Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (April 2023)
66 slides from Haci Omer Sabanci Holding A.s's investor presentation, April 2023
Slide 1: Investor Presentation April 2023
INVESTOR PRESENTATION April 2023
Slide 2: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by Hacı Ömer Sabancı Holding A.Ş. (“Holding”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctne
Slide 3: Agenda
01 Capital Allocation 02 Recent Acquisitions 03 Sustainability Operational & Financial 04 Performance 05 NAV & Stock Performance 06 Strategic Business Units 07 Holding Value Add 08 Mid-term Guidance 3
Slide 4: Capital Allocation
01 01 Capital Allocation 4
Slide 5: Doubling CAPEX to accelerate both organic and inorganic growth
Capital Allocation Doubling CAPEX to accelerate both organic and inorganic growth… DOUBLING CAPEX | 25/75 SPLIT BETWEEN CORE & NEW INVESTMENTS Grow and Protect the Core Invest in New Platforms ➲ Strengthen our market leading positions ➲ Increasing share of new economy in nonbank ➲ Profitable growth
Slide 6: Coherent strategic plan on core and new platforms
Capital Allocation …with a coherent strategic plan on core and new platforms We unite Türkiye and the World Purpose for a sustainable life with leading enterprises Strategic Transform into an agile Lead in digital, material and Commercialize innovation Pioneer in “sustainability Adapt to “Future of
Slide 7: 76% of investments to new economy
Capital Allocation Continuing to deliver on our strategic initiatives: 76% of investments to new economy Dynamic Portfolio Management Kordsa Capacity Investments: Turkey’s 1st Green Hydrogen: Capacity Increase in CAC: Digital Investment: Kordsa Turkey: Investment for single-end cord Production and u
Slide 8: Recent Acquisitions
02, Recent Acquisitions : SAY 600k 1/0 eeeccc c > Busine ni ' _— = = . \ = 2 ie La is 4 < > £i- <
Slide 9: Investing in new economy for a major transformation
Recent Capital Sustainability Acquisitions Allocation Investing in new economy for a major transformation in Sabancı Group Energy & Climate Advanced Material Digital Technologies Technologies Technologies E-mobility Renewables Sustainable Telematics Chemicals loT 4.0 Cybersecurity Digital Marketing
Slide 10: USA came to the fore as 2nd largest renewable market
Recent Capital Sustainability Acquisitions Allocation USA came to the fore with the attraction of being world’s 2nd largest renewable energy market & the largest corporate venture ecosystem Facts on Renewable Energy Investments Solar Resource Potential Wind Resource Potential 170 TW potential capaci
Slide 11: First solar project in Texas
Recent Capital Sustainability Acquisitions Allocation After detailed research & studies, first solar project in Texas has initiated that offers a variety of opportunities for the future growth Market potential for proxy businesses in Texas West 272 MW Solar Power Plant Project ➢ Region close to Hous
Slide 12: Expanding renewables investment beyond Türkiye
Recent Capital Sustainability Acquisitions Allocation Expanding renewables investment beyond Türkiye Sabancı Climate Technologies, wholly owned subsidiary of Sabancı Holding, will undertake renewable energy power plant investments and strategic investments in various venture capital funds and start-
Slide 13: Major wind expansion project in Türkiye at Enerjisa Üretim
Recent Capital Sustainability Acquisitions Allocation A major expansion project has been initiated in Türkiye while reaching 57% renewables share in Enerjisa Üretim Installed Generation Capacity Mix* 1,000 MW YEKA-2 Wind Power Plant Investment (USD1.2bn) Currently 2026 Çanakkale 250 MW 45% 43% 34% R
Slide 14: Creation of a global digital business with acquisitions
Recent Capital Sustainability Acquisitions Allocation Creation of a global digital business with acquisitions Dx Technology Services and Investment BV (DxBV), a wholly owned subsidiary of Sabancı Holding and established in the Netherlands, will undertake Sabancı Group’s investments in digital busine
