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Koç Holding

9M17 Earnings Presentation

9 November 2017
Energy
Sales Volume, Domestic Market (mn tons) Aygaz (mn tons)
+8% Sales Volume
Ranking: #1 Energy Segment
+3%
1,595 1,640 Share in Share in
Combined Consolidated
697 764 Operating Profit1 Net Income

+2% -1% 29 27
+4%
609 591 40% 39%

Diesel Jet Fuel Gasoline LPG 261 258


8M16 14.5 2.9 1.5 2.7 9M16 9M17
8M17 15.7 3.0 1.6 2.7
Cylinder Autogas Bulk Other TL mn, combined 9M17 y/y

Tüpraş Opet Revenues 70,993 50%


1
Refining Margins ($/bbl) Capacity Utilisation White Product Yield Operating Profit 4,993 133%
White Product Market Share
Ranking: #2 Profit Before Tax 4,351 199%
Tüpraş (net) Med Complex
Cons. Net Income 1,486 218%
112.6% 77.0% 17.9%
76.2% 17.7%
8.5 103.6% (+) Favorable crack margins
7.3%
4.9% (+) Full capacity utilization
5.8
4.6 (+) Higher US$/TL
3.6 105.3%
98.7% (+) Low base effect
(-) Demand impact of LPG price
increase
9M16 9M17 9M16 9M17 9M16 9M17 9M16 9M17 2016 8M17
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 www.koc.com.tr 2
Automotive
Sales Units, Domestic Market (‘000) Export Units, Turkey (‘000)
Koç
Share 13% 15% 54% 54% 27% 28% 22% 24%
Automotive Segment
-2% +24%
984
-3% Share in Share in
796 Combined Consolidated
Operating Profit1 Net Income
+2%
-6%
22% 24%
Passenger Light Heavy
TOTAL
Cars Commercial Commercial
9M16 489 147 16 653 9M16 9M17
9M17 477 151 15 643 TL mn, combined 9M17 y/y

Revenues 38,318 32%


Operating Profit1 2,716 41%
Tofaş Revenues Ford Otosan Revenues TürkTraktör Revenues
Profit Before Tax 2,206 38%
Total Revenues: TL 12.4 bn, +31% y/y Total Revenues: TL 17.1 bn, +36% y/y Total Revenues: TL 3.1 bn, +22% y/y Cons. Net Income 905 31%

(+) Strong sales volume


Domestic Domestic Int'l
29% 28% 27% (+) High capacity utilization
(+28% y/y) (+21% y/y) (+18% y/y)
Int'l (+) Pricing focus
Int'l Domestic
71% 72% 73%
(+32% y/y) (+) Higher €/TL
(+42% y/y) (+24% y/y)
(-) 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 www.koc.com.tr 3
Consumer Durables
Sales Units, Market (mn) Export Units, Turkey (mn)

+2% Consumer Durables Segment


+6%
14.9 Share in Share in
14.0 Combined Consolidated
+6% Operating Profit1 Net Income
+23%
+3%

9% 8%
Western Eastern
Turkey S. Africa
Europe Europe
9M16 5.6 38.3 11.5 1.4 9M16 9M17
9M17 6.9 39.0 12.2 1.4
TL mn, combined 9M17 y/y

Arçelik Regional Breakdown of Revenues Revenues 17,034 32%


Arçelik Revenues
1
Operating Profit 1,176 10%
Total Revenues: TL 15.1 bn, +31% y/y 9M16
42% 41% 9M17
Profit Before Tax 698 2%
Cons. Net Income 306 14%
31%
28%
Int'l Domestic (+) Strong sales volumes, especially in
59% 41%
Turkey
(+33% y/y) (+28% y/y) 13% 12%
(+) Consolidation of high margin
6% 6% 5% 5% 4%
3% 3% Pakistan investment
0%
(-) Increase in raw material prices
Organic Growth: -0.5% Turkey Western CIS & Africa Middle East Pakistan Other
FX Impact: +22.5% Europe Eastern
Acquisition Impact: +10.6% Europe

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 www.koc.com.tr 4
Finance
YKB Profitability YKB Operational Performance
Net Income2 (TL mn) ROATE2 Cost/Income2,3 CoR Finance Segment
Revenues +10%
Costs +5%
(vs 11% CPI) Share in Share in
+27% 2,735 +124 bps 14.0% 43%
Combined Consolidated
2,153 41%
12.7%
1.40% Operating Profit1 Net Income
1 1.11%

27% 26%

9M16 9M17 9M16 9M17 9M16 9M17 9M16 9M17

YKB Market Shares YKB Fundamentals TL mn, combined 9M17 y/y 2


Loans Deposits Capital Ratios LDR
Operating Profit1 3,408 13%
110% 112% Profit Before Tax 3,480 13%
16.0% 15.4% 14.9%
CAR 14.2%
Cons. Net Income 1,003 20%
9.6% 9.9%

