Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — FY2013 Earnings Presentation
42 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2014
Slide 1: 2013 Annual Consolidated Financial Results
2013 Annual Consolidated Financial Results 1
Slide 2: Disclaimer Statement
Disclaimer Statement 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
Slide 3: Reporting Changes in Q4 2013
Reporting Changes in Q4 2013 • After CMB’s revision in the reporting standards effective from Q2 2013, financial income and expense items related to operations are included in operating income. • Since this classification deviates from the IFRS and EBITDA disclosure is optional in CMB reporting, the
Slide 4: Turkey Macro Outlook Update-Q4 2013
Turkey Macro Outlook Update-Q4 2013 • Steady growth in private demand • Moderate growth in the overall economy. • Continued increase in private consumption spending at a more moderate rate. • Weakening outlook in private investment • Negative contribution of net exports to growth • Import volume gre
Slide 5: 2013 – 2014 Expectations
2013 – 2014 Expectations 2012 2013(E) 2014(B) 2014(E) GDP Growth,% 2.2 4.0 3.5 2.0 Consumer Inflation (%), annual 6.16 7.4 7.5 8.6 USD/TL, year end 1.78 2.13 2.21 2.40 Moderation in Growth 5
Slide 6: 2013 Highlights
2013 Highlights • Finalization of partnership with E.ON in SONRA the energy business • Acquisition of Ayedas and Toroslar electricity distribution regions • Acquisition of controlling shares in Carrefoursa and taking over management • Sale of Diasa • Completion of the sale of Olmuksa • Restructuring
Slide 7: 2014 Priorities
2014 Priorities • Restructuring of Ayedas & Toroslar SONRA Regions • Completion of 4 Hydro electric power plants with an installed capacity of 440 MW. • Turnaround of Carrefoursa • Working towards the crystallization of value through IPOs • Further transactions in our underperforming companies • Rea
Slide 8: 2012 – 2013 Non-Bank Net Income Variance
2012 – 2013 Non-Bank Net Income Variance -125 189 -17 -52 -90 Opportunity Cost Ayedas and Toroslar -82 Effect 489 402 2012 YE Net Income Operational FX Interest Tax and Other Ayedaş ve Toroslar Effect 2013 YE Net Income As a result of the acquisition of Ayedas and Toroslar distribution regions by En
Slide 9: Non-Operational and Non-Recurring Items
Non-Operational and Non-Recurring Items 2012 2013 2012 Q4 2013 Q4 NET INCOME EXCLUDING NON OPERATIONAL & NON RECURRING ITEMS* 1.747 1.840 544 312 Akbank Turkish Competition Board Penalty -53 Income from Akbank NPL sale 19 Aksigorta gain on asset sale 26 Service Income arising from Enerjisa partner c
Slide 10: ROE
ROE 2011 2012 2013 ROE ROE (%) ROE (%) (%) Brisa 16 20 27 Teknosa 29 30 26 Yünsa 25 11 23 Temsa 12 -7 20 Çimsa 17 17 18 Akçansa 14 15 18 Aksigorta 9 11 17 Akbank 13 14 14 Sabanci Holding 11,5 11,6 11,1* Consolidated Kordsa Global 10 5 4 Sasa 25 -12 3 Enerjisa** -3 5 -5 Carrefoursa -1 -1 -1 Olmuksa 8
Slide 11: Sabancı Holding 2013 Stand Alone Financials
