Slide 1: Koç Holding FY12 Earnings Presentation
Koç Holding FY12 Earnings Presentation 8 March 2013
Slide 2: Operating Environment
2012 Operating Environment www.koc.com.tr 2
Slide 3: Global risk appetite and Turkey's rebalancing, investment grade upgrade by Fitch
1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50 2.60 5 7 8 9 6 10 11 12 13 04.01.10 04.01.10 09.03.10 09.03.10 12.05.10 12.05.10 15.07.10 15.07.10 17.09.10 17.09.10 20.11.10 20.11.10 23.01.11 23.01.11 28.03.11 28.03.11 31.05.11 31.05.11 Euro Policy Rate (Weekly Repo) 03.08.11 03.08.11 06.10.11 06.10.11 09.1
Slide 4: GDP growth below 3% for 2012; confidence recovery positive for 2013
On the back of stronger-than-expected slowdown in domestic demand, GDP growth will likely remain below 3% for 2012 as a whole; recovery in confidence is positive for 2013 growth GDP Growth (Quarterly, %) Industrial Production 25 135 30.0 10.0 20 28.0 125 5.0 15 1.6 26.0 Billion TL 0.0 24.0 10 115 %
Slide 5: Rebalancing has led to a sharp correction in the current account deficit
Rebalancing in the economy has led to a sharp correction in the current account deficit December 2012 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 12.7 1.4% 152.6 13.1% Imports 19.9 -3.7% 236.5 -1.8% Trade Balance -7.2 -11.6% -84.0 -20.7% Current Account Balance (%, ratio to GD
Slide 6: Favorable food prices led to lower than expected year-end inflation in 2012
Thanks to favorable food prices, year-end inflation in 2012 was much lower than expected 16 Annual Inflation (%) 14 12 10 8 7.0 6 4 2 1.8 0 01.2010 03.2010 05.2010 07.2010 09.2010 11.2010 01.2011 03.2011 05.2011 07.2011 09.2011 11.2011 01.2012 03.2012 05.2012 07.2012 09.2012 11.2012 01.2013 CPI PPI
Slide 7: Koç Group Core Sectors
2012 Koç Group Core Sectors www.koc.com.tr 7
Slide 8: Energy – Koç Group Companies
Energy – Koç Group Companies Tüpraş Capacity Utilization – % Tüpraş Net Margins vs Med Complex Margins – US$/Barrel 83.5 4.42 79.9 5.5 4.8 2.92 74.4 78.7 1.72 1.41 FY11 FY12 4Q11 4Q12 Crude Others Tüpraş Net Margin Med Complex Gross Margin Aygaz Net Sales – TLmn Opet Market Share – % 20.1 5,586 18.6
Slide 9: Automotive – Ford Otosan & Tofaş vs Sector
Automotive – Ford Otosan & Tofaş vs Sector Sales Units, Market * – January-December Sales Development, Market * – Units, Monthly Koç Market 20% 17% 52% 54% 24% 16% 30% 27% Share 160000 -10% 1000000 -10% 140000 900000 800000 -6% 120000 700000 -17% -20% -12% -13% 100000 600000 +15% -14% +12% 500000 -1
Slide 10: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Market * – January-December Sales Development, Market * – Units, Monthly -0.2% 7000000 700000 -12% +2% +6% 6000000 +4% -3% 600000 -3% 5000000 -2% +7% +3% 4000000 500000 +6% 3000000 -5% -1% -3% 400000 2000000 300000 1000000 200000 0 Washing 100000 Re
Slide 11: Finance – Yapı Kredi Bank vs Sector
Finance – Yapı Kredi Bank vs Sector Unyielding focus on Ongoing emphasis on customer business with above sector growth in high yielding credit cards and GPL value generating Further progress in commercial effectiveness (faster improvement in loans, deposits and core revenues per employee vs grow
Slide 12: FY12 Financial Results
FY12 Financial Results www.koc.com.tr 12
Slide 13: Financial Performance
Financial Performance Revenues TL84,833mn (US$47,327mn) 13% YoY increase in TL terms and 5% in US$ terms Operating Profit TL4,464mn (US$2,491mn) 19% YoY decrease in TL terms and 24% in US$ terms (2% YoY decrease in TL terms if major one-off items are excluded) EBITDA TL5,613mn (US$3,132mn)
Slide 14: Main Financial Indicators
Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 31.Dec.2012 31.Dec.2012 31.Dec.2012 31.Dec.2011 %, TL %, US$ Revenues 36,812 47,327 84,833 74,943 p 13 p 5 Gross Profit 5,075 6,524 11,695 11,160 p 5 q -2 EBITDA 2,436 3,132 5,613 6,525 q -14 q -20 Operating Profit 1,937 2,491 4,464 5
Slide 15: Strong Revenue Growth Across All Sectors except Automotive
Strong Revenue Growth Across All Sectors except Automotive Revenues – TLmn Share of Segment Revenues – % +13% 84,833 74,943 Energy 63% Automotive 12% Durables 12% FY11 FY12 Finance Other 5% 9% Segment Contribution to Revenues – TLmn +14% 53,312 46,744 -4% +25% +22% +9% 10,233 9,836 8,434 10,503 5,97
