Slide 1: Koç Holding 1Q12 Earnings Presentation
Koç Holding 1Q12 Earnings Presentation 18 May 2012
Slide 2: 1Q12 Operating Environment
1Q12 Operating Environment www.koc.com.tr 2
Slide 3: Accommodative monetary policy led to a rally in financial markets in 1Q12
1.80 2.00 2.10 2.20 2.30 2.40 2.50 2.60 1.90 5 6 7 8 9 10 12 13 11 04.01.10 04.01.10 14.02.10 14.02.10 27.03.10 27.03.10 07.05.10 07.05.10 17.06.10 17.06.10 28.07.10 28.07.10 07.09.10 07.09.10 18.10.10 18.10.10 28.11.10 28.11.10 08.01.11 08.01.11 Euro 18.02.11 18.02.11 31.03.11 31.03.11 11.05.11 11.
Slide 4: Economic activity slows down in Turkey mostly in line with expectations
Economic activity slows down in Turkey mostly in line with our expectations. So far there is no trace of a hard landing GDP Growth (Quarterly, %) Industrial Production 25 135 30.0 10.0 20 5.2 28.0 15 125 5.0 10 2.4 26.0 5 Billion TL 0.0 24.0 0 115 % 22.0 -5 -5.0 -10 20.0 105 -15 -10.0 -20 18.0 -25 9
Slide 5: Current account deficit is contracting with more to come
Current account deficit is contracting with more to come March 2012 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 13.3 12.2% 138.9 16.4% Imports 20.6 -4.8% 240.5 18.4% Trade Balance -7.3 -25.3% -101.6 21.3% Current Account Balance (%, ratio to GDP) ($mn) 2012 March 2011 March 20
Slide 6: After peaking in April, inflation is expected to remain elevated in 2Q
After peaking in April, inflation is expected to remain elevated in 2Q, before declining materially towards the end of the year 16 Annual Inflation (%) 14 12 11.1 10 8 7.7 6 4 2 0 05.2010 08.2010 01.2010 02.2010 03.2010 04.2010 06.2010 07.2010 09.2010 10.2010 11.2010 12.2010 01.2011 02.2011 03.2011
Slide 7: 1Q12 Koç Group Core Sectors
1Q12 Koç Group Core Sectors www.koc.com.tr 7
Slide 8: Energy – Koç Group Companies
Energy – Koç Group Companies Tüpraş Capacity Utilization – % Tüpraş Net Margins vs Med Complex Margins – US$/Barrel 3.86 73.5 74.4 6.1 4.7 2.97 1.96 67.4 69.7 0.42 1Q11 1Q12 1Q11 1Q12 Crude Others Tüpraş Net Margin Med Complex Gross Margin Aygaz Net Sales – TLmn Opet Market Share Development – % 20.
Slide 9: Automotive – Ford Otosan & Tofaş vs Sector
Automotive – Ford Otosan & Tofaş vs Sector Sales Units, Market * – January-March Sales Development, Market * – Units, Monthly Koç Market 18% 16% 48% 48% 19% 21% 25% 28% -17% Share 90000 250000 -26% 80000 -30% 200000 -21% 70000 -35% 60000 150000 -35% 50000 100000 40000 50000 -29% 30000 20000 0 Heavy
Slide 10: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Market * – January-March Sales Development, Market * – Units, Monthly +1% 1600000 -3% 1400000 600000 1200000 +7% 500000 1000000 -2% 400000 800000 +7% -2% 600000 300000 400000 200000 200000 0 Washing 100000 Refrigerator Dishwasher Oven TOTAL Machine
Slide 11: Finance – Yapı Kredi Bank vs Sector
Finance – Yapı Kredi Bank vs Sector TL Loan Growth 4.4% 4.1% Unyielding focus on Above sector growth in profitable TL segments / customer business products including GPL and TL based company loans YKB Sector TL Deposit Growth 4.5% Stronger funding Significantly above sector TL deposit growth and emp
Slide 12: 1Q12 Financial Results
1Q12 Financial Results www.koc.com.tr 12
Slide 13: Financial Performance
Financial Performance Revenues TL19,315mn (US$10,788mn) 27% YoY increase in TL terms and 12% in US$ terms Operating Profit TL866mn (US$483mn) 36% YoY decrease in TL terms and 44% in US$ terms EBITDA TL1,148mn (US$641mn) 28% YoY decrease in TL terms and 37% in US$ terms Profit Before Tax
Slide 14: Main Financial Indicators
Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 31.Mar.2012 31.Mar.2012 31.Mar.2012 31.Mar.2011 %, TL %, US$ Revenues 8,232 10,788 19,315 15,158 p 27 p 12 Gross Profit 1,045 1,369 2,451 2,470 q -1 q -13 EBITDA 489 641 1,148 1,594 q -28 q -37 Operating Profit 369 483 866 1,347 q -36
Slide 15: High revenue growth mostly supported by Consumer Durables & Energy sectors
High revenue growth mostly supported by Consumer Durables & Energy sectors Revenues – TLmn Share of Segment Revenues – % 27% 19,315 15,158 Energy 63% Automotive 12% Durables 12% 1Q11 1Q12 Finance Other 5% 9% Segment Contribution to Revenues – TLmn 33% 12,133 9,138 -2% 40% 25% 26% 2,263 2,225 2,398 1
Slide 16: When normalized by one-off items Operating Profit declined by 8% YoY
When normalized by one-off items Operating Profit declined by 8% YoY Operating Profit – TLmn Segmental Operating Profit Breakdown – % -36% Automotive 1,347 19% Durables -8% 20% 866 940 Energy Excl. one- off items 22% Other 2% Finance 1Q11 1Q12 36% Segment Contribution to Operating Profit – TLmn -70%
Slide 17: Profit Before Tax declined slightly by 3% if normalized
Profit Before Tax declined slightly by 3% if normalized for major one-off items Profit Before Tax – TLmn Segmental Profit Before Tax Breakdown – % -19% 1,371 Energy -3% 1,106 45% Automotive 14% 1,145 Excl. one-off Durables items 12% Other 1% 1Q11 1Q12 Finance 28% Segment Contribution to Profit Befor
Slide 18: Normalized EBITDA declined slightly YoY in line with expectations
Normalized EBITDA declined slightly YoY in line with expectations EBITDA – TLmn Segmental EBITDA Breakdown – % 1,594 -28% Automotive 20% -3% 1,148 Durables Energy 21% 1,189 26% Excl. one-off items Other 1Q11 1Q12 4% Finance 30% Segment Contribution to EBITDA – TLmn EBITDA Margin by Segment – % -59%
Slide 19: Stronger export revenues despite difficulties in the European Market
Stronger export revenues despite difficulties in the European Market Diversification of Geographical Risks Combined Exports – US$mn Consolidated Exports – US$mn 17% 4,011 18% 2,804 3,422 2,380 1Q11 1Q12 1Q11 1Q12 Combined International Sales – US$mn Consolidated International Sales – US$mn 16% 17% 4
Slide 20: Increasing investments in lucrative projects
Increasing investments in lucrative projects Combined Investments – TLmn Segmental Investments Breakdown – % 105% 612 Automotive Energy 34% 34% 298 Durables Other 1Q11 1Q12 15% Finance 10% 7% www.koc.com.tr 20
Slide 21: Slight decline in YoY normalized margins
Slight decline in YoY normalized margins due to stronger than anticipated revenue growth Operating Margin – % Profit Before Margin – % 8.9 9.0 5.4 5.7 7.6 4.7 6.2 4.5 Excl. Excl. one-off one-off items items 1Q11 4Q11 1Q12 1Q11 4Q11 1Q12 Net Income Margin – % 3.9 2.8 3.3 2.3 Excl. one-off items 1Q11
Slide 22: Improved net cash position at the Holding level
Improved net cash position at the Holding level Koç Holding Stand-Alone 31.03.2012 Net Cash Position Total Debt: ~US$ 0.08 bn Total Cash: ~US$ 0.72 bn Net Cash: ~US$ 641 mn 2013 Redemption Schedule US$ 75 mn – to be paid in January Consolidated Net Debt / Cash Excl. Finance 2011 1Q12 ~US$ -2.2bn ~US
Slide 23: Sustained resilience against FX volatility
Sustained resilience against FX volatility Koç Holding Stand-Alone FX Position 2011 1Q12 US$ + 281mn US$ + 242mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 2011 1Q12 2011 1Q12 US$ - 3.0bn US$ - 4.2bn* US$ - 1.5bn US$ - 1.9bn * The natural hedging mechanisms due
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 March 2012
Shareholder Structures as of March 2012 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 share:
Slide 27: 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 World Finance - Tur