Koc Holding A.s. · BIST:KCHOL

Koc Holding A.s — Investor Presentation (November 2010)

39 slides from Koc Holding A.s's investor presentation, November 2010

  1. Slide 1: Koç Holding Investor Presentation

    Koç Holding Investor Presentation November 2010

  2. Slide 2: Sustainable Track Record in Overperforming the Turkish Economic Growth Rates

    Sustainable Track Record in Overperforming the Turkish Economic Growth Rates Leading Conglomerate in Turkey Strong Standing in Global Rankings Ranking  2009 : 273 Total Sales / GDP  2008 : 172 7%*  2007 : 186 Global 500 Total Exports / Turkey’s Exports 8%*  2006 : 190  2005 : 358 Total Share in

  3. Slide 3: Unrivaled Competitive Advantages

    Unrivaled Competitive Advantages  ~11,000 dealers and after-sales services Largest distribution network  ~ 860 bank branches Largest customer database  Large customer database of over 17 million in different business segments together with strong CRM capabilities, enabling efficient up & cross-se

  4. Slide 4: Strategic Targeting Geared Towards Efficiency, Leadership, Innovation & Reputation

    Strategic Targeting Geared Towards Efficiency, Leadership, Innovation & Reputation Strategic Principles  Focus on those sectors where we can create a differential competitive advantage  Grow in sectors where we can leverage our strong brands & technological prowess  Derive maximum benefits from e

  5. Slide 5: Focused Growth Strategy

    Focused Growth Strategy Energy Automotive Consumer Durables Finance Automotive Main Companies Main companies Main Companies Main Companies Tüpraş* / Aygaz* / Opet / Entek Ford Otosan* / Tofaş* / Türk Traktör* / Arçelik* Yapı Kredi Bankası* Otokar* Share in Consolidated Revenues International Allianc

  6. Slide 6: Koç Holding in the Energy Sector

    Koç Holding in the Energy Sector Vision & Strategies  Maximize efficiency and increase profitability through – new investments in existing business units such as residuum upgrade project – new technology, product and service offerings – operational efficiencies and profit enhancement programs – opt

  7. Slide 7: Energy Companies – Competitive Advantages

    Energy Companies – Competitive Advantages  Turkey’s sole refiner and largest industrial company  4 refineries (İzmit, İzmir, Kırıkkale, Batman)  Supplying 70% of the total domestic demand  8th largest in Europe with 28 million tons/year total capacity  The largest in Emerging Europe  Highest E

  8. Slide 8: Koç Holding in the Automotive Sector

    Koç Holding in the Automotive Sector Vision & Strategies  To become a “Regional Production Base”  Assume full product development responsibility  Grow as a multi-brand dealership chain in retailing  Maximize efficiency through economies of scale and high capacity utilization rate Leader in Turke

  9. Slide 9: Automotive Companies – Competitive Advantages

    Automotive Companies – Competitive Advantages  Turkey’s largest manufacturer and exporter of commercial vehicles  50-50 JV with Ford  Turkey’s market leader in total automotive  7th consecutive year as the best assembly plant in Ford Europe  4th consecutive year as the best powerplant manufactu

  10. Slide 10: Koç Holding in the Consumer Durables Sector

    Koç Holding in the Consumer Durables Sector Vision & Strategies  Grow globally by acquisitions and organic growth  Maintain domestic market leadership  Leverage technology development capabilities to improve  Increase R&D capabilities, focus on brand positioning product development  Improve ope

  11. Slide 11: Consumer Durables Companies – Competitive Advantages

    Consumer Durables Companies – Competitive Advantages  Turkey’s market leader  Domestic network of 3,500 dealers and 600 after sales service stations  19.5 million units/year manufacturing capacity in Turkey, Romania, Russia and China  3rd largest household appliances company in Europe  2nd in E

  12. Slide 12: Koç Holding in the Finance Sector

    Koç Holding in the Finance Sector Vision & Strategies  Consolidate leadership in credit cards and become leader in consumer finance  Become leader in Asset Gathering and first choice bank for High Net Worth Individuals  Selective growth on Commercial and Corporate segments  Growth in SME through

  13. Slide 13: Finance Companies – Competitive Advantages

    Finance Companies – Competitive Advantages  Turkey’s 4th largest private bank (in terms of total assets)  50-50 JV with UniCredit  ~ 860 Branches  #1 in credit cards (outstanding volume)  Leading companies in asset management, insurance, leasing & factoring #1 in Leasing #1 in Factoring #2 in H

  14. Slide 14: Portfolio Restructuring ahead of the Crisis in line with Changing Economic Dynamics

    Portfolio Restructuring ahead of the Crisis in line with Changing Economic Dynamics US$ 6.6 billion Acquisitions in core sectors US$ 3.0 billion Proceeds through proactive disposals www.koc.com.tr 14

