Slide 1: Koç Holding 1Q16 Earnings Presentation
Koç Holding 1Q16 Earnings Presentation 6 May 2016
Slide 2: 1Q16 Operating Environment
1Q16 Operating Environment www.koc.com.tr 2
Slide 3: Improvement in risk appetite in global markets reflected positively on TL financial assets
2.50 2.70 2.90 3.10 3.30 3.50 4 6 8 10 14 12 02.01.14 02.01.14 14.03.14 14.03.14 24.05.14 24.05.14 03.08.14 03.08.14 13.10.14 13.10.14 23.12.14 23.12.14 Euro (LHS) Policy Rate (Weekly Repo) 04.03.15 04.03.15 14.05.15 14.05.15 Exchange Rates (TL) 24.07.15 24.07.15 USD (RHS) 03.10.15 03.10.15 13.12.15
Slide 4: Economic activity remained buoyant in the first quarter of 2016
Economic activity remained buoyant in the first quarter of 2016 GDP Industrial Production 8 130 34.0 10.0 32.0 6 125 30.0 5.0 28.0 4 120 Billion TL 0.0 26.0 % 24.0 -5.0 2 115 22.0 20.0 0 110 -10.0 18.0 -15.0 16.0 -2 105 1-2008 3-2008 1-2009 3-2009 1-2010 3-2010 1-2011 3-2011 1-2012 3-2012 1-2013 3-2
Slide 5: Sharp fall in food prices brought inflation down to a 3-year low in April
Sharp fall in food prices from February onwards brought inflation down to a 3-year low in April 14 Annual Inflation(%) 12 10 8 6 6.57 4 2 2.87 0 01.2013 04.2013 07.2013 10.2013 01.2014 04.2014 07.2014 10.2014 01.2015 04.2015 07.2015 10.2015 01.2016 04.2016 CPI PPI January % October November December
Slide 6: Europe recovery supports exports; low oil and commodity prices lead to import decline
While recovery in Europe supports export growth, low levels of oil and commodity prices lead to a decline in imports March 2016 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 12.8 2.3% 141.5 -8.4% Imports 17.8 -5.2% 201.7 -14.9% Trade Balance -5.0 -20.3% -60.1 -27.1% 5 -5 -15 -25
Slide 7: 1Q16 Koç Group
1Q16 Koç Group www.koc.com.tr 7
Slide 8: Koç Holding Credit Ratings
Koç Holding Credit Ratings Ratings Outlook Moody’s Baa3 Positive S&P BBB- Positive * * In March 2016, S&P has revised Koç Holding’s outlook from stable to positive. www.koc.com.tr 8
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 Inventory Med Complex 99.7 75.8 72.9 Gross / Net Gross / Net Effect Margin Ref. Margin Ref. Margin 84.1 5.2 3.
Slide 10: 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% 55% 52% 23% 27% 25% 23% Share 100000 -4% -6% 90000 200000 180000 80000 +1% 160000 70000 -7% 140000 60000 120000 50000 -8% 100000 -12% 80000 40000 60000 -
Slide 11: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly +12% 1800000 1600000 700000 +9% 1400000 600000 +17% 1200000 500000 +11% 1000000 +11% +8% 800000 +29% 400000 600000 -1% 300000 400000 200000 200000 0 100000 Refrigerator Washer &
Slide 12: Finance – Yapı Kredi Bank
Finance – Yapı Kredi Bank Maintained Scale Strong Operational Performance Loan Market Share Deposit Market Share Core Revenue Growth – YoY, 1Q16 Cost Growth – YoY, 1Q16 9% 16.1% 26% 15.5% 16.0% 15.7% 15.3% 7% 14.9% 19% 10.2% 10.3% 10.3% 10.4% 10.0% 10.2% 2014 2015 1Q16 2014 2015 1Q16 YKB Sector YKB
Slide 13: 1Q16 Financial Results
1Q16 Financial Results www.koc.com.tr 13
Slide 14: Group's Overall Financial Performance
Group’s Overall Financial Performance Consumer 1Q16 Change Over TL million Energy Automotive Finance Other Durables Total 1Q15 Total Combined Revenues * 12,592 9,120 3,975 5,941 2,180 33,808 11% Combined Gross Profit 894 1,144 1,222 2,378 391 6,029 21% Combined Operating Profit ** 351 618 331 737 -4
Slide 15: Combined Revenues
Combined Revenues Combined Revenues – TLmn Segmental Combined Revenues Breakdown – % +11% 33,808 Automotive 30,428 27% Consumer Durables 12% Energy 37% Finance 1Q15 1Q16 18% Other 6% Segment Contribution to Combined Revenues – TLmn -4% 13,064 12,592 +20% 9,120 +28% 7,599 +22% 5,941 +16% 4,642 3,975
Slide 16: Combined Operating Profit
Combined Operating Profit * Combined Operating Profit – TLmn Segmental Combined Operating Profit Breakdown – % +25% Automotive 1,994 31% Energy 1,594 18% Consumer Other Durables -2% 17% 1Q15 1Q16 Finance 37% Segment Contribution to Combined Operating Profit – TLmn +23% +25% 737 -9% 618 598 +80% 495
Slide 17: Combined Net Income
Combined Net Income Combined Net Income – TLmn Segmental Combined Net Income Breakdown – % +13% 1,436 Automotive 1,273 38% Energy Consumer 9% Durables 11% Other 2% 1Q15 1Q16 Finance 41% Segment Contribution to Combined Net Income – TLmn +20% +10% 589 542 494 489 -29% +15% 182 153 130 133 22 -24 Ener
Slide 18: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TLmn Segmental Consolidated Net Income Breakdown – % +12% Automotive 515 41% 459 Energy 10% Consumer Other Durables -1% 12% 1Q15 1Q16 Finance 38% Segment Contribution to Consolidated Net Income – TLmn +21% +10% 211 193 197 163 -28% +14% 71 63 51 55 -
Slide 19: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$mn Combined International Sales – US$mn 3,254 -4% 3,111 3,668 -3% 3,545 1Q15 1Q16 1Q15 1Q16 www.koc.com.tr 19
Slide 20: Combined Investments
Combined Investments Combined Investments – TLmn Segmental Investments Breakdown – % 1,648 -17% Automotive 51% 1,376 Consumer Durables Energy 11% 27% 1Q15 1Q16 Other Finance 1% 10% www.koc.com.tr 20
Slide 21: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 31.03.2016 Net Cash Position Total Debt: ~US$ 1.5 bn Total Cash: ~US$ 2.3 bn Net Cash: ~US$ 778mn Consolidated Net Debt / Cash Excl. Finance 2015 1Q16 ~US$ -3.8bn ~US$ -3.7bn www.koc.com.tr 21
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 2015 1Q16 US$ + 40mn US$ +42mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 2015 1Q16 2015 1Q16 US$ -2.6bn US$ -2.4bn* US$ -1.1bn US$ -1.0bn * The natural hedging mechanisms due to FX linked pricing of Tüpraş invento
Slide 24: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 31.Mar.2016 31.Mar.2016 31.Mar.2016 31.Mar.2015 %, TL %, US$ Revenues 4,332 4,773 14,052 13,759 p 2 q -15 Gross Profit 712 784 2,309 1,916 p 21 p 1 Operating Profit 340 375 1,103 666 p 66 p 38 Profit Before Tax 230 254 74
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 March 2016
Shareholder Structures as of March 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 Ford Otosan Arçelik Tat Gıda Tüpraş KH share: 38.46% Koç Financial Services SPV share: 51.00% KH share: 40.5
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