Slide 15: Global players in mobility market
Recent Acquisitions Global Players in Mobility Market Expansion in Composites Growth in New Mobility Solutions Microtex: Arvento: ▪ Acquired by Kordsa ▪ Acquired by Brisa ▪ Deal Size: EUR24.6mn ▪ Deal Size: ~EUR22mn* ▪ Product and geographic diversification in ▪ Become a sustainable mobility solutio
Slide 16: Sustainability
Sustainability 04 ‘_ Financial
Slide 17: We prioritize ESG to transform our portfolio
Recent Capital Sustainability Sustainability Acquisitions Allocation We prioritize ESG to transform our portfolio for the future… TL 7.7 BN1 51% 2 100%3 SDG-linked product and SDG-oriented R&D and Share of renewable services revenues innovation energy in the 1,000 MW We transform new investment plan
Slide 18: Improving our ESG performance further
Recent Capital Sustainability Sustainability Acquisitions Allocation ... while improving our ESG performance further 2022 MSCI 2022 CDP 2023 Bloomberg GEI 2022 Refinitiv 2022 Sustainalytics Excellent Performance Low ESG Risk Management Level First and Only Conglomerate from More than 50 companies in
Slide 19: Improving Corporate Governance Framework
Recent Capital Sustainability Sustainability Sustainability Acquisitions Allocation Improving Corporate Governance Framework Shareholder Structure Board Members 9 BoD members (3 Independent) Sabancı Family 56% non-family, 44% women 49.6% Early Detection of Risk Committee Corporate Governance, Nomina
Slide 20: Sustainability Roadmap
Recent Capital Sustainability Sustainability Sustainability Acquisitions Allocation Sustainability Roadmap Act on Maximize Foster Sustainable 01 Climate Emergency 02 Positive Impact 03 Business Models Become 'Net Zero Emissions’ and Create shared value for all Develop innovative products, services '
Slide 21: Adapting to the Future of Work
Recent Capital Sustainability Sustainability Acquisitions Allocation Adapting to the Future of Work Smart Work Physical and Mental Health Flexible & High Performance New Talent and Skill Paradigm TL 200 MN Workforce Planned Investment Within 2 years 1,500+ Planned Actions for 2021-2023 93% completed
Slide 22: Operational & Financial Performance
Operational & Financial Performance
Slide 23: Solid global footprint and business partners
Operational Recent& Capital Sabancı Group continues to grow with its solid global footprint, thousands of employees and Sustainability Financial Acquisitions Allocation Performance prominent global business partners UK Hungary Türkiye 6 Business Partners Germany Netherlands Spain 14 Countries USA Cy
Slide 24: Complementary business units with increasing share of non-bank
Operational Recent& Capital Sustainability Financial Acquisitions Allocation Performance Complementary business units with increasing share of non-bank NAV* Breakdown Non-Bank Bank Bank Bank Retail ROE: ROE: 8% 34% 13.6% 54.7% 44% Energy 16% Bank Consolidated 39% ROE: Listed NAV: Consolidated 45.4%
Slide 25: Strong real growth with improved earnings quality
Operational Operational & & Recent Capital We achieved strong real growth across the board with a major improvement Sustainability Financial Acquisitions Allocation Performance Performance in earnings quality… Combined Revenue* (TL Bn) Combined EBITDA* (TL Bn) Consolidated Net Income* (TL Bn) Non-ba
Slide 26: Cash flow growth and improved ROE
Operational Operational & & Recent Capital Sustainability Financial Acquisitions Allocation Performance Performance …and more than doubling cash flow led to a sharp improvement in ROE… Operational Cash Flow, Combined for Non-Bank* Return on Equity (ROE)* (TL bn) Non-bank ROE Consolidated ROE 28.7 31
Slide 27: Strong balance sheet providing flexibility
Operational Operational & & Recent Capital …coupled with strong balance sheet that provides flexibility for potential headwinds & new Sustainability Financial Acquisitions Allocation Performance Performance investments Holding Only - Net cash position (TL bn) Combined Net Financial Debt to Non-Bank
