Slide 1: Koç Holding 1Q13 Earnings Presentation
Koç Holding 1Q13 Earnings Presentation 17 May 2013
Slide 2: 1Q13 Operating Environment
1Q13 Operating Environment www.koc.com.tr 2
Slide 3: Turkey has continued to attract significant foreign portfolio investments
1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50 2.60 4 6 7 8 9 5 10 11 12 04.01.10 04.01.10 13.03.10 13.03.10 20.05.10 20.05.10 27.07.10 27.07.10 03.10.10 03.10.10 10.12.10 10.12.10 16.02.11 16.02.11 25.04.11 25.04.11 02.07.11 02.07.11 Euro Policy Rate (Weekly Repo) 08.09.11 08.09.11 15.11.11 15.11.11 22.01
Slide 4: Domestic economic activity has started to recover in 1Q13
Domestic economic activity has started to recover in 1Q13 albeit at a modest rate; weak external demand is keeping industrial production subdued GDP Growth (Quarterly, %) Industrial Production 20 30.0 10.0 115 28.0 15 5.0 26.0 10 Billion TL 0.0 24.0 105 % 22.0 5 -5.0 20.0 95 -10.0 0 18.0 -15.0 16.0
Slide 5: Moderate domestic demand and lower commodity prices contain current account deficit
Moderate growth in domestic demand combined with decline in commodity prices has prevented current account deficit to widen in 1Q13 March 2013 Last 12 Months $ Billion Annual Chg. $ Billion Annual Chg. Exports 13.2 -0.3% 154.2 11.1% Imports 20.6 -0.6% 239.4 -0.6% Trade Balance -7.4 -1.1% -85.1 -16.5
Slide 6: Lower commodity prices and subdued demand keep inflation under control
Lower commodity prices combined with subdued domestic demand keep inflation under control, much to the comfort of the Central Bank 16 Annual Inflation (%) 14 12 10 8 6 4 2 0 07.2010 01.2010 03.2010 05.2010 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: 1Q13 Koç Group
1Q13 Koç Group www.koc.com.tr 7
Slide 8: Koç Holding Credit Ratings
Koç Holding Credit Ratings Moody’s S&P Baa3 (Positive) BBB- (Stable) Our Baa3 ratings are based on Koç Holding’s strong This reflects our view that the combination of Koç's financial profile and investments in a balanced portfolio of business and financial profiles would allow the group to show resi
Slide 9: Eurobond Issue of Koç Holding
Eurobond Issue of Koç Holding Issue USD 750,000,000 principal amount Interest and Interest Payment Dates The Notes will bear interest from and including 24 April 2013 at the rate of 3.500% per annum, payable semi-annually in arrear on each of 24 April and 24 October in each year The first payment wi
Slide 10: Energy – Koç Group Companies
Energy – Koç Group Companies Tüpraş Capacity Utilization – % Tüpraş Net Margins vs Med Complex Margins – US$/Barrel 71.5 2.97 2.83 1.8 64.6 2.2 1.96 69.7 62.4 0.90 1Q12 1Q13 1Q12 1Q13 Crude Others Tüpraş Net Margin Med Complex Gross Margin Aygaz Net Sales – TLmn Opet Market Share – % 20.1 20.119.4 1
Slide 11: Automotive – Ford Otosan & Tofaş vs Sector
Automotive – Ford Otosan & Tofaş vs Sector Sales Units, Market * Sales Development, Market * – Units, Monthly Koç Market 16% 14% 48% 55% 19% 20% 25% 24% +5% Share 80000 180000 +11% 70000 160000 +17% +16% 140000 60000 120000 50000 +19% 100000 80000 40000 60000 30000 40000 -5% 20000 20000 0 Heavy 1000
Slide 12: Consumer Durables – Arçelik vs Sector
Consumer Durables – Arçelik vs Sector Sales Units, Market * Sales Development, Market * – Units, Monthly +7% 1600000 +10% 600000 1400000 +10% 1200000 -1% 500000 1000000 800000 +22% 400000 +8% -2% 600000 -9% 300000 400000 200000 200000 0 Washing 100000 Refrigerator Dishwasher Oven TOTAL Machine 0 1Q1
Slide 13: Finance – Yapı Kredi Bank vs Sector
Finance – Yapı Kredi Bank vs Sector Focus on value generating growth driven by mortgages, general purpose loans and SME Unyielding focus on Leadership position in credit cards in all parameters reinforced with 1Q results (outstanding, acquiring and issuing customer-business volume, number of car