Slide 16: Normalized Operating Profit Declined Slightly by 2%
Normalized Operating Profit Declined Slightly by 2% Operating Profit – TLmn Segmental Operating Profit Breakdown – % 5,490 -19% Automotive 18% 4,464 -2% Durables Energy 18% 4,539 29% Excl. one- off items Other 1% FY11 FY12 Finance 34% Segment Contribution to Operating Profit – TLmn -48% -1% 2,414 +6
Slide 17: 2% YoY Increase in Normalized Profit Before Tax
2% YoY Increase in Normalized Profit Before Tax Profit Before Tax – TLmn Segmental Profit Before Tax Breakdown – % 4,707 -4% 4,517 Automotive 16% +2% Energy 4,416 35% Durables Excl. 14% one-off items Other 2% Finance FY11 FY12 33% Segment Contribution to Profit Before Tax – TLmn -2% -1% 1,619 1,583
Slide 18: Balanced Diversification Among Core Sectors in EBITDA
Balanced Diversification Among Core Sectors in EBITDA EBITDA – TLmn Segmental EBITDA Breakdown – % 6,525 -14% Automotive 5,613 19% +1% Energy Durables 5,574 30% 19% Excl. one-off items Other FY11 FY12 3% Finance 29% Segment Contribution to EBITDA – TLmn EBITDA Margin by Segment – % -41% 2,808 -0.2%
Slide 19: Strong Export Growth Despite Difficulties in the European Market
Strong Export Growth Despite Difficulties in the European Market Further Diversification of Geographical Risks Combined Exports – US$mn Consolidated Exports – US$mn 10% 12% 11,062 15,746 9,859 14,312 FY11 FY12 FY11 FY12 Combined International Sales – US$mn Consolidated International Sales – US$mn 11
Slide 20: Increasing Investments in line with Sustainable Growth Strategy
Increasing Investments in line with Sustainable Growth Strategy Combined Investments – TLmn Segmental Investments Breakdown – % 33% 4,875 3,673* Automotive Energy 34% 47% Other Durables FY11 FY12 3% Finance 10% 6% * Combined investments reported in FY11 (TL2,894mn) is adjusted by including advances
Slide 21: 2.7% Net Income Margin
2.7% Net Income Margin Operating Margin – % Profit Before Margin – % 7.3 6.3 5.2 5.3 5.3 4.9 6.1 5.9 Excl. Excl. one-off one-off items (*) items (*) FY11 1H12 FY12 FY11 1H12 FY12 Net Income Margin – % 2.8 2.7 2.5 2.7 2.5 Excl. Excl. one-off one-off items (*) items (**) FY11 1H12 FY12 * YKB-regulator
Slide 22: Solid Net Cash Position and Well-Managed Risk
Solid Net Cash Position and Well-Managed Risk Koç Holding Stand-Alone 31.12.2012 Net Cash Position Total Debt: ~US$ 0.08 bn Total Cash: ~US$ 0.83 bn Net Cash: ~US$ 756 mn Consolidated Net Debt / Cash Excl. Finance 9M12 FY12 ~US$ -2.5bn ~US$ -2.7bn www.koc.com.tr 22
Slide 23: Well-Managed FX Position
Well-Managed FX Position Koç Holding Stand-Alone FX Position 9M12 FY12 US$ + 232mn US$ +233mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 9M12 FY12 9M12 FY12 US$ - 3.0bn US$ -3.3bn* US$ - 1.3bn US$ -1.6bn * The natural hedging mechanisms due to FX linked pricing
Slide 24: 2013 Targets
2013 Targets www.koc.com.tr 24
Slide 25: Main Macro Assumptions
Main Macro Assumptions 2013 GDP (US$billion) 870 Growth (GDP, %) 4.5 Inflation (CPI, year-end, %) 6.5 US$/TL (year-end) 1.88 US$/TL (average) 1.83 EUR/TL (year-end) 2.38 C/A Balance (Ratio to GDP, %) -7.0 www.koc.com.tr 25
Slide 26: Koç Holding Targets
Koç Holding Targets 2013 2013 Chg. Consolidated Total Assets (TL bn) 54.6 10% As of 2013, equity accounting Consolidated Revenues (TL bn) 69.8 7% will be applied to joint ventures according to Consolidated Operating Profit (TL bn) 4.6 22% IFRS11 – Joint Arrangements. Consolidated EBITDA (TL bn) 5.5
Slide 27: Q&A
Q&A www.koc.com.tr 27
Slide 28: 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 29: Shareholder Structures as of December 2012
Shareholder Structures as of December 2012 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 Tüpraş Ford Otosan Arçelik Tat Konserve SPV share: 51.00% KH share: 38.46% Koç Financial Services KH shar
Slide 30: For Further Questions, Please Contact
For Further Questions, Please Contact : investorrelations@koc.com.tr Funda Güngör Akpınar, Coordinator Winner 2010 Best IR Investor Relations Website Award fundag@koc.com.tr +90 216 531 0535 Neslihan Aycıl, Associate Investor Relations neslihana@koc.com.tr +90 216 531 0516 Winner Winner World Financ