Sabancı Holding 2013 Stand Alone Financials INCOME STATEMENT(MTL) NET SALES 645 OPERATIONAL EXPENSES & FINANCING & OTHER 47 EXTRAORDINARY ITEMS - CORPORATE TRANSACTIONS 66 TAX AND OTHER PROVISIONS (14) NET PROFIT/LOSS 743 CASH FLOW (MTL) DIVIDENDS RECEIVED - BANK 232 DIVIDENDS RECEIVED - NON BANK 40
Slide 12: Results Snapshot
Results Snapshot 7.468 Nonbank 6.395 Robust EBITDA 4.570 Bank growth in Non- EBITDA* 4.033 Bank segment in 1.836 1.506 (Million TL) Q4. 2.362 2.897 1.448 977 388 529 Non-Bank 2012 2013 2012 Q4 2013 Q4 Growth in Q4: 36% Bottom line affected by: 1.747 1.840 • Dilutive Effect of Net Income** Ayedas & T
Slide 13: Non-bank Results-2013
Non-bank Results-2013 2012 2013 2012 Q4 2013 Q4 CONSOLIDATED NET INCOME (MTL) 490 402 89 3 INSURANCE 40 68 11 15 RETAIL 3 - 0 0 10 CEMENT 100 124 25 33 ENERGY 95 - 149 0 - 119 INDUSTRIALS 264 324 41 81 OTHER -12 34 11 - 16 Strong bottom-line growth in all segments excluding energy which was affected
Slide 14: FX Position
FX Position Million Euro NET FX POSITION (excl. bank) Dec 31, 2012 Dec 31, 2013 SEGMENT TOTALS ENERGY* (494) (420) INDUSTRY (5) 41 CEMENT 5 4 RETAIL (3) (5) HOLDING,INSURANCE&OTHER 288 20 TOTAL CONSOLIDATED (209) (360) * Capitalized borrowings of Energy segment amounting to 497 M Euro and other FX a
Slide 15: Energy
Energy TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 2013 % Change 2012 2013 % Change SALES 4.572 6.698 46% - - - EBITDA* 502 688 37% 95 (149) N.M NET INCOME* 191 (299) N.M 95 (149) N.M EBITDA MARGIN 11,0% 10,3% TOTAL BEFORE CONSOLIDATION C
Slide 16: Enerjisa Excluding Acquisition Impact
Enerjisa Excluding Acquisition Impact TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 2013 ** % Change 2012 2013 ** % Change SALES 4.572 5.130 12% - - - EBITDA* 502 696 39% 95 (68) N.M NET INCOME* 191 (135) N.M 95 (68) N.M EBITDA MARGIN 11,0%
Slide 17: Enerjisa
Enerjisa Electricity demand growth was stronger in the fourth quarter due to base effect. 2013 FY Demand Growth:1,4% 2013 Q4 Demand Growth:5,3% Colder weather conditions Low water inflow. 17
Slide 18: Enerjisa Projects
Enerjisa Projects Incir Hydro 168 MW Alpaslan II Hydro 280 MW COD’s accomplished in Tufanbeyli Lignite 450 MW Pervari Hydro 400 MW 2013 Doğançay Hydro 62 MW Wind Wind 100 MW Köprü Hydro 156 MW BARES-ext Wind 30 MW Solar Solar 40 MW Dağdelen Hydro 8 MW Dağpazarı-ext Wind 21 MW Çambaşı Hydro 45 MW Ban
Slide 19: Power Plants Completed in 2013
Power Plants Completed in 2013 KUŞAKLI KÖPRÜ SARIGÜZEL BARES Installed Capacity: 20 MW Installed Capacity: 156 MW Installed Capacity: 103 MW Installed Capacity: 143 MW COD Date: September 2013 COD Date: April 2013 COD Date: September 2013 COD Date: March 2013 KANDİL DAĞDELEN ÇAMBAŞI Installed Capaci
Slide 20: Enerjisa Balance Sheet
Enerjisa Balance Sheet TOTAL BEFORE CONSOLIDATION ADJUSTMENTS MILLION TL 2012 YE 2013 YE % Change CASH AND CASH EQUIVALENTS 348 865 148% TRADE RECEIVABLES 584 1.749 199% OTHER CURRENT ASSETS 270 743 175% TOTAL CURRENT ASSETS 1.203 3.357 179% PROPERTY, PLANT AND EQUIPMENT 6.035 8.524 41% INTANGIBLE A
