Slide 1: Koç Holding 9M15 Earnings Presentation
Koç Holding 9M15 Earnings Presentation 9 November 2015
Slide 2: 9M15 Operating Environment
9M15 Operating Environment www.koc.com.tr 2
Slide 3: Risk aversion regarding emerging markets left Turkish financial markets under pressure
2.10 2.30 2.50 2.70 2.90 3.10 3.30 3.50 4 5 6 7 8 9 10 11 12 02.01.12 02.01.12 12.03.12 12.03.12 21.05.12 21.05.12 30.07.12 30.07.12 08.10.12 08.10.12 17.12.12 17.12.12 25.02.13 25.02.13 06.05.13 06.05.13 15.07.13 15.07.13 23.09.13 23.09.13 Euro Policy Rate (Weekly Repo) 02.12.13 02.12.13 10.02.14 1
Slide 4: Weakness in TL keeps inflation above official target
Weakness in TL keeps inflation above official target 16 Annual Inflation (%) 14 12 10 8 6 4 2 0 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 04.2014 07.2014 10.2014 01.2015 04.2015 07.2015 10.2015 CPI PPI % Apr May June July Aug Sep Oct CPI
Slide 5: Household and business confidence weak in 3Q, industrial production resilient
While household and business confidence continued to remain weak in 3Q, industrial production exhibited a more resilient picture GDP Growth (Annual, %) Industrial Production 130 34.0 10.0 32.0 16 125 30.0 5.0 28.0 11 120 Billion TL 0.0 26.0 % 24.0 6 -5.0 115 22.0 20.0 1 110 -10.0 18.0 -15.0 16.0 -4
Slide 6: Decline in exports limit the improvement in current account balance
Decline in exports limit the improvement in current account balance September 2015 Last 12 Months US$ Billion Annual Chg. US$ Billion Annual Chg. Exports 11.7 -14.2% 146.5 -7.2% Imports 15.4 -25.2% 218.7 -10.3% Trade Balance -3.7 -46.6% -72.2 -16.1% 0 -10 -20 -30 -40 -43.0 -50 -60 -70 -80 Annualized
Slide 7: 9M15 Koç Group
9M15 Koç Group www.koc.com.tr 7
Slide 8: Energy – Koç Group Companies
Energy – Koç Group Companies RUP became fully Tüpraş Capacity Utilizations & White Product Yield Tüpraş&Med Complex Margins – US$/Barrel operational as of June Capacity Utilizations – % White Product Yield – % Tüpraş Clean Inventory Tüpraş Gross Med Complex 99.5 72.8 74.7 Gross Ref. Margin Effect Re
Slide 9: Automotive – Ford Otosan & Tofaş vs Sector
Automotive – Ford Otosan & Tofaş vs Sector Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly Koç Market 14% 14% 52% 52% 21% 25% 23% 23% Share 120000 +39% +68% 800000 +75% +38% +41% +39% 100000 +35% 700000 +37% -5% 600000 80000 +57% 500000 60000 400000 +52% +7% 3000
Slide 10: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly +8% 6000000 900000 5000000 +13% -5% 800000 +5% +6% 4000000 +28% +7% 700000 +16% 600000 3000000 +5% +11% +3% +4% 500000 +1% 2000000 +15% 400000 1000000 300000 200000 0 Refrigerat
Slide 11: Finance – Yapı Kredi Bank
Finance – Yapı Kredi Bank Increasing market shares Resilient fundamentals Ytd ∆ Loans/Deposits Ratio3 Capital Adequacy Ratio (bank-only) (bank-only) YKB Private State Sector Market Ytd ∆ Banks Banks Share (bps) YKB: -3pp ytd ~+40bps (Sector : +1 pp) in Oct’15 Loans 22% 17% 24% 20% 10.5% +24 ~15% ~15
Slide 12: 9M15 Financial Results
9M15 Financial Results www.koc.com.tr 12
Slide 13: Group's Overall Financial Performance
