Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q1 2015 Earnings Presentation
32 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2015
Slide 1: 2015 First Quarter Earnings Presentation
1 2015 First 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, (%) 3.0 Increase in CPI(%) 7.5-8.0 CA Deficit/GDP, (%) 5.0 Moderate growth expectations sustained in 2015
Slide 4: 2015 - Recent Developments
2015 - Recent Developments 4 • Hydrology normalized in 2015. Energy • Favorable financing conditions. • SASA divestment completed. Industrials • Kordsa transaction postponed. • Supermarket acquisitions by Carrefoursa Retail • Real Estate transactions in Carrefoursa • Capital increase in Afyon Cement
Slide 5: Net Sales
Net Sales 5 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q1 2014 Q1 2015 % Change TOTAL 10.894 11.823 9% BANK 3.832 4.258 11% NON-BANK 7.062 7.564 7% ENERGY 2.636 3.039 15% CEMENT 550 534 -3% RETAIL 1.380 1.444 5% INSURANCE 533 513 -4% INDUSTRIALS 1.299 1.157 -11% INDUSTRIALS-Adjuste
Slide 6: EBITDA (Excluding Non Operational Items)
EBITDA (Excluding Non Operational Items) 6 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q1 2014 Q1 2015 % Change TOTAL 2.247 2.740 22% BANK 896 1.073 20% NON-BANK 1.351 1.668 23% ENERGY 240 451 88% CEMENT 142 139 -2% RETAIL 37 34 -9% INSURANCE 56 26 -54% INDUSTRIALS 256 192 -25% INDU
Slide 7: Results Snapshot
Results Snapshot 7 2.741 2.247 23% 1.668 1.351 o Strong growth delivered both in COMBINED bank and non bank segments 20% EBITDA* 896 1.073 (MILLION TL) Q1 2014 Q1 2015 Bank Non Bank 535 o Key drivers of bottom line 397 69% 205 • Increasing banking 121 profitability CONSOLIDATED 276 19% 330 • Positiv
Slide 8: Non-bank Results- Q1 2015
Non-bank Results- Q1 2015 8 MILLION TL Q1 2014 Q1 2015 % Change CONSOLIDATED NET INCOME* 121 205 69% ENERGY -36 92 355% CEMENT 38 41 7% RETAIL -2 -5 N.M INSURANCE 24 12 -50% INDUSTRIALS 119 85 -29% OTHER -21 -20 N.M * Excluding non operational items. Strong bottom line growth through energy in Q1 20
Slide 9: Energy
Energy 9 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2014 Q1 2015 % Change Q1 2014 Q1 2015 % Change SALES 2.636 3.039 15% - - N.M EBITDA* 240 451 88% -36 92 354% NET INCOME* -73 184 354% -36 92 354% EBITDA MARGIN 9,1% 14,9% *Excludes non op
Slide 10: Energy – Generation Business
Energy – Generation Business 10 MILLION TL Q1 2014 Q1 2015 % Change SALES 671 690 3% EBITDA 127 192 51% EBITDA MARGIN 18,9% 27,7% Leap forward in profitability due to normalization of precipitation levels and optimization Generation (TWh) 127 33 44 -30 18 192 2,3 1,9 1,6 0,8 0,7 1,1 Q1 2014 Q1 2015
Slide 11: Enerjisa
Enerjisa 11 Demand (TWh) Moderate demand growth, despite cold winter… 2014-2015 Q1 growth: 3% Average Temperatures Water Inflow - Turkey 2014-2015 Q1 decrease: 27% Coupled with higher precipitation, electricity prices stayed depressed… 2014-2015 Q1 increase: 97%
Slide 12: Energy – Retail Business
