Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (August 2024)
50 slides from Haci Omer Sabanci Holding A.s's investor presentation, August 2024
Slide 1: Investor Presentation Group Strategy August 2024
AUGUST 2024 INVESTOR PRESENTATION GROUP STRATEGY
Slide 2: Disclaimer
INVESTOR PRESENTATION GROUP STRATEGY 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 thei
Slide 3: Corporate Structure
01 /08 Corporate Structure
Slide 4: Overview of Corporate Structure
CORPORATE STRUCTURE Overview of Corporate Structure Sabancı Family: 46.8% Free Float: 53.2% BANKING & FINANCIAL ENERGY & CLIMATE MATERIAL MOBILITY DIGITAL SERVICES TECHNOLOGIES TECHNOLOGIES SOLUTIONS TECHNOLOGIES OTHER % of NAV: 41% % of NAV: 31% % of NAV: 12% % of NAV: 5% % of NAV: 2% % of NAV: 5%
Slide 5: Financial Track Record
02 /07 Financial Track Record
Slide 6: Solid non-bank operational performance maintained with EBITDA margin expansion
FINANCIAL TRACK RECORD …solid non-bank operational performance maintained with EBITDA margin expansion Combined Revenue (TL mn) Combined EBITDA (TL mn) Consolidated Net Income (TL mn) Non-bank Bank Non-bank Bank Non-bank Bank 6% -17% 234,793 220,741 39,961 86,387 120,720 40% 33,307 -555 -2,059 27,76
Slide 7: ROE reflects inflation accounting, indebtedness remained below target
FINANCIAL TRACK RECORD ROE continues to reflect the impact of inflation accounting, indebtedness remained below target Return on Equity (ROE) Return on Equity (ROE) Combined Net Financial Debt to Non-Bank EBITDA (2) Excluding One-offs(1) Consolidated ROE Non-Bank ROE Bank ROE Consolidated ROE Non-Ba
Slide 8: Holding cash more than doubled
FINANCIAL TRACK RECORD Holding cash more than doubled Holding Only - Net cash position (TL bn) Operational Cash Flow, Combined for Non-Bank (1) (TL bn) 54.3 14.4 41.4 7.0 6.5 15.7 3.1 0.1 2022 2023 Q1 2023 Q1 2024 2022 2023 Q1 2023 Q1 2024 (1) Excludes Banking, net cash position of financial service
Slide 9: Sustainable dividend growth and effective capital allocation
FINANCIAL TRACK RECORD Sustainable dividend growth and effective capital allocation DPS (TL) Total Funds Allocated for Share Buyback (TL bn)(2) Non-Bank Capex/Sales Dividend Yield (%)(1) Funds Used Funds Remained 4.41 4.42 3.79 4.27 3.2 TL3.25bn 2.94 14% 11.3% 10.5% 10.3% 73% 8.3% 1.75 0.75 0.33 0.3
Slide 10: Capital Allocation
03 /07 Capital Allocation
Slide 11: Doubling CAPEX to accelerate 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 CT INV combined revenue : T E ES Strengthen our market leading p
Slide 12: 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 Agile global / local footprint Future-ready Digital & AI transformation Innovation for growth Sustainability for a better life
Slide 13: Continuing to deliver on strategic initiatives: 73% of investments to new economy
CAPITAL ALLOCATION Continuing to deliver on our strategic initiatives: 73% of investments to new economy Dynamic Portfolio Management Sale of Philsa & Network Optimization Extension of Share SBS US Grinding Acquisition of PMSA Shares in Building Materials Business Buyback Program Facility Investment
Slide 14: Sustainability
04 /07 Sustainability
Slide 15: Focusing on sustainable business across all sectors in our portfolio
SUSTAINABILITY Focusing on sustainable business across all sectors in our portfolio Building Materials 85% 100% of cement manufactured at CSC Gold certified plants of building materials companies are aligned with the SBTi 1.5-degree pathway Energy 3GW+ 1/3 1 st Renewables portfolio will reach 3 GW+
Slide 16: Most ambitious Sustainability Roadmap among Holding companies in Türkiye
SUSTAINABILITY Most ambitious Sustainability Roadmap among all Holding companies in Türkiye TL 800 bn Best ambition level in SBTi & TL 15 bn Nature 64% Akbank’s sustainable finance pledge & balance of In terms of % CO2 reduction, decarbonizing hard Increase in the number of companies in CDP mutual f
Slide 17: NAV & Stock Performance
05 /07 NAV & Stock Performance
Slide 18: Strong NAV growth with an attractive discount
NAV & STOCK PERFORMANCE Strong NAV growth with an attractive discount NAV (USD mn) & NAV Discount(1) NAV Bridge(1) 24% 10,836 8,750 Dec 2023 Jul 2024 -41.8% -52.1% 10.3 pp (1) Please refer to page 49 for the details of NAV.
