Slide 1: Koç Holding 3Q14 Earnings Presentation
Koç Holding 3Q14 Earnings Presentation 10 November 2014
Slide 2: 3Q14 Operating Environment
3Q14 Operating Environment www.koc.com.tr 2
Slide 3: Confusion in global markets about Fed's interest rate policy and geo-political risks creating volatility
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 02.04.10 02.04.10 29.06.10 29.06.10 25.09.10 25.09.10 22.12.10 22.12.10 20.03.11 20.03.11 16.06.11 16.06.11 12.09.11 12.09.11 09.12.11 09.12.11 06.03.12 06.03.12 Euro Policy Rate (Weekly Repo) 02.06.12 02.06.12 29.08.12 2
Slide 4: Economic activity in the third quarter is slightly better than the previous one
Economic activity in the third quarter is slightly better than the previous one 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 1-2008 2-2008 3-2008 4-2008 1-2009 2-2009 3-2009 4-2009
Slide 5: Foreign trade deficit continued to decline, improving current account balance
Foreign trade deficit continued to decline in the third quarter, leading to a substantial improvement in the current account balance September 2014 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 13.7 4.6% 158.0 4.0% Imports 20.6 -0.2% 243.7 -1.4% Trade Balance -6.9 -8.4% -85.7 -1
Slide 6: Weakness in TL, tax hikes and weather force 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: 3Q14 Koç Group
3Q14 Koç Group www.koc.com.tr 7
Slide 8: Energy – Koç Group Companies
Energy – Koç Group Companies Tüpraş Residuum Upgrade Project – Realization % Tüpraş & Med Complex Margins – US$/Barrel 100% Tüpraş Med 98.2% Inventory Tüpraş Net Clean Net Complex 80% Effect Margin Margin Margin 60% 3Q13 3.07 1.05 4.13 1.05 3Q14 6.08 -0.55 5.53 3.45 40% 9M13 2.35 0.24 2.59 2.13 20%
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 17% 14% 52% 52% 17% 21% 24% 23% -28% Share 90000 -30% -26% -18% -17% -19% -1% 700000 80000 -7% 600000 -19% 70000 -26% 500000 60000 400000 50000 -8% 300000 -20% 4
Slide 10: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly -4% 6000000 +8% 800000 5000000 -5% -1% 700000 +8% -15% -14% +3% 4000000 600000 -13% -8% -14% 3000000 500000 -5% -3% 2000000 400000 +9% 1000000 300000 200000 0 Washing Refrigerat
Slide 11: Finance – Yapı Kredi Bank
Finance – Yapı Kredi Bank Market Share Gains Customer Acquisition Strengthened Distribution 9.9% +40bps +2,051 headcount 9.8% Loans 9.5% 9.6% +70bps +310,000 Ongoing 9.6% 9.8% +35 new branches Growth Deposits 9.1% +60bps net ytd increase in customer number 9.0% 9.0% 8.9% (2x the increase recorded in
Slide 12: 3Q14 Financial Results
3Q14 Financial Results www.koc.com.tr 12
Slide 13: Group's Overall Financial Performance
Group’s Overall Financial Performance Consumer 9M14 Change Over TL million Energy Automotive Finance Other Durables Total 9M13 Total Combined Revenues * 52,020 18,494 9,491 12,151 6,183 98,339 9% Combined Gross Profit 2,050 2,277 2,983 5,612 1,024 13,945 3% Combined Operating Profit 783 1,149 758 2,
Slide 14: Combined Revenues
Combined Revenues Combined Revenues – TLmn Segmental Combined Revenues Breakdown – % +9% 98,339 90,083 Automotive 19% Energy 53% Durables 10% 9M13 9M14 Finance Other 12% 6% Segment Contribution to Combined Revenues – TLmn +8% 52,020 48,034 +3% +11% +19% +14% 17,894 18,494 9,491 10,173 12,151 8,551 6
Slide 15: Combined Operating Profit
Combined Operating Profit Combined Operating Profit – TLmn Segmental Combined Operating Profit Breakdown – % 5,456 -10% Automotive 4,932 23% Energy 16% Durables 15% Other 2% 9M13 9M14 Finance 43% Segment Contribution to Combined Operating Profit – TLmn -14% 2,458 +2% 2,124 -10% 1,279 -6% 1,149 768 7
Slide 16: Combined Net Income
Combined Net Income Combined Net Income – TLmn Segmental Combined Net Income Breakdown – % 6,242 -17% Automotive 5,174 Energy 22% -4% 27% 4,988* 4,798* Durables 8% Other 10% 9M13 9M14 Finance 33% Segment Contribution to Combined Net Income – TLmn -48% +17% 3,271 +1% -16% 1,698 2,017* +158% 1,378 -5%
Slide 17: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TLmn Segmental Consolidated Net Income Breakdown – % 2,240 -6% Automotive 2,113 22% Energy -1% 25% 1,827* 1,814* Durables 8% Other 18% Finance 9M13 9M14 27% Segment Contribution to Consolidated Net Income – TLmn -47% 1,085 +31% +1% -15% +221% 570 522
Slide 18: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$mn Combined International Sales – US$mn -5% 13,675 -0.3% 13,636 11,647 11,029 9M13 9M14 9M13 9M14 www.koc.com.tr 18
Slide 19: Combined Investments
Combined Investments Combined Investments – TLmn Segmental Investments Breakdown – % +7% 4,959 4,616 Automotive 44% Energy 45% Durables 9M13 9M14 Other 6% 1% Finance 4% www.koc.com.tr 19
Slide 20: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 30.09.2014 Net Cash Position Total Debt: ~US$ 0.75 bn Total Cash: ~US$ 1.53 bn Net Cash: ~US$ 770mn Consolidated Net Debt / Cash Excl. Finance 1H14 9M14 ~US$ -3.9bn ~US$ -3.4bn www.koc.com.tr 20
Slide 21: FX Position
FX Position Koç Holding Stand-Alone FX Position 1H14 9M14 US$ + 155mn US$ +153mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 1H14 9M14 1H14 9M14 US$ -4.0bn US$ -3.9bn* US$ -1.7bn US$ -1.6bn * The natural hedging mechanisms due to FX linked pricing of Tüpraş & Ayg
Slide 22: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 30.Sep.2014 30.Sep.2014 30.Sep.2014 30.Sep.2013 %, TL %, US$ Revenues 17,493 23,720 51,314 48,171 p 7 q -8 Gross Profit 1,909 2,588 5,599 5,092 p 10 q -5 Operating Profit 899 1,219 2,637 3,262 q -19 q -30 Profit Before Ta
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 2014
Shareholder Structures as of September 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:
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@