Energy – Retail Business 12 MILLION TL Q1 2014 Q1 2015 % Change SALES 2.335 2.892 24% EBITDA 39 145 271% EBITDA MARGIN 1,7% 5,0% Strong top line growth coupled with high collection performance 12 145 25 Sales (TWh) 25 44 2,5 2,1 39 7,6 8,7 Q1 2014 Q1 2015 Q1 2014 Improved Higher Higher Other Q1 2015
Slide 13: Energy – Distribution Business
Energy – Distribution Business 13 MILLION TL Q1 2014 Q1 2015 % Change SALES 497 566 14% EBITDA 76 115 51% EBITDA MARGIN 15,3% 20,3% Growing regulatory asset base and improved efficiency Regulatory Asset Base (RAB) in accordance with IFRS (MTL) 8 3 1.581 1.635 76 15 13 115 1.236 2013 2014 Q1 2015 Q1
Slide 14: Enerjisa Balance Sheet
Enerjisa Balance Sheet 14 MILLION TL 2014 YE 2015 Q1 % Change Cash 209 810 289% Trade Receivables 1.753 1.966 12% Other Current Assets 1.049 889 -15% TOTAL CURRENT ASSETS 3.011 3.666 22% Fixed Assets 15.620 15.824 1% Other Non Current Assets 5.645 5.785 2% TOTAL NONCURRENT ASSETS 21.265 21.608 2% TO
Slide 15: ENERJİSA Financing Cost Drivers
ENERJİSA Financing Cost Drivers 15 Net Financial Expenses Q1 2014 Q1 2015 Interest Expense (Net) 266 154 FX Gain/Loss 65 9 Total Financial Expenses 331 162 Positive PPI and supportive FX rates resulting in low financing costs
Slide 16: Enerjisa Leverage
Enerjisa Leverage 16 Enerjisa Loans* Original Currency Total TL Million TL EUR Equivalent Generation 456 2.027 6.194 Distribution 5.666 87 5.913 Total 6.122 2.114 12.106 Original Currency Total TL Million TL EUR Equivalent Fixed 2.441 1.019 5.326 Floating 1.329 1.095 4.428 PPI Indexed 2.352 - 2.352
Slide 17: Cement
Cement 17 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2014 Q1 2015 % Change Q1 2014 Q1 2015 % Change SALES 550 534 -3% 225 235 4% EBITDA 142 139 -2% 79 81 3% NET INCOME 86 90 4% 38 41 7% EBITDA MARGIN 25,8% 26,1% Profitability maintained in
Slide 18: Retail
Retail 18 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2014 Q1 2015 % Change Q1 2014 Q1 2015 % Change SALES 1.380 1.444 5% 1.377 1.443 5% EBITDA* 37 34 -9% 37 34 -9% NET INCOME* -4 -8 N.M -2 -5 N.M EBITDA MARGIN 2,7% 2,4% *Excludes non opera
Slide 19: Carrefoursa
Carrefoursa 19 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2014 Q1 2015 % Change Q1 2014 Q1 2015 % Change SALES 698 779 12% 698 779 12% EBITDA* 25 26 6% 25 26 6% NET INCOME* 0 4 N.M 0 2 N.M EBITDA MARGIN 3,5% 3,4% *Excludes non operational
Slide 20: Carrefoursa
Carrefoursa 20 27 hypermarkets 213 stores 24 stores 150 stores 2015 Q1 Total Number of Stores: 414 Store Expansion Inorganic Growth Real Estate Portfolio + 49 Store Openings (30k m2) +26 stores acquired from Ismar Optimization supermarkets. The hypermarket in Izmir +6 stores acquired from Genpa dive
Slide 21: Insurance
Insurance 21 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2014 Q1 2015 % Change Q1 2014 Q1 2015 % Change SALES 533 513 -4% 0 0 N.M EBITDA* 56 26 -54% 24 12 -50% NET INCOME* 57 29 -50% 24 12 -50% EBITDA MARGIN 10,5% 5,1% *Excludes non operati
Slide 22: Avivasa