Slide 28: Sustainable dividend growth and effective capital allocation
Operational Operational & & Recent Capital Sustainability Financial Acquisitions Allocation Performance Performance Sustainable dividend growth and effective capital allocation DPS (TL) Share Buy-Back Program Non-bank Capex/Sales* (TL bn) Dividend Yield (%)* 4.41 4.59 4.27 3.82 3.79 2.87 +86% ~14.0%
Slide 29: NAV & Stock Performance
Capital Allocatio ecent Acquis nability Operational & Finz Perfor ce NAV & Stock Performance Strategic Business U Holding Value Add Mid To Guidance
Slide 30: Market has recognized transformation on NAV discount
Operational & Recent NAVFinancial &Capital Stock Sustainability Acquisitions Performance Allocation Performance Market has recognized Sabancı Holding’s transformation on NAV discount… NAV (USD mn) &NAV Discount NAV Bridge +76% 6,713 3,809 3,762 3,987 3,565 YE 2021 Q1 2022 Q2 2022 Q3 2022 YE 2022 -28
Slide 31: Discount to historical average P/E
Operational & Recent NAVFinancial &Capital Stock Sustainability Acquisitions Performance Allocation Performance …but not entirely, considering discount to historical average P/E Stock Relative-Performance Earnings Per Share vs. Price/Earnings* (USD basis) EPS P/E SAHOL BIST 30 300 5.1 4.9 4.0 254 25
Slide 32: Strategic Business Units
OQBaAncI Strategic Business Units
Slide 33: Energy SBU: Strong Leader in Turkish Energy Industry
Operational & Recent Capital Sustainability Energy SBU Financial Acquisitions Allocation Performance Well Positioned & Strong Leader in Turkish Energy Industry Distribution & Retail AYEDAŞ 14 11.9 mn 22 mn BAŞKENT Cities Connections Population Ankara (Başkent) 10.6 mn 39.2 TWh 317,757 km Customers 2
Slide 34: Energy SBU Financial Performance
Operational Recent& Capital Energy Energy SBU Sustainability SBU Financial Acquisitions Allocation Performance Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Bn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 56% 199% 38% 125% 67% 156% 23% 23% 22%
Slide 35: Industrials SBU: Global Players in Mobility Market
Industrials SBU Global Players in Mobility Market Tire & Mobility Solutions Germany 1/3 CDP A- 40% of every Passenger Climate Change International Car Tire in Türkiye Category Revenue 112 13.5 Mn 7,300 USA Türkiye Otopratik & Propratik Total Tire Point of Sales Mobility Service Shops Production Capa
Slide 36: Industrials SBU Financial Performance
Operational Recent& Industrials Capital Sustainability Financial Acquisitions Allocation SBU Performance Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 39% 123% 39% 66% 61% 64% 21% 19% 17% 16% 32.
Slide 37: Building Materials SBU: Leader in Turkish Cement
Operational Recent& Building Capital Sustainability Financial Acquisitions Materials Allocation SBU Performance Leader in Turkish Cement Industry With An Ambition For International Expansion Türkiye’s Leading Exporter Germany Netherlands 3 >3 mn ton 2 Integrated plants Export Volume Ports Spain 9.2
Slide 38: Building Materials SBU Financial Performance
Operational Recent& Building Capital Sustainability Financial Acquisitions Materials Allocation SBU Performance Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 59% 173% 43% 185% 63% 233% 21% 18% 15
Slide 39: Financial Services SBU: Non-Life and Life Insurance
Operational & Recent Financial Capital Sustainability Financial Acquisitions Services Allocation SBU Performance Well Positioned in Both Non-Life and Life Insurance Markets Aksigorta Gross Written Premiums Trend (bn TL) Non-Life Insurance CAGR: Y/Y: 41% 94% Leader in 3,600+ 6.9% # of Agencies Market
Slide 40: Financial Services SBU Financial Performance
Operational & Recent Financial Capital Sustainability Financial Acquisitions Services Allocation SBU Performance Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 44% 92% 13% -29% 24% 6% 1,194 17.3 989 934 999 845 73
Slide 41: Retail SBU: Accelerated Growth with Operating Profitability
