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ARÇELİK A.Ş. Annual Report 2015

Jan 30, 2015

5890_rns_2015-01-30_7a9ebd1f-d2cb-45ff-b293-fb3e27eb7543.pdf

Annual Report

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Arçelik 2014 Financial Results

2014 …

Continued revenue growth and margin expansion Ongoing revenue growth and market share gains in international markets Positive trend in domestic market Increased cash flow from operations Improved working capital, decreased leverage

2

Sales Performance

3

REVENUE and GROSS PROFIT

TL Million 2014 Q4 2013 Q4 Δ% 2014 2013 Δ% 2014 Q3 Δ%
Revenue 3.402 3.100 9,7 12.514 11.098 12,8 3.234 5,2
Gross Profit % 30,9 30,7 31,8 30,5 32,3
Whit e Goods Revenue 2.434 2.221 9,6 9.069 7.818 16,0 2.444 -0,4
Gross Profit % 33,0 30,5 34,0 32,8 34,8
Elect ronics Revenue 552 553 -0,1 1.829 1.607 13,8 416 32,8
Gross Profit % 23,1 28,1 24,2 21,6 24,4
Ot her 416 326 27,6 1.616 1.673 -3,4 375 10,9
Gross Profit % 28,8 36,3 28,3 28,6 24,8

4

BRIDGE OF THE SALES

TL Million 2013OrganicCurrency effect 2014
340International235Turkey8416.481International4.617Turkey
7.662International
Revenue
4.852Turkey
% International Growth% Total Growth 51358 1813

5

REGIONAL BREAKDOWN OF REVENUE - I

TL Million 2014 2013 Δ%
Total Revenue 12.514 11.098 12,8
Turkey 4.852 4.617 5,1
International 7.662 6.481 18,2

6

REGIONAL BREAKDOWN OF REVENUE (%)-II

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----- Start of picture text ----- 45,00 41,6038,7740,0033,4535,0030,8030,0025,0020,0015,00 12,96 13,3910,00 8,82 8,165,00 3,38 3,19 2,45 3,040,00Turkey Western CIS&Eastern Africa Middle East OtherEurope Europe2013 2014----- End of picture text -----

7

Financial Performance

8

INCOME STATEMENT – Quarterl Com arison y p

TL Million 2014 Q4 2013 Q4 YoY Δ% 2014 Q3 QoQ Δ%
Revenue 3.402 3.100 9,7 3.234 5,2
Gross Profit 1.050 951 10,4 1.046 0,4
margin 30,9 30,7 32,3
EBITDA* 351 332 5,8 363 -3,4
margin 10,3 10,7 11,2
EBIT * 263 254 3,5 274 -4,2
margin 7,7 8,2 8,5
Net Income 176 165 6,4 160 9,5
margin 5,2 5,3 5,0

*The effects of foreign exchange gains and losses arising from trade receivables and payables, credit finance income and charges and cash discount expense are deducted from operating profit and the effects of income and expenses from sale of property plant and equipment are added to operating profit in order to maintain consistency in the presentation with prior years EBITDA calculation.

9

INCOME STATEMENT

TL Million 2014 2013 Δ %
Revenue 12.514 11.098 12,8
Gross Profit 3.979 3.388 17,4
margin 31,8 30,5
EBITDA* 1.370 1.155 18,6
margin 11,0 10,4
EBIT * 1.024 853 20,0
margin 8,2 7,7
Net Income 638 623 2,5
margin 5,1 5,6

*The effects of foreign exchange gains and losses arising from trade receivables and payables, credit finance income and charges and cash discount expense are deducted from operating profit and the effects of income and expenses from sale of property plant and equipment are added to operating profit in order to maintain consistency in the presentation with prior years EBITDA calculation.