  15. Slide 15: Strongest Beneficiary of the High Growth Environment with Leading Positions in Underpenetrated Markets

    Strongest Beneficiary of the High Growth Environment with Leading Positions in Underpenetrated Markets Revenues – Consolidated-US$bn 43.0 34.5 36.0 29.0 25.4 20.8 16.6 18.2 11.1 6.9 2002 2003 2004 2005 2006 2007 2008 2009 9M09 9M10 Further strong growth potential due to leading positions in low-pene

  16. Slide 16: Strong Margins Despite Global Turmoil

    Strong Margins Despite Global Turmoil EBITDA – Consolidated-US$bn Operating Profit – Consolidated-US$bn 3.1 3.2 2.6 2.6 2.8 2.7 2.6 2.2 2.1 2.1 2.2 1.8 1.6 1.5 1.2 1.0 0.9 0.7 0.6 0.2 2002 2003 2004 2005 2006 2007* 2008* 2009 9M09 9M10 2002 2003 2004 2005 2006 2007* 2008* 2009 9M09 9M10 Operating Ma

  17. Slide 17: Optimal Portfolio Allocation with High Resilience Against Market Volatility

    Optimal Portfolio Allocation with High Resilience Against Market Volatility Revenues – % 2003 2009 FX-denominated & FX-denominated & FX-linked * FX-linked 56% 44% 39% 61% TL TL * FX-linked revenues: Domestic revenues of the energy segment Operating Profit – % 2003 2009 Sectors with Sectors with Less

  18. Slide 18: Strong Global Reach

    Strong Global Reach US$6,913mn 75% share in US$218mn Int’l Sales 2% share in US$1,336mn Int’l Sales 15% share in Int’l Sales US$660mn 7% share in US$49mn Int’l Sales 1% share in Int’l Sales Exports – Combined-US$bn International Sales* – Combined-US$bn 15.0 14.2 12.6 13.3 11.8 9.9 9.2 8.6 8.5 8.1 7.

  19. Slide 19: Leader in R&D and Technology Investments

    Leader in R&D and Technology Investments 16% 8% of private sector of all patent applications filed R&D investments with the Turkish Patent Institute Koç Group Total R&D Investments – TLmn Koç Group Companies’ Patent Portfolio * 1,829 486 67 193 2002 2003 2004 2005 2006 2007 2008 2009 2002 2003 2004

  20. Slide 20: Strong Liquidity and Well-Managed Risk

    Strong Liquidity and Well-Managed Risk Koç Holding Stand-Alone 30.09.2010 Net Cash Position Total Debt: ~US$ 0.24 bn Total Cash: ~US$ 1.01 bn Net Cash: ~US$ 775 mn 2011-2013 Redemption Schedule US$ 225 mn – to be paid in equal annual installments of US$ 75 mn each January Consolidated Net Debt / Cas

  21. Slide 21: Resilient Against FX Volatility

    Resilient Against FX Volatility Koç Holding Stand-Alone FX Position 9M09 9M10 US$ + 285mn US$ + 318mn Koç Holding Consolidated FX Position Weighted by Effective FX Position Ownership 9M08 2008 9M09 9M10 9M09 9M10 US$ - 4.2bn US$ - 2.2bn US$ - 2.5bn US$ - 2.4bn* US$ - 1.4bn US$ - 1.4bn * The natural

  22. Slide 22: Potential Investment Areas

    Potential Investment Areas • Residuum upgrade project - Tüpraş • Opportunities in different fields • New manufacturing including electricity projects for export generation and markets with our JV Automotive renewable energy partners  Focus on higher ROI generating businesses Consumer Energy  Enhan

  23. Slide 23: Main Goal: Maximizing Shareholder Value

    Main Goal: Maximizing Shareholder Value One of the few Turkish Companies which Links Executive Compensation to Share Performance Shareholder Value L-T Strategic Targets Economic Profit Market Cap to Maximize Future Shareholder Value Customer Technology Satisfaction Development Aggressive Sustainable

  24. Slide 24: Value Proposition to Investors

    Value Proposition to Investors www.koc.com.tr 24

  25. Slide 25: Commitment to Corporate Governance

    Commitment to Corporate Governance A Pioneer in Corporate Citizenship  Voluntary commitment and proactive approach to principles of good corporate governance  Executive compensation based on economic profit and share performance  One of the first local companies in Turkey to have independent memb

  26. Slide 26: Corporate Social Responsibility

    Corporate Social Responsibility One of the first Turkish companies to sign the UN Global Compact which confirms Koç Group’s commitment to Corporate Citizenship Supporting vocational education; 7-year project developed to contribute to the creation of a skilled labor force. Koç Holding has pledged to

