Slide 1: Koç Holding 2023 Earnings Presentation
KOÇ HOLDING 2023 EARNINGS PRESENTATION 15 MARCH 2024 2023 Earnings Presentation
Slide 2: Disclaimer
Disclaimer With the Capital Markets Board of Turkey’s Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS 29 inflationary accounting provisions. Ac
Slide 3: Agenda
Agenda Koç Holding Key Indicators Highlights on Main Sectors Selected Unlisted Companies Historical NAV 3 2023 Earnings Presentation
Slide 4: Agenda
Agenda Koç Holding Key Indicators Highlights on Main Sectors Selected Unlisted Companies Historical NAV 4 2023 Earnings Presentation
Slide 5: Focus on Sustainability and Resilience
Focus on Sustainability and Resilience Sectoral & Geographical Diversification Net Asset Value Breakdown by Sector1 International Revenues / Total Combined Revenues Auto 50% (PC & CV Manufacturing) Auto including FX linked 29% 29% revenues of Tüpraş 26% (Other) 14% Finance Refining 17% 18% Oil & Gas
Slide 6: Business Model Ensures Sustainability of Dividend Income
Focus on Sustainability and Resilience Business Model Ensures Sustainability of Dividend Income Dividend Income 1 Dividend Payments1 TL Million Dividend TL Million 2020 2021 2022 2023 vs.2022 Tüpraş (inc. EYAŞ) - - - 10,329 n.m. Dividend 16% 6% 12% 15% Payout Ford Otosan 421 1,382 2,536 5,969 135% 2
Slide 7: Solid Liquidity Enhanced
Focus on Sustainability and Resilience Solid Liquidity Enhanced Net Cash Bridge TL Million As of 31 December 2022: As of 31 December 2023: = USD 74mn 23,402 1 2,233 4 = USD 795mn ⁴ Net cash including -6,500 4,272 Net cash including YKB AT1 as of 2022YE YKB AT1 as of Dec’23 + USD 1.5bn 24,239 + USD 1
Slide 8: Fundamentals Remain Intact on the Back of Prudent Management
Key Metrics Fundamentals Remain Intact on the Back of Prudent Management Strong Cash Position Solid Liquidity FX Position USD 795mn 1.3x +USD 743mn Solo Current Ratio Solo Net Cash on Combined Basis3 FX Position + USD 1.3bn Gross cash + USD 780mn Consolidated FX position TL 4% after natural hedge4 H
Slide 9: Credit Ratings
Key Metrics Credit Ratings Standard & Poors (S&P) Moody’s BB- B2 Two notches above sovereign One notch above sovereign 8 S Baa2 P P P P S S N S BBB7 Baa3 Investment Grade Threshold S S S S P N S N N S S N N N BBB- 6 Ba1 N Investment Grade Threshold P S S N S N BB+5 Ba2 N S N N N S S BB 4 Ba3 N S N N
Slide 10: Agenda
Agenda Koç Holding Key Indicators Highlights on Main Sectors Selected Unlisted Companies Historical NAV 10 2023 Earnings Presentation
Slide 11: Energy: Strong Net Refining Margin in 2023
Energy Strong Net Refining Margin in 2023 Domestic Market Sales Volume Crack Margins 2023 Highlights Million Tonnes USD/bbl, Monthly Cumulative 43.3 Above historic average crack margins y/y +6% +17% +24% +14% Growth 40.5 Wider differentials, against narrowing on a q/q basis 24.5 26.0 Lower energy co
Slide 12: Automotive: Robust domestic market performance with recovery in export markets
Automotive Robust domestic market performance with recovery in export markets Monthly Trend Sales Volume 2023 Highlights Thousand Units Thousand Units Koç Total Turkey Exports Market Share 17% 53% 25% 25% 37% Record high domestic market Passenger Cars (Turkey) Light Commercial (Turkey) y/y Recovery
Slide 13: Consumer Durables: Solid Domestic Market, yet Softness in International Markets
Consumer Durables Solid Domestic Market, yet Softness in International Markets Sales Volumes Across Markets Monthly Trend " MillionKoç Units Million Units 2023 Highlights Market Share 20% 68% 26% 30% 41% Stellar Turkey revenues y/y +14% -6% -7% +2% -10% Turkey Exports Growth Eased raw material costs
Slide 14: Finance: Well Managed Revenue Performance
