Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (July 2023)
64 slides from Haci Omer Sabanci Holding A.s's investor presentation, July 2023
Slide 1: Investor Presentation July 2023
JULY, 2023 INVESTOR PRESENTATION
Slide 2: Disclaimer
EARNING PRESENTATION 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, comp
Slide 3: Capital Allocation
01 /08 Capital Allocation
Slide 4: 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 Invest in New Platforms Grow and Protect the Core Increasing share of new economy in nonbank combined revenue : Strengthen our market leading positions from
Slide 5: A 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 6: 76% of investments to new economy
CAPITAL ALLOCATION Continuing to deliver on our strategic initiatives: 76% of investments to new economy Dynamic Portfolio Management Turkey’s 1st Green Hydrogen: Capacity Increase in CAC: Digital Investment: Kordsa Capacity Investments: Renewable Energy Investment Production and use of green Çimsa’
Slide 7: Recent Acquisitions
02 /08 Recent Acquisitions
Slide 8: Investing in new economy for a major transformation in Sabancı Group
RECENT ACQUISITIONS Investing in new economy for a major transformation in Sabancı Group Energy & Climate Technologies Advanced Material Technologies Digital Technologies E-mobility Renewables Telematics Sustainable Chemicals loT 4.0 Cybersecurity Digital Marketing Electrification New Energy Vehicle
Slide 9: USA came to the fore as 2nd largest renewable energy market
RECENT ACQUISITIONS 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 USA is the 2nd largest renewable energy market following China. Solar Resource Potential Wind Resource Pot
Slide 10: First solar project in Texas
RECENT ACQUISITIONS After detailed research & studies, first solar project in Texas has initiated that offers a variety of opportunities for the future growth Market potential for Region close to Houston - high demand proxy businesses in 272 MW Texas West Solar Power Shovel-ready project with low ex
Slide 11: Expanding renewables investment beyond Türkiye
RECENT ACQUISITIONS 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-ups, primarily in the USA and Euro
Slide 12: Major expansion in Türkiye: renewables share in Enerjisa Üretim
RECENT ACQUISITIONS A major expansion project has been initiated in Türkiye while reaching 57% renewables share in Enerjisa Üretim Installed Generation Capacity Mix* 1000 MW YEKA-2 Wind Power Plant Investment (USD 1.2 bn) ÇANAKKALE Currently 2026 250 MW BALIKESİR Renewables Natural Gas 250 MW 45% 43
Slide 13: Creation of a global digital business with acquisitions
RECENT ACQUISITIONS Creation of a global digital business with acquisitions Dx Technology Services and BV (DxBV), a wholly owned subsidiary of Sabancı Holding and established in the Netherlands, will undertake Investment Sabancı Group’s investments in digital businesses. Cyber Security Digital Marke
Slide 14: 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 solutions composite
Slide 15: Sustainability
03 /08 Sustainability
Slide 16: Prioritizing ESG to transform our portfolio for the future
SUSTAINABILITY Prioritizing ESG to transform our portfolio for the future… Act on Climate Emergency Foster Sustainable Business Models Net GHG Emissions by 2050 15% Reduction in Scope 1-2 Zero through credible removal Reduction in Scope 1-2 emissions as of 2025 vs. 42% emissions as of 2030 vs. initi
Slide 17: Improving our ESG performance further
SUSTAINABILITY ... while improving our ESG performance further MSCI Rating A 2023 2022 2022 MSCI 13.9 BBB Bloomberg GEI Sustainalytics 3 notches increase in BB First and Only Low ESG Risk 3 years B Conglomerate from Low Risk In Diversified Financials Category Türkiye to be included twice in a row A
Slide 18: Improving Corporate Governance Framework
SUSTAINABILITY Improving Corporate Governance Framework Shareholder Structure 9 BoD members (3 Independent) Board Members 56% non-family, 44% women Sabancı Family 49.6% Early Detection of Risk Assumes some of the roles of the Portfolio Committee Corporate Management Committee, terminated in Governan
Slide 19: Sustainability Roadmap