  27. Slide 27: Corporate Social Responsibility

    Corporate Social Responsibility Contributing to Turkey’s Development through Philantropic Activities Vehbi Koç Foundation  Established in 1969 to make philanthropic endowments for the public good; to create sustainable and replicable projects and programs in education, healthcare and culture  Asse

  28. Slide 28: Appendix

    Appendix www.koc.com.tr 28

  29. Slide 29: Table of Contents

    Table of Contents Page 1. 9M10 Earnings Review 30 2. Shareholder Structures 36 3. Contacts and Disclaimer 37 www.koc.com.tr 29

  30. Slide 30: Financial Performance

    Financial Performance Revenues  TL38,475mn (US$25,409mn)  18% YoY increase in TL terms and 22% in US$ terms Operating Profit  TL3,250mn (US$2,146mn)  16% YoY increase in TL terms and 21% in US$ terms EBITDA  TL3,973mn (US$2,624mn)  15% YoY increase in TL terms and 19% in US$ terms Profit Befor

  31. Slide 31: Main Financial Indicators

    Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 30.Sep.2010 30.Sep.2010 30.Sep.2010 30.Sep.2009 %, TL %, US$ Revenues 19,308 25,409 38,475 32,707 p 18 p 22 Gross Profit 3,360 4,422 6,695 6,712 p 3 EBITDA 1,994 2,624 3,973 3,459 p 15 p 19 Operating Profit 1,631 2,146 3,250 2,794 p 1

  32. Slide 32: Continued Growth in Top Line

    Continued Growth in Top Line Revenues – TLmn Share of Segment Revenues – % 18% 38,475 32,707 Energy Automotive 58% 13% Durables 14% 9M09 9M10 Other Finance 5% 9% Segment Contribution to Revenues – TLmn 27% 22,478 17,636 23% 4% -13% 19% 4,211 5,170 5,046 5,248 4,183 3,633 1,630 1,946 Energy Automotiv

  33. Slide 33: Balanced EBITDA Breakdown

    Balanced EBITDA Breakdown EBITDA – TLmn Segmental EBITDA Breakdown – % 15% Automotive 3,973 13% 3,459 Energy Durables 33% 17% Other 5% Finance 9M09 9M10 31% Segment Contribution to EBITDA – TLmn EBITDA Margin by Segment – % 3% 38% 1,287 1,330 1,236 34.0 1% 896 20% 21.4 668 678 526 19% 13.2 12.9 437

  34. Slide 34: 16% Increase in Operating Profit

    16% Increase in Operating Profit Operating Profit Consumer Energy Automotive Finance Other Consolidated Total TL mn Durables 9M10 1,052 357 528 1,167 145 3,250 Operating Profit – TLmn Segmental Operating Profit Breakdown – % 16% 3,250 Automotive 2,794 11% Energy 32% Durables 16% Other 4% Finance 9M0

  35. Slide 35: Sustainable Margin Performance

    Sustainable Margin Performance EBITDA Margin – % Operating Margin – % 9.0 10.6 10.8 10.3 10.2 8.5 8.4 8.4 9.9 7.8 8.8 7.4 9M08 * 9M09 9M10 1Q10 2Q10 3Q10 9M08 * 9M09 9M10 1Q10 2Q10 3Q10 Profit Before Tax Margin – % 10.3 8.4 7.8 7.5 7.2 5.9 9M08 * 9M09 9M10 1Q10 2Q10 3Q10 * Normalized www.koc.com.tr

  36. Slide 36: Shareholder Structures as of September 2010

    Shareholder Structures as of September 2010 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 sha

  37. Slide 37: For Further Questions, Please Contact :

    For Further Questions, Please Contact : Winner 2010 Best IR Website Award investorrelations@koc.com.tr Funda Güngör Akpınar, Coordinator Investor Relations Strategic Planning Group fundag@koc.com.tr +90 216 531 0535 Aslı Soyubol, Manager Investor Relations Strategic Planning Group aslii@koc.com.tr +

  38. Slide 38: Main Group Companies’ Contacts

    Main Group Companies’ Contacts Arçelik Otokar Tüpraş Fatih Ebiçlioğlu, CFO Hüseyin Odabaş, AGM Finance Tuncay Önbilgin, Head of IR fatih.ebiclioglu@arcelik.com hodabas@otokar.com.tr tuncay.onbilgin@tupras.com.tr +90 212 314 3434 +90 264 229 2244 Ext. 451 +90 262 316 3085 M. Türkay Tatar, EVP Yasemin

  39. Slide 39: 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

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