Slide 1: Koç Holding 9M10 Earnings Presentation
Koç Holding 9M10 Earnings Presentation 11 November 2010
Slide 2: Operating Environment & Koç Group
9M10 Operating Environment & Koç Group www.koc.com.tr 2
Slide 3: Interest rates are at historically lowest levels on the back of strong capital inflows
1.80 1.90 2.00 2.10 2.20 2.30 6 8 9 7 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 CB Polciy Rate Euro 02.03.10 28.03.10 23.04.10 28.03.10 19.05.10 23.04.10 Exchange Rates (TL) 14.06.10 19.05.10 USD 10.07
Slide 4: Economic activity maintains its momentum in the third quarter of 2010
Following a very strong first half, economic activity maintains its momentum in the third quarter of 2010 GDP Growth (Quarterly, %) Industrial Production 11.7 10.3 25 125 28.0 10.4 10.0 20 26.0 15 5.0 GDP, TL billion 10 115 24.0 Growth, % 5 0.0 22.0 0 -5 -5.0 20.0 105 -10 -10.0 18.0 -15 -20 -15.0 16
Slide 5: Current account deficit is widening
Current account deficit is widening Jan uary - September 2010 12 Months Cumulative $ billion Annual $ billion Annual Exports 81.9 12.0% 110.9 11.0% Imports 130.5 29.8% 170.9 23.0% Trade Balance -48.6 77.3% -60.0 53.7% Financing of Current Account 2009 2010 2009 Sep/ 3 Current Account Balance (%, rat
Slide 6: Food prices are pushing up headline inflation while core inflation is under control
Food prices are pushing up headline inflation figures while core inflations seems to be under control 14 Annual Inflation Rates (%) 12 10 8 8.6 6 4 2 2.5 0 01.06 03.06 05.06 07.06 09.06 11.06 01.07 03.07 05.07 07.07 09.07 11.07 01.08 03.08 05.08 07.08 09.08 11.08 01.09 03.09 05.09 07.09 09.09 11.09
Slide 7: Energy
Energy Tüpraş Capacity Utilization – % Tüpraş Production-Import-Sales Balance – mn Ton Export & Domestic Sales Production & Import 75 16.2 70 16.2 16.4 16.4 8 9 2.4 3.3 3.0 4.5 67 61 13.8 12.9 13.4 11.9 9M09 9M10 9M09 9M10 9M09 9M10 Crude Others Domestic Sales Export Production Import Opet Market Sh
Slide 8: Automotive
Automotive Sales Units, Market * – January-September Sales Development, Market * – Units, Monthly Koç Market 18% 19% 57% 51% 31% 30% -22% Share 90000 +249% +11% 80000 500000 -6% -0.3% +113% +73% 450000 70000 -6% +4% 400000 +11% 60000 350000 300000 50000 250000 +11% +43% 40000 200000 150000 30000 +2%
Slide 9: Consumer Durables
Consumer Durables Sales Units, Market * – January-June Sales Development, Market * – Units, Monthly +8% 4500000 -14% -9% +7% +21% -4% 4000000 600000 3500000 +6% 3000000 500000 +23% 2500000 +12% +46% +52% +10% 400000 2000000 +6% -2% 1500000 300000 1000000 500000 200000 0 Washing 100000 Refrigerator D
Slide 10: Finance
Finance YKB Loans & Deposit Growth vs Sector YKB NPL Ratio Growth YTD YKB Market Shares 6.3% Sector YKB 3Q10 ∆YTD Total Loans 21% 23% 10.2% +16 bps 4.9% 4.3% 4.1% 4.3% TL Loans 22% 25% 9.3% +24 bps FC Loans ($) 21% 22% 12.6% +7 bps Total Deposits 11% 14% 8.3% +25 bps TL Deposits 15% 16% 7.1% +15 bps
Slide 11: 9M10 Financial Results
9M10 Financial Results www.koc.com.tr 11
Slide 12: Financial Performance
Financial Performance Revenues TL38,475mn (US$25,409mn) 18% YoY increase in TL terms and 22% in US$ terms Operating Profit TL3,250mn (US$2,146mn) 16% YoY increase in TL terms and 21% in US$ terms EBITDA TL3,973mn (US$2,624mn) 15% YoY increase in TL terms and 19% in US$ terms Profit Befor
Slide 13: Main Financial Indicators
Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 30.Sep.2010 30.Sep.2010 30.Sep.2010 30.Sep.2009 %, TL %, US$ Revenues 19,308 25,409 38,475 32,707 p 18 p 22 Gross Profit 3,360 4,422 6,695 6,712 p 3 EBITDA 1,994 2,624 3,973 3,459 p 15 p 19 Operating Profit 1,631 2,146 3,250 2,794 p 1
Slide 14: Continued Growth in Top Line
Continued Growth in Top Line Revenues – TLmn Share of Segment Revenues – % 18% 38,475 32,707 Energy Automotive 58% 13% Durables 14% 9M09 9M10 Other Finance 5% 9% Segment Contribution to Revenues – TLmn 27% 22,478 17,636 23% 4% -13% 19% 4,211 5,170 5,046 5,248 4,183 3,633 1,630 1,946 Energy Automotiv
Slide 15: Balanced EBITDA Breakdown
Balanced EBITDA Breakdown EBITDA – TLmn Segmental EBITDA Breakdown – % 15% Automotive 3,973 13% 3,459 Energy Durables 33% 17% Other 5% Finance 9M09 9M10 31% Segment Contribution to EBITDA – TLmn EBITDA Margin by Segment – % 3% 38% 1,287 1,330 1,236 34.0 1% 896 20% 21.4 668 678 526 19% 13.2 12.9 437
Slide 16: 16% Increase in Operating Profit
16% Increase in Operating Profit Operating Profit Consumer Energy Automotive Finance Other Consolidated Total TL mn Durables 9M10 1,052 357 528 1,167 145 3,250 Operating Profit – TLmn Segmental Operating Profit Breakdown – % 16% 3,250 Automotive 2,794 11% Energy 32% Durables 16% Other 4% Finance 9M0
Slide 17: Sustainable Margin Performance
Sustainable Margin Performance EBITDA Margin – % Operating Margin – % 9.0 10.6 10.8 10.3 10.2 8.5 8.4 8.4 9.9 7.8 8.8 7.4 9M08 * 9M09 9M10 1Q10 2Q10 3Q10 9M08 * 9M09 9M10 1Q10 2Q10 3Q10 Profit Before Tax Margin – % 10.3 8.4 7.8 7.5 7.2 5.9 9M08 * 9M09 9M10 1Q10 2Q10 3Q10 * Normalized www.koc.com.tr
Slide 18: Strong Liquidity and Well-Managed Risk
Strong Liquidity and Well-Managed Risk Koç Holding Stand-Alone 30.09.2010 Net Cash Position Total Debt: ~US$ 0.24 bn Total Cash: ~US$ 1.01 bn Net Cash: ~US$ 775 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 9M09 9M10 US$ + 285mn US$ + 318mn Koç Holding Consolidated FX Position Weighted by Effective FX Position Ownership 9M08 2008 9M09 9M10 9M09 9M10 US$ - 4.2bn US$ - 2.2bn US$ - 2.5bn US$ - 2.4bn* US$ - 1.4bn US$ - 1.4bn * The natural
Slide 20: Q&A
Q&A www.koc.com.tr 20
Slide 21: 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 22: Shareholder Structures as of September 2010
Shareholder Structures as of September 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 sha
Slide 23: 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 +