Slide 19: A more balanced portfolio with increasing share of new economy
NAV & STOCK PERFORMANCE A more balanced portfolio with increasing share of new economy July 2024 NAV Breakdown Based on Independent Valuation for Unlisted Assets(1) Energy & Climate Technologies Material Technologies 32% & Mobility Solutions 18% Digital USD10.8bn Technologies 2% Other 4% Cash Bankin
Slide 20: Recent Acquisitions
06 /07 Recent Acquisitions
Slide 21: 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 Material Technologies & Mobility Solutions Digital Technologies Renewables Electrification Sustainable Telematics Chemicals loT 4.0 Cybersecurity Digital Marketing E-mobility Digita
Slide 22: Diversified energy portfolio throughout the value chain
RECENT ACQUISITIONS Diversified energy portfolio throughout the value chain 50% 50% Sabancı Holding E.ON Distribution & Retail Generation & Trade 40% 40% 20% Sabancı Holding E.ON Free Float 26 5 3.8 GW Power Plants Technologies Installed Capacity (5 GW in 2026) 14 6 Cities Metropoles 13.1 TWh 46.4%
Slide 23: Step towards +5,000 MW installed capacity target
RECENT ACQUISITIONS A significant step towards +5,000 MW installed capacity target has been taken Installed Generation Capacity Mix 1000 MW YEKA-2 Wind Power Plant Investment (USD1.2bn) ÇANAKKALE Currently 2026 250 MW BALIKESİR 46% 60% 250 MW Renewables(1) Renewables AYDIN 1,000MW Total Wind Power P
Slide 24: Time to leverage core capabilities in the Energy SBU and expand
RECENT ACQUISITIONS It is time to leverage core capabilities in the Energy SBU & expand the business to create higher value for all stakeholders We lead energy and climate transition by bridging the gap between emerging and developed markets Sabancı Climate Technologies, wholly owned subsidiary of S
Slide 25: US came to the fore as 2nd largest renewable energy market
RECENT ACQUISITIONS US 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 US is the 2nd largest renewable energy market following China. Solar Resource Potential Wind Resource Poten
Slide 26: Oriana and Cutlass II solar projects
RECENT ACQUISITIONS Sabancı Group’s generation capacity to reach 500 MW in the US once the 2nd project “Oriana Solar Power Plant” completed… Oriana Cutlass II 232 MW 272 MW Solar Power Plant Project Solar Power Plant Project With 60 MW Project Acquisition: October’22 Battery Storage EPC Agreement wi
Slide 27: A region offering opportunities for future growth
RECENT ACQUISITIONS …in a region that is offering a variety of opportunities for the future growth Market potential for proxy businesses in Texas West Close to the major load centers of Houston and Corpus Christi, anticipated centers of future green fuel investment, as well as the increasing LNG rel
Slide 28: Sabancı Climate Ventures creates extended innovation ecosystem
RECENT ACQUISITIONS Sabancı Climate Ventures creates extended innovation ecosystem & enables early access to disrupting technologies… Sabancı Climate Ventures is a necessity to Value Proposition to Start-Ups position for the future and not competing with Acceleration, piloting, and commercialization
Slide 29: Investments in climate technologies funds and start-ups
ENERGY & CLIMATE TECHNOLOGIES: SABANCI CLIMATE TECHNOLOGIES ….via the investments in climate technologies funds & investments directly to start-up companies Supporting ready-to-scale start-ups Invests in scalable early-stage climate Invested in a venture fund with a active in Europe or USA whose tec
