Koç Holding 9M18 Earnings Presentation

Transcription

1 Koç Holding Earnings Presentation 8 November 2018

2 Strong Positioning via Diversified Structure Consolidated Net Income (TL mn) Dividend Income (TL mn) 3,832 3,827 2,484 1,228 1,291 Sustainable performance leveraging on diversified structure Solid dividend flow supported by ~TL 35 bn of investments over the last 5 years 1 1 Combined Int l Revenues / Revenues NAV Breakdown by Sector Domestic Market Positioning 22% 30% 30% Largest exporting group in Turkey covering 10% of Turkey s total exports ~55% incl. Tüpraş Finance 12% Cons. Durables 8% Other 11% Energy 31% Auto (PC & CV Mfg) 28% Auto (Other) 9% Resilient against sectoral cyclicality #1 in total automotive #1 in light commercial vehicles #1 in tractors #1 in automotive retailing #1 in white goods #1 in air conditioners Sole operational refinery #1 in LPG distribution Strong pricing power via leading positions (1) Excluding Ford Otosan s second dividend payment of TL 155 mn, which will be reflected in 4Q18 2

3 Disciplined Approach Strong Cash Position (Solo) US$ 1.8 bn gross cash 83% in US$, 17% in TL US$ 1.5 bn total debt US$ +330 mn net cash Stable Funding (Solo) 2 eurobonds totaling US$ 1.5 bn Mar 16: US$ 750 mn, 7yrs, 5.25% coupon; Apr 13: US$ 750, 7 yrs, 3.5% coupon No repayment requirements until 2020 Proceeds generating positive carry Solid Liquidity 1.4x current ratio on a combined basis Sustainable Leverage 1.8x net financial debt / EBITDA on a combined basis No FX Position US$ +14 mn solo long FX position US$ -104 mn consolidated short FX position after natural hedge 1 US$ -20 mn consolidated short FX position after natural hedge weighted by effective ownership Notes: All data as of (1) Net FX short position at 104 mn US$ (excluding US$ 1.3 bn of loans designating as hedging instruments (mainly Tüpraş) and US$ 1.4 bn of natural hedge due to FX linked pricing of Tüpraş and Aygaz inventory) 3

4 Sales Volume, Domestic Market (mn tons) +8% +12% +4% +4% Diesel Jet Fuel Gasoline LPG Aug' Aug' Energy Aygaz (000 tons) Sales Volume Ranking: #1 1, % 1, Cylinder Autogas Bulk Other Energy Segment Share in Combined Operating Profit 2 Share in Consolidated Net Income 45% 23% TL mn, combined y/y Tüpraş Refining Margins ($/bbl) Tüpraş (net) Med Complex 8.5 Clean YE18 FC (YE17: 8.1) YE18 FC (YE17: 5.3) 4.5 Capacity Utilisation 112.6% 7.2% 105.3% YE18 FC % 95.0% 8.5% 86.5% White Product Yield 77.0% 77.2% Opet White Product Market Share Ranking: #2 17.9% 17.9% Revenues 111,704 57% Operating Profit 2 8,119 63% Profit Before Tax 2,827-35% Cons. Net Income % (+) Inventory gains (-) Impact of planned shutdowns on CUR and volumes (-) Impact of sudden TL depreciation Crude Others Aug'17 Aug'18 Notes: Energy Market Regulatory Authority data used for sectoral indicators (1) Clean net refining margin excludes inventory effect (2) Excluding FX gains/losses and credit finance income/charges on trade receivables and payables 4

5 Automotive Sales Units, Domestic Market ( 000) Export Units, Turkey ( 000) Koç Share 15% 13% 54% 53% 21% 22% 24% 22% Koç Share 42% 44% Automotive Segment -24% -26% -1% Share in Combined Operating Profit 1 Share in Consolidated Net Income -33% -17% 22% 30% Passenger Cars Light Commercial Tofaş Revenues Ford Otosan Revenues TürkTraktör Revenues Total Revenues: TL 13.8 bn, +11% y/y Heavy Commercial TOTAL Total Revenues: TL 23.2 bn, +36% y/y Total Revenues: TL 3.0 bn, -2% y/y TL mn, combined y/y Revenues 46,355 21% Operating Profit 1 3,954 46% Profit Before Tax 2,944 33% 27% 2 Cons. Net Income 1,160 28% 16% 2 Int'l 79% (+25% y/y) Domestic 21% (-22% y/y) Domestic 19% (-6% y/y) Int'l 81% (+51% y/y) Int'l Domestic 44% 56% (+57% y/y) (-24% y/y) (+) Solid international revenues (+) Higher /TL (+) Pricing focus in domestic market (+) Cost discipline (-) Significant decline in domestic market volumes Notes: Automotive Manufacturing Association data used for sectoral indicators. HCV data based on restated AMA figures. (1) Excluding FX gains/losses and credit finance income/charges on trade receivables and payables (2) Excluding bargain purchase gain (negative goodwill) of Otokoç on acquisition of car rental business in Greece in 2Q18 (PBT impact TL 142 mn, cons. net income impact TL 109 mn) 5