Operational Recent& Capital Retail RetailSBU Sustainability SBU Financial Acquisitions Allocation Performance Accelerated Growth While Maintaining Operating Profitability Food & Non-Food Retail 45 895 537k sqm Cities Stores Sales Area 164 mn* 10,663 Annual Visitors Employees Food Retail E-Commerce S
Slide 42: Retail SBU Financial Performance
Operational & Recent Capital Sustainability Retail SBU Financial Acquisitions Allocation Performance Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: 43% 117% 76% 122% 36.6 5% 6% 5% 345 3% 3% 2,055 16.9 13.5 -
Slide 43: Banking: 2022 Strong delivery on guidance
Operational & Recent Capital Banking Sustainability Banking Financial Acquisitions Allocation Performance 2022: Strong delivery on guidance 2022 Guidance 2022 Key Takeaways Momentum across all business lines & subsidiaries continue as TL Loan Growth > 50% 77.8% we advance in innovative offerings, us
Slide 44: 2023: Customer-led revenue growth remains key priority
Banking Banking 2023: Customer-led revenue growth remains key strategic priority Main drivers to create 2023 Guidance sustainable shareholder value Retail driven growth Taking advantage of with sustainable 1 4 TL Loan Growth ~ 40% advanced analytics & profitability & healthy cutting-edge FX Loan Gro
Slide 45: Banking Financial Performance
Operational & Recent Capital Banking Sustainability Banking Financial Acquisitions Allocation Performance Financial Performance Capital Adequacy Ratio* & Tier 1 Ratio* Combined Net Income** & Reported ROE Total Asset & Reported ROA (TL bn, %) (TL bn, %) 2022 2022 Excess Tier-1 Ratio Excess CAGR: CAG
Slide 46: Invest in rapidly growing digital businesses beyond Türkiye
Operational Recent& Capital Banking Digital Sustainability Digital Financial Acquisitions Allocation Performance Invest in rapidly growing digital businesses and expand beyond Türkiye Before Transactions After Transactions Sabancı Digital Business Consumer Marketing Cyber Security Cloud & Digital Pr
Slide 47: Holding Value Add
( tal Allocatic ecent Acquis Sustainability Operatior & Finan Perform NAV & Stock Perform Strategic Business L Holding Value Add Mid T euicgnce
Slide 48: Innovation & Corporate Venture Capital
Operational & Recent Holding Capital Banking Sustainability Financial Acquisitions Value Allocation Add Performance Innovation & Corporate Venture Capital • 2 years, 500 alumni, 10 • 150 ideas in 2 years, 13 Company participants, 45 • Launched in Sep’22, 15 • Investments in 10 companies (8 in Ideath
Slide 49: Investing in Tech-based Start-ups via Sabancı Ventures
Holding Operational & Recent Holding Capital Holding Banking Sustainability Financial ValueAdd Add Acquisitions Value Allocation Value Add Performance Investing in Tech-based Start-ups via Sabancı Ventures 2022 Performance 2022 Investments # of Companies #1 local public and private Initial Fund Size
Slide 50: Corporate Venture Capital Investments and Timeline
Operational & Holding Recent Holding Capital Holding Banking Sustainability Financial ValueAdd Add Acquisitions Value Allocation Value Add Performance Corporate Venture Capital Investments Through Subsidiaries and Timeline Establishment of Sabancı Ventures Invested in Invested in Invested in Sabancı
Slide 51: Leveraging Synergies Within Sabancı Ecosystem: E-charge and Solar
Holding Banking Value Add Leveraging Synergies Within Sabancı Ecosystem The first, fastest and largest E-charge station network in Türkiye Solar Power Plants within the Group in Cooperation with Enerjisa Enerji 75K m2 6,226 kWp 10,400 Ground Area Solar Production Capacity Solar Panels Eşarj Stations
Slide 52: Leveraging Synergies: Bancassurance and Kordsa Cooperation
Holding Banking Value Add Leveraging Synergies Within Sabancı Ecosystem Strong collaboration in Bancassurance Kordsa & Cement Companies Cooperation ➲ Exclusive bancassurance agreement with Akbank ➲ Presence in all physical and digital channels ➲ Joint vision in digital with Akbank ➲ Effective govern