Slide 30: Global Players in Mobility Market
RECENT ACQUISITIONS Global Players in Mobility Market Expansion in Composites Growth in New Mobility Solutions Microtex: Arvento: CT INV T E ES O PLA T PR ORE T Acquired by Kordsa Acquired by Brisa IN RMS TH & FO EC W NE GRO Deal Size: EUR24.6mn Deal Size: ~EUR22mn (1) W Product and geographic diver
Slide 31: 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, established in the Netherlands undertakes Sabancı Group's investments in digital businesses Cyber Security Digital Marketing CT INV T E ES R
Slide 32: Investing in Tech-based Start-ups via Sabancı Ventures
HOLDING VALUE ADD Investing in Tech-based Start-ups via Sabancı Ventures 2023 & 2024 Q1 2023 & 2024 Q1 Investments Performance Singapore-based developer of modular green # of Companies hydrogen technology & equipments USD30Mn Initial Fund Size Preliminary UK based client management software designed
Slide 33: Strategic Business Units
07 /07 Strategic Business Units
Slide 34: Akbank's bifocal strategy
STRATEGIC BUSINESS UNITS Akbank’s bifocal strategy Run the bank Crafting the future Strong customer acquisition Superior customer experience Effective asset liability management Advanced analytics & excellence in digital Risk & return focused sustainable sound growth ‘Open Banking’ initiatives Robus
Slide 35: ESG Strategy: Mitigate environmental footprint while increasing positive impact
STRATEGIC BUSINESS UNITS ESG Strategy: Mitigate environmental footprint while increasing positive impact Sustainable Finance Ecosystems Management Responsible Products & Services Digitalization Impact Investing Financial Inclusion To be the leading bank that drives Türkiye into the People & Communit
Slide 36: Energy SBU's Strategy House: Beyond Power
STRATEGIC BUSINESS UNITS Energy SBU’s Strategy House Beyond Power Green, Sustainable and Digital 01 PROTECT AND GROW THE CORE 02 TRANSFORM Renewable Generation Growth Renewable and New Energy Exploring New Fuel Additional Wind and Solar Projects Hybrid Projects Technologies Investment - Economics (H
Slide 37: Energy SBU's Strategy House: Preparing For a Sustainable Future
STRATEGIC BUSINESS UNITS Energy SBU’s Strategy House Preparing For a Sustainable Future With Valuable Competencies CURRENT FUTURE Well-positioned energy portfolio in a vertical way (generation, Sustained market leadership position through aggressive growth trading, distribution and retail) in core b
Slide 38: Material Technologies & Mobility Solutions SBU's Strategy House-1
STRATEGIC BUSINESS UNITS Material Technologies & Mobility Solutions SBU’s Strategy House-1 From Pure Cement to Building Materials From Local to Glocal, From Grey to Green TRANSFORM PROTECT AND GROW THE CORE New Growth and Diversification Sustainable Building Materials; Continuous Network Optimizatio
Slide 39: Material Technologies & Mobility Solutions SBU's Future Vision-1
STRATEGIC BUSINESS UNITS Material Technologies & Mobility Solutions SBU’s Future Vision-1 From Pure Cement to Building Materials From Local to Glocal, From Grey to Green CURRENT FUTURE 40% FX based revenue generation Higher FX based revenue generation 20% Revenue from international operations Higher
Slide 40: Material Technologies & Mobility Solutions SBU's Strategy House-2