6 Consumer Durables Sales Units, Market (mn) Arçelik Market Share 9.3% 12.3% 40.1% Change y/y +0.8 pp +0.5 pp -0.7 pp -15% -2% +8% Export Units, Turkey (mn) +6% Consumer Durables Segment Share in Combined Operating Profit 1 Share in Consolidated Net Income Turkey Arçelik Revenues Total Revenues: TL 19.5 bn, +29% y/y Domestic 34% Int'l (+6% y/y) 66% (+45% y/y) Organic Growth: +10% FX Impact: +35% Western Europe Eastern Europe +5% S. Africa Arçelik Regional Breakdown of Revenues Chg. y/y +6% +43% +57% +39% +10% +29% +69% 41% 34% Turkey 28% 31% Western Europe 15% 12% CIS & Eastern Europe 6% 7% Africa 3% 2% Middle East 5% 5% 5% 6% Pakistan Other 8% 6% TL mn, combined y/y Revenues 22,126 30% Operating Profit 1 1,484 26% Profit Before Tax 733 5% Cons. Net Income % (+) Solid international revenues (+) Pricing focus (-) Financial expenses (-) Contraction in domestic market also including high base impact Notes: White Goods Manufacturing Association data used for Turkish market; GfK indicative data used for international markets (1) Excluding FX gains/losses and credit finance income/charges on trade receivables and payables 6

7 YKB Profitability Finance YKB Operational Performance Net Income (TL mn) ROATE Cost/Income 2 CoR 2,735 31% 3, bps 14.0% 14.3% 15.4% Excluding IRS m-t-m 1 41% Revenues +44% Costs +13% (vs. 25% CPI) 33% 2.09% Finance Segment Share in Combined Operating Profit Share in Consolidated Net Income 1.08% 1.88% 25% 34% YKB Balance Sheet YKB Fundamentals TL bn, consolidated q/q y/y Loans % 31% TL % 8% FC ($) % -2% Deposits % 34% TL % 25% FC ($) % -16% NPL Ratio 3.7% -0.1pp -0.5pp Provisions / Gross Loans 4.6% 0.2pp -0.1pp CAR CET1 Capital Ratios % 13.3% 10.0% 9.8% 2017 LDR 114% 112% 2017 Notes: ROATE indicates Return on Average Tangible Equity CoR= Total specific + generic provisions net of collections. adjusted for provision reversals related to cheques due to regulation change in 2Q18 CET1= Common Equity Tier-1 LDR= Performing Loans / (Deposits + TL Bonds) (1) TL 4.1bn IRS m-t-m valuation gain that is booked under equity but not considered in capital calculations (2017: TL 838mn) (2) Income adjusted for trading income to hedge FC ECL (3) Loans indicate performing loans excluding factoring and leasing receivables and TL and FC loans are adjusted for FX indexed loans (4) Capital ratios are presented without forbearance actions (with forbearance: CET-1: 12.1%, CAR: 16.1%) TL mn, combined y/y Operating Profit 4,578 34% Profit Before Tax 4,656 34% Cons. Net Income 1,309 31% Improving cost / income Conservative CoR approach Controlled volumes and focus on liquidity 7

8 Group s Overall Financial Performance TL mn, Combined Revenues 1 Energy Automotive Consumer Durables Finance Other Total 111,704 46,355 22,126 30,424 9, ,164 57% 21% 30% 41% 21% 41% 8,119 3,954 1,484 4, ,138 63% 46% 26% 34% -96% 46% Combined Profit Before Tax 2,827 2, , ,579 y/y -35% 33% 5% 34% 60% 5% Combined Net Income 2,498 2, , ,789 y/y -34% 22% -17% 31% 52% 0% 875 1, , ,827-41% 28% -20% 31% 81% 0% y/y Combined Operating Profit2 y/y Consolidated Net Income 3 y/y (1) Before revenue eliminations (2) Excluding FX gains/losses and credit finance income/charges on trade receivables and payables (Combined operating profit reported in financial report is TL 14,521 mn) (3) Koç Holding s consolidated net income after the share of JV partners and non-controlling interests 8

9 Consolidated Net Income (TL mn) Consolidated Net Income Normalized 1 +16% Normalized 1-2% y/y -41% +28% -20% +31% +81% 0% 3, , Energy Auto Cons. Durables Finance Other Finance 26.2% Other 3.4% Cons. Durables 8.0% Auto 23.6% Energy 38.8% Finance 34.2% Other 6.2% Cons. Durables 6.4% Energy 22.9% Auto 30.3% Note: Consolidated net income indicates Koç Holding share after the share of JV partners and non-controlling interests (1) Excluding (i) bargain purchase gain (negative goodwill) of Otokoç on acquisition of car rental business in Greece (cons. net income impact TL 109 mn) in 2018; (ii) fair value gain of Koç Holding s asset exchange transaction in 2017 (cons. net income impact TL 26 mn) 9

