Koç Holding 1Q16 Earnings Presentation

Transcription

1 Koç Holding Earnings Presentation 6 May 2016

2 Operating Environment 2

3 Improvement in risk appetite in global markets reflected positively on TL financial assets 14 Nominal Interest Rates (Ann. compound, %) 5.0 Real Interest Rates (%, ex-ante) Policy Rate (Weekly Repo) Benchmark Bond Exchange Rates (TL) ,000 91,000 85,000 Stock Exchange Market (BIST-100 Index) , ,000 67,000 61,000 55,000 Euro (LHS) USD (RHS) 3

4 Consumer Confidence Real Sector Confidence % Billion TL Economic activity remained buoyant in the first quarter of GDP Industrial Production GDP Growth (yoy, %) GDP (Seasonally Adjusted) Growth (yoy, %, LHS) Seasonally Adjusted Index (RHS) Confidence Indices Capacity Utilization Rate* (%) Consumer Confidence * Seasonally Adjuetd Real Sector Confidence* 4

5 Sharp fall in food prices from February onwards brought inflation down to a 3-year low in April 14 Annual Inflation(%) CPI % October November December PPI January 2016 February March April CPI (Annual) CPI (Monthly) Core Inflation (Annual) PPI (Annual)

6 While recovery in Europe supports export growth, low levels of oil and commodity prices lead to a decline in imports March 2016 $ Billion Annual Chg. Last 12 Months $ Billion Annual Chg. Exports % % Imports % % Trade Balance % % Annualized Current Account Balance (US$ billion) 6

7 Koç Group 7

8 Koç Holding Credit Ratings Ratings Outlook Moody s Baa3 Positive S&P BBB- Positive * * In March 2016, S&P has revised Koç Holding s outlook from stable to positive. 8

9 Energy Koç Group Companies Tüpraş Capacity Utilizations & White Product Yield Tüpraş&Med Complex Margins US$/Barrel Capacity Utilizations % White Product Yield % Tüpraş Clean Gross / Net Ref. Margin Inventory Effect Tüpraş Gross / Net Ref. Margin / / 4.69 Med Complex Margin / * 8.23 / * Hedge Operations are not considered. Crude Others Aygaz Market Shares January-February Opet Station Numbers 41.6% 41.9% 1,325 1,356 1,393 1,444 1, % 23.9% 28.4% 28.0% ,009 1,009 Cylinder Gas Autogas Total LPG Sunpet Opet 9

10 Sales Units, Domestic Market * Koç Market 14% 14% 55% 52% 23% 27% 25% 23% Share -6% % Passenger Cars -12% Light Commercial Vehicles Automotive Ford Otosan & Tofaş vs Sector Heavy Commercial Vehicles TOTAL 126,991 46,257 10, , ,921 40,565 4, ,176 * Source: Automotive Manufacturing Association -57% Koç Group Share January-March 2016 Sales Development, Domestic Market * Units, Monthly % -7% Jan Feb Mar % Ford Otosan Tofaş Market Share Rank Market Share Rank Total Automotive* 12.3% % 4 PC 6.6% 5 7.3% 4 LCV 28.5% % 1 MCV 30.6% 1 6.9% 4 Heavy Truck 25.6% * Including Heavy Commercial Vehicles 10

11 Consumer Durables Arçelik vs Sector Sales Units, Domestic Market * Sales Development, Domestic Market * Units, Monthly % % % +8% +29% -1% % +17% 0 Refrigerator Washer & Dishwasher Oven TOTAL & Freezer Dryer 449, , , ,837 1,391, , , , ,096 1,561,557 * Source: White Goods Manufacturing Association Jan Feb Mar Arçelik Revenues TLmn Arçelik Regional Breakdown of Revenue % +23% % 2, ,178 1,456 1, Domestic International Turkey Western Europe CIS & Eastern Europe Africa Middle East Other 11

