Koç Holding FY09 Earnings Presentation...that could cause actual results to differ materially....
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9 November 2017 Koç Holding 9M17 Earnings Presentation
Transcript of Koç Holding FY09 Earnings Presentation...that could cause actual results to differ materially....
9 November 2017
Koç Holding 9M17 Earnings Presentation
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Energy
Tüpraş Opet
Aygaz (mn tons)
Capacity Utilisation White Product YieldRefining Margins ($/bbl)
Tüpraş (net) Med Complex
White Product Market Share
Ranking: #2
Sales Volume, Domestic Market (mn tons)
Energy Segment
(+) Favorable crack margins
(+) Full capacity utilization
(+) Higher US$/TL
(+) Low base effect
(-) Demand impact of LPG price increase
Share in Consolidated Net Income
Share in Combined
Operating Profit1
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
Ranking: #1
Sales Volume
40% 39%
TL mn, combined 9M17 y/y
Revenues 70,993 50%
Operating Profit1 4,993 133%
Profit Before Tax 4,351 199%
Cons. Net Income 1,486 218%
4.6
3.6
8.5
5.8
9M16 9M17 9M16 9M17
Diesel Jet Fuel Gasoline LPG
8M16 14.5 2.9 1.5 2.7
8M17 15.7 3.0 1.6 2.7
+8%
+2%+4%
-1%
261 258
609 591
29 27
697 764
9M16 9M17
Cylinder Autogas Bulk Other
+3%
1,595 1,640
98.7% 105.3%
4.9%7.3%
9M16 9M17
Crude Others
103.6%
112.6%76.2% 77.0%
9M16 9M17
17.7%17.9%
2016 8M17
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Domestic
73%
Int'l
27%(+18% y/y)
(+24% y/y)
Domestic
28%
Int'l
72%
(+21% y/y)
(+42% y/y)
Domestic
29%
Int'l
71%(+32% y/y)
(+28% y/y)
796
984
9M16 9M17
+24%
Koç Share 13% 15% 54% 54% 27% 28% 22% 24%
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AutomotiveSales Units, Domestic Market (‘000) Export Units, Turkey (‘000)
Notes: Automotive Manufacturing Association data used for sectoral indicators(1) Excluding FX gains/losses and credit finance income/charges on trade receivables and payables
Tofaş Revenues Ford Otosan Revenues TürkTraktör Revenues
Total Revenues: TL 12.4 bn, +31% y/y
Automotive Segment
(+) Strong sales volume
(+) High capacity utilization
(+) Pricing focus
(+) Higher €/TL
(-) Increase in raw material prices
Total Revenues: TL 17.1 bn, +36% y/y Total Revenues: TL 3.1 bn, +22% y/y
Share in Consolidated Net Income
22% 24%
TL mn, combined 9M17 y/y
Revenues 38,318 32%
Operating Profit1 2,716 41%
Profit Before Tax 2,206 38%
Cons. Net Income 905 31%
PassengerCars
LightCommercial
HeavyCommercial
TOTAL
9M16 489 147 16 653
9M17 477 151 15 643
-3%
+2%
-6%
-2%
Share in Combined
Operating Profit1
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Domestic41%
(+28% y/y)
Int'l59%
(+33% y/y)
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Consumer Durables
Arçelik Revenues Arçelik Regional Breakdown of Revenues
Organic Growth: -0.5% FX Impact: +22.5%Acquisition Impact: +10.6%
Sales Units, Market (mn)
Consumer Durables Segment
(+) Strong sales volumes, especially in Turkey
(+) Consolidation of high margin Pakistan investment
(-) Increase in raw material prices
Total Revenues: TL 15.1 bn, +31% y/y
Export Units, Turkey (mn)
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
Share in Consolidated Net Income
TurkeyWesternEurope
EasternEurope
S. Africa
9M16 5.6 38.3 11.5 1.4
9M17 6.9 39.0 12.2 1.4
+23%
+2%
+6%
+3%
42%
31%
13%
6%3%
0%
5%
41%
28%
12%
6%3%
5% 4%
Turkey WesternEurope
CIS &EasternEurope
Africa Middle East Pakistan Other
9M16
9M17
14.014.9
9M16 9M17
+6%
TL mn, combined 9M17 y/y
Revenues 17,034 32%
Operating Profit1 1,176 10%
Profit Before Tax 698 2%
Cons. Net Income 306 14%
9% 8%
Share in Combined
Operating Profit1
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15.4%
9.9%
Among privatebanks
Among totalsector
10.6% 11.3%
2016 9M17
14.2% 14.9%110% 112%
9M16 9M17
43%
41%
9M16 9M17
1.40%
1.11%
9M16 9M17
12.7%
14.0%
9M16 9M17
+124 bps
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Finance
Net Income2 (TL mn) ROATE2
Notes:Market shares based on BRSA bank-only weekly data. 9M17 as of 29 Sep’17CAR= 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 financialsROATE 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
Cost/Income2,3 CoR
Capital Ratios LDR
CAR
CET1
Revenues +10%Costs +5%
(vs 11% CPI)
1
YKB Profitability YKB Operational Performance
Loans Deposits
YKB Market Shares YKB Fundamentals
Finance Segment
(+) Improving cost / income
(+) Better asset quality dynamics
(+) Balanced and selective volumegrowth
Share in ConsolidatedNet Income2,153
2,735
9M16 9M17
+27%
16.0%
9.6%
Among privatebanks
Among totalsector
2016 9M17
27% 26%
Share in Combined
Operating Profit1
TL mn, combined 9M17 y/y
Operating Profit1 3,408 13%
Profit Before Tax 3,480 13%
Cons. Net Income 1,003 20%
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Group’s Overall Financial Performance
