slide 10: Automotive – Ford Otosan & Tofaş vs Sector
Automotive – Ford Otosan & Tofaş vs Sector Sales Units, Market * Sales Development, Market * – Units, Monthly Koç Market 14% 11% 53% 55% 20% 21% 24% 20% -30% Share 80000 180000 -24% 70000 160000 -22% -26% 140000 60000 120000 50000 -8% 100000 80000 40000 -32% 60000 30000 40000 -7% 20000 20000 0 Heavy
Slide 11: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Market * Sales Development, Market * – Units, Monthly -14% 1600000 -15% 600000 1400000 -13% 1200000 -14% 500000 1000000 800000 -18% 400000 -10% 600000 -19% 300000 400000 +1% 200000 200000 0 Washing 100000 Refrigerator Dishwasher Oven TOTAL Machine 0
Slide 12: Finance – Yapı Kredi Bank
Finance – Yapı Kredi Bank Market Shares Loans/(Deposits+TL Bonds) 110% Market Share Gains Product Market Share YtD Chg. 108% 108% 110% in value generating areas TL Company Loans 7.8% +31 bps Volumes 108% (TL company loans, GPL, SME, mortgages) GPL 6.6% +25 bps Sector with comfortable LDR maintained
Slide 13: 1Q14 Financial Results
1Q14 Financial Results www.koc.com.tr 13
Slide 14: Group's Overall Financial Performance
Group’s Overall Financial Performance Consumer 1Q14 Change Over TL million Energy Automotive Finance Other Durables Total 1Q13 Total Combined Revenues * 15,866 5,163 2,938 3,772 1,862 29,602 13% Combined Gross Profit 765 691 911 1,687 296 4,349 7% Combined Operating Profit 397 354 235 509 -1 1,495 6
Slide 15: Combined Revenues
Combined Revenues Combined Revenues – TLmn Segmental Combined Revenues Breakdown – % +13% 29,602 26,301 Automotive Energy 17% 54% Durables 10% 1Q13 1Q14 Finance Other 13% 6% Segment Contribution to Combined Revenues – TLmn +21% 15,866 13,120 -9% +13% +13% +16% 5,648 5,163 3,326 3,772 2,599 2,938 1,6
Slide 16: Combined Operating Profit
Combined Operating Profit Combined Operating Profit – TLmn Segmental Combined Operating Profit Breakdown – % +6% 1,495 1,414 Energy Automotive 27% 24% Other -0.1% Durables 16% 1Q13 1Q14 Finance 34% Segment Contribution to Combined Operating Profit – TLmn -30% 725 +167% 509 -1% 397 359 354 +42% 235 1
Slide 17: Combined Net Income
Combined Net Income Combined Net Income – TLmn Segmental Combined Net Income Breakdown – % +17% 1,476 Energy 1,266 37% Automotive 28% Other 1% Finance Durables 1Q13 1Q14 27% 7% Segment Contribution to Combined Net Income – TLmn -33% +254% 587 546 +14% 416 396 367 -16% 154 131 -69% 110 27 8 Energy Au
Slide 18: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TLmn Segmental Consolidated Net Income Breakdown – % +24% 562 Energy 452 37% Automotive 30% Other 2% Finance Durables 1Q13 1Q14 24% 8% Segment Contribution to Consolidated Net Income – TLmn +376% -32% 208 +13% 196 166 146 134 -11% -41% 44 50 45 16 9
Slide 19: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$mn Combined International Sales – US$mn 4,021 -14% 4,597 -8% 4,217 3,457 1Q13 1Q14 1Q13 1Q14 www.koc.com.tr 19
Slide 20: Combined Investments
Combined Investments Combined Investments – TLmn Segmental Investments Breakdown – % +40% 1,381 989 Energy 61% Automotive 29% Durables 1Q13 1Q14 Other 6% 2% Finance 2% www.koc.com.tr 20
Slide 21: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 31.03.2014 Net Cash Position Total Debt: ~US$ 0.76 bn Total Cash: ~US$ 1.56 bn Net Cash: ~US$ 800mn Consolidated Net Debt / Cash Excl. Finance FY13 1Q14 ~US$ -3.1bn ~US$ -3.7bn www.koc.com.tr 21
Slide 22: FX Position
FX Position Koç Holding Stand-Alone FX Position FY13 1Q14 US$ + 187mn US$ +180mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership FY13 1Q14 FY13 1Q14 US$ - 3.5bn US$ -3.7bn* US$ - 1.6bn US$ -1.5bn * The natural hedging mechanisms due to FX linked pricing of Tüpraş & A
Slide 23: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 31.Mar.2014 31.Mar.2014 31.Mar.2014 31.Mar.2013 %, TL %, US$ Revenues 5,166 7,077 15,683 13,563 p 16 q -7 Gross Profit 590 809 1,792 1,403 p 28 p 3 Operating Profit 299 410 908 655 p 39 p 11 Profit Before Tax 236 323 715
Slide 24: Q&A
Q&A www.koc.com.tr 24
Slide 25: 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 26: Shareholder Structures as of March 2014
Shareholder Structures as of March 2014 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 Ford Otosan Arçelik Tat Gıda Tüpraş KH share: 38.46% Koç Financial Services SPV share: 51.00% KH share: 40.5
Slide 27: For Further Questions, Please Contact
For Further Questions, Please Contact : investorrelations@koc.com.tr www.koc.com.tr 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 Relations neslihana@