Koç Holding (KCHOL) Investor presentation summary

Strategic positioning and business overview

• Largest industrial and services group in Turkey, with leading positions in energy, automotive, consumer durables, and finance sectors, contributing over 7% of Turkey’s GDP and exports.

• Extensive international presence with exports to over 155 countries, operations in 45 currencies, and 46% of revenues linked to international or FX sources.

• Stable shareholding structure with significant family ownership and a strong governance framework, including a high proportion of independent and women board members.

• Balanced portfolio of defensive and growth assets, ensuring resilience and long-term value creation through sectoral and geographical diversification.

• Major investments in R&D and innovation, with over TL21.6bn spent and 37 R&D centers, the highest in Turkey.

Financial performance and capital allocation

• Combined revenues for 9M25 reached TL3.2 trillion, with operating profit at TL108 billion and consolidated net income at TL14.4 billion, up 54% year-on-year.

• Dividend income reached TL21.3 billion in 2025 YTD, with a payout ratio of 38.5% and a yield of 4.5%, supported by strong contributions from portfolio companies with FX-linked revenues.

• Maintains a robust liquidity position with USD 874 million net cash as of September 2025 and a current ratio of 1.2x on a combined basis.

• Secured a USD 600 million club loan in October 2025 to further enhance liquidity, with prudent leverage at 1.4x net financial debt/EBITDA.

• NAV discount remains significant, averaging -14% since 2009, reflecting market sentiment and foreign ownership trends.

Segment highlights and operational updates

• Energy: Strong domestic demand, high utilization, and favorable crack margins drove TL9.7 billion net income (+32% y/y); Tüpraş and Aygaz maintained market leadership and expanded renewable energy initiatives.

• Automotive: Robust domestic and export performance, with Ford Otosan, Tofaş, and TürkTraktör leading in their segments; Ford Otosan achieved 12% sales growth, Tofaş expanded its brand portfolio, and TürkTraktör retained market leadership.

• Consumer durables: Arçelik faced soft demand and pricing pressure, resulting in a negative net income contribution, but continued global expansion and synergy realization from the Whirlpool transaction.

• Finance: Yapı Kredi delivered strong lending and fee growth, maintaining resilient capital buffers, though the segment posted a negative net income due to sectoral headwinds.

• Other businesses: Continued leadership in home improvement (Koçtaş), procurement (KoçZer), tourism (Setur), IT (KoçSistem), and fintech (Token), with ongoing innovation and digitalization.