Koç Holding 9M17 Earnings Presentation

Transcription

1 Koç Holding Earnings Presentation 9 November 2017

2 Energy Sales Volume, Domestic Market (mn tons) +8% Aygaz (mn tons) 1,595 Sales Volume Ranking: #1 +3% 1, Energy Segment Combined Operating Profit 1 Consolidated Net Income +2% +4% -1% % 39% Tüpraş Diesel Jet Fuel Gasoline LPG 8M M Refining Margins ($/bbl) Capacity Utilisation White Product Yield Tüpraş (net) Med Complex 112.6% 76.2% 77.0% % 7.3% 4.9% % 105.3% Cylinder Autogas Bulk Other Opet White Product Market Share Ranking: #2 17.9% 17.7% TL mn, combined y/y Revenues 70,993 50% Operating Profit 1 4, % Profit Before Tax 4, % Cons. Net Income 1, % (+) Favorable crack margins (+) Full capacity utilization (+) Higher US$/TL (+) Low base effect Crude Others Notes: Energy Market Regulatory Authority data used for sectoral indicators (1) Excluding FX gains/losses and credit finance income/charges on trade receivables and payables M17 (-) Demand impact of LPG price increase 2

3 Automotive Sales Units, Domestic Market ( 000) Export Units, Turkey ( 000) Koç Share 13% 15% 54% 54% 27% 28% 22% 24% -3% Passenger Cars +2% Light Commercial Tofaş Revenues Ford Otosan Revenues TürkTraktör Revenues Total Revenues: TL 12.4 bn, +31% y/y -6% Heavy Commercial -2% TOTAL Total Revenues: TL 17.1 bn, +36% y/y % 984 Total Revenues: TL 3.1 bn, +22% y/y Automotive Segment Combined Operating Profit 1 Consolidated Net Income 22% 24% TL mn, combined y/y Revenues 38,318 32% Operating Profit 1 2,716 41% Profit Before Tax 2,206 38% Cons. Net Income % Domestic 29% (+28% y/y) Int'l 71% (+32% y/y) Domestic 28% (+21% y/y) Int'l 72% (+42% y/y) Int'l 27% (+18% y/y) Domestic 73% (+24% y/y) (+) Strong sales volume (+) High capacity utilization (+) Pricing focus (+) Higher /TL (-) Increase in raw material prices Notes: Automotive Manufacturing Association data used for sectoral indicators (1) Excluding FX gains/losses and credit finance income/charges on trade receivables and payables 3

4 Consumer Durables Sales Units, Market (mn) Export Units, Turkey (mn) +2% Consumer Durables Segment +23% +6% +3% % 14.9 Combined Operating Profit 1 Consolidated Net Income Turkey Western Europe Eastern Europe S. Africa % 8% TL mn, combined y/y Arçelik Revenues Total Revenues: TL 15.1 bn, +31% y/y Int'l 59% (+33% y/y) Organic Growth: -0.5% FX Impact: +22.5% Acquisition Impact: +10.6% Domestic 41% (+28% y/y) Arçelik Regional Breakdown of Revenues 42% 41% Turkey 31% 28% Western Europe 13% 12% CIS & Eastern Europe 6% 6% 3% 3% 0% 5% 5% 4% Africa Middle East Pakistan Other Revenues 17,034 32% Operating Profit 1 1,176 10% Profit Before Tax 698 2% Cons. Net Income % (+) Strong sales volumes, especially in Turkey (+) Consolidation of high margin Pakistan investment (-) Increase in raw material prices 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 4

5 Finance YKB Profitability Net Income 2 (TL mn) ROATE 2 YKB Operational Performance Cost/Income 2,3 CoR Finance Segment 2, % 2, bps 12.7% 14.0% 43% Revenues +10% Costs +5% (vs 11% CPI) 41% 1.40% 1.11% Combined Operating Profit 1 Consolidated Net Income 27% 26% YKB Market Shares YKB Fundamentals TL mn, combined y/y 2 Loans 16.0% 9.6% 15.4% Deposits 9.9% CAR Capital Ratios 14.2% 14.9% LDR 110% 112% Operating Profit 1 3,408 13% Profit Before Tax 3,480 13% Cons. Net Income 1,003 20% CET1 10.6% 11.3% (+) Improving cost / income Among private banks Among total sector Among private banks Among total sector Notes: Market shares based on BRSA bank-only weekly data. as of 29 Sep 17 CAR= Capital Adequacy Ratio; CET1= Common Equity Tier-1; LDR= Loans / (Deposits + TL Bonds); CoR= Total Specific + Generic Cost of Risk net of collections. CAR and CET1 based on BRSA bank-only financials ROATE indicates Return on Average Tangible Equity (excl. goodwill of TL 979 mn) (1) Excluding FX gains/losses and credit finance income/charges on trade receivables and payables (2) 2016 figures exclude gain on sale of Visa (3) 2016 other income and provision figures are restated due to the revision on accounting treatment of collections (+) Better asset quality dynamics (+) Balanced and selective volume growth 5