Group’s Overall Financial Performance Consumer 9M15 Change Over TL million Energy Automotive Finance Other Durables Total 9M14 Total Combined Revenues * 47,157 25,045 10,505 15,481 7,119 105,308 7% Combined Gross Profit 4,025 3,136 3,273 6,425 1,144 18,002 29% Combined Operating Profit ** 2,709 1,72
Slide 14: Combined Revenues
Combined Revenues Combined Revenues – TLmn Segmental Combined Revenues Breakdown – % +7% 105,308 98,339 Automotive 24% Energy 45% Consumer Durables 10% Finance 9M14 9M15 15% Other 7% Segment Contribution to Combined Revenues – TLmn -9% 52,020 47,157 +35% 25,045 +11% +27% +15% 18,494 15,481 9,491 10,
Slide 15: Combined Operating Profit
Combined Operating Profit * Combined Operating Profit – TLmn Segmental Combined Operating Profit Breakdown – % Energy +47% 7,489 36% 5,098 Automotive 23% Other 1% Consumer Durables 9M14 9M15 Finance 11% 30% Segment Contribution to Combined Operating Profit – TLmn +197% +4% 2,709 +42% 2,124 2,219 1,7
Slide 16: Combined Net Income
Combined Net Income Combined Net Income – TLmn Segmental Combined Net Income Breakdown – % +13% 5,821 Energy 5,174 Automotive 31% +21% 23% 4,798* Other Consumer 3% Durables 12% 9M14 9M15 Finance 31% Segment Contribution to Combined Net Income – TLmn +7% +31% +18% 1,805 1,698 1,819 1,378 1,360 1,149
Slide 17: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TLmn Segmental Consolidated Net Income Breakdown – % +5% 2,214 2,113 Energy 32% Automotive +22% 25% 1,814* Other 4% Consumer Durables 9M14 9M15 Finance 12% 27% Segment Contribution to Consolidated Net Income – TLmn +6% +35% +16% 703 607 551 570 522 4
Slide 18: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$mn Combined International Sales – US$mn 11,029 -9% -14% 9,991 13,636 11,710 9M14 9M15 9M14 9M15 www.koc.com.tr 18
Slide 19: Combined Investments
Combined Investments Combined Investments – TLmn Segmental Investments Breakdown – % -12% Automotive 4,959 47% 4,357 Consumer Energy Durables 31% 10% 9M14 9M15 Other Finance 5% 7% www.koc.com.tr 19
Slide 20: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 30.09.2015 Net Cash Position Total Debt: ~US$ 0.76 bn Total Cash: ~US$ 1.41 bn Net Cash: ~US$ 650mn Consolidated Net Debt / Cash Excl. Finance 1H15 9M15 ~US$ -4.4bn ~US$ -4.4bn www.koc.com.tr 20
Slide 21: FX Position
FX Position Koç Holding Stand-Alone FX Position 1H15 9M15 US$ + 65mn US$ +46mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 1H15 9M15 1H15 9M15 US$ -2.8bn US$ -2.8bn* US$ -1.2bn US$ -1.2bn * The natural hedging mechanisms due to FX linked pricing of Tüpraş invento
Slide 22: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 30.Sep.2015 30.Sep.2015 30.Sep.2015 30.Sep.2014 %, TL %, US$ Revenues 17,320 19,309 51,276 51,314 q -0.1 q -19 Gross Profit 2,689 2,997 7,960 5,599 p 42 p 16 Operating Profit 1,447 1,614 4,285 2,625 p 63 p 33 Profit Befor
Slide 23: Q&A
Q&A www.koc.com.tr 23
Slide 24: 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 25: Shareholder Structures as of September 2015
Shareholder Structures as of September 2015 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 Ford Otosan Arçelik Tat Gıda Tüpraş KH share: 38.46% Koç Financial Services SPV share: 51.00% KH share:
Slide 26: 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@