Slide 1: Koç Holding 9M12 Earnings Presentation
Koç Holding 9M12 Earnings Presentation 16 November 2012
Slide 2: 9M12 Operating Environment
9M12 Operating Environment www.koc.com.tr 2
Slide 3: Increasing confidence in monetary policy has led to a major rally in TL assets
1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50 2.60 5 7 8 9 6 10 11 12 13 04.01.10 04.01.10 25.02.10 25.02.10 18.04.10 18.04.10 09.06.10 09.06.10 31.07.10 31.07.10 21.09.10 21.09.10 12.11.10 12.11.10 03.01.11 03.01.11 24.02.11 24.02.11 17.04.11 17.04.11 Euro 08.06.11 08.06.11 30.07.11 30.07.11 20.09.11 20.
Slide 4: Economic activity slows down in Turkey mostly in line with our expectations
Economic activity slows down in Turkey mostly in line with our expectations GDP Growth (Quarterly, %) Industrial Production 25 135 30.0 10.0 20 28.0 15 125 6.2 2.9 5.0 10 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 95 -15.0 16.0 2009 1 2010 1 2011 1 2012 1 2 3
Slide 5: Rebalancing in the economy has led to a sharp correction in the current account deficit
Rebalancing in the economy has led to a sharp correction in the current account deficit September 2012 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 13.0 21.0% 148.5 12.8% Imports 19.8 -6.4% 235.7 -0.4% Trade Balance -6.8 -34.7% -87.2 -17.0% Current Account Balance (%, ratio to
Slide 6: Tax and public sector price increases limited the expected decline in inflation
Tax and public sector price increases limited the expected decline in inflation in the second half of the year 16 Annual Inflation (%) 14 12 10 8 7.8 6 4 2 2.6 0 01.2011 12.2011 01.2010 02.2010 03.2010 04.2010 05.2010 06.2010 07.2010 08.2010 09.2010 10.2010 11.2010 12.2010 02.2011 03.2011 04.2011 05
Slide 7: 9M12 Koç Group Core Sectors
9M12 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 82.3 80.9 8.20 5.4 4.6 5.91 5.23 75.5 77.7 1.20 9M11 9M12 3Q11 3Q12 Crude Others Tüpraş Net Margin Med Complex Gross Margin Aygaz Net Sales – TLmn Opet White Products Market Share – %
Slide 9: Automotive – Ford Otosan & Tofaş vs Sector
Automotive – Ford Otosan & Tofaş vs Sector Sales Units, Market * – January-September Sales Development, Market * – Units, Monthly Koç Market 21% 18% 52% 51% 18% 15% 30% 27% Share 100000 -17% -20% -12% -13% 700000 -12% 90000 +15% 600000 -8% 80000 -0.4% -1% -30% 500000 70000 60000 -35% 400000 -21% 300
Slide 10: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Market * – January-September Sales Development, Market * – Units, Monthly -0.4% 6000000 700000 -12% +6% 5000000 +4% 600000 -3% 4000000 -2% +7% 500000 3000000 +6% -4% -5% -3% 400000 2000000 300000 1000000 200000 0 Washing 100000 Refrigerator Dishwash
Slide 11: Finance – Yapı Kredi Bank vs Sector
Finance – Yapı Kredi Bank vs Sector YKB YtD Chg. Sector YtD Chg. YKB TL Loans (TLbn) YKB TL Deposits (TLbn) Balance sheet Consumer Loans 9% 9% 69.3 74.2 69.3 Mortgages 3% 8% 66.2 evolution confirming customer business General Purpose 20% 11% focus Auto -9% 4% Credit Cards 26% 24% 2011 3Q12 2011 3Q12
Slide 12: 9M12 Financial Results
9M12 Financial Results www.koc.com.tr 12
Slide 13: Financial Performance
Financial Performance Revenues TL62,999mn (US$35,105mn) 16% YoY increase in TL terms and 4% in US$ terms Operating Profit TL3,545mn (US$1,976mn) 19% YoY decrease in TL terms and 27% in US$ terms (1% YoY decrease in TL terms if major one-off items are excluded) EBITDA TL4,401mn (US$2,452mn)
Slide 14: Main Financial Indicators
Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 30.Sep.2012 30.Sep.2012 30.Sep.2012 30.Sep.2011 %, TL %, US$ Revenues 27,386 35,105 62,999 54,392 p 16 p 4 Gross Profit 3,757 4,816 8,642 8,308 p 4 q -6 EBITDA 1,913 2,452 4,401 5,134 q -14 q -23 Operating Profit 1,541 1,976 3,545 4,3
Slide 15: High Revenue Growth Across All Sectors except Automotive
High Revenue Growth Across All Sectors except Automotive Revenues – TLmn Share of Segment Revenues – % +16% 62,999 54,392 Energy 63% Automotive 11% Durables 13% 9M11 9M12 Finance Other 5% 8% Segment Contribution to Revenues – TLmn +17% 39,946 34,185 -3% +30% +22% +13% 7,296 7,043 6,070 7,886 4,316 5
Slide 16: Normalized Operating Profit Declined Slightly by 1% in line with Expectations
Normalized Operating Profit Declined Slightly by 1% in line with Expectations Operating Profit – TLmn Segmental Operating Profit Breakdown – % -19% Automotive 4,367 16% 3,545 -1% Energy Durables 33% 3,563 18% Excl. one- off items Other 9M11 9M12 3% Finance 30% Segment Contribution to Operating Profi
Slide 17: 5% YoY Increase in Normalized Profit Before Tax
5% YoY Increase in Normalized Profit Before Tax Profit Before Tax – TLmn Segmental Profit Before Tax Breakdown – % 3,721 -1% 3,675 Automotive Energy 14% +5% 40% 3,514 Excl. one-off Durables items 14% Other 9M11 9M12 3% Finance 29% Segment Contribution to Profit Before Tax – TLmn +15% +27% -3% 1,465
Slide 18: Balanced Diversification Among Core Sectors in EBITDA
Balanced Diversification Among Core Sectors in EBITDA EBITDA – TLmn Segmental EBITDA Breakdown – % -14% Automotive 5,134 17% 4,401 +2% Energy 33% Durables 4,330 Excl. 19% one-off items Other 9M11 9M12 4% Finance 26% Segment Contribution to EBITDA – TLmn EBITDA Margin by Segment – % -36% 2,258 -2% 27
Slide 19: Strong Export Growth Despite Difficulties in the European Market
Strong Export Growth Despite Difficulties in the European Market Further Diversification of Geographical Risks Combined Exports – US$mn Consolidated Exports – US$mn 9% 10% 8,123 11,644 7,386 10,669 9M11 9M12 9M11 9M12 Combined International Sales – US$mn Consolidated International Sales – US$mn 11%
Slide 20: Increasing Investments in line with Sustainable Growth Strategy
Increasing Investments in line with Sustainable Growth Strategy Combined Investments – TLmn Segmental Investments Breakdown – % 104% 3,231 Energy Automotive 1,584 46% 37% Other Durables 9M11 9M12 3% Finance 5% 10% www.koc.com.tr 20
Slide 21: YtD Margin Improvement Over 1H12
YtD Margin Improvement Over 1H12 Operating Margin – % Profit Before Margin – % 8.0 6.8 5.8 5.6 5.2 4.9 6.5 6.6 Excl. Excl. one-off one-off items items 9M11 1H12 9M12 9M11 1H12 9M12 Net Income Margin – % 3.0 2.7 2.5 2.8 Excl. one-off items 9M11 1H12 9M12 www.koc.com.tr 21
Slide 22: Solid Net Cash Position and Well-Managed Risk
Solid Net Cash Position and Well-Managed Risk Koç Holding Stand-Alone 30.09.2012 Net Cash Position Total Debt: ~US$ 0.08 bn Total Cash: ~US$ 0.80 bn Net Cash: ~US$ 727 mn 2013 Redemption Schedule US$ 75 mn – to be paid in January Consolidated Net Debt / Cash Excl. Finance 1H12 9M12 ~US$ -2.9bn ~US$
Slide 23: Well-Managed FX Position
Well-Managed FX Position Koç Holding Stand-Alone FX Position 1H12 9M12 US$ + 222mn US$ +232mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership 1H12 9M12 1H12 9M12 US$ - 3.6bn US$ -3.0bn* US$ - 1.8bn US$ -1.3bn * The natural hedging mechanisms due to FX linked pricing
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 September 2012
Shareholder Structures as of September 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 sha
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 Winner World Financ