12 Finance Yapı Kredi Bank Maintained Scale Strong Operational Performance Loan Market Share Deposit Market Share Core Revenue Growth YoY, Cost Growth YoY, 15.5% 16.0% 16.1% 14.9% 15.3% 15.7% 26% 19% 7% 9% 10.2% 10.3% 10.3% 10.0% 10.2% 10.4% YKB Sector YKB Sector Among private banks Among total sector Higher Profitability Comfortable Fundamentals Net Income ROATE CET1 LDR % % +244 bps 12.0% 12.8% 10.8% 10.7% +40 bps 11.1% 110% 114% -4pp 110% 4Q15 4Q15 4Q15 4Q15 Notes: Market shares based on BRSA weekly data as of 1 April 2016 Core revenues indicate Net Interest Income and Fees&Commissions Sector figures based on BRSA monthly data as of March 2016 CET1= Common Equity Tier-1 LDR= Loans / (Deposits + TL bonds) ROATE indicates return on average tangible equity (excl. goodwill of TL 979 mn) 12

13 Financial Results 13

14 Group s Overall Financial Performance TL million Energy Automotive Consumer Durables Finance Other Total Change Over Total Combined Revenues * 12,592 9,120 3,975 5,941 2,180 33,808 11% Combined Gross Profit 894 1,144 1,222 2, ,029 21% Combined Operating Profit ** ,994 25% Combined Profit Before Tax ,598 59% Combined Net Income ,436 13% Consolidated Net Income *** % * Before intra-group revenue eliminations ** Excluding FX gains/losses and credit finance income/charges on trade receivables and payables (Combined operating profit reported in financial report is TL 1,998 mn) *** Koç Holding s consolidated net income after the share of JV partners and non-controlling interests 14

15 Combined Revenues Combined Revenues TLmn Segmental Combined Revenues Breakdown % +11% 30,428 33,808 Automotive 27% Energy 37% Other 6% Finance 18% Consumer Durables 12% Segment Contribution to Combined Revenues TLmn -4% 13,064 12, % 7,599 9,120 3, % 3,975 4, % 5,941 1, % 2,180 Energy Automotive Consumer Durables Finance Other 15

16 Combined Operating Profit * Combined Operating Profit TLmn Segmental Combined Operating Profit Breakdown % 1, % 1,994 Energy 18% Automotive 31% Other -2% Consumer Durables 17% Finance 37% Segment Contribution to Combined Operating Profit TLmn +23% +25% 737-9% % Energy Automotive Consumer Durables Finance Other * Excluding FX gains/losses and credit finance income/charges on trade receivables and payables 16

17 Combined Net Income Combined Net Income TLmn Segmental Combined Net Income Breakdown % 1, % 1,436 Automotive 38% Energy 9% Other 2% Consumer Durables 11% Segment Contribution to Combined Net Income TLmn Finance 41% % % % % Energy Automotive Consumer Durables Finance Other 17

18 Consolidated Net Income Consolidated Net Income TLmn Segmental Consolidated Net Income Breakdown % % 515 Automotive 41% Energy 10% Other -1% Consumer Durables 12% Segment Contribution to Consolidated Net Income TLmn Finance 38% -28% % % % Energy Automotive Consumer Durables Finance Other

19 Combined Exports & International Sales Combined Exports US$mn Combined International Sales US$mn 3,254-4% 3,111 3,668-3% 3,

20 Combined Investments Combined Investments TLmn Segmental Investments Breakdown % 1,648-17% 1,376 Automotive 51% Energy 27% Other 1% Finance 10% Consumer Durables 11% 20

21 Koç Holding Net Cash Position Koç Holding Stand-Alone Net Cash Position Total Debt: ~US$ 1.5 bn Total Cash: ~US$ 2.3 bn Net Cash: ~US$ 778mn Consolidated Net Debt / Cash Excl. Finance 2015 ~US$ -3.8bn ~US$ -3.7bn 21