6 Group s Overall Financial Performance TL mn Energy Automotive Consumer Durables Finance Combined Revenues 1 70,993 38,318 17,034 21,545 7,900 y/y 50% 32% 32% 19% 13% 36% Combined Operating Profit 2 4,993 2,716 1,176 3, y/y 133% 41% 10% 5% 165% 47% Combined Profit Before Tax 4,351 2, , y/y 199% 38% 2% 5% 22% 51% Combined Net Income 3,813 2, , y/y 195% 30% 12% 5% 24% 50% Consolidated Net Income 3 1, , y/y 218% 31% 14% 11% 57% 59% Other Total 155,790 12,400 10,997 9,774 3,832 (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 12,521 mn) (3) Koç Holding s consolidated net income after the share of JV partners and non-controlling interests 6

7 Consolidated Net Income Consolidated Net Income 1 (TL mn) Normalized +65% y/y +218% +31% +14% +20% +104% - +59% 1, ,832 2,414 Energy Auto Cons. Durables Finance Other One-Offs Finance 36% Other 2% Energy 20% Finance 26% Other 3% Energy 39% Cons. Durables 12% Auto 30% Cons. Durables 8% Auto 24% Note: Consolidated net income indicates Koç Holding share after the share of JV partners and non-controlling interests (1) Excluding one-offs - : TL 26 mn related to Koç Holding s asset exchange transaction; : TL 32 mn related to Koç Holding s asset exchange transaction and TL 70 mn related to YKB s gain on sale of Visa 7

8 Risk Metrics Strong Cash Position (Solo) US$ 2.1 bn gross cash 75% in US$, 25% in TL US$ 1.5 bn total debt 2 Eurobonds (Mar 16: US$ 750 mn, 7yrs, 5.25% coupon; Apr 13: US$ 750, 7 yrs, 3.5% coupon) US$ +573 mn net cash (5-year average US$ +705 mn) Solid Liquidity 1.4x current ratio on a combined basis Sustainable Leverage 1.2x net financial debt / EBITDA on a combined basis Limited FX Position US$ +55 mn solo long FX position US$ -78 mn consolidated short FX position after natural hedge 1 US$ +17 mn consolidated long FX position after natural hedge weighted by effective ownership 1 Notes: All data as of (1) Net FX position at US$ -1.3 bn after deduction of US$ 1.5 bn of loans designating as hedging instruments; Natural hedge mechanism due to FX linked pricing of Tüpraş inventory accounts for US$ 1.2 bn 8

9 Wrap-Up Stellar year with strong performance in all segments Completion of major capex plans by underlying companies leading to improvement in free cash flow generation at group level Investments ongoing to ensure sustainability of growth and profitability Further strengthening of position indicating strong potential to benefit from growth while remaining resilient against volatility 9

10 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. 10

11 ANNEX 11

12 Consolidated Main Financial Indicators TL mn Y/Y mn $ mn Revenues 49,758 71,348 43% 17,862 19,838 Gross Profit 8,256 12,120 47% 3,034 3,370 Operating Profit 4,691 8,159 74% 2,042 2,268 Profit Before Tax 3,743 6,801 82% 1,703 1,891 Taxes (net) % Net Income Before Non-controlling Interest 3,582 6,373 78% 1,596 1,772 Non-controlling Interest 1,168 2, % Net Income After Non-controlling Interest 2,414 3,832 59% 959 1,065 YE16 YTD mn $ mn Total Assets 88, ,014 14% 23,856 28,156 Total Equity 36,866 41,211 12% 9,830 11,602 Shareholders' Equity 25,826 28,797 12% 6,869 8,107 Note: End of period /TL = and US$/TL = used for balance sheet indicators Average /TL = and US$/TL = used for P&L indicators 12

13 Combined Net Income (TL mn) Combined Net Income Consolidated Net Income y/y +195% +30% +12% +5% +24% +50% 9,774 6,497 1,294 3,813 1,705 2, ,657 2, Energy Auto Cons. Durables Finance Other Total Consolidated Net Income (TL mn) y/y +218% +31% +14% +11% +57% +59% 3,832 2, , , 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 13

14 Shareholding Structures (30 September 2017) Koç Holding Koç Family: 64.29% Free Float: 26.46% 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% 1 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% KH share: 18.00% 1 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: 42.23% Other Koç: 7.77% Unicredit S.p.A.: 50.0% Yapı Kredi Bank KFS: 81.80% Free float: 18.20% KH share: 35.39% 1 Tat Gıda KH share: 43.65% Other Koç: 9.69% Partner: 5.26% Free float: 41.41% Koçtaş KH share: 37.13% Kingfisher: 50.0% Other Koç: 12.87% Setur KH share: 24.11% Other Koç: 75.89% Zer KH share: 39.00% Other Koç: 60.11% (1) Effective stake indirectly through subsidiaries 14

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