(1) Before revenue eliminations(2) Excluding FX gains/losses and credit finance income/charges on trade receivables and payables (Combined operating profit reported in 9M17 financial report is TL 12,521 mn)(3) Koç Holding’s consolidated net income after the share of JV partners and non-controlling interests
TL mn Energy AutomotiveConsumer
DurablesFinance Other
Combined Revenues1 70,993 38,318 17,034 21,545 7,900
y/y 50% 32% 32% 19% 13% 36%
Combined Operating Profit2 4,993 2,716 1,176 3,408 106
y/y 133% 41% 10% 5% 165% 47%
Combined Profit Before Tax 4,351 2,206 698 3,480 263
y/y 199% 38% 2% 5% 22% 51%
Combined Net Income 3,813 2,211 746 2,786 219
y/y 195% 30% 12% 5% 24% 50%
Consolidated Net Income3 1,486 905 306 1,003 130
y/y 218% 31% 14% 11% 57% 59%
155,790
Total
12,400
9,774
3,832
10,997
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Consolidated Net Income
+218% +31% +14% +20% +104% +59%y/y
Consolidated Net Income1 (TL mn)
2,414
1,019 216 38 166 53
-763,832
9M16 Energy Auto Cons. Durables Finance Other One-Offs 9M17
Energy
20%
Auto
30%Cons. Durables
12%
Finance
36%
Other
2%
Energy
39%
Auto
24%
Cons. Durables
8%
Finance
26%
Other
3%
-
Note: Consolidated net income indicates Koç Holding share after the share of JV partners and non-controlling interests(1) Excluding one-offs - 9M17: TL 26 mn related to Koç Holding’s asset exchange transaction; 9M16: TL 32 mn related to Koç Holding’s asset exchange transaction and TL 70 mnrelated to YKB’s gain on sale of Visa
Normalized+65%
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Risk Metrics
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)
Strong Cash Position
(Solo)
Notes: All data as of 9M17(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
LimitedFX Position
US$ +55 mn solo long FX position
US$ -78 mn consolidated short FX position after natural hedge1
US$ +17 mn consolidated long FX position after natural hedge weighted by effective ownership1
SustainableLeverage 1.2x net financial debt / EBITDA on a combined basis
Solid Liquidity 1.4x current ratio on a combined basis
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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
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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.
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ANNEX
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Consolidated Main Financial Indicators
Note:End of period €/TL = 4.1924 and US$/TL = 3.5521 used for balance sheet indicatorsAverage €/TL = 3.9945 and US$/TL = 3.5966 used for P&L indicators
TL mn 9M16 9M17 € 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) -161 -428 166% -107 -119
Net Income Before Non-controlling Interest 3,582 6,373 78% 1,596 1,772
Non-controlling Interest 1,168 2,542 118% 636 707
Net Income After Non-controlling Interest 2,414 3,832 59% 959 1,065
YE16 9M17 € mn $ mn
Total Assets 88,071 100,014 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
Y/Y
YTD
9M17
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Combined Net Income – Consolidated Net Income
467 690
268
906
83
2,414
1,486
905
306
1,003
130
3,832
Energy Auto Cons. Durables Finance Other Total
+218% +31% +14% +11% +57% +59%y/y
+195% +30% +12% +5% +24% +50%y/y
Consolidated Net Income (TL mn)
Combined Net Income (TL mn)
1,294 1,705665
2,657
176
6,497
3,813
2,211
746
2,786
219
9,774
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
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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
AygazKH share: 40.68%Other Koç: 10.53%
Liquid Pet. Co.: 24.52%Free float: 24.27%
OpetTüpraş: 40.00%
Other Koç: 10.00%Öztürk Group: 50.00%
KH share: 18.00%1
Automotive
Ford OtosanKH share: 38.46%
Ford: 41.04%Other Koç: 2.61%Free float: 17.89%
TofaşKH share: 37.59%
Fiat: 37.86%Other Koç: 0.27%Free float: 24.29%
TürkTraktörKH share: 37.50%
CNH Osterreich GMBH : 37.50%Free float: 24.95%
Other: 0.05%
OtokarKH share: 44.68%
Ünver Hold.: 24.81%Other Koç: 3.29%Free float: 27.22%
(1) Effective stake indirectly through subsidiaries
Consumer Durables
ArçelikKH share: 40.51%Other Koç: 16.73%
Burla Group: 17.61%Free float: 25.15%
Finance
Koç Financial ServicesKH share: 42.23%Other Koç: 7.77%
Unicredit S.p.A.: 50.0%
Other
Tat GıdaKH share: 43.65%Other Koç: 9.69%
Partner: 5.26%Free float: 41.41%
TüpraşSPV share: 51.00%Free float: 49.00%
KH share: 43.70%1
SPVKH share : 77.00%
Aygaz: 20.00%Opet: 3.00%
Yapı Kredi BankKFS: 81.80%
Free float: 18.20%
KH share: 35.39%1
SeturKH share: 24.11%Other Koç: 75.89%
KoçtaşKH share: 37.13%Kingfisher: 50.0%
Other Koç: 12.87%
ZerKH share: 39.00%Other Koç: 60.11%
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For Further Questions, Please Contact :
Gülsevin Tuncay, Coordinator
Investor Relations
+90 216 531 0428
Gizem Bodur, Manager
Investor Relations
+90 216 531 0533
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Neslihan Aycıl, Manager
Investor Relations
+90 216 531 0516