SUSTAINABILITY Sustainability Roadmap Act on Climate Emergency 01 Maximize Positive Impact 02 Foster Sustainable Business Models 03 Become 'Net Zero Emissions’ and 'Zero Waste' by 2050 at the latest Create shared value for all stakeholders, Develop innovative products, services with social programs
Slide 20: Adapting to the Future of Work
SUSTAINABILITY Adapting to the Future of Work Smart Mental & New Talent TL 200 MN Flexible & High Work Physical Health Performance Workforce & Skill Paradigm Planned Investment Within 2 years Leadership Purpose Driven Digital & Agile 1,500+ Planned Actions for 2021-2023 Organization and Culture Orga
Slide 21: Operational & Financial Performance
Operational & a Financial Performance 04 /08
Slide 22: Sabancı Group continues to grow with solid global footprint
OPERATIONAL FINANCIAL PERFORMANCE Sabancı Group continues to grow with its solid global footprint, thousands of employees and prominent global business partners UK Germany Hungary Türkiye 6 Business Partners Netherlands Spain 14 USA Countries Cyprus France 60K+ Thailand Malta Brazil Italy Indonesia
Slide 23: Complementary business units with increasing share of non-bank
OPERATIONAL & FINANCIAL PERFORMANCE Complementary business units with increasing share of non-bank Non-Bank Bank NAV* Breakdown Digital 2% Bank Bank Retail ROE: ROE: 5% 13.6% 35% 27.9% 44% Energy 15% Bank Consolidated ROE: Listed NAV: 41% Consolidated 35.0% Building USD 4.5 bn ROE: Materials 13.7% 1
Slide 24: Healthy growth driven by balanced portfolio
OPERATIONAL & FINANCIAL PERFORMANCE Healthy growth achieved driven by our balanced portfolio & well-executed transformation strategy… Combined Revenue* (TL Bn) Combined EBITDA* (TL Bn) Consolidated Net Income* (TL Bn) Non-bank** Bank Non-bank** Bank Non-bank** Bank CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 4
Slide 25: Improvement in ROE and strong cash generation
OPERATIONAL & FINANCIAL PERFORMANCE …that led to a further improvement in ROE & strong cash generation… Return on Equity (ROE)* Operational Cash Flow, Combined for Non-Bank* (TL bn) 28.7 Bank ROE Consolidated ROE Non-Bank ROE 13.7% 13.1% 17.1% 23.9% 31.1% 23.5% 23.3% 50% 54.7% 38.6% 12.5 27.9% 10.8
Slide 26: Strong balance sheet to weather volatility
OPERATIONAL & FINANCIAL PERFORMANCE …with strong balance sheet to weather through volatility & capitalize on opportunities Holding Only - Net cash position (TL bn) Combined Net Financial Debt to Non-Bank EBITDA* 2.3x 2.2x 7.7 Midterm Guidance: 6.5 ≤ 2x 1.5x 1.2x 1.2x 3.1 2.6 2.5 1.7 0.4x 0.4x 1.1 20
Slide 27: Sustainable dividend growth and effective capital allocation
OPERATIONAL & FINANCIAL PERFORMANCE Sustainable dividend growth and effective capital allocation DPS (TL) Share Buy-Back Program Non-bank Capex/Sales* (TL bn) 4.41 4.27 4.42 3.82 3.79 +86% 2.87 ~14.0% 1.75 >2x 3.25 10.3% +42% 7.3% 6.6% 0.75 1.75 0.33 0.35 0.30 0.30 2018 2019 2020 2021 2022 2023 2020
Slide 28: NAV & Stock Performance
05 /08 NAV & Stock Performance
Slide 29: Declining NAV discount amid solid NAV growth in USD
NAV & STOCK PERFORMANCE Despite declining NAV discount amid solid growth in NAV in USD terms… NAV* (USD mn) & NAV* Discount NAV* Bridge +54% 6,713 5,706 3,696 3,987 3,565 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 -26.7% -26.1% -28.8% -33.8% -35.0% +8pp Average NAV Discount: Last 3- Year Last 5-Year La
Slide 30: SAHOL trading at discount to historical P/E averages
NAV & STOCK PERFORMANCE …SAHOL shares are trading at a material discount to its historical P/E multiple averages Stock Relative-Performance (USD basis) Earnings Per Share vs. Price/Earnings* SAHOL BIST 30 EPS P/E 300 5.1 4.9 4.0 250 2.2 2.1 1.9 1.9 200 180 163 150 21.5 100 50 0 5.9 Nov-22 Sep-22 Dec
Slide 31: Strategic Business Units
06 /08 Strategic Business Units
Slide 32: Energy SBU: Strong Leader in Turkish Energy Industry
ENERGY SBU Well Positioned & Strong Leader in Turkish Energy Industry AYEDAŞ Distribution 14 12.0 mn 22 mn & Retail BAŞKENT Cities Connections Population Ankara (Başkent) 10.6 mn 39.2 TWh 320,805 km Customers 2022 Sales Volume Network Adana 4 HEPP Gaziantep TOROSLAR 6 HEPP 1st 23 3,727 MW Generation
Slide 33: Energy SBU Financial Performance
