Koc Holding A.s. · BIST:KCHOL

Koc Holding A.s — Investor Presentation (March 2011)

43 slides from Koc Holding A.s's investor presentation, March 2011

  1. Slide 1: Koç Holding Investor Presentation

    Koç Holding Investor Presentation March 2011

  2. Slide 2: Sustainable Track Record in Overperforming the Turkish Economic Growth Rates

    Sustainable Track Record in Overperforming the Turkish Economic Growth Rates Leading Conglomerate in Turkey Strong Standing in Global Rankings Ranking  2009 : 273 Total Sales / GDP  2008 : 172 7%*  2007 : 186 Global 500 Total Exports / Turkey’s Exports 10%**  2006 : 190  2005 : 358 Total Share

  3. Slide 3: Unrivaled Competitive Advantages

    Unrivaled Competitive Advantages  ~11,000 dealers and after-sales services Largest distribution network  ~ 860 bank branches Largest customer database  Large customer database in different business segments together with strong CRM capabilities, enabling efficient up & cross-selling Leadership po

  4. Slide 4: Strategic Targeting Geared Towards Efficiency, Leadership, Innovation & Reputation

    Strategic Targeting Geared Towards Efficiency, Leadership, Innovation & Reputation Strategic Principles  Focus on those sectors where we can create a differential competitive advantage  Grow in sectors where we can leverage our strong brands & technological prowess  Derive maximum benefits from e

  5. Slide 5: Focused Growth Strategy

    Focused Growth Strategy Energy Automotive Consumer Durables Finance Automotive Main Companies Main companies Main Companies Main Companies Tüpraş* / Aygaz* / Opet / Entek Ford Otosan* / Tofaş* / Türk Traktör* / Arçelik* Yapı Kredi Bankası* Otokar* Share in Consolidated Revenues International Allianc

  6. Slide 6: Koç Holding in the Energy Sector

    Koç Holding in the Energy Sector Vision & Strategies  Maximize efficiency and increase profitability through – new investments in existing business units such as residuum upgrade project – new technology, product and service offerings – operational efficiencies and profit enhancement programs – opt

  7. Slide 7: Energy Companies – Competitive Advantages

    Energy Companies – Competitive Advantages  Turkey’s sole refiner and largest industrial company  4 refineries (İzmit, İzmir, Kırıkkale, Batman)  Supplying 65% of the total domestic demand  7th largest in Europe with 28 million tons/year total capacity  The largest in Emerging Europe  Market le

  8. Slide 8: Koç Holding in the Automotive Sector

    Koç Holding in the Automotive Sector Vision & Strategies  To become a “Regional Production Base”  Assume full product development responsibility  Grow as a multi-brand dealership chain in retailing  Maximize efficiency through economies of scale and high capacity utilization rate Leader in Turke

  9. Slide 9: Automotive Companies – Competitive Advantages

    Automotive Companies – Competitive Advantages  Turkey’s largest manufacturer and exporter of commercial vehicles  50-50 JV with Ford  Market leader in the total automotive market for 9 consecutive years  Best Ford assembly plant in Europe since 2002  Best Ford powertrain plant worldwide since 2

  10. Slide 10: Koç Holding in the Consumer Durables Sector

    Koç Holding in the Consumer Durables Sector Vision & Strategies  Grow globally by acquisitions and organic growth  Maintain domestic market leadership  Leverage technology development capabilities to improve  Increase R&D capabilities, focus on brand positioning product development  Improve ope

  11. Slide 11: Consumer Durables Companies – Competitive Advantages

    Consumer Durables Companies – Competitive Advantages  Turkey’s market leader  Domestic network of 3,500 dealers and 600 after sales service stations  Manufacturing centers in Turkey, Romania, Russia and China  3rd largest white goods company in Europe  2nd largest player in the U.K.  Air-condi

  12. Slide 12: Koç Holding in the Finance Sector

    Koç Holding in the Finance Sector Vision & Strategies  Yapı Kredi Bank aims to grow above sector both in volumes and revenues while maintaining strong focus on customer satisfaction  The Bank’s main strategic priorities are; – Growth & Commercial Effectiveness – Cost & Efficiency Improvements – As

  13. Slide 13: Finance Companies – Competitive Advantages

    Finance Companies – Competitive Advantages  Turkey’s 4th largest private bank (in terms of total assets)  50-50 JV with UniCredit  ~ 860 Branches  #1 in credit cards (outstanding volume)  Leading companies in leasing & factoring #1 in Leasing #1 in Factoring #2 in Asset #3 in Pension #3 in equi

  14. Slide 14: Portfolio Restructuring ahead of the Crisis in line with Changing Economic Dynamics

    Portfolio Restructuring ahead of the Crisis in line with Changing Economic Dynamics US$ 6.6 billion Acquisitions in core sectors (Merged with Migros and divested) US$ 3.0 billion Proceeds through proactive disposals www.koc.com.tr 14

  15. Slide 15: Strongest Beneficiary of the High Growth Environment with Leading Positions in Underpenetrated Markets

    Strongest Beneficiary of the High Growth Environment with Leading Positions in Underpenetrated Markets Revenues – Consolidated-US$bn 43.0 34.5 36.0 35.9 29.0 16.6 18.2 11.1 6.9 2002 2003 2004 2005 2006 2007 2008 2009 2010 Further strong growth potential due to leading positions in low-penetrated bus