10 Wrap-Up Disciplined management approach and balance sheet strength ensuring resilience against volatility Sustainable performance and solid net cash position 10

11 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 affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Neither Koç Holding nor any of its directors, managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation. 11

12 ANNEX 12

13 Consolidated Main Financial Indicators TL mn Y/Y mn $ mn Revenues 71, ,414 45% 19,010 22,639 Gross Profit 12,120 16,604 37% 3,052 3,635 Operating Profit 8,159 8,433 3% 1,550 1,846 Profit Before Tax 6,801 5,915-13% 1,087 1,295 Taxes (net) % Net Income Before Non-controlling Interest 6,373 5,509-14% 1,013 1,206 Non-controlling Interest 2,542 1,683-34% Net Income After Non-controlling Interest 3,832 3,827 0% YE17 YTD mn $ mn Total Assets 104, ,791 33% 19,969 23,170 Total Equity 42,931 45,166 5% 6,498 7,540 Note: End of period /TL = and US$/TL = used for balance sheet indicators Average /TL = and US$/TL = used for P&L indicators 13

14 Combined Net Income (TL mn) Combined Net Income Consolidated Net Income y/y -34% +22% -17% +31% +52% 0% Normalized 1 +16% 9,774 9,789 Normalized 1-1% 3,813 2,498 2,702 2, ,786 3, Energy Auto Cons. Durables Finance Other Total Consolidated Net Income (TL mn) y/y -41% +28% -20% +31% +81% 0% Normalized 1-2% Normalized 1 +16% 3,832 3,827 1, , ,003 1, Energy Auto Cons. Durables Finance Other Total Note: Consolidated net income indicates Koç Holding share after the share of JV partners and non-controlling interests (1) Excluding (i) bargain purchase gain (negative goodwill) of Otokoç on acquisition of car rental business in Greece (cons. net income impact TL 109 mn) in 2018; (ii) fair value gain of Koç Holding s asset exchange transaction in 2017 (cons. net income impact TL 26 mn) 14

15 Unlisted Companies 1H18 TL mn Koç Holding Direct Share Revenues Operating Profit 1 EBITDA Book Value (SHE) Arçelik LG Klima 5.00% Bilkom 69.94% 790 1, Düzey 31.15% Entek 49.62% ,037 Koç Finansman 44.50% KoçSistem 41.11% Koçtaş 37.13% Marina / Ayvalık 7.72% Marina / Tek-Art Kalamış 75.92% Opet -- 12,866 19, ,916 2,416 Otokoç Otomotiv 96.32% 2,481 3, Ram Dış Ticaret 39.74% RMK Marine 40.53% Setur 24.11% Zer 39.00% 1,135 1, Notes: Financials for unlisted companies disclosed semi-annually (1) Excluding FX gains/losses and credit finance income/charges on trade receivables and payables 15

16 Shareholding Structures Koç Holding Koç Family: 64.3% 1 Free Float: 26.5% Vehbi Koç Foundation: 7.3% Koç Pension Fund: 2% Energy Automotive Consumer Durables Finance Other Tüpraş SPV: 51% Free float: 49% KH: 43.7% 2 SPV KH : 77% Aygaz: 20% Opet: 3% Aygaz KH: 41% Other Koç: 10.5% Liquid Pet. Co.: 24.5% Free float: 24% Opet Tüpraş: 40% Other Koç: 10% Öztürk Group: 50% KH: 18% 2 Ford Otosan KH: 38% Ford: 41% Other Koç: 3% Free float: 18% Tofaş KH: 38% FCA: 38% Free float: 24% TürkTraktör KH: 37.5% CNH : 37.5% Free float: 25% Otokar KH: 45% Ünver Hold.: 25% Other Koç: 3% Free float: 27% Arçelik KH: 41% Other Koç: 17% Burla Group: 18% Free float: 25% Koç Financial Services KH: 42% Other Koç: 8% UniCredit: 50% Yapı Kredi Bank KFS: 82% Free float: 18% KH: 35% 2 Tat Gıda KH: 44% Other Koç: 10% Sumitomo & Kagome: 5% Free float: 41% Koçtaş KH: 37% Kingfisher: 50% Other Koç: 13% Setur KH: 24% Other Koç: 76% Zer KH: 39% Other Koç: 60% Other: 1% Notes: Updated as of Sep 18 (1) Temel Ticaret (family-owned investment vehicle) 43.65%, Koç Family Members 20.64% (2) Effective stake indirectly through subsidiaries 16

17 For Further Questions, Please Contact : investorrelations@koc.com.tr IR Application Gülsevin Tuncay, Coordinator Investor Relations gulsevint@koc.com.tr Gizem Poyraz, Manager Investor Relations gizemb@koc.com.tr Neslihan Aycıl, Manager Investor Relations neslihana@koc.com.tr