Koc Holding A.s. · BIST:KCHOL
Koc Holding A.s — Q2 2014 Earnings Presentation
26 slides from Koc Holding A.s's earnings presentation, Aug 15, 2014
Slide 1: Koç Holding 2Q14 Earnings Presentation
Koç Holding 2Q14 Earnings Presentation 15 August 2014
Slide 2: 2Q14 Operating Environment
2Q14 Operating Environment www.koc.com.tr 2
Slide 3: Financial markets in Turkey have benefited from improving global risk appetite
1.80 2.00 2.20 2.40 2.60 2.80 3.00 3.20 4 5 7 8 9 10 11 12 6 04.01.10 04.01.10 07.04.10 07.04.10 09.07.10 09.07.10 10.10.10 10.10.10 11.01.11 11.01.11 14.04.11 14.04.11 16.07.11 16.07.11 17.10.11 17.10.11 18.01.12 18.01.12 Euro Policy Rate (Weekly Repo) 20.04.12 20.04.12 22.07.12 22.07.12 23.10.12 2
Slide 4: Economic activity in the second quarter has remained subdued
Economic activity in the second quarter has remained subdued GDP Growth (Annual, %) Industrial Production 125 32.0 10.0 18 30.0 28.0 115 5.0 13 26.0 Billion TL 0.0 105 % 24.0 8 -5.0 22.0 20.0 3 95 -10.0 18.0 -15.0 16.0 -2 85 1-2005 3-2005 1-2006 3-2006 1-2007 3-2007 1-2008 3-2008 1-2009 3-2009 1-201
Slide 5: Foreign trade deficit continued to decline in the second quarter
Foreign trade deficit continued to decline in the second quarter, leading to a substantial improvement in the current account balance June 2014 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 12.9 4.2% 156.8 2.3% Imports 20.8 -1.1% 245.6 0.2% Trade Balance -7.9 -8.8% -88.7 -3.2% C
Slide 6: Weakness in TL, tax hikes and weather force inflation higher
Weakness in TL, tax hikes and adverse weather conditions force inflation higher with inflation expectations deteriorating 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
Slide 7: 2Q14 Koç Group
2Q14 Koç Group www.koc.com.tr 7
Slide 8: Energy – Koç Group Companies
Energy – Koç Group Companies Tüpraş Residuum Upgrade Project – Realization % Tüpraş & Med Complex Margins – US$/Barrel 100% 96.61% Tüpraş Med Inventory Tüpraş Net 80% Clean Net Complex Effect Margin Margin Margin 60% 2Q13 2.69 -0.06 2.63 2.52 40% 2Q14 0.00 -0.28 -0.28 0.35 20% 0% 25.01.10 26.07.10 2
Slide 9: Automotive – Ford Otosan & Tofaş vs Sector
Automotive – Ford Otosan & Tofaş vs Sector Sales Units, Market * Sales Development, Market * – Units, Monthly Koç Market 17% 13% 52% 54% 18% 20% 25% 21% -28% Share 90000 -30% -26% -18% 450000 -24% 80000 400000 -22% 70000 350000 -26% 300000 60000 250000 50000 -8% 200000 -32% 40000 150000 100000 -5% 3
Slide 10: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Market * Sales Development, Market * – Units, Monthly -7% 3500000 +8% 700000 +3% 3000000 -15% -14% 2500000 600000 -13% -14% 2000000 500000 -11% 1500000 -6% -8% 400000 1000000 +8% 300000 500000 200000 0 Washing 100000 Refrigerator Dishwasher Oven TOT
Slide 11: Finance – Yapı Kredi Bank
Finance – Yapı Kredi Bank Resilient Capital Effectively Managed Liquidity Improving Asset Quality Loans / (Deposit+TL Bonds) NPL Ratio 16.0% 15.9% 15.4% 3.52% 3.50% 3.48% Strengthening CAR 112% 110% of base 12.1% CT1 Sector 108% 110% 11.1% 11.3% 11.4% T1 YKB 108% 108% 2013 1Q14 1H14 2013 1Q14 1H14 2
Slide 12: 2Q14 Financial Results
2Q14 Financial Results www.koc.com.tr 12