Slide 14: 1Q13 Financial Results
1Q13 Financial Results www.koc.com.tr 14
Slide 15: New Financial Reporting Framework
New Financial Reporting Framework Combined Financial Results: All P&L line items of subsidiaries and joint ventures are included “Koç Group’s Operating Segments’ by full consolidation method (i.e.100%) after intra-group profit Financial Performance” eliminations. Consolidated Financial Results (Af
Slide 16: Group's Overall Financial Performance
Group’s Overall Financial Performance Consumer 1Q13 Change Over TL million Energy Automotive Finance Other Durables Total 1Q12 Total Combined Revenues * 13,120 5,648 2,599 3,326 1,607 26,301 -3% Combined Gross Profit 515 683 757 1,832 279 4,067 12% Combined Operating Profit 158 383 182 734 22 1,480
Slide 17: Combined Revenues
Combined Revenues Combined Revenues – TLmn Segmental Combined Revenues Breakdown – % 27,008 -3% 26,301 Automotive 21% Energy 50% Durables 10% 1Q12 1Q13 Finance Other 13% 6% Segment Contribution to Combined Revenues – TLmn -10% 14,587 13,120 +10% +1% +6% +1% 5,123 5,648 3,143 3,326 2,567 2,599 1,589
Slide 18: Combined Operating Profit
Combined Operating Profit Combined Operating Profit – TLmn Segmental Combined Operating Profit Breakdown – % +7% 1,480 Automotive 1,382 26% Durables 12% Energy 11% Other 2% 1Q12 1Q13 Finance 50% Segment Contribution to Combined Operating Profit – TLmn +21% 734 606 +6% 360 383 -28% +8% 219 158 169 18
Slide 19: Combined Net Income
Combined Net Income Combined Net Income – TLmn Segmental Combined Net Income Breakdown – % -9% Automotive 1,386 29% 1,265 Durables Energy 10% 12% Other 2% 1Q12 1Q13 Finance 46% Segment Contribution to Combined Net Income – TLmn +22% -65% 587 +9% 479 443 367 336 +11% 154 131 +177% 118 10 26 Energy Au
Slide 20: Consolidated Net Income
Consolidated Net Income Consolidated Net Income – TLmn Segmental Consolidated Net Income Breakdown – % 538 -16% Automotive 32% 452 Durables Energy 11% 10% Other 3% 1Q12 1Q13 Finance 43% Segment Contribution to Consolidated Net Income – TLmn +23% -77% 193 +10% 196 160 146 133 +13% 50 +117% 44 45 16 7
Slide 21: Combined Exports & International Sales
Combined Exports & International Sales Combined Exports – US$mn Combined International Sales – US$mn -2% 4,619 -2% 4,525 4,010 3,949 1Q12 1Q13 1Q12 1Q13 www.koc.com.tr 21
Slide 22: Combined Investments
Combined Investments Combined Investments – TLmn Segmental Investments Breakdown – % 75% 989 Automotive 566 Energy 35% 53% Durables 1Q12 1Q13 Other Finance 7% 2% 3% www.koc.com.tr 22
Slide 23: Koç Holding Net Cash Position
Koç Holding Net Cash Position Koç Holding Stand-Alone 31.03.2013 Net Cash Position Total Debt: --- Total Cash: ~US$ 0.82 bn Net Cash: ~US$ 822mn Consolidated Net Debt / Cash Excl. Finance FY12 1Q13 ~US$ -2.2bn ~US$ -2.7bn www.koc.com.tr 23
Slide 24: FX Position
FX Position Koç Holding Stand-Alone FX Position FY12 1Q13 US$ + 233mn US$ +233mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership FY12 1Q13 FY12 1Q13 US$ - 3.1bn US$ -3.6bn* US$ - 1.4bn US$ -1.5bn * The natural hedging mechanisms due to FX linked pricing of Tüpraş & A
Slide 25: Q&A
Q&A www.koc.com.tr 25
Slide 26: 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 27: Consolidated Main Financial Indicators
Consolidated Main Financial Indicators € Mn* US$ Mn* TL Mn TL Mn Change Change 31.Mar.2013 31.Mar.2013 31.Mar.2013 31.Mar.2012 %, TL %, US$ Revenues 5,768 7,619 13,563 14,374 q -6 q -5 Gross Profit 597 788 1,403 1,347 p 4 p 5 Operating Profit before share in net 146 193 343 384 q -11 q -10 income of
Slide 28: Shareholder Structures as of March 2013
Shareholder Structures as of March 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 share:
Slide 29: 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