10

BALANCE SHEET

TL Million 31.12.2014 31.12.2013 31.12.2014 31.12.2013
Current Assets 8.472 7.659 Current Liabilities 4.431 4.091
Cash and Cash Equivalents 1.621 1.267 ST Bank Borrowings 1.803 1.673
Trade Receivables 4.434 4.182 Trade Payables 1.781 1.645
Inventories 2.125 1.988 Provisions 264 259
Other 292 222 Other 583 514
Non-current Assets 3.923 3.752 Non-current Liabilities 3.566 3.181
Property, Plant and Equipment 1.813 1.837 LT Bank Borrowings 2.965 2.581
Financial Investments 894 732 Other 601 600
Other 1.217 1.183 Equity 4.399 4.139
Total Assets 12.395 11.411 Total Liabilities 12.395 11.411
31.12.2014 31.12.2013 31.12.2012 31.12.2011
Net Financial Debt/Equity 0,72 0,72 0,58 0,54
Total Liabilities/Total Assets 0,65 0,64 0,62 0,60

11

WORKING CAPITAL

TL Million FX Basis TL Basis 31.12.2014 FX Basis TL Basis Total
ST Trade Rec. 1.994 2.440 4.434 ST Trade Payables 884 897 1.781
Other Receivables 27 32 59 Other Payables 246 58 304
Inventory 1.219 906 2.125 Working Capital 2.110 2.423 4.533
TL Million FX Basis TL Basis 31.12.2013 FX Basis TL Basis Total
ST Trade Rec. 1.939 2.243 4.182 ST Trade Payables 619 1.026 1.645
Other Receivables 17 15 32 Other Payables 219 24 243
Inventory 954 1.034 1.988 Working Capital 2.072 2.242 4.314

Working Capital / Sales

31.12.2014 36,2%

30.09.2014 38,7%

30.06.2014 39,1%

31.03.2014 39,2%

31.12.2013 38,9%

31.12.2012 33,3% 0,0% 10,0% 20,0% 30,0%

40,0%

12

DEBT PROFILE

6.0005.0004.0003.0002.0001.00001.0002.0003.00005001.0001.5002.0002.5003.0003.500 4169051.3171.1741.7411.2671.621-1.915-1.924-839-1.629-2.144-1.673-1.803-1.577-188-1.218-1.528-1.859-2.581-2.9652008200920102011201220132014Long term debtShort term debtCash and cash equivalent3.0761.2077401.9832.2632.9883.1465,11,30,92,32,22,62,301234562008200920102011201220132014Net Debt (TL Million)Net Debt/EBITDAEffectiveMillionMillionInterest RateOriginalTRYp.a. (%)CurrencyEquivalentTRY11,4%1.5201.520EUR2,0%293827ZAR8,4%1.000200RUB8,7%90436CNY5,6%8231SEK1,3%93Other1Total2.619EffectiveMillionMillionInterest RateOriginalTRYp.a. (%)CurrencyEquivalentUSD5,1%5011.162EUR4,0%350987Total2.149Total Bank BorrowingsEurobond

13

CASH FLOW

TL Million 31.12.2014 31.12.2013
Beginning Balance 1.266 1.739
Net Operat ional Cash Flow 931 384
Fixed Asset Sales 4 4
CapEx -453 -512
Dividend Paid -354 -404
Changes in Bank Borrowings -565 -821
Bonds Issued 991 889
Ot her Financial & Invest ing Act ivit es -238 -133
Differences due t o FX Conversion 38 119
Changes in Cash 355 -474
Ending Balance 1.621 1.266

14

2015 Expectations

15

2015 EXPECTATIONS

Expectations for Arçelik ;

  • Stable or increasing market share in key regions

  • White goods volume growth :

    • Turkey : 3 to 5 %*

    • International : > 6%

  • Total revenue growth: ~ 10% in TL

2014 and Long-term EBITDA margin: ~11%**

  • *5 main products, in compliance with WGMA data.

  • **EBITDA margin calculations are inline with the methodology used on page 9

16

www.arcelikas.com

Contacts for Investor Relations

Dr. Fatih Kemal Ebiçlioğlu

Doğan Korkmaz

CFO Finance Director Tel: (+90 212) 314 34 34 Tel: (+90 212) 314 31 85

[email protected]

17

Disclaimer

This presentation contains information and analysis on financial statements as well as forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the information and analysis are correct and 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 Arçelik nor any of its managers or employees nor any other person shall have any liability whatsoever for any loss arising from the use of this presentation.