CET1 10.6% 11.3%


(+) Improving cost / income
Among private Among total Among private Among total 2016 9M17 9M16 9M17 (+) Better asset quality dynamics
banks sector banks sector
2016 9M17 (+) Balanced and selective volume
Notes: growth
Market shares based on BRSA bank-only weekly data. 9M17 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 www.koc.com.tr 5
Group’s Overall Financial Performance

Consumer
TL mn Energy Automotive Finance Other Total
Durables
Combined Revenues1 70,993 38,318 17,034 21,545 7,900 155,790
y/y 50% 32% 32% 19% 13% 36%
2
Combined Operating Profit 4,993 2,716 1,176 3,408 106 12,400
y/y 133% 41% 10% 5% 165% 47%

Combined Profit Before Tax 4,351 2,206 698 3,480 263 10,997
y/y 199% 38% 2% 5% 22% 51%

Combined Net Income 3,813 2,211 746 2,786 219 9,774


y/y 195% 30% 12% 5% 24% 50%

Consolidated Net Income3 1,486 905 306 1,003 130 3,832


y/y 218% 31% 14% 11% 57% 59%

(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

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Consolidated Net Income
Consolidated Net Income1 (TL mn) Normalized
+65%

y/y +218% +31% +14% +20% +104% - +59%

166 53
216 38 3,832
1,019 -76

2,414

9M16 Energy Auto Cons. Durables Finance Other One-Offs 9M17

Other Other
2% 3%
Energy
20% Finance
Finance
26% Energy
36%
39%

Cons. Durables
Auto 8%
30%
Cons. Durables Auto
12% 24%

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 mn www.koc.com.tr 7
related to YKB’s gain on sale of Visa
Risk Metrics

Strong 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)
Cash Position
(Solo) 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

US$ +55 mn solo long FX position


Limited
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

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

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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
9M17
TL mn 9M16 9M17 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) -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 YTD € 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

Note:
End of period €/TL = 4.1924 and US$/TL = 3.5521 used for balance sheet indicators
Average €/TL = 3.9945 and US$/TL = 3.5966 used for P&L indicators

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Combined Net Income – Consolidated Net Income
Combined Net Income (TL mn)

y/y +195% +30% +12% +5% +24% +50%

9,774

6,497

3,813
2,657 2,786
2,211
1,294 1,705
665 746
176 219

Energy Auto Cons. Durables Finance Other Total

Consolidated Net Income (TL mn)

y/y +218% +31% +14% +11% +57% +59%

3,832

2,414

1,486
905 906 1,003
690
467 306
268 130
83

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%

Consumer
Energy Automotive Finance Other
Durables

Tüpraş Ford Otosan Arçelik Tat Gıda


SPV share: 51.00% KH share: 38.46% Koç Financial Services
KH share: 40.51% KH share: 43.65%
Free float: 49.00% Ford: 41.04% KH share: 42.23%
Other Koç: 16.73% Other Koç: 9.69%
Other Koç: 2.61% Other Koç: 7.77%
Burla Group: 17.61% Partner: 5.26%
KH share: 43.70%1 Free float: 17.89% Unicredit S.p.A.: 50.0%
Free float: 25.15% Free float: 41.41%
SPV
KH share : 77.00%
Tofaş
Aygaz: 20.00%
KH share: 37.59% Yapı Kredi Bank Koçtaş
Fiat: 37.86% KFS: 81.80% KH share: 37.13%
Opet: 3.00%
Other Koç: 0.27% Free float: 18.20% Kingfisher: 50.0%
Free float: 24.29% Other Koç: 12.87%
Aygaz KH share: 35.39%1
KH share: 40.68% TürkTraktör
Other Koç: 10.53%
Setur
KH share: 37.50% KH share: 24.11%
Liquid Pet. Co.: 24.52% CNH Osterreich GMBH : 37.50%
Free float: 24.27% Other Koç: 75.89%
Free float: 24.95%
Other: 0.05%
Opet Zer
Tüpraş: 40.00% KH share: 39.00%
Otokar
Other Koç: 10.00% Other Koç: 60.11%
KH share: 44.68%
Öztürk Group: 50.00% Ünver Hold.: 24.81%
Other Koç: 3.29%
KH share: 18.00%1
Free float: 27.22%

(1) Effective stake indirectly through subsidiaries


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For Further Questions, Please Contact :

investorrelations@koc.com.tr www.koc.com.tr IR Application

Gülsevin Tuncay, Coordinator


Investor Relations
gulsevint@koc.com.tr
+90 216 531 0428

Gizem Bodur, Manager


Investor Relations
gizemb@koc.com.tr
+90 216 531 0533

Neslihan Aycıl, Manager


Investor Relations
neslihana@koc.com.tr
+90 216 531 0516

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