ENERGY SBU 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% 46% 38% 13% 67% 55% 23% 23% 22% 18% 14% 16% 140.5 12% 19.5 11.0 47.0 8.7 39.9 6.8 4.3 31.1 5.9 4.8 5.3 3.0 3.1 26.0 27.3 4.3 23.6 2.4
Slide 34: Industrial SBU: Global Players in Mobility Market
INDUSTRIAL SBU Global Players in Mobility Market Germany Tire & Mobility Solutions 1/3 CDP A- 33% of every Passenger Climate Change International Car Tire in Türkiye Category Revenue 112 13.5 Mn 7,300 USA Otopratik & Propratik Total Tire Point of Sales Italy Türkiye Mobility Service Shops Production
Slide 35: Industrial SBU Financial Performance
INDUSTRIAL SBU 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: 39% 43% 39% -8% 61% -19% 21% 23% 19% 17% 16% 32.5 15% 15% 5.2 3,322 14.6 3.1 2,023 9.7 9.9 8.8 8.7 1.6 1.6 1,099 6.9 1.4 1.6 1.4 895 7
Slide 36: Building Materials SBU: Türkiye's Leading Exporter
BUILDING MATERIALS SBU Leading Turkish Cement Player Targeting Product and Geographic Diversification for Sustainable Growth Germany Poland Netherlands Türkiye’s Leading 3 4 2 Exporter Integrated Ports Spain Domestic Terminals plants Israel USA Türkiye 9.2 mn ton 25 145% RMC plants Increase in sales
Slide 37: Building Materials SBU Financial Performance
BUILDING MATERIALS SBU 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: 59% 90% 43% 192% 63% 364% 21% 18% 17% 15% 14% 13% 11% 21.6 1,736 3,016 7.9 650 6.6 1,108 522 1,060 4.2 724 3.4 3.6 3.5 764 246
Slide 38: Digital SBU: Technology Retail
DIGITAL SBU Rapid top-line growth meeting with expectations Technology Retail 65 189** 103k sqm Cities Stores Sales Area 51 mn* 2,567 Annual Visitors Employees Teknosa E-Commerce Teknosa GMV Teknosa EBITDA*** Margin Sales (TL mn) (TL mn) 658 1,294 7.9% 142% 7.4% 215% 272 374 Q1 2022 Q1 2023 Q1 2022
Slide 39: Digital SBU Financial Performance
DIGITAL SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) Combined Net Income* (TL Bn) +117% +85% 9% 73 7,027 436 66 235 3,042 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 *Excludes non-operational and non-recurring one off items
Slide 40: Financial Services SBU: Non-Life and Life Insurance
FINANCIAL SERVICES SBU Well Positioned in Both Non-Life and Life Insurance Markets Aksigorta Gross Written Premiums Trend (bn TL) CAGR: Y/Y: 41% 108% 3,500+ 6.1% Non-Life Insurance # of Agencies Market Share Leader in 13.6 3.4 4.5 5.3 7.0 5.1 TL 5.1 bn TL 8.7 bn 2.5 AuM*** GWP** 2018 2019 2020 2021
Slide 41: Financial Services SBU Financial Performance
FINANCIAL SERVICES SBU 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: 44% 112% 13% 239% 24% 51% 1,194 989 17.3 934 999 845 734 697 569 9.0 510 414 6.6 6.7 5.5 379 267 4.0 3.2 178 112 2018 2019 202
Slide 42: Retail SBU: Food & Non-Food Retail
RETAIL SBU Accelerated Growth While Maintaining Operating Profitability Food & Non-Food Retail 48 910 537k sqm Cities Stores Sales Area 40 mn* 10,261 Annual Visitors Employees B2B Sales* Exports E-Commerce Sales Number of Stores* (TL mn) (TL mn) (TL mn) 387 310 910 15.7 105% 82% 20% 121% 188 170 7.1
Slide 43: Retail SBU Financial Performance
RETAIL SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) Combined Net Income* (TL Bn) +105% +47% 6,575 301 205 -107 3,203 -167 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 *Excludes non-operational and non-recurring one off items
Slide 44: Banking: On track with 2023 guidance
BANKING On track with 2023 guidance 2023 Guidance Q123 TL Loan Growth ~ 40% 14.3% 01 04 Retail driven growth with Taking advantage of Low-single digit 0.6% sustainable profitability & healthy advanced analytics & FX Loan Growth (in USD) market share gains in focus cutting-edge technology 4-5% 4.8% N
Slide 45: Banking Financial Performance
BANKING Financial Performance Capital Adequacy Ratio* & Tier 1 Ratio* Combined Net Income** & Reported ROE Total Asset & Reported ROA (TL bn, %) (TL bn, %) Q1 2023 Q1 2023 CAGR: Y/Y: CAGR: Y/Y: Excess Capital*: Excess Tier 1*: 81% 33% 34% 48% TL 61 bn TL 53 bn 54.7% 6.2% 17.7% 4.0% 16.9% 16.9% 15.7%
Slide 46: /08
07 /08
Slide 47: Innovation & Corporate Venture Capital