Finance Well Managed Revenue Performance with a Focus on Preserving Fundamentals TL Lending Growth Sector’s Loans & Deposits 2023 Highlights 13 Weeks Annualized TL Billion, USD Billion Private State Sector 2023 y/y 110% Core revenue generation, despite increasing trend in deposit costs Loans 11,630
Slide 15: Group’s 2023 Financial Performance
Group’s 2023 Financial Performance Varying Performances at Different Segments Financial Performance TL Million Consumer Energy Automotive Finance Other TOTAL Durables Combined Revenues1 1,051,742 739,103 297,189 388,576 116,697 2,593,307 Change (y/y) -22% 25% 2% 22% 9% -2% Segment Share in Total 41%
Slide 16: Agenda
Agenda Koç Holding Key Indicators Highlights on Main Sectors Selected Unlisted Companies Historical NAV 16 2023 Earnings Presentation
Slide 17: Key Metrics of Unlisted Companies
Value within Unlisted Companies Key Metrics of Unlisted Companies Summary Financials An integrated player in the electricity market TL Million • ~77% of Entek’s 492MW total installed capacity is zero carbon electricity 1 2 Revenues EBITDA Book Value (ZCE) 2023 y/y 2023 y/y 2023 y/y Arçelik LG Klima
Slide 18: Agenda
Agenda Koç Holding Key Indicators Highlights on Main Sectors Selected Unlisted Companies Historical NAV 18 2023 Earnings Presentation
Slide 19: Unwarranted NAV Discount Given Strong Fundamentals
Historical NAV Discount Unwarranted NAV Discount Given Strong Fundamentals Relative Share Performance of Koç Holding vs. Koç Group1 NAV Discount/Premium2 Rebased at 2022YE 15% 10% 120% 5% 100% 76% 0% 80% 73% -5% Historical 60% 36% -10% Average 40% 32% -15% 20% -20% 0% -25% -20% -30% -40% -35% 11.01.
Slide 20: Q&A
Q&A 2023 Earnings Presentation
Slide 21: Appendix - Consolidated Key Financial Figures
Appendix - Consolidated Key Financial Figures Consolidated Main Financial Indicators Consolidated Net Income TL Million TL Million 2022 2023 y/y + 10,354 + 963 Revenues 1,715,942 1,604,647 -6% 72,662 + 2,580 72,230 Gross Profit 404,943 376,647 -7% - 8,580 - 5,749 Operating Profit 240,476 222,656 -8%
Slide 22: Appendix - Group’s 2023 Financial Performance without IAS 29
Appendix - Group’s 2023 Financial Performance without IAS 29 Financial Performance Consumer TL Million Energy Automotive Finance Other TOTAL Durables Combined Revenues 1 869,717 598,248 238,211 311,473 96,926 2,114,575 Change (y/y) 22% 91% 55% 85% 71% 50% Segment Share in Total 41% 28% 11% 15% 5% 2
Slide 23: Appendix - 2024 Expectations of the Listed Group Companies
Appendix - 2024 Expectations of the Listed Group Companies TÜPRAŞ 2023A 2024E TOFAŞ 2023A 2024E TÜRKTRAKTÖR 2023A 2024E Net Refining Margin ($/bbl) 16.0 - Sector ('000) Sector ('000) Crack Margin ($/bbl) - ~14 Total TR LV Sales 1,233 800-1,000 Total TR Tractor Sales 78 60-68 CUR 87.5% 85-90% Tofaş (
Slide 24: Appendix - Our ESG Journey
Appendix - Our ESG Journey Committed to be carbon neutral by 2050 The Koç Group Carbon Transition Roadmap: 11% reduction in 2022 vs. 2017 baseline year International Platforms 27% 49% ✓ United Nations Global Compact ✓ CEO Water Mandate Reduction in Scope 1 & 2 Reduction in Scope 1 & 2 ✓ CFO Coalitio
Slide 25: Appendix - Shareholding Structures
Appendix - Shareholding Structures Koç Holding Koç Family: 63.8%1 Free Float: 26.6% Vehbi Koç Foundation: 7.3% Koç Pension Fund: 2.3% Share Buyback: 0.04% Consumer Energy Automotive Finance Other Durables Tüpraş Ford Otosan Tat Gıda5 EYAŞ: 46.4% Arçelik Yapı Kredi Bank KH: 39% KH: 41% KH: 20.22% KH:
Slide 26: Contact Koç Holding Investor Relations
Contact Koç Holding Investor Relations investorrelations@koc.com.tr Visit our website at: www.koc.com.tr/investor-relations Nursel Ilgen, CFA, Coordinator, Head of IR Investor Relations nurseli@koc.com.tr +90 216 531 0414 Cansev Atak, Manager Investor Relations canseva@koc.com.tr +90 216 531 0516 İs