Slide 1: Koç Holding 9M13 Earnings Presentation
Koç Holding 9M13 Earnings Presentation 11 November 2013
Slide 2: 9M13 Operating Environment
9M13 Operating Environment www.koc.com.tr 2
Slide 3: Fed tapering delay and political tensions: interest rates, exchange rates, stock market
1.80 1.90 2.00 2.20 2.30 2.40 2.50 2.60 2.70 2.80 2.10 4 5 7 8 9 10 11 12 6 04.01.10 04.01.10 15.03.10 15.03.10 24.05.10 24.05.10 02.08.10 02.08.10 11.10.10 11.10.10 20.12.10 20.12.10 28.02.11 28.02.11 09.05.11 09.05.11 18.07.11 18.07.11 26.09.11 26.09.11 Euro Policy Rate (Weekly Repo) 05.12.11 05.1
Slide 4: Hard and soft data indicate slowdown in economic activity
Both hard and soft economic data indicate a slowdown in economic activity in the third quarter albeit at a lower rate than feared GDP Growth (Quarterly, %) Industrial Production 20 32.0 10.0 115 30.0 15 5.0 28.0 26.0 10 Billion TL 0.0 105 % 24.0 -5.0 22.0 5 20.0 95 -10.0 0 18.0 -15.0 16.0 -5 85 1-20
Slide 5: Non-gold current account balance shows limited improvement
Non-gold current account balance is showing signs of some limited improvement with CB reserves inching up since August on the back of renewed capital inflows September 2013 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 13.1 1.3% 152.0 2.5% Imports 20.6 3.5% 247.2 4.7% Trade Bala
Slide 6: Inflation well above target
Despite subdued domestic demand and lower commodity prices, food prices and weakness in TL are keeping inflation well above target 16 Annual Inflation (%) 14 12 10 8 6 4 2 0 01.2010 03.2010 05.2010 07.2010 09.2010 11.2010 01.2011 03.2011 05.2011 07.2011 09.2011 11.2011 01.2012 03.2012 05.2012 07.201
Slide 7: 9M13 Koç Group
9M13 Koç Group www.koc.com.tr 7
Slide 8: Energy – Koç Group Companies
Energy – Koç Group Companies Tüpraş Product Yields & Capacity Utilization – % Tüpraş Net Margins vs Med Complex Margins – US$/Barrel 9M12 9M13 5.91 5.23 4.13 1.05 3Q12 3Q13 White Product : 70.1% 72.1% Tüpraş Net Margin Med Complex Gross Margin CUR : 80.5% 78.6% Aygaz Net Sales – TLmn Opet Market Sha
Slide 9: Automotive – Ford Otosan & Tofaş vs Sector
Automotive – Ford Otosan & Tofaş vs Sector Sales Units, Market * Sales Development, Market * – Units, Monthly Koç Market 18% 17% 51% 52% 15% 17% 27% 24% +14% Share 90000 +17% +4% +5% +15% -3% 700000 +10% 80000 +11% 600000 +19% 70000 500000 60000 +16% 400000 50000 +19% 300000 -11% 40000 200000 -2% 30
Slide 10: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Market * Sales Development, Market * – Units, Monthly +7% 6000000 800000 5000000 +21% +7% +8% 700000 -6% +10% +13% 4000000 600000 +10% +18% -1% 3000000 500000 +5% -6% 2000000 400000 +3% 1000000 300000 200000 0 Washing Refrigerator Dishwasher Oven TO
Slide 11: Finance – Yapı Kredi Bank
Finance – Yapı Kredi Bank Resilient capital base further strengthened Consistent revenue growth trend via sale of insurance business 16.4% Capital gain Revenue Growth 25% 25% Bank CAR 16.0% 15.8% impact 24% from sale of Comparable insurance Basis 2 business 1 (+70bps) Loan Growth 4% 8% 7% 1Q13 2Q13
Slide 12: 9M13 Financial Results
9M13 Financial Results www.koc.com.tr 12
Slide 13: Group’s Overall Financial Performance
