Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q2 2015 Earnings Presentation
40 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2015
Slide 1: 2015 Second Quarter Earnings Presentation
1 2015 Second Quarter Earnings Presentation
Slide 2: Disclaimer Statement
Disclaimer Statement 2 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
Slide 3: 2015 Expectations
2015 Expectations 3 2015(E) GDP Growth, (%) 2.5 Increase in CPI(%) 7.5-8.0 CA Deficit/GDP, (%) 5.7 Moderate growth expectations sustained in 2015
Slide 4: 2015 - Recent Developments
2015 - Recent Developments 4 Energy • Continued normalization of hydrology • Effective management of debt/ fx via forward contracts • Kordsa free float increased to 29%. Industrials • SASA divestment completed. • Acquisition of Kiler and local chains Retail • Merger of Carrefoursa «CARFA» and «CARFB
Slide 5: Non-Operational and Non-Recurring Items
Non-Operational and Non-Recurring Items 5 Q2 2014 Q2 2015 H1 2014 H1 2015 NET INCOME EXCLUDING NON OPERATIONAL & NON RECURRING ITEMS 535 453 932 981 Gain on Share Sale of SASA 0 108 0 108 Carrefoursa gain on asset sale;SAP transition;litigation resolution 0 1 2 57 Enerjisa gain on asset sale 0 0 0 5
Slide 6: Net Sales
Net Sales 6 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2014 Q2 2015 % Change H1 2014 H1 2015 % Change TOTAL 11.081 11.407 3% 21.975 23.229 6% BANK 4.530 4.640 2% 8.362 8.898 6% NON-BANK 6.551 6.767 3% 13.613 14.331 5% ENERGY 2.615 2.641 1% 5.251 5.680 8% CEMENT 697 740 6% 1.247
Slide 7: EBITDA (Excluding Non Operational Items)
EBITDA (Excluding Non Operational Items) 7 MILLION TL Q2 2014 Q2 2015 % Change H1 2014 H1 2015 % Change TOTAL 1.850 1.984 7% 4.095 4.725 15% BANK 1.179 1.000 -15% 2.075 2.073 0% NON-BANK 670 984 47% 2.020 2.652 31% ENERGY 218 449 107% 458 901 97% CEMENT 210 251 20% 352 390 11% RETAIL 42 24 -44% 80 5
Slide 8: Results Snapshot
Results Snapshot 8 4.725 4.095 o Strong operating performance of 1.850 1.984 2.020 2.652 Energy, both in generation and COMBINED 31% EBITDA* 47% distribution 670 984 o Strong growth delivered in all non- (MILLION TL) 2.075 2.073 1.179 1.000 bank segments excluding retail Q2 2014 Q2 2015 H1 2014 H1 2
Slide 9: Non-bank Results- Q2 2015
Non-bank Results- Q2 2015 9 MILLION TL Q2 2014 Q2 2015 % Change H1 2014 H1 2015 % Change CONSOLIDATED NET INCOME* 168 148 -12% 290 347 20% ENERGY 24 -23 N.M -12 69 N.M CEMENT 58 75 30% 96 116 21% RETAIL -6 -18 N.M -9 -23 N.M INSURANCE 10 16 62% 34 28 -16% INDUSTRIALS 91 93 2% 210 171 -19% INDUSTRIAL
Slide 10: Segment Assessment
Segment Assessment 10 Current Assessment Critical to Watch Energy − FX and Interest Rate Volatility − FX and Interest Rate Volatility − Forward prices indicate lower than 2014 levels Generation − Use of renewable tariff (YEKDEM) − Reservoir levels are decent, hydro generation continue to be prominen
Slide 11: Energy
Energy 11 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2014 Q2 2015 % Change Q2 2014 Q2 2015 % Change SALES 2.615 2.641 1% - - N.M EBITDA* 218 449 107% 24 -23 N.M NET INCOME* 48 -47 N.M 24 -23 N.M NET INCOME* - Adjusted for comparison -15 23
Slide 12: Energy – Renewable Energy Support Mechanism
Energy – Renewable Energy Support Mechanism 12 Renewable Energy Support Mechanism in Turkish Electricity Pricing Market : YEKDEM Feed in tariffs for plants using the renewable resources: The capacity utilizing the Feed-in-Tariff in Enerjisa Generation is currently 265 MW (2016 E: 1,501 MW – 100% o
Slide 13: Energy – Generation Business
Energy – Generation Business 13 MILLION TL Q2 2014 Q2 2015 % Change SALES 776 771 -1% EBITDA 94 293 211% EBITDA MARGIN 12,1% 38,0% MILLION TL H1 2014 H1 2015 % Change SALES 1.447 1.462 1% EBITDA* 221 485 119% EBITDA MARGIN 15,3% 33,2% Profitability sustained despite low market prices thanks to optim