HOLDING VALUE ADD Innovation & Corporate Venture Capital 150 ideas in 2 years, 13 Investments in 10 companies (8 in 2022) 2 years, 500 alumni, 10 Launched in Sep’22, Company participants, 45 and deployed ~USD12mn in 3 countries Ideathon projects, 3 15 startups, 20 weeks projects, 75% MVP, 23% Led 20
Slide 48: Investing in Tech-based Start-ups via Sabancı Ventures
HOLDING VALUE ADD Investing in Tech-based Start-ups via Sabancı Ventures 2022 & 2023 Q1 2022 & 2023 Q1 Performance Investments # of Companies #1 local public and private cloud services company in Türkiye USD30Mn Initial Fund Size Preliminary screening Leading AI-powered virtual assistants for e-comm
Slide 49: Corporate Venture Capital Investments and Timeline
HOLDING VALUE ADD Corporate Venture Capital Investments Through Subsidiaries and Timeline Establishment of Invested in Invested in Invested in Sabancı Climate Tech Invested in Safar Partnership Sabancı Ventures Lumnion Zack.ai Albert Health Partners, CFS and Quasie Energy with ecoLocked April 2020 S
Slide 50: Leveraging Synergies Within Sabancı Ecosystem
HOLDING VALUE ADD Leveraging Synergies Within Sabancı Ecosystem Eşarj The first, fastest Stations Solar Power Plants and largest within the Group in E-charge station Cooperation with network in Türkiye Enerjisa Enerji Investment Plan: TL300mn in 2 years 75K m2 6,226 kWp 10,400 Ground Area Solar Prod
Slide 51: Leveraging Synergies Within Sabancı Ecosystem: Bancassurance
HOLDING VALUE ADD Leveraging Synergies Within Sabancı Ecosystem Strong Exclusive bancassurance agreement with Akbank Presence in all physical and digital channels Kordsa & collaboration in Cement Companies Bancassurance Joint vision in Effective Cooperation digital with Akbank governance model Banca
Slide 52: Total Income Package
HOLDING VALUE ADD Management Incentives Recognition, Appreciation Flexible Working Sabancı Group provides a range of and Supportive Practices Career Development Training Support benefits, recognition, appreciation, and Goldan Collar Awards supportive practices to employees that Recognition & Appreci
Slide 53: Management Incentives
HOLDING VALUE ADD Management Incentives Total Cash Distribution Model (%) Sample for a company general manager Short Term Net Sales Net Financial Debt (1-Year) Financial KPIs* EBITDA Working Capital Free Cash Flow Market Share Long Term (maximum) 125 Short Term , (1-Year) Non- Action against the cli
Slide 54: Mid-Term Guidance
08 /08 Mid-Term Guidance
Slide 55: Mid-Term Guidance Maintained
MID-TERM GUIDANCE Mid-Term Guidance Maintained Growth Capital Return Sustainability Mid-term targets* Dividend 42% Reduction in CPI + 8% 30%+ 5%-20% Revenue growth FX revenue as % of policy of net income Scope 1 & 2 emissions combined revenue (2) by 2030 Share Up to 5% of paid-in capital: Buyback 10
Slide 56: Appendix
APPENDIX
Slide 57: 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
Slide 58: 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 Hol
Slide 59: Overview of Corporate Structure
APPENDIX Overview of Corporate Structure BANKING & FINANCIAL ENERGY RETAIL BUILDING MATERIALS INDUSTRIALS DIGITAL 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 60: 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 own
Slide 61: Financials in detail
APPENDIX Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q1 2022 Q1 2023 Change Q1 2022 Q1 2023 Change Q1 2022 Q1 2023 Change TOTAL 70,652 124,448 76% 17,700 22,462 27% 5,598 6,580 18% BANK 23,064 47,575 106% 10,882 14,281 31% 3,282 4,602 40% NON-BANK 47,5
Slide 62: 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 63: Sabancı Holding Current NAV & Cash Breakdown
APPENDIX Sabancı Holding Current NAV & Cash Breakdown USDmn March 2023 December 2022 NAV Discount Value to Sabancı Value to Sabancı Companies Direct Stake Valuation Method Mcap % of NAV % of NAV Holding Holding Akbank 41% Market value 4,599 1,874 32.8% 2,216 33.0% March 2023 December 2022 December 2
Slide 64: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Kerem TEZCAN Investor Relations Director Meet SirA, Sabancı Holding's digital Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager investor relations assistant ! Hamza SÜMER Turkey’s First Investor Relations Investor Relations Specialist Dedicated Assistant ! Arda KAYMA
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