Slide 21: Enerjisa Leverage
Enerjisa Leverage Enerjisa Loans Original Currency Total TL Equivalent Million TL EUR Generation 228 1.902 5.813 Distribution 5.239 92 5.509 Total 5.467 1.994 11.322 Original Currency Total TL Million TL EUR Equivalent Fixed 1.360 1.083 4.539 Floating 578 912 3.255 Inflation Indexed 3.528 3.528 Tota
Slide 22: Enerjisa Key Value Dates and Equity Injections
Enerjisa Key Value Dates and Equity Injections M EUR E.ON Verbund Asset Swap Valuation 1.500 (Verbund Disclosure in April 2013) Additional Cash Component 441 (Verbund Disclosure in April 2013) Capital Increase for Generation 93 (June and July 2013) Capital Increase for Distribution 440 (July and Sep
Slide 23: Baskent Distribution/Retail Region
Baskent Distribution/Retail Region During the last five years: • The consolidated EBITDA of the Baskent distribution/retail region increased significantly. • 257 MTL of acquisition debt has been paid. At the same time; • Allowed Theft Loss Rate dropping from 9.49% in 2008 to 7.88% in 2013. Strong ca
Slide 24: Retail
Retail TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 2013 % Change 2012 2013 % Change SALES 4.879 5.558 14% 2.330 4.357 87% EBITDA* 185 177 -4% 117 171 46% NET INCOME** (22) (31) N.M 3 (0) N.M EBITDA MARGIN 3,8% 3,2% 5,0% 3,9% MILLION TL 20
Slide 25: Carrefoursa
Carrefoursa TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 2013 % Change 2012 2013 % Change SALES 2.550 2.601 2% - 1.404 N.M EBITDA* 64 69 8% -2 50 N.M NET INCOME** -5 -9 N.M -2 -3 N.M EBITDA MARGIN 2,5% 2,7% N.M N.M. 2012 Q4 2013 Q4 % Chang
Slide 26: Carrefoursa
Carrefoursa 28 Hypermarkets, 216 Supermarkets, 10 Shopping Malls Present in 38 cities; served by 6 distribution centers 368k m2 of net sales area, 159k m2 of GLA in malls Extension of Maltepe Park Shopping Mall is completed on September 2013: ~60M € total investment Biggest mall in Istanbul Asia sid
Slide 27: Carrefoursa Format Differentiation
Carrefoursa Format Differentiation New Store Formats 100 new stores expected to be opened in 2014 First CarrefourSA Mini opened in Şile 27 in January, 2014
Slide 28: Cement
Cement TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 2013 % Change 2012 2013 % Change SALES 1.913 2.156 13% 857 954 11% EBITDA* 412 487 18% 243 280 15% NET INCOME* 225 285 27% 100 124 25% EBITDA MARGIN 21,5% 22,6% 28,4% 29,3% MILLION TL 201
Slide 29: Insurance
Insurance TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 2013 % Change 2012 2013 % Change SALES 1.509 1.759 17% - - - EBITDA* 95 185 94% 40 68 73% NET INCOME* 93 166 79% 40 68 73% EBITDA MARGIN 6,3% 10,5% 2012 Q4 2013 Q4 % Change 2012 Q4 201
Slide 30: Industrials – Key Takeaways
Industrials – Key Takeaways • Recovery in Developed Markets • Low Raw Material Prices • Improved Performance in all Temsa Companies after restructuring • New segments and geographies targeted • Yünsa: Shift to the A segment continued • Temsa: New coach model & sales to the US • Depreciation of TL su
Slide 31: Industrials