STRATEGIC BUSINESS UNITS Material Technologies & Mobility Solutions SBU’s Strategy House-2 We unite Türkiye and the World for a sustainable life Grow into an Integrated Advanced Materials and Mobility Business PROTECT AND GROW THE CORE TRANSFORM Protect the core with Advanced Materials Delivering Pr
Slide 41: Material Technologies & Mobility Solutions SBU's Future Vision-2
STRATEGIC BUSINESS UNITS Material Technologies & Mobility Solutions SBU’s Future Vision-2 We unite Türkiye and the World for a sustainable life Grow into an Integrated Advanced Materials and Mobility Business CURRENT FUTURE Established, integrated mobility group from materials to digital services Eq
Slide 42: Financial Services SBU's Strategy House
STRATEGIC BUSINESS UNITS Financial Services SBU’s Strategy House To become the leading new generation financial services provider PROTECT AND GROW THE CORE GROW INTO ADJACENCIES Act as a multi-line insurer with Aksigorta & AgeSA Achieve commercial excellence Greenfield health insurance company inves
Slide 43: Financial Services SBU's Future Vision
STRATEGIC BUSINESS UNITS Financial Services SBU’s Future Vision Smart and Sustainable Growth in Financial Services CURRENT FUTURE Competitive Market Positioning; Core; Leading position in Pension AUM among private companies since 2015 Profitable growth with balanced portfolio & strengthened balance
Slide 44: Digital Investments to Untapped Potential
STRATEGIC BUSINESS UNITS Digital Investments to Untapped Potential Digital Accelerators DxBV Invest in rapidly growing digital businesses A Digital Ce Retail Platform With Physical and expand beyond Türkiye Presence & Human Touch Consumer MarTech Cyber Security Cloud & Digital Business Business Busi
Slide 45: Appendix
APPENDIX
Slide 46: Dividend Performance
APPENDIX Dividend Performance TLmn 2020 2021 2022 2023 2024 Akbank - 255 494 3,666 4,063 Akçansa 18 42 36 99 457 Aksigorta 73 110 - - - Agesa 64 64 - 60 120 Brisa 12 107 270 479 452 Carrefoursa - - - - - Çimsa - - 109 218 545 Kordsa 35 - 114 41 - Teknosa - - - - - Enerjisa Enerji 283 454 586 1,087 1
Slide 47: Financials in detail
APPENDIX Financials in detail Combined Revenue Combined EBITDA Consolidated Net Income MILLION TL Q1 2023 Q1 2024 Change Q1 2023 Q1 2024 Change Q1 2023 Q1 2024 Change TOTAL 220,741 234,793 6.4% 39,961 33,307 -17% -2,357 -5,366 -127.7% BANK 86,387 120,720 39.7% 27,763 21,495 -23% -1,801 -3,307 -83.6%
Slide 48: Sabancı Holding Current NAV & Cash Breakdown
APPENDIX Sabancı Holding Current NAV & Cash Breakdown USDmn July 2024 December 2023 Value to Sabancı Value to Sabancı Companies Free Float Direct Stake Valuation Method Mcap Holding % of NAV Holding % of NAV Akbank 53% 41% Market value 9,729 3,965 39.8% 2,629 33.2% Enerjisa Enerji 20% 40% Market val
Slide 49: Sabancı Holding NAV After Independent Valuation Reports
APPENDIX Sabancı Holding NAV After Independent Valuation Reports USDmn July 2024 Companies Free Float Direct Stake Valuation Method Mcap Value to Sabancı Holding % of NAV Akbank 53% 41% Market value 9,729 3,965 36.6% Enerjisa Enerji 20% 40% Market value 2,412 965 8.9% Aksigorta 28% 36% Market value
Slide 50: Investor Relations Contacts
Meet SirA, Sabancı Holding's digital INVESTOR RELATIONS CONTACTS investor relations assistant ! Kerem TEZCAN Investor Relations Director Türkiye’s First Investor Relations Dedicated Assistant ! Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager ir.sabanci.com Sezgi ESER AYHAN Investor Relations
Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (August 2024) on 6ix