Slide 1: Koç Holding 2010 Earnings Presentation
Koç Holding 2010 Earnings Presentation 11 March 2011
Slide 2: Operating Environment & Koç Group
2010 Operating Environment & Koç Group www.koc.com.tr 2
Slide 3: Central Bank's new policy mix and rising tensions in the Middle East had a significant negative impact
1.80 1.90 2.00 2.10 2.20 2.30 6 7 8 9 10 11 01.09.09 01.09.09 27.09.09 27.09.09 23.10.09 23.10.09 18.11.09 18.11.09 14.12.09 14.12.09 09.01.10 09.01.10 04.02.10 04.02.10 02.03.10 02.03.10 28.03.10 28.03.10 23.04.10 CB Polciy Rate Euro 23.04.10 19.05.10 19.05.10 14.06.10 10.07.10 14.06.10 05.08.10 10
Slide 4: GDP growth, confidence and industrial production indicators
Growth, % -15.0 -10.0 10.0 -5.0 0.0 5.0 40 50 60 70 80 90 100 110 120 130 1-2005 Jan-09 2-2005 Mar-09 3-2005 4-2005 May-09 1-2006 2-2006 Jul-09 3-2006 4-2006 GDP Growth Sep-09 1-2007 2-2007 3-2007 Consumer Confidence Nov-09 4-2007 Jan-10 1-2008 2-2008 Mar-10 3-2008 4-2008 Confidence Indices pre-cris
Slide 5: Current account deficit is widening with the quality of its financing deteriorating
Current account deficit is widening with the quality of its financing deteriorating January - December 2010 January - 2011 $ billion Annual Change $ billion Annual Change (%) (%) Exports 113,9 11,5 Exports 9.6 22,1% Imports 185,5 31,6 Imports 16.9 44,3% Trade Balance -71,6 84,6 Trade Balance -7.3 89
Slide 6: Inflation is expected to rise due to increasing oil and commodity prices
After hitting the lowest levels in the last 40 years, inflation is expected to rise due to increasing oil and commodity prices 12 Annual Inflation Rates (%) 10 8 6 4 2 0 01.09 02.09 03.09 04.09 05.09 06.09 07.09 08.09 09.09 10.09 11.09 12.09 01.10 02.10 03.10 04.10 05.10 06.10 07.10 08.10 09.10 10.1
Slide 7: Energy
Energy Tüpraş Capacity Utilization – % Tüpraş Net Margins vs Med Complex Gross Margins – US$/Barrel 4.51 77.1 69.2 7.5 8.7 2.89 2.29 1.95 69.6 60.4 2009 2010 2009 2010 Crude Others Tüpraş Net Margin Med Complex Gross Margin Opet Market Share Development – % 18.6 17.4 16.7 16.5 16.4 16.1 15.2 14.9 14
Slide 8: Automotive
Automotive Sales Units, Market * – January-December Sales Development, Market * – Units, Monthly Koç Market 17% 20% 53% 48% 31% 31% +67% Share 160000 +37% 140000 800000 700000 120000 +38% 600000 100000 -22% +249% +165% 500000 +34% 80000 -6% -0.3% +113% +73% 400000 -6% +4% 300000 60000 200000 +43% 40
Slide 9: Consumer Durables
Consumer Durables Sales Units, Market * – January-December Sales Development, Market * – Units, Monthly +8% 6000000 600000 -14% -9% +7% +21% -4% 5000000 +13% 4000000 500000 +23% +6% +7% +7% 3000000 +14% +9% 400000 +46% +52% +7% -4% 2000000 300000 1000000 200000 0 Washing 100000 Refrigerator Dishwash
Slide 10: Finance
Finance Key Focus Areas Total Loan Growth Total Deposit Growth Highest Highest among peers among peers 40% 27% 34% 33% 21% 18% Growth and Commercial Target Effectiveness Target ~20% 26% Sector Peer Avg YKB Sector Peer Avg YKB Net Income Growth ROAE Highest Highest among among peers private banks 45%
Slide 11: Financial Results
2010 Financial Results www.koc.com.tr 11
Slide 12: Financial Performance