Slide 14: Enerjisa
Enerjisa 14 Average Temperatures Water Inflow - Turkey Demand (TWh) Average Spot Market Electricity Price (TL/MWh) -28% 156 112 Q2 2014 Q2 2015
Slide 15: Energy – Distribution Business
Energy – Distribution Business 15 MILLION TL Q2 2014 Q2 2015 % Change SALES 466 567 22% EBITDA* 69 136 98% EBITDA MARGIN 14,7% 24,0% MILLION TL H1 2014 H1 2015 % Change SALES 963 1.134 18% EBITDA* 145 251 73% EBITDA MARGIN 15,0% 22,1% Normalization of Toroslar Allowed Theft and Loss rate helped marg
Slide 16: Energy – Retail Business
Energy – Retail Business 16 MILLION TL Q2 2014 Q2 2015 % Change SALES 2.204 2.456 11% EBITDA 55 43 -22% EBITDA MARGIN 2,5% 1,7% MILLION TL H1 2014 H1 2015 % Change SALES 4.539 5.329 17% EBITDA 94 167 78% EBITDA MARGIN 2,1% 3,1% YEKDEM* costs supressed profitability in Q2 in spite of improved collect
Slide 17: Enerjisa Balance Sheet
Enerjisa Balance Sheet 17 MILLION TL 2014 YE 2015 H1 % Change Cash 209 1.108 431% Trade Receivables 1.753 2.017 15% Other Current Assets 1.049 720 -31% TOTAL CURRENT ASSETS 3.011 3.845 28% Fixed Assets 15.620 16.247 4% Other Non Current Assets 5.645 6.008 6% TOTAL NONCURRENT ASSETS 21.265 22.256 5%
Slide 18: ENERJİSA Financing Cost Drivers
ENERJİSA Financing Cost Drivers 18 Q2 2014 Q2 2015 H1 2014 H1 2015 Operational FX Gain/Loss & Net Interest Expense (Net) 1 7 4 40 Interest Expense (Net) -152 -208 -418 -362 FX Gain/Loss 107 -93 42 -101 Total Financial Expenses -44 -294 -371 -423 FX and interest rates rebounded in Q2. Enerjisa proact
Slide 19: Enerjisa Leverage
Enerjisa Leverage 19 Enerjisa Loans* Original Currency Total TL Million TL EUR Equivalent Generation 674 2.025 6.713 Distribution 5.849 86 6.106 Total 6.523 2.111 12.819 Original Currency Total TL Million TL EUR Equivalent Fixed 3.607 950 6.440 Floating 774 1.161 4.237 PPI Indexed 2.142 - 2.142 Tota
Slide 20: Segment Assessment
Segment Assessment 20 Current Assessment Critical to Watch − Construction permits − Stable volume − Start-up / Pace of infrastructure projects Cement − Lower cost driven by low freight cost − Availability/Cost of funding i.e. interest rates
Slide 21: Cement
Cement 21 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2014 Q2 2015 % Change Q2 2014 Q2 2015 % Change SALES 697 740 6% 310 329 6% EBITDA 210 251 20% 123 154 25% NET INCOME 129 171 32% 58 75 30% EBITDA MARGIN 30,1% 33,9% MILLION TL H1 2014 H1
Slide 22: Cement
Cement 22 Source: TÇMB 2015 was off to a slow start in, but Q2 quantities were strong
Slide 23: Segment Assessment
Segment Assessment 23 Current Assessment Critical to Watch − Subdued consumer spending especially in − Consumer spending Retail discretionary items (excluding automotive) − Integration of Kiler acquisition
Slide 24: Retail
Retail 24 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2014 Q2 2015 % Change Q2 2014 Q2 2015 % Change SALES 1.476 1.584 7% 1.474 1.583 7% EBITDA* 42 24 -44% 42 24 -44% NET INCOME* -11 -33 N.M -6 -18 N.M EBITDA MARGIN 2,9% 1,5% MILLION TL H1
Slide 25: Carrefoursa
Carrefoursa 25 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2014 Q2 2015 % Change Q2 2014 Q2 2015 % Change SALES 768 861 12% 768 861 12% EBITDA* 32 13 -60% 32 13 -60% NET INCOME* 0 -22 N.M 0 -11 N.M EBITDA MARGIN 4,2% 1,5% MILLION TL H1 2014
Slide 26: Carrefoursa – Potential Synergies Through Kiler acquisition
Carrefoursa – Potential Synergies Through Kiler acquisition 26 Carrefoursa Stores 27 Hyper 424 Super* 190 Kiler • Complementary store locations: Kiler stores concentrated in Central Turkey, especially Ankara • Common warehouses • Economies of scale through centralized purchasing • Higher availabilit
Slide 27: Segment Assessment