22 SPV Debt Initial Loan Amount US$ 1.8 billion Remaining Debt TL 322 million Maturity of the Debt April

23 FX Position Koç Holding Stand-Alone FX Position 2015 US$ + 40mn US$ +42mn Koç Holding Consolidated FX Position FX Position Weighted by Effective Ownership US$ -2.6bn US$ -2.4bn* US$ -1.1bn US$ -1.0bn * The natural hedging mechanisms due to FX linked pricing of Tüpraş inventory account for ~US$0.7bn. In addition, Tüpraş applies cash flow hedge accounting for RUP financing loans under the related framework of IFRS. Excluding the RUP financing loans designated as hedging instruments (~US$1.6bn as of 31 March 2016) and above-mentioned natural hedge of Tüpraş, the Group s foreign exchange net short position amounts to ~US$11mn as of 31 March

24 Consolidated Main Financial Indicators Mn* US$ Mn* TL Mn TL Mn Change Change 31.Mar Mar Mar Mar.2015 %, TL %, US$ Revenues 4,332 4,773 14,052 13,759 p 2 q -15 Gross Profit ,309 1,916 p 21 p 1 Operating Profit , p 66 p 38 Profit Before Tax p 93 p 61 Taxes (net) q -108 q -107 Net Income Before Non-controlling Interest p 2 q -15 Non-controlling Interest q -16 q -30 Net Income After Non-controlling Interest p 12 q -6 Total Assets 23,718 26,854 76,089 ** 72,985 p 4 p 7 Total Equity 10,672 12,083 34,237 ** 33,676 p 2 p 4 Shareholders' Equity 7,377 8,352 23,665 23,135 p 2 p 5 ** * EUR and USD amounts shown in the consolidated balance sheet prepared in accordance with the TAS/TFRS have been translated from TL, as a matter of arithmetic computation only, at the official EUR and USD bid rates announced by the CBRT on 31 March 2016 of TL = EUR1 and TL = USD1, respectively and EUR and USD amounts shown in the consolidated statements of income, comprehensive income and cash flow have been translated from TL, as a matter of arithmetic computation only, at the average EUR and USD bid rates calculated from the official daily bid rates announced by the CBRT for the three month period ended 31 March 2016 of TL = EUR1 and TL = USD1, respectively, and do not form part of these interim condensed consolidated financial statements. ** As of 31 December

25 Q&A 25

26 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. 26

27 Shareholder Structures as of March 2016 Koç Holding Koç Family: 68.51% Free Float: 22.24% Vehbi Koç Foundation: 7.26% Koç Pension Fund: 1.99% Energy Automotive Consumer Durables Finance Other Tüpraş SPV share: 51.00% Free float: 49.00% KH share: 43.70% (*) SPV KH share : 77.00% Aygaz: 20.00% Opet: 3.00% Aygaz KH share: 40.68% Other Koç: 10.53% Liquid Pet. Co.: 24.52% Free float: 24.27% Opet Tüpraş: 40.00% Other Koç: 10.00% Öztürk Group: 50.00% Ford Otosan KH share: 38.46% Ford: 41.04% Other Koç: 2.61% Free float: 17.89% Tofaş KH share: 37.59% Fiat: 37.86% Other Koç: 0.27% Free float: 24.29% TürkTraktör KH share: 37.50% CNH Osterreich GMBH : 37.50% Free float: 24.95% Other: 0.05% Otokar KH share: 44.68% Ünver Hold.: 24.81% Other Koç: 3.29% Free float: 27.22% Arçelik KH share: 40.51% Other Koç: 16.73% Burla Group: 17.61% Free float: 25.15% Koç Financial Services KH share: 37.55% Other Koç: 12.45% Unicredit Bank Austria: 50.0% Yapı Kredi Bank KFS: 81.80% Free float: 18.20% KH share: 32.89% (*) Tat Gıda KH share: 43.65% Other Koç: 9.69% Partner: 5.26% Free float: 41.41% (*) Effective stake indirectly through subsidiaries 27

28 For Further Questions, Please Contact : investorrelations@koc.com.tr IR Application Funda Güngör Akpınar, Coordinator Investor Relations fundag@koc.com.tr Gizem Bodur, Manager Investor Relations gizemb@koc.com.tr Neslihan Aycıl, Manager Investor Relations neslihana@koc.com.tr