Financial Performance Revenues TL53,812mn (US$35,865mn) 20% YoY increase in TL terms and 24% in US$ terms Operating Profit TL4,105mn (US$2,736mn) 18% YoY increase in TL terms and 22% in US$ terms EBITDA TL5,073mn (US$3,381mn) 15% YoY increase in TL terms and 19% in US$ terms Profit Befor
Slide 13: Main Financial Indicators
Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 31.Dec.2010 31.Dec.2010 31.Dec.2010 31.Dec.2009 %, TL %, US$ Revenues 27,050 35,865 53,812 44,841 p 20 p 24 Gross Profit 4,620 6,126 9,192 8,876 p 4 p 7 EBITDA 2,550 3,381 5,073 4,401 p 15 p 19 Operating Profit 2,063 2,736 4,105 3,476
Slide 14: Revenues Continued to Grow
Revenues Continued to Grow Revenues – TLmn Share of Segment Revenues – % 20% 53,812 44,841 Energy Automotive 58% 14% Durables 13% FY09 FY10 Other Finance 5% 9% Segment Contribution to Revenues – TLmn 28% 31,412 24,488 31% 4% -7% 17% 7,767 6,810 7,052 5,948 5,382 4,990 2,213 2,592 Energy Automotive D
Slide 15: Balanced EBITDA
Balanced EBITDA EBITDA – TLmn Segmental EBITDA Breakdown – % 15% Automotive 5,073 16% 4,401 Energy Durables 33% 17% Other 4% Finance FY09 FY10 31% Segment Contribution to EBITDA – TLmn EBITDA Margin by Segment – % -3% 49% 1,701 1,652 31.3 1,560 3% 31% 1,046 19.4 788 826 853 602 -3% 12.1 12.1 10.1 10
Slide 16: 18% Increase in Operating Profit
18% Increase in Operating Profit Operating Profit Consumer Energy Automotive Finance Other Consolidated Total TL mn Durables FY10 1,285 564 652 1,465 140 4,105 Operating Profit – TLmn Segmental Operating Profit Breakdown – % 18% 4,105 Automotive 3,476 14% Energy 31% Durables 16% Other 3% Finance FY0
Slide 17: Strong Margin Performance
Strong Margin Performance EBITDA Margin – % Operating Margin – % 7.8 7.6 9.8 9.4 6.1 7.5 FY08 * FY09 FY10 FY08 * FY09 FY10 Profit Before Tax Margin – % 7.0 7.2 2.5 FY08 * FY09 FY10 * Normalized www.koc.com.tr 17
Slide 18: Strong Liquidity and Well-Managed Risk
Strong Liquidity and Well-Managed Risk Koç Holding Stand-Alone 31.12.2010 Net Cash Position Total Debt: ~US$ 0.23 bn Total Cash: ~US$ 1.03 bn Net Cash: ~US$ 798 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
Slide 19: Resilient Against FX Volatility
Resilient Against FX Volatility Koç Holding Stand-Alone FX Position 2009 2010 US$ + 327mn US$ + 323mn Koç Holding Consolidated FX Position Weighted by Effective FX Position Ownership 9M08 2008 2009 9M10 2010 2009 9M10 2010 US$ - 4.2bn US$ - 2.2bn US$ - 1.7bn US$ - 2.4bn US$ - 2.9bn* US$ - 1.1bn US$
Slide 20: 2011 Targets
2011 Targets www.koc.com.tr 20
Slide 21: Total Assets & Revenues
Total Assets & Revenues Total Assets – TLbn Revenues – TLbn +5% 85.6 +6% 57.1 81.1 53.8 2010 2011 2010 2011 www.koc.com.tr 21
Slide 22: Operating Profit & EBITDA
Operating Profit & EBITDA Operating Profit – TLbn EBITDA – TLbn +9% +9% 5.6 4.5 4.1 5.1 2010 2011 2010 2011 www.koc.com.tr 22
Slide 23: Exports & Investments
Exports & Investments Exports – US$bn Investments – TLbn +12% +116% 2.7 8.6 7.6 1.2 2010 2011 2010 2011 www.koc.com.tr 23
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 December 2010
Shareholder Structures as of December 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 shar
Slide 27: 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 +