Group’s Overall Financial Performance Consumer 9M13 Change Over TL million Energy Automotive Finance Other Durables Total 9M12 Total Combined Revenues * 48,034 17,894 8,551 10,173 5,432 90,083 4% Combined Gross Profit 2,206 2,226 2,526 5,642 947 13,547 10% Combined Operating Profit 768 1,279 805 2,4
Slide 14: Combined Revenues
Combined Revenues Combined Revenues – TLmn Segmental Combined Revenues Breakdown – % +4% 86,542 90,083 Automotive Energy 20% 53% Durables 9% 9M12 9M13 Finance Other 11% 6% Segment Contribution to Combined Revenues – TLmn +1% 47,426 48,034 +12% +1% +7% +5% 15,951 17,894 8,484 8,551 9,516 10,173 5,165
Slide 15: Combined Operating Profit
Combined Operating Profit Combined Operating Profit – TLmn Segmental Combined Operating Profit Breakdown – % 5,357 +2% 5,456 Automotive 23% Energy Durables 14% 15% Other 3% 9M12 9M13 Finance 45% Segment Contribution to Combined Operating Profit – TLmn +26% 2,458 -50% 1,945 +13% 1,533 1,279 +34% 1,12
Slide 16: Combined Net Income
Combined Net Income Combined Net Income – TLmn Segmental Combined Net Income Breakdown – % +36% 6,242 Automotive 18% Durables 4,582 +9% Energy 7% 4,988 19% Excl. one-off items Other 3% 9M12 9M13 Finance 52% Segment Contribution to Combined Net Income – TLmn +97% 3,271 -8% +22% +4% 1,659 +3% 2,017* 1
Slide 17: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TLmn Segmental Consolidated Net Income Breakdown – % +31% 2,240 Automotive 21% 1,707 Durables +7% Energy 8% 1,827 Excl. 18% one-off items Other 5% 9M12 9M13 Finance 48% Segment Contribution to Consolidated Net Income – TLmn +96% 1,085 -18% +5% 553 +2
Slide 18: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$mn Combined International Sales – US$mn 11,640 11,642 13,698 13,657 9M12 9M13 9M12 9M13 www.koc.com.tr 18
Slide 19: Combined Investments
Combined Investments Combined Investments – TLmn Segmental Investments Breakdown – % +58% 4,616 2,922 Automotive 38% Energy 50% Durables 9M12 9M13 Other Finance 8% 2% 2% www.koc.com.tr 19
Slide 20: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 30.09.2013 Net Cash Position Total Debt: ~US$ 0.76 bn Total Cash: ~US$ 1.60 bn Net Cash: ~US$ 841mn Consolidated Net Debt / Cash Excl. Finance 1H13 9M13 ~US$ -3.4bn ~US$ -3.3bn www.koc.com.tr 20
Slide 21: FX Position
FX Position Koç Holding Stand-Alone FX Position 1H13 9M13 US$ + 227mn US$ +226mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 1H13 9M13 1H13 9M13 US$ - 3.6bn US$ -3.4bn* US$ - 1.5bn US$ -1.4bn * 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.Sep.2013 30.Sep.2013 30.Sep.2013 30.Sep.2012 %, TL %, US$ Revenues 19,655 25,882 48,171 48,367 q -0.4 q -4 Gross Profit 2,078 2,736 5,092 5,000 p 2 q -2 Operating Profit 1,331 1,753 3,262 3,137 p 4 p 0.3 Profit Before
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 September 2013
Shareholder Structures as of September 2013 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 sha
Slide 26: For Further Questions, Please Contact
For Further Questions, Please Contact : investorrelations@koc.com.tr Funda Güngör Akpınar, Coordinator Winner 2010 Best IR Investor Relations Website Award fundag@koc.com.tr +90 216 531 0535 Neslihan Aycıl, Associate Investor Relations neslihana@koc.com.tr +90 216 531 0516 Winner Winner World Financ