  16. Slide 16: Strong Margins Despite Global Turmoil

    Strong Margins Despite Global Turmoil EBITDA – Consolidated-US$bn Operating Profit – Consolidated-US$bn 2.6 2.6 2.7 3.4 3.1 3.2 2.8 2.2 2.7 2.1 1.6 1.5 1.2 1.0 0.9 0.7 0.6 0.2 2002 2003 2004 2005 2006 2007* 2008* 2009 2010 2002 2003 2004 2005 2006 2007* 2008* 2009 2010 Operating Margin – % 7.8 7.6 7

  17. Slide 17: Optimal Portfolio Allocation with High Resilience Against Market Volatility

    Optimal Portfolio Allocation with High Resilience Against Market Volatility Revenues – % 2003 2010 FX-denominated & FX-denominated & FX-linked * FX-linked 64% 56% 44% 36% TL TL * FX-linked revenues: Domestic revenues of the energy segment Operating Profit – % 2003 2010 Sectors with Sectors with Less

  18. Slide 18: Strong Global Reach

    Strong Global Reach International Sales 2010 Regional Breakdown US$7,422mn US$874mn 64% 7% US$2,366mn 20% US$937mn 8% US$84mn 1% Exports – Combined-US$bn International Sales* – Combined-US$bn 15.0 14.2 12.6 13.3 11.8 11.7 11.0 9.9 9.2 8.6 8.5 7.5 5.7 6.2 5.0 3.7 3.1 2.2 2002 2003 2004 2005 2006 2007

  19. Slide 19: Leader in R&D and Technology Investments

    Leader in R&D and Technology Investments 12-15% 8% of private sector of all patent applications filed R&D investments with the Turkish Patent Institute Koç Group Total R&D Investments – TLmn Koç Group Companies’ Patent Portfolio * 2,087 409 70 193 2002 2003 2004 2005 2006 2007 2008 2009 2010 2002 20

  20. Slide 20: 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

  21. Slide 21: 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$

  22. Slide 22: Potential Investment Areas

    Potential Investment Areas • Residuum upgrade project - Tüpraş • Opportunities in different fields • New manufacturing including electricity projects for export generation and markets with our JV Automotive renewable energy partners  Focus on higher ROI generating businesses Consumer Energy  Enhan

  23. Slide 23: Main Goal: Maximizing Shareholder Value

    Main Goal: Maximizing Shareholder Value One of the few Turkish Companies which Links Executive Compensation to Share Performance Shareholder Value L-T Strategic Targets Economic Profit Market Cap to Maximize Future Shareholder Value Customer Technology Satisfaction Development Aggressive Sustainable

  24. Slide 24: Value Proposition to Investors

    Value Proposition to Investors www.koc.com.tr 24

  25. Slide 25: Commitment to Corporate Governance

    Commitment to Corporate Governance A Pioneer in Corporate Citizenship  Voluntary commitment and proactive approach to principles of good corporate governance  Executive compensation based on economic profit and share performance  One of the first local companies in Turkey to have independent memb

  26. Slide 26: Corporate Social Responsibility

    Corporate Social Responsibility One of the first Turkish companies to sign the UN Global Compact which confirms Koç Group’s commitment to Corporate Citizenship Supporting vocational education; 7-year project developed to contribute to the creation of a skilled labor force. Koç Holding has pledged to

  27. Slide 27: Corporate Social Responsibility

    Corporate Social Responsibility Contributing to Turkey’s Development through Philantropic Activities Vehbi Koç Foundation  Established in 1969 to make philanthropic endowments for the public good; to create sustainable and replicable projects and programs in education, healthcare and culture  Asse

  28. Slide 28: Appendix

    Appendix www.koc.com.tr 28

  29. Slide 29: Table of Contents

    Table of Contents Page 1. FY10 Earnings Review 30 2. 2011 Targets 36 3. Shareholder Structures 40 4. Contacts and Disclaimer 41 www.koc.com.tr 29

  30. Slide 30: 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

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: 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

  34. Slide 34: 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

  35. Slide 35: 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 35

  36. Slide 36: 2011 Targets

    2011 Targets www.koc.com.tr 36

  37. Slide 37: 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 37

  38. Slide 38: 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 38

  39. Slide 39: 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 39

  40. Slide 40: 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

  41. Slide 41: 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 fundag@koc.com.tr +90 216 531 0535 Aslı Soyubol, Manager Investor Relations aslii@koc.com.tr +90 216 531 0537 Neslihan Aycıl, Associate Investor

  42. Slide 42: Main Group Companies’ Contacts

    Main Group Companies’ Contacts Arçelik Otokar Tüpraş Fatih Ebiçlioğlu, CFO Hüseyin Odabaş, AGM Finance Tuncay Önbilgin, Head of IR fatih.ebiclioglu@arcelik.com hodabas@otokar.com.tr tuncay.onbilgin@tupras.com.tr +90 212 314 3434 +90 264 229 2244 Ext. 451 +90 262 316 3085 M. Türkay Tatar, EVP Yasemin

  43. Slide 43: 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

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