Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q1 2023 Earnings Presentation
29 slides from Haci Omer Sabanci Holding A.s's earnings presentation, May 9, 2023
Slide 1: Q1 2023 Earnings Presentation
MAY 9, 2023 Q1 2023 EARNINGS 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: Q1'23 Highlights
EARNINGS PRESENTATION Q1’23 Highlights Solid Results Amid Resilient Balance Sheet Improved ESG Performance Challenges & Uncertainties with Strong Liquidity 42% Topline* growth Net debt/EBITDA* Decrease in Scope 1 & 2 76% 0.4x emissions by 2030 EBITDA* growth 27% Consolidated Long FX position** USD31
Slide 4: Combined Financials
01 /05 Combined Financials
Slide 5: Despite global & local macroeconomic volatility with continued inflationary pressures…
COMBINED FINANCIALS Despite global & local macroeconomic volatility with continued inflationary pressures… Bloomberg Commodity & Energy Index (YoY Change) Wage Increase* (Minimum Wage, Gross) Bloomberg Commodity Index Bloomberg Energy Index 67% 68% 323 280 37% 33% 32% 28% 15% 201 2% 166 144 140 114
Slide 6: …a healthy growth achieved driven by our balanced portfolio & well-executed transformation strategy…
COMBINED FINANCIALS …a healthy growth achieved driven by our balanced portfolio & well-executed transformation strategy… Combined Revenue* (TL mn) Combined EBITDA* (TL mn) Consolidated Net Income* (TL mn) Non-bank Bank Non-bank Bank Non-Bank Bank +76% +27% 18% 124,448 22,462 6,580 47,575 +106% 5,598
Slide 7: …that led to a further improvement in ROE & strong cash generation…
COMBINED FINANCIALS …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 45.4% 9.5 9.0 17
Slide 8: …with a strong balance sheet to weather through volatility & capitalize on opportunities
COMBINED FINANCIALS …with a 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 2018 2019 2020 2
Slide 9: Combined Revenues / Topline growth driven by Banking & Energy segments
COMBINED FINANCIALS Combined Revenues / Topline growth driven by Banking & Energy segments Segments’ Contribution to Combined Revenues* (TL Mn) +76% Segment Annual 106% 46% 43% 117% 90% 112% 94% Revenue* Growth: Share in Q1’23 38% 32% 8% 6% 5% 5% 5% Combined Revenues*: *Holding dividend income is ex
Slide 10: Combined EBITDA / Strong contribution from Banking & Energy units
COMBINED FINANCIALS Combined EBITDA / Strong contribution from Banking & Energy units Segment’s Contribution to Combined EBITDA* (TL Mn) +27% Segment Annual 31% 13% -8% 192% 85% 239% -105% EBITDA* Growth: Share in Q1’23 64% 22% 6% 5% 2% 2% 0% Combined EBITDA*: *Excludes non operational , non recurri
Slide 11: Consolidated Net Income / Led by Banking & Energy businesses
COMBINED FINANCIALS Consolidated Net Income / Led by Banking & Energy businesses Segments’ Contribution to Consolidated Net Income*(TL Mn) +18% -185 -847 Segment Annual 40% 49% -33% 329% 42% -53% -140% Net Income* Growth: Share in Q1’23 70% 22% 6% 4% 2% 0% -4% Net Income*: *Excludes non operational
Slide 12: Stock Performance
02 /05 Stock Performance
Slide 13: Despite declining NAV discount amid solid growth in NAV in USD terms…
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 Last 10-
Slide 14: …SAHOL shares are trading at a material discount to its historical P/E multiple averages
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-22 Oc
Slide 15: Segment Financials
03 /05 Segment Financials
Slide 16: Energy / Strong profitability continued in generation business despite drought
SEGMENT FINANCIALS Energy / Strong profitability continued in generation business despite drought Energy Segment Summary Financials* MILLION TL Q1 2022 Q1 2023 Change Current Assessment SALES 27,332 39,877 46% EBITDA** 4,268 4,833 13% Distribution and Retail: Strong net income EBITDA** MARGIN 15.6%
Slide 17: Industrials / Lower margins on high base, weak demand & wage hikes exceeding TL depreciation
SEGMENT FINANCIALS Industrials / Lower margins on high base, weak demand & wage hikes exceeding TL depreciation Industrials Summary Financials* MILLION TL Q1 2022 Q1 2023 Change Current Assessment SALES 6,875 9,856 43% Global slowdown in tire reinforcement business EBITDA* 1,569 1,440 -8% EBITDA* MA
Slide 18: Building Materials / Almost five-fold net income growth on robust operating performance
SEGMENT FINANCIALS Building Materials/ Almost five-fold net income growth on robust operating performance Building Materials Summary Financials* MILLION TL Q1 2022 Q1 2023 Change Current Assessment SALES 3,490 6,648 90% Sales mix optimization EBITDA** 379 1,108 192% EBITDA** MARGIN 10.9% 16.7% Muted
Slide 19: Digital / Rapid top-line growth meeting with expectations
SEGMENT FINANCIALS Digital / Rapid top-line growth meeting with expectations Digital Summary Financials* MILLION TL Q1 2022 Q1 2023 Change Current Assessment SALES 3,242 7,027 117% Top line growth exceeding inflation EBITDA** 235 436 85% EBITDA** MARGIN 7.3% 6.2% Diversified revenue stream NET INCOM
Slide 20: Financial Services / Robust growth in top-line & technical profits
SEGMENT FINANCIALS Financial Services / Robust growth in top-line & technical profits Financial Services Summary Financials* MILLION TL Q1 2022 Q1 2023 Change Current Assessment SALES 3,157 6,699 112% EBITDA** 112 379 239% LIFE 206 261 27% Strong top line growth in both businesses NON-LIFE -94 118 N
Slide 21: Retail / Strong top-line growth despite earthquake impact
SEGMENT FINANCIALS Retail / Strong top-line growth despite earthquake impact Retail Summary Financials* Current Assessment MILLION TL Q1 2022 Q1 2023 Change SALES 3,203 6,575 105% Strong LFL revenue growth EBITDA** 205 301 47% EBITDA** MARGIN 6.4% 4.6% Against cost-side pressures, revenue growth sup
Slide 22: Bank / Strong momentum in customer acquisition & agile ALM
SEGMENT FINANCIALS Bank / Strong momentum in customer acquisition & agile ALM Bank Summary Financials Current Assessment MILLION TL Q1 2022 Q1 2023 Change Added 730K net active customers on top of 2.3mn REVENUE 23,064 47,575 106% gained in 2022 EBITDA 10,882 14,281 31% Accelerated momentum in custom
Slide 23: Guidance
04 /05 Guidance
Slide 24: Mid-Term Guidance Maintained
EARNING PRESENTATION 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
Slide 25: Q1'23 Highlights
EARNING PRESENTATION Q1’23 Highlights Solid set of results amid challenges and uncertainties Slowdown in net income growth on demand owing to its balanced portfolio and successfully normalization in Industrials segment, specifically executed transformation process originating from tire reinforcement
Slide 26: Appendix
05 /05 Appendix
Slide 27: 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 28: Sabancı Holding Discount to NAV & Cash
APPENDIX Sabancı Holding Discount to NAV & Cash 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 2021 En
Slide 29: For Further Details ir.sabanci.com
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 KAYMAZ Investor Relations Special
Hacı Ömer Sabancı Holding A.Ş. — Q1 2023 Earnings Presentation on 6ix