Slide 1: Koç Holding FY16 Earnings Presentation
Koç Holding FY16 Earnings Presentation 17 February 2017
Slide 2: FY16 Operating Environment
FY16 Operating Environment www.koc.com.tr 2
Slide 3: Following a dismal Q4, financial markets in Turkey took off to a better start to 2017
Following a dismal Q4, financial markets in Turkey took off to a better start to 2017 Nominal Interest Rates (Annual compound, %) Real Interest Rates (%, ex-ante) 13 5.0 12 4.0 11 3.3 3.0 10 2.0 9 8 1.0 7 0.0 6 -1.0 02.01.15 29.03.15 23.06.15 17.09.15 12.12.15 07.03.16 01.06.16 26.08.16 20.11.16 14.
Slide 4: Economic activity recovered modestly in 4Q16; confidence in the economy remains weak
Economic activity recovered modestly in the 4Q16; confidence in the economy remains weak GDP Industrial Production 7.4 8 130 8.0 7.2 5.9 6 6.0 125 4.5 4.5 4.0 3.5 4 120 2 % 2.0 115 0.0 0 -2.0 110 -2 -1.8 -4.0 -4 105 1-2015 2-2015 3-2015 4-2015 1-2016 2-2016 3-2016 2014 1 2015 1 2016 1 3 5 7 9 11 3 5
Slide 5: Despite contraction in the foreign trade deficit, current account balance deteriorated mildly
Despite contraction in the foreign trade deficit, current account balance deteriorated mildly on the back of weak tourism revenues December 2016 Last 12 Months US$ Billion Annual Chg. US$ Billion Annual Chg. Exports 12.8 9.0% 142.6 -0.9% Imports 18.4 2.3% 198.6 -4.2% Trade Balance -5.6 -10.3% -56.0
Slide 6: Inflation accelerated from December onwards due to weakness in TL
Inflation accelerated from December onwards due to weakness in TL, increase in oil and metal prices and surge in food inflation 16 Annual Inflation (%) 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 CPI PPI % July August Sep
Slide 7: FY16 Koç Group
FY16 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 Stable 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 a
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 Inventory 102.5 105.3 Gross / Net Gross / Net Complex 75.4 76.6 Effect Margin 4.4 4.4 Ref. Margin Ref. M
Slide 10: Automotive – Koç Group Companies
Automotive – Koç Group Companies Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly Koç Market 13% 13% 56% 54% 23% 27% 24% 22% -11% Share 180000 1200000 160000 1000000 +4% 140000 +42% +13% 800000 120000 -4% -9% +4% -31% -13% +28% 600000 100000 +4% -6% -7% 400000 800
Slide 11: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly 8000000 +5% 900000 +7% 7000000 800000 +5% -7% +20% 6000000 700000 +9% -2% +3% +15% 5000000 +17% 600000 +11% 4000000 +6% +5% +6% 500000 3000000 +5% 400000 2000000 1000000 300000
Slide 12: Finance – Yapı Kredi Bank
Finance – Yapı Kredi Bank Significant Profitability Acceleration Solid Fundamentals Net Income (TL bn) ROATE(1) Capital Ratios LDR (3) 54% +317 14.2% 13.8% bps 12.8% CAR (2) 114% 2.9 110% 9.7% 10.7% 10.6% 1.9 CET1 (2) 2015 2016 2015 2016 2015 2016 2015 2016 Efficient Scale Strong Operational Perform
Slide 13: FY16 Financial Results
FY16 Financial Results www.koc.com.tr 13
Slide 14: Group's Overall Financial Performance
Group’s Overall Financial Performance Consumer 2016 Change Over TL million Energy Automotive Finance Other Durables Total 2015 Total Combined Revenues * 67,273 42,704 17,997 24,236 9,582 161,792 8% Combined Gross Profit 6,259 5,254 5,480 10,841 1,876 29,711 14% Combined Operating Profit ** 3,811 2,8
Slide 15: Combined Revenues
Combined Revenues Combined Revenues – TL mn Segmental Combined Revenues Breakdown – % +8% 161,792 Automotive 149,621 26% Consumer Energy Durables 42% 11% Finance 2015 2016 Other 15% 6% Segment Contribution to Combined Revenues – TL mn -1% 67,707 67,273 +18% +14% 42,704 36,116 +14% +9% 21,267 24,236
Slide 16: Combined Operating Profit
Combined Operating Profit * Combined Operating Profit – TL mn Segmental Combined Operating Profit Breakdown – % +9% Energy 12,144 31% 11,161 Automotive +7% 11,913** 24% Other 1% Consumer Durables 11% 2015 2016 Finance 33% Segment Contribution to Combined Operating Profit – TL mn +19% -4% 3,968 +12%
Slide 17: Combined Net Income
Combined Net Income Combined Net Income – TL mn Segmental Combined Net Income Breakdown – % 8,936 +2% 9,092 Automotive Energy 27% 8,758* +1% 8,888* 24% Consumer Other Durables 3% 10% 2015 2016 Finance 36% Segment Contribution to Combined Net Income – TL mn -19% +21% +17% +15% 3,290 2,719 2,721 3,117
Slide 18: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TL mn Segmental Consolidated Net Income Breakdown – % 3,568 -3% 3,460 Automotive Energy 29% -1% 3,389* 24% 3,359* Other Consumer 4% Durables 11% 2015 2016 Finance 33% Segment Contribution to Consolidated Net Income – TL mn +25% -22% +15% +18% 1,133 1
Slide 19: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$ mn Combined International Sales – US$ mn +1% -1% 13,375 13,509 15,701 15,614 2015 2016 2015 2016 www.koc.com.tr 19
Slide 20: Combined Investments
Combined Investments Combined Investments – TL mn Segmental Investments Breakdown – % Automotive 6,885 54% 6,164 Consumer Durables Energy 14% 24% Other Finance 2% 2015 2016 6% www.koc.com.tr 20
Slide 21: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 31.12.2016 Net Cash Position Total Debt: ~US$ 1.5bn* Total Cash: ~US$ 2.0bn** Net Cash: ~US$ 525mn Consolidated Net Debt / Cash Excl. Finance 9M16 FY16 ~US$ -3.2bn ~US$ -2.7bn * The total debt of US$ 1.5bn consists of two Eurobond issuances by Ko
Slide 22: SPV Debt
SPV Debt Initial Loan Amount US$ 1.8 billion Remaining Debt TL 322 million Maturity of the Debt April 2017 www.koc.com.tr 22
Slide 23: FX Position
FX Position Koç Holding Stand-Alone FX Position 9M16 FY16 US$ +38mn US$ +31mn Koç Holding Consolidated Net FX Position After Natural Hedge Net FX Position * Net FX Position After Natural Hedge** Weighted by Effective Ownership 9M16 FY16 9M16 FY16 9M16 FY16 US$ -0.7bn US$ -1.1bn US$ +0.2bn US$ -0.1bn
Slide 24: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change 31.Dec.2016 31.Dec.2016 31.Dec.2016 31.Dec.2015 %, TL Revenues 21,238 23,478 70,932 69,492 p 2 Gross Profit 3,662 4,048 12,229 11,454 p 7 Operating Profit 2,081 2,300 6,949 6,677 p 4 Profit Before Tax 1,630 1,801 5,443 5,557 q -
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 December 2016
Shareholder Structures as of 31 December 2016 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
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 Gizem Bodur, Manager Investor Relations gizemb@koc.com.tr +90 216 531 0533 Neslihan Aycıl, Manager Investor Relat