Slide 53: Management Incentives
Holding Holding Banking Value Value Add Add Management Incentives 53
Slide 54: Management Incentives KPIs
Holding Banking Value Add Management Incentives Short Term (1-Year) Financial KPIs* Total Cash Distribution Model (%) Sample for a company general manager ➲ Net Sales ➲ Net Financial Debt ➲ Rtsr** ➲ EBITDA ➲ Working Capital Pricing ability, ➲ Free Cash Flow ➲ Market Share competitive Long Term 125 p
Slide 55: Mid-Term Guidance
rational formance \V & Stock D rategic E siding Value Add 08 | Mid-Term Guidance
Slide 56: Mid-Term Guidance Maintained
Mid-Term Banking Guidance Mid-Term Guidance Maintained 01 Growth 02 Capital Return 03 Sustainability Mid-term targets* Dividend policy Zero Waste Revenue growth CPI + 8% Net Zero Emissions 5%-20% of net income by 2050 EBITDA1 growth CPI + 10% Share Buyback Up to 5% of paid-in capital: Capex/Revenues
Slide 57: Appendix
APPENDIX 57
Slide 58: Portfolio in Continuous Evolution
Appendix / Portfolio in Continuous Evolution 1940s - 1960s 1970s - 2000s 2000s - 2010s Present and Future Early Growth Phase - Proliferation of Global Refocus Portfolio Growth and Transformation Initial Diversification Partnerships-Conglomeration JVs formed with Aviva and Ageas Kordsa’s acquisition
Slide 59: Executive Leadership
Appendix / Executive Leadership Cenk AlperBoard Member and CEO Joined Sabancı Group in 1996. 5 years of international experience in the US and Europe with N.V. Bekaert. Led Kordsa‘s transformation and SPO as CEO. After managing Industrials SBU between 2017 and 2019, appointed as the CEO of Sabancı H
Slide 60: Dividend Performance
Appendix/ Dividend Performance TLmn 2018 2019 2020 2021 2022 2023 Akbank 652 - - 255 494 3,666 Akçansa 51 61 18 42 36 99 Aksigorta 40 73 73 110 - - Agesa 19 40 64 64 - 60 Brisa - - 12 107 270 479 Carrefoursa - - - - - - Çimsa 33 - - - 109 218 Kordsa 48 48 35 - 114 41 Teknosa - - - - - - Yünsa - 3 -
Slide 61: Sabancı Holding Discount to NAV & Cash
Appendix / Sabancı Holding Discount to NAV & Cash USDmn December 2022 December 2021 Value to Sabancı Value to Sabancı Companies Direct Stake Valuation Method Mcap Holding % of NAV Holding % of NAV NAV Discount Akbank 41% Market value 5,437 2,216 33.0% 1,145 30.0% Enerjisa Enerji 40% Market value 2,2
Slide 62: Overview of Corporate Structure
Appendix / Overview of Corporate Structure ENERGY RETAIL BANKING & FINANCIAL INDUSTRIALS DIGITAL BUILDING MATERIALS SERVICES SAHOL: 40.0% SAHOL: 57.1% SAHOL: 39.7% SAHOL: 40.7% SAHOL: 71.1% SAHOL: 49.0% E.ON: 40.0% Carrefour: 32.2% Heidelberg Materials: 39.7% Other: 8.4% Free Float: 28.9% DxBV: 51.0
Slide 63: Reporting
Appendix / Reporting Combined Net Sales EBITDA Net income Subsidiaries line by line line by line line by line Joint Ventures line by line line by line line by line Consolidated Net Sales EBITDA Net income Subsidiaries line by line line by line line by line Joint Ventures Not included Proportion of o
Slide 64: Financials in detail
Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q4 2021 Q4 2022 Change 2021 2022 Change Q4 2021 Q4 2022 Change 2021 2022 Change Q4 2021 Q4 2022 Change 2021 2022 Change TOTAL* 49,997 126,120 152% 150,050 401,483 168% 12,190 37,810 210% 33,433 113
Slide 65: IFRS16 Impact on Financials
Appendix / IFRS16 Impact on Financials In accordance with In IFRS16, most leased items with a duration longer than one year have to be included as an asset in the company books. In addition, the payments that will be made on the lease agreement have to be reported as a liability on the balance sheet
Slide 66: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS ➢ Kerem TEZCAN Meet SirA, Sabancı Holding's digital Investor Relations Director investor relations assistant ! ➢ Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager Türkiye’s First Investor Relations Dedicated Assistant ! ➢ Hamza SÜMER For Further Investor Relations Sp
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