Avivasa 22 CONTRIBUTION TO CONSOLIDATED STAND ALONE FINANCIALS FINANCIALS MILLION TL Q1 2014 Q1 2015 % Change Q1 2014 Q1 2015 % Change SALES 57 58 1% - - N.M EBITDA* 11 25 133% 9 12 36% NET INCOME* 21 29 36% 9 12 36% *Excludes non operational items Strong growth in pension AUM on the back of net con
Slide 23: Avivasa - Key Metrics in Pension
Avivasa - Key Metrics in Pension 23 Assets Under Management (MTL) Annualized Premium Equivalent (TL) 7.130 7.608 41% 5.019 5.386 35% 4.049 3% 2.957 212 152 156 2011 2012 2013 2014 Q1 Q1 Q1 2013 Q1 2014 Q1 2015 2014 2015 Net Contributions (MTL) # of New Participants 2% 3% 1.156 859 108% 32.507 31.250
Slide 24: Aksigorta
Aksigorta 24 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2014 Q1 2015 % Change Q1 2014 Q1 2015 % Change SALES 476 456 -4% - - N.M EBITDA 45 1 -98% 13 - 0 -101% NET INCOME 36 -0 -101% 13 - 0 -101% Combined Ratio excluding one off and Combine
Slide 25: Aksigorta
Aksigorta 25 Motor third party liability (MTPL) is a long tail product, claims can be notified within 10 years MTPL profitability did not improve in Q1 2015 as increase in provision costs increase continued in prior periods’ policies mainly due to: Bodily injury claims’ severities increasing s
Slide 26: Industrials
Industrials 26 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2014 Q1 2015 % Change Q1 2014 Q1 2015 % Change SALES 1.299 1.157 -11% 911 768 -16% EBITDA* 256 192 -25% 189 147 -22% NET INCOME* 179 126 -30% 119 85 -29% EBITDA MARGIN 19,7% 16,6% *
Slide 27: Brisa
Brisa 27 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2014 Q1 2015 % Change Q1 2014 Q1 2015 % Change SALES 388 389 0% - - N.M EBITDA 89 58 -35% 22 12 -43% NET INCOME 50 28 -43% 22 12 -43% EBITDA MARGIN 22,9% 14,9% Increase competition from E
Slide 28: Kordsa Global
Kordsa Global 28 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2014 Q1 2015 % Change Q1 2014 Q1 2015 % Change SALES 439 411 -6% 439 411 -6% EBITDA 62 48 -22% 62 48 -22% NET INCOME 36 14 -62% 28 10 -66% EBITDA MARGIN 14,1% 11,7% Transitionary
Slide 29: FX Position and Leverage
FX Position and Leverage 29 MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2014 MAR 31, 2015 ENERGY* -346 -221 INDUSTRIALS 8 26 CEMENT 2 8 RETAIL 0 5 HOLDING, INSURANCE & OTHER 22 43 TOTAL CONSOLIDATED FX POSITION AFFECTING PL -314 -139 *Capitalized borrowings of Energy segment am
Slide 30: Non-Operational and Non-Recurring Items
Non-Operational and Non-Recurring Items 30 Q1 2014 Q1 2015 NET INCOME 420 648 Carrefoursa gain on asset sale;SAP transition;litigation resolution 2 55 Enerjisa gain on asset sale 0 52 Temsa gain on asset sale 8 5 Temsa provision for litigation -4 0 Other 16 0 NET INCOME EXCLUDING NON OPERATIONAL & N
Slide 31: NON-BANK COMBINED RESULTS
NON-BANK COMBINED RESULTS 31 MILLION TL Q1 2014 Q1 2015 % Change SALES 2.636 3.039 15% ENERGY EBITDA 240 451 88% SALES 550 534 -3% CEMENT EBITDA 142 139 -2% SALES 1.380 1.444 5% RETAIL EBITDA 37 34 -9% SALES 533 513 -4% INSURANCE EBITDA 56 26 -54% SALES 1.299 1.157 -11% INDUSTRIALS EBITDA 256 192 -2
Slide 32: Q&A
Q&A OQBANcI
Hacı Ömer Sabancı Holding A.Ş. — Q1 2015 Earnings Presentation on 6ix