Slide 13: Group's Overall Financial Performance
Group’s Overall Financial Performance Consumer 1H14 Change Over TL million Energy Automotive Finance Other Durables Total 1H13 Total Combined Revenues * 32,220 11,916 6,175 7,967 3,988 62,266 10% Combined Gross Profit 1,082 1,499 1,929 3,594 655 8,758 2% Combined Operating Profit 478 761 468 1,288 5
Slide 14: Combined Revenues
Combined Revenues Combined Revenues – TLmn Segmental Combined Revenues Breakdown – % +10% 62,266 56,846 Automotive 19% Energy 52% Durables 10% 1H13 1H14 Finance Other 13% 6% Segment Contribution to Combined Revenues – TLmn +11% 32,220 29,095 -1% +11% +19% +15% 12,037 11,916 6,692 7,967 5,562 6,175 3
Slide 15: Combined Operating Profit
Combined Operating Profit Combined Operating Profit – TLmn Segmental Combined Operating Profit Breakdown – % 3,278 -7% Automotive 3,050 25% Energy 16% Durables 15% Other 2% 1H13 1H14 Finance 42% Segment Contribution to Combined Operating Profit – TLmn -23% 1,682 +156% 1,288 -12% 869 761 +0.1% 478 46
Slide 16: Combined Net Income
Combined Net Income Combined Net Income – TLmn Segmental Combined Net Income Breakdown – % +15% 3,382 2,935 Energy Automotive 28% 24% +7% 3,142* Durables Other 8% 9% 1H13 1H14 Finance 30% Segment Contribution to Combined Net Income – TLmn -28% +230% 1,419 -3% 1,021 963 853 824 -5% +262% 292 289 274
Slide 17: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TLmn Segmental Consolidated Net Income Breakdown – % +38% 1,435 Automotive Energy 23% 1,038 +15% 27% 1,195* Durables 7% Other 19% Finance 1H13 1H14 24% Segment Contribution to Consolidated Net Income – TLmn -27% 472 +437% -3% 382 343 333 344 +511% 26
Slide 18: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$mn Combined International Sales – US$mn 7,955 -8% 9,233 -4% 8,895 7,328 1H13 1H14 1H13 1H14 www.koc.com.tr 18
Slide 19: Combined Investments
Combined Investments Combined Investments – TLmn Segmental Investments Breakdown – % +8% 2,842 2,644 Automotive 46% Energy 43% Durables 1H13 1H14 Other 7% 2% Finance 3% www.koc.com.tr 19
Slide 20: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 30.06.2014 Net Cash Position Total Debt: ~US$ 0.75 bn Total Cash: ~US$ 1.55 bn Net Cash: ~US$ 800mn Consolidated Net Debt / Cash Excl. Finance 1Q14 1H14 ~US$ -3.7bn ~US$ -3.9bn www.koc.com.tr 20
Slide 21: FX Position
FX Position Koç Holding Stand-Alone FX Position 1Q14 1H14 US$ + 180mn US$ +155mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 1Q14 1H14 1Q14 1H14 US$ - 3.7bn US$ -4.0bn* US$ - 1.5bn US$ -1.7bn * The natural hedging mechanisms due to FX linked pricing of Tüpraş & A
Slide 22: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 30.Jun.2014 30.Jun.2014 30.Jun.2014 30.Jun.2013 %, TL %, US$ Revenues 10,850 14,873 32,188 29,562 p 9 q -9 Gross Profit 1,141 1,564 3,385 2,978 p 14 q -5 Operating Profit 559 767 1,659 1,524 p 9 q -9 Profit Before Tax 553
Slide 23: Q&A
Q&A www.koc.com.tr 23
Slide 24: 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 25: Shareholder Structures as of June 2014
Shareholder Structures as of June 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: 40.51
Slide 26: 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@