Koc Holding A.s. · BIST:KCHOL
Koc Holding A.s — Q1 2015 Earnings Presentation
27 slides from Koc Holding A.s's earnings presentation, May 11, 2015
Slide 1: Koç Holding 1Q15 Earnings Presentation
Koç Holding 1Q15 Earnings Presentation 11 May 2015
Slide 2: 1Q15 Operating Environment
1Q15 Operating Environment www.koc.com.tr 2
Slide 3: Dollar strength, domestic financial market noise and disappointing inflation led to sell-off
2.10 2.30 2.50 2.70 2.90 3.10 3.30 4 5 7 8 9 10 11 12 6 02.01.12 02.01.12 06.03.12 06.03.12 09.05.12 09.05.12 12.07.12 12.07.12 14.09.12 14.09.12 17.11.12 17.11.12 20.01.13 20.01.13 25.03.13 25.03.13 28.05.13 28.05.13 Euro 31.07.13 31.07.13 Policy Rate (Weekly Repo) 03.10.13 03.10.13 06.12.13 06.12.
Slide 4: Household and business confidence hit multi-year lows in 1Q15
Household and business confidence hit multi-year lows in 1Q15 on the back of increase in unemployment, financial market volatility and weak exports GDP Growth (Annual, %) Industrial Production 125 32.0 10.0 30.0 16 28.0 120 5.0 26.0 11 Billion TL 0.0 115 % 24.0 6 -5.0 22.0 20.0 110 -10.0 1 18.0 -15.
Slide 5: Exports contracted in 1Q15; foreign trade and current account deficits declined
Exports contracted in 1Q15 despite surging gold exports. As the imports fell even faster, foreign trade and current account deficits declined March 2015 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 12.6 -14.4% 154.6 -0.2% Imports 18.7 -6.1% 237.0 -5.3% Trade Balance -6.2 17.2%
Slide 6: Surging food prices and weakness in TL exert pressure on inflation
Surging food prices and weakness in TL exert pressure on inflation 16 Annual Inflation (%) 14 12 10 8 6 4 2 0 01.2011 04.2011 07.2011 10.2011 01.2012 04.2012 07.2012 10.2012 01.2013 04.2013 07.2013 10.2013 01.2014 04.2014 07.2014 10.2014 01.2015 04.2015 CPI PPI % Oct Nov Dec Jan 15 Feb Mar Apr CPI (
Slide 7: 1Q15 Koç Group
1Q15 Koç Group www.koc.com.tr 7
Slide 8: Koç Holding Credit Ratings
Koç Holding Credit Ratings Ratings Outlook S&P * BBB- Stable Moody’s ** Baa3 Positive *As of April 2015 ** As of April 2014 www.koc.com.tr 8
Slide 9: Energy – Koç Group Companies
Energy – Koç Group Companies Tüpraş Capacity Utilizations & White Product Yields Tüpraş & Med Complex Margins – US$/Barrel Capacity Utilizations – % White Product Yields – % Tüpraş Med Inventory Tüpraş Net 85.9 72.8 Clean Net Complex 71.3 Effect Margin 5.2 Margin Margin 68.0 2.5 1Q14 2.07 0.34 2.41
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 11% 14% 53% 51% 21% 33% 20% 25% +75% Share 100000 +50% 90000 200000 180000 +42% 80000 +57% 160000 70000 140000 120000 60000 100000 50000 +7% 80000 +78% 40000 600
Slide 11: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly +7% 1600000 600000 +16% 1400000 1200000 +3% 500000 1000000 +1% 800000 400000 +5% +10% 600000 +5% 300000 400000 +10% 200000 200000 0 Refrigerator Washer & 100000 Dishwasher Oven
Slide 12: Finance – Yapı Kredi Bank
Finance – Yapı Kredi Bank Strategic Guidelines Above sector growth with loan - Ranking increase in both loans and customer deposits from 4th to 3rd book remix - Effective loan book remix ongoing (cards share down 1pp ytd to 13%) Growth Ongoing - Visible development in digital with internet/mobil
Slide 13: 1Q15 Financial Results
1Q15 Financial Results www.koc.com.tr 13
Slide 14: Group’s Overall Financial Performance