Segment Assessment 27 Current Assessment Critical to Watch − Loan growth − Claims Management − Sustained high growth in pension Insurance − Implementation of new commission − Low loan growth driving bancassurance scheme in pension − Cost Productivity
Slide 28: Insurance
Insurance 28 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2014 Q2 2015 % Change Q2 2014 Q2 2015 % Change SALES 550 499 -9% 0 0 N.M EBITDA 17 32 86% 10 16 62% NET INCOME 18 42 128% 10 16 62% EBITDA MARGIN 3,1% 6,4% MILLION TL H1 2014 H1 2015
Slide 29: Avivasa
Avivasa 29 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2014 Q2 2015 % Change Q2 2014 Q2 2015 % Change SALES 75 70 -6% - - N.M EBITDA 24 21 -10% 13 11 -12% NET INCOME 26 27 6% 13 11 -12% EBITDA MARGIN 31,7% 30,4% MILLION TL H1 2014 H1 2015 %
Slide 30: Avivasa - Key Metrics in Pension
Avivasa - Key Metrics in Pension 30 Assets Under Management (MTL) Net Contributions (MTL) 35% 8.118 7.130 6.001 5.019 4.049 2.957 1.156 54% 859 612 462 404 263 2011 2012 2013 2014 H1 H1 2011 2012 2013 2014 Q2 2014 Q2 2015 2014 2015 Robust growth in pensions maintained
Slide 31: Aksigorta
Aksigorta 31 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2014 Q2 2015 % Change Q2 2014 Q2 2015 % Change SALES 475 429 -10% - - N.M EBITDA -7 11 N.M - 3 5 N.M NET INCOME -7 14 N.M - 3 5 N.M EBITDA MARGIN -1,4% 2,5% MILLION TL H1 2014 H1 2015
Slide 32: Segment Assessment
Segment Assessment 32 Current Assessment Critical to Watch − Improvement in Euroland demand − Pricing − Increasing strength of Euroland based competition Industrials − Commodity prices − Low raw material prices − Sustained Euroland recovery − Robust automotive market
Slide 33: Industrials
Industrials 33 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2014 Q2 2015 % Change Q2 2014 Q2 2015 % Change SALES 1.184 1.279 8% 785 845 8% EBITDA 190 248 30% 133 185 39% NET INCOME* 133 143 7% 91 93 2% NET INCOME* - Adjusted for comparison 1
Slide 34: Brisa
Brisa 34 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2014 Q2 2015 % Change Q2 2014 Q2 2015 % Change SALES 399 434 9% - - N.M EBITDA 71 78 10% 14 15 11% NET INCOME 31 34 11% 14 15 11% EBITDA MARGIN 17,7% 18,0% MILLION TL H1 2014 H1 2015 % Ch
Slide 35: Kordsa Global
Kordsa Global 35 CONTRIBUTION TO STANDALONE FINANCIALS CONSOLIDATED FINANCIALS MILLION TL Q2 2014 Q2 2015 % Change Q2 2014 Q2 2015 % Change SALES 429 458 7% 429 458 7% EBITDA 45 61 35% 45 61 35% NET INCOME* 19 30 57% 13 20 55% EBITDA MARGIN 10,6% 13,3% MILLION TL H1 2014 H1 2015 % Change H1 2014 H1
Slide 36: Temsa
Temsa 36 TEMSA BUS CONTRIBUTION TO SABANCI STAND ALONE FINANCIALS HOLDING CONSOLIDATED MILLION TL H1 2014 H1 2015 % Change H1 2014 H1 2015 % Change SALES 385 363 -6% 385 363 -6% EBITDA* 41 55 32% 41 55 32% NET INCOME* 39 33 -15% 19 16 -15% EBITDA MARGIN 10,7% 15,0% TEMSA CONSTRUCTION EQUIPMENT MILLI
Slide 37: FX Position and Leverage
FX Position and Leverage 37 MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2014 JUN 30, 2015 ENERGY* -346 -234 INDUSTRIALS 8 4 CEMENT 2 10 RETAIL 0 6 HOLDING, INSURANCE & OTHER 22 136 TOTAL CONSOLIDATED FX POSITION AFFECTING PL -314 -78 *Capitalized borrowings of Energy segment am
Slide 38: NON-BANK COMBINED RESULTS
NON-BANK COMBINED RESULTS 38 MILLION TL Q2 2014 Q2 2015 % Change H1 2014 H1 2015 % Change SALES 2.615 2.641 1% 5.251 5.680 8% ENERGY EBITDA 218 449 107% 458 901 97% SALES 697 740 6% 1.247 1.274 2% CEMENT EBITDA 210 251 20% 352 390 11% SALES 1.476 1.584 7% 2.855 3.029 6% RETAIL EBITDA 42 24 -44% 80 5
Slide 39: 2015 GUIDANCE
2015 GUIDANCE 39 2015 Previous 2015 Current Growth Growth MILLION TL Guidance Guidance SABANCI HOLDING SALES 5 - 10% 5 - 10% COMBINED NON-BANK EBITDA 15 - 25% 20 - 30% SALES 5 - 15% 5 - 15% INDUSTRIALS EBITDA 5 - 15% 5 - 15% SALES 0 - 5% 5 - 10% ENERGY EBITDA 20 - 30% 40 - 60%
Slide 40: Q&A
Q&A OQBANcI
Hacı Ömer Sabancı Holding A.Ş. — Q2 2015 Earnings Presentation on 6ix