Industrials TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 2013 % Change 2012 2013 % Change SALES (NET) 5.254 5.671 8% 3.826 4.177 9% EBITDA* 666 770 16% 501 574 15% NET INCOME* 334 445 33% 264 324 23% EBITDA MARGIN 12,7% 13,6% 13,1% 13,7% M
Slide 32: Kordsa Global
Kordsa Global TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q4'12 Q1'13 Q2'13 Q3'13 Q4'13 2012 2013 SALES 339 357 378 405 406 1.492 1.546 EBITDA 15 21 28 44 38 167 131 NET INCOME -6 0,4 1,3 15 22 64 39 EBITDA MARGIN 4,5% 5,8% 7,4% 10,9% 9,4% 11,2% 8,5% CONTRIBUTION TO CONSOLIDATED FIN
Slide 33: Brisa
Brisa TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 2012 2013 % Change 2012 2013 % Change SALES 1.424 1.489 5% - - N.M EBITDA 209 263 26% 41 63 55% NET INCOME 93 144 55% 41 63 55% EBITDA MARGIN 14,7% 17,7% 2012 Q4 2013 Q4 % Change 2012 Q4 2013 Q
Slide 34: Yünsa
Yünsa TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 2013 % Change 2012 2013 % Change SALES 256 270 6% 256 270 6% EBITDA 21 34 60% 21 34 60% NET INCOME 7 16 109% 4 9 109% EBITDA MARGIN 8,3% 12,6% 8,3% 12,6% 2012 Q4 2013 Q4 % Change 2012 Q4 2
Slide 35: Sasa
Sasa TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 2013 % Change 2012 2013 % Change SALES 1.000 1.090 9% 1.000 1.090 9% EBITDA 13 41 206% 13 41 206% NET INCOME -31 6 N.M -16 3 N.M EBITDA MARGIN 1,3% 3,7% 1,3% 3,7% 2012 Q4 2013 Q4 % Change 2
Slide 36: Temsa
Temsa BUS 2012 2013 % AUTOMOTIVE 2012 2013 % SALES 446 544 22% SALES 293 319 9% EBITDA* 21 36 70% EBITDA 13 16 23% NET INCOME* - 39 6 N.M NET INCOME 10 8 -26% EBITDA MARGIN 4,8% 6,7% EBITDA MARGIN 4,5% 5,0% CONS. EQUIP. 2012 2013 % SALES 344 413 20% EBITDA 21 29 39% NET INCOME 12 23 94% EBITDA MARGI
Slide 37: Net Sales
Net Sales TOTAL BEFORE CONSOLIDATION TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) ADJUSTMENTS (COMBINED) MILLION TL 2012 2013 % Change Q4 2012 Q4 2013 % Change TOTAL 32.773 37.200 14% 8.633 10.203 18% BANK 14.009 14.615 4% 3.861 3.651 -5% NON-BANK 18.764 22.585 20% 4.772 6.552 37% ENERGY 4.572
Slide 38: EBITDA (Excluding Non Operational Items)
EBITDA (EXCLUDING NON OPERATIONAL ITEMS) TOTAL BEFORE CONSOLIDATION TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) ADJUSTMENTS (COMBINED) MILLION TL 2012 2013 % Change Q4 2012 Q4 2013 % Change TOTAL 6.395 7.468 17% 1.836 1.506 -18% BANK 4.033 4.570 13% 1.448 977 -33% NON-BANK 2.362 2.897 23% 388
Slide 39: Organic Growth / Investments (Million TL)
Organic Growth / Investments (Million TL) %33 3.782 2.841 2012 2013 Our investments are accelarating 2012 2013 4% 1% 7% 5% 7% Bank 8% Insurance 14% 4% Industrials 6% Cement Energy 68% Retail 75% Other 39
Slide 40: Upcoming IR Events
Upcoming IR Events • Cement Day : April 2014 • Industrials Day: May 2014 • Retail Day: November 2014 • Energy Day: TBD 40
Slide 41: Key Takeaways
Key Takeaways • Delivering promises on corporate transactions • Short term net income diluted due to Sabancı Holding’s largest acquisition in its history • Focus on execution in 2014 41
Slide 42: Q&A
Q&A 42
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