Group’s Overall Financial Performance Consumer 1Q15 Change Over TL million Energy Automotive Finance Other Durables Total 1Q14 Total Combined Revenues * 11,988 7,544 2,960 4,697 2,163 29,353 -1% Combined Gross Profit 783 911 882 1,997 335 4,909 13% Combined Operating Profit ** 368 484 177 608 -55 1,
Slide 15: Combined Revenues
Combined Revenues Combined Revenues – TLmn Segmental Combined Revenues Breakdown – % -1% 29,602 29,353 Automotive 26% Durables 10% Energy 41% Finance 1Q14 1Q15 16% Other 7% Segment Contribution to Combined Revenues – TLmn -24% 15,866 11,988 +46% 7,544 +1% +25% +16% 5,163 4,697 3,772 2,938 2,960 2,16
Slide 16: Combined Operating Profit
Combined Operating Profit * Combined Operating Profit – TLmn Segmental Combined Operating Profit Breakdown – % +8% 1,583 Automotive 1,470 Energy 31% 23% Durables Other 11% -3% 1Q14 1Q15 Finance 38% Segment Contribution to Combined Operating Profit – TLmn +19% +28% 608 484 509 -5% 386 379 368 -12% 20
Slide 17: Combined Net Income
Combined Net Income Combined Net Income – TLmn Segmental Combined Net Income Breakdown – % 1,476 -13% Automotive 1,282 38% Energy 15% Other Durables -1% 10% 1Q14 1Q15 Finance 39% Segment Contribution to Combined Net Income – TLmn +25% -65% +16% 546 483 496 416 396 191 +19% -302% 110 130 8 -17 Energy
Slide 18: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TLmn Segmental Consolidated Net Income Breakdown – % 562 -18% Automotive 459 41% Energy 15% Other Durables -4% 11% 1Q14 1Q15 Finance 36% Segment Contribution to Consolidated Net Income – TLmn -66% +14% +23% 208 189 166 166 134 +17% -308% 71 45 53 9 -
Slide 19: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$mn Combined International Sales – US$mn -6% 4,217 -13% 3,457 3,254 3,668 1Q14 1Q15 1Q14 1Q15 www.koc.com.tr 19
Slide 20: Combined Investments
Combined Investments Combined Investments – TLmn Segmental Investments Breakdown – % +17% 1,615 1,381 Automotive 32% Energy 47% Durables 7% 1Q14 1Q15 Other Finance 2% 12% www.koc.com.tr 20
Slide 21: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 31.03.2015 Net Cash Position Total Debt: ~US$ 0.76 bn Total Cash: ~US$ 1.43 bn Net Cash: ~US$ 674mn Consolidated Net Debt / Cash Excl. Finance 2014 1Q15 ~US$ -3.3bn ~US$ -4.0bn www.koc.com.tr 21
Slide 22: FX Position
FX Position Koç Holding Stand-Alone FX Position 2014 1Q15 US$ + 72mn US$ +70mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 2014 1Q15 2014 1Q15 US$ -3.3bn US$ -3.0bn* US$ -1.5bn US$ -1.2bn * The natural hedging mechanisms due to FX linked pricing of Tüpraş invento
Slide 23: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 31.Mar.2015 31.Mar.2015 31.Mar.2015 31.Mar.2014 %, TL %, US$ Revenues 4,966 5,598 13,759 15,683 q -12 q -21 Gross Profit 692 780 1,916 1,792 p 7 q -4 Operating Profit 242 273 671 908 q -26 q -33 Profit Before Tax 140 157
Slide 24: Q&A
Q&A www.koc.com.tr 24
Slide 25: 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 26: Shareholder Structures as of March 2015
Shareholder Structures as of March 2015 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 Ford Otosan Arçelik Tat Gıda Tüpraş KH share: 38.46% Koç Financial Services SPV share: 51.00% KH share: 40.5
Slide 27: For Further Questions, Please Contact
For Further Questions, Please Contact : investorrelations@koc.com.tr www.koc.com.tr 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 Relations neslihana@