Slide 1: Koç Holding 2014 Earnings Presentation
Koç Holding 2014 Earnings Presentation 3 March 2015
Slide 2: Operating Environment
2014 Operating Environment www.koc.com.tr 2
Slide 3: Decline in oil prices has supported financial markets in Turkey
2.10 2.30 2.50 2.70 3.10 3.30 2.90 4 5 6 7 8 9 10 11 12 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 Policy Rate (Weekly Repo) 31.07.13 31.07.13 03.10.13 03.10.13 06.12.13 06.12.
Slide 4: Modest recovery in domestic demand and weak exports keep confidence low
Modest recovery in domestic demand and weakness in exports have kept confidence and economic activity at low levels GDP Growth (Annual, %) Industrial Production 125 32.0 10.0 18 30.0 28.0 120 5.0 13 26.0 Billion TL 0.0 115 % 24.0 8 -5.0 22.0 20.0 3 110 -10.0 18.0 -15.0 16.0 -2 105 1-2008 2-2008 3-20
Slide 5: Foreign trade deficit continued to decline in the fourth quarter
Foreign trade deficit continued to decline in the fourth quarter, leading to a substantial improvement in the current account balance December 2014 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 13.3 1.2% 157.7 3.9% Imports 21.8 -5.6% 242.2 -3.7% Trade Balance -8.5 -14.6% -84.5 -
Slide 6: Oil price plunge impact on inflation contained by weak TL
Positive impact of plunge in oil prices on inflation is being contained by weakness in TL 16 Annual Inflation (%) 14 12 10 8 6 4 2 0 01.2010 04.2010 07.2010 10.2010 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
Slide 7: Koç Group
2014 Koç Group www.koc.com.tr 7
Slide 8: Energy – Residuum Upgrade Project (RUP) of Tüpraş
Energy – Residuum Upgrade Project (RUP) of Tüpraş RUP is completed and will be full operational in 2Q15 with positive impacts in 2015 onwards White Product Yield Improve white product yield to 80-85% (2014: 72%) CUR Attain full capacity utilization (2014: 74.9%) Nelson Complexity Make İzmit re
Slide 9: Energy – Koç Group Companies
Energy – Koç Group Companies Refining margins were not impacted by falling oil prices Tüpraş & Med Complex Margins – US$/Barrel US$/bbl 130.0 Dated Brent (US$) Med complex refining margin 7.0 Tüpraş Med Inventory Tüpraş Net 120.0 Clean Net Complex 6.0 Effect Margin 110.0 Margin Margin 5.0 100.0 4.0
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 17% 14% 53% 56% 18% 19% 25% 23% Share 180000 +14% 1000000 -10% 160000 900000 800000 -12% 140000 700000 120000 600000 -28% +1% 500000 100000 -30% -26% -18% -17% -
Slide 11: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Domestic Market * Sales Development, Domestic Market * – Units, Monthly -2% 8000000 800000 +8% 7000000 -5% -1% 700000 +8% +2% -14% +3% 6000000 -15% +5% 5000000 600000 -13% +8% -6% -14% 4000000 500000 -2% 3000000 -1% 400000 2000000 +8% 300000 1000000
Slide 12: Finance – Yapı Kredi Bank
Finance – Yapı Kredi Bank Strategic Guidelines Results Market Share Gains Loan Composition 10.2% Loans Increasing «natural market Retail Accelerating share» to 10% 9.5% Deposits 27% 27% 10.0% 14% Cards Growth 19% Remixing loan book towards Corp/Comm 9.1% 54% 59% more profitable segments 2013 201
Slide 13: Strong Relative Share Performance
Strong Relative Share Performance Strong stock performance (in TL) - 2014 Robust outperformance of BIST indices Stock Koç BIST 43% performance BIST30 BIST100 Holding Holding (TL) 29% 24% 2014 43% 29% 26% 24% 2013 -3% -16% -13% -7% 2012 74% 58% 53% 55% Koç Holding BIST 30 BIST Holding Consistently lo
Slide 14: Financial Results
2014 Financial Results www.koc.com.tr 14
Slide 15: Group's Overall Financial Performance
Group’s Overall Financial Performance Consumer 2014 Change Over TL million Energy Automotive Finance Other Durables Total 2013 Total Combined Revenues * 68,343 26,829 12,942 16,838 8,514 133,467 8% Combined Gross Profit 2,456 3,240 4,031 7,904 1,465 19,095 4% Combined Operating Profit ** 647 1,683 1
Slide 16: Combined Revenues
Combined Revenues Combined Revenues – TLmn Segmental Combined Revenues Breakdown – % +8% 133,467 123,478 Automotive 20% Energy 51% Durables 10% 2013 2014 Finance Other 13% 6% Segment Contribution to Combined Revenues – TLmn +4% 65,458 68,343 +7% +10% +22% +17% 25,115 26,829 13,834 16,838 11,806 12,9
Slide 17: Combined Operating Profit
Combined Operating Profit * Combined Operating Profit – TLmn Segmental Combined Operating Profit Breakdown – % -6% Automotive 6,899 6,474 26% Durables Energy 16% 10% Other 1% 2013 2014 Finance 47% Segment Contribution to Combined Operating Profit – TLmn -8% 3,314 3,049 -29% +0.3% 1,678 1,683 +14% 91
Slide 18: Combined Net Income
Combined Net Income Combined Net Income – TLmn Segmental Combined Net Income Breakdown – % 7,481 -11% Automotive 6,642 23% Energy 6,536* -3% 6,340* 22% Durables 9% Other 9% 2013 2014 Finance 37% Segment Contribution to Combined Net Income – TLmn -38% 3,971 -9% +19% 2,465 +5% 2,717* -0.3% 1,492 1,560
Slide 19: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TLmn Segmental Consolidated Net Income Breakdown – % 2,680 +1% 2,710 Automotive 24% +1% Energy 2,399* 22% Durables 2,435* 9% Other 15% 2013 2014 Finance 30% Segment Contribution to Consolidated Net Income – TLmn -37% 1,317 +47% +6% -9% +260% 823 +15%
Slide 20: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$mn Combined International Sales – US$mn -5% 18,599 +1% 18,706 15,661 14,943 2013 2014 2013 2014 www.koc.com.tr 20
Slide 21: Combined Investments
Combined Investments Combined Investments – TLmn Segmental Investments Breakdown – % +18% 7,614 6,431 Automotive 45% Energy 40% Durables 6% 2013 2014 Other Finance 3% 6% www.koc.com.tr 21
Slide 22: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 31.12.2014 Net Cash Position Total Debt: ~US$ 0.75 bn Total Cash: ~US$ 1.46 bn Net Cash: ~US$ 709mn Consolidated Net Debt / Cash Excl. Finance 9M14 2014 ~US$ -3.4bn ~US$ -3.3bn www.koc.com.tr 22
Slide 23: FX Position
FX Position Koç Holding Stand-Alone FX Position 9M14 2014 US$ + 153mn US$ +72mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 9M14 2014 9M14 2014 US$ -3.9bn US$ -3.3bn* US$ -1.6bn US$ -1.5bn * The natural hedging mechanisms due to FX linked pricing of Tüpraş & Ayga
Slide 24: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 31.Dec.2014 31.Dec.2014 31.Dec.2014 31.Dec.2013 %, TL %, US$ Revenues 23,615 31,365 68,622 66,182 p 4 q -10 Gross Profit 2,585 3,433 7,512 7,006 p 7 q -7 Operating Profit 1,115 1,481 3,239 3,727 q -13 q -24 Profit Before
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 December 2014
Shareholder Structures as of December 2014 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: 4
Slide 28: 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@