Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (November 2024)
34 slides from Haci Omer Sabanci Holding A.s's investor presentation, November 2024
Slide 1: Investor Presentation
Investor Presentation Sustainable, Digital, Scalable Most Honored Company in Emerging EMEA Industrials Extel NOVEMBER, 2024 2024
Slide 2: Disclaimer
Disclaimer The information and opinions presented in this document have been compiled by Hacı Ömer Sabancı Holding A.Ş. (“Holding”) from sources deemed reliable and in good faith; however, no representation or warranty, either express or implied, is made regarding their accuracy, completeness, or co
Slide 3: Why Invest in Sabancı?
Why Invest in Sabancı? Best proxy for Türkiye with an expansive global vision Leveraging our DNA and expertise to dynamically manage a portfolio for growth and competitive advantage Ample balance sheet capacity to accelerate portfolio transformation with scalable investments Pioneering in climate tr
Slide 4: Best Proxy for Türkiye with an Expansive Global Vision
Best Proxy for Türkiye GDP Growth vs Sabancı Growth Türkiye Industrial Turnover Index vs Sabancı Industrial Turnover Türkiye with 800 800 700 700 an Expansive 600 600 500 500 Global Vision 400 400 300 300 200 200 100 100 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Türkiye Industrial
Slide 5: Diversified with Market Leading Positions
Diversified with Market Leading Positions 46.8% 53.2% Sabancı Family Free Float DIGITAL BANKING & ENERGY & CLIMATE MATERIAL MOBILITY TECHNOLOGIES FINANCIAL SERVICES TECHNOLOGIES TECHNOLOGIES SOLUTIONS & OTHER(1) % of NAV:38% % of NAV:36% % of NAV:14% % of NAV:5% % of NAV:7% SAHOL: 40.7% SAHOL: 50.0%
Slide 6: Dynamic Portfolio Management to Enable NAV Growth
Dynamic Portfolio Management to Enable NAV Growth Sabancı Holding driven NAV growth NAV Growth driven by Group Companies Network Optimization in Building Materials Business SBS US Grinding (EUR110mn) Facility Investment Acquisition of (USD82mn) Acquisition of Bulutistan Sale of Philsa & (USD39mn) Ac
Slide 7: Financial performance affected by macro backdrop on a temporary basis
Financial performance affected by macro backdrop on a temporary basis Combined Revenue (TL bn)(1) Consolidated EBITDA (TL bn) Net Income (TL mn) 5% -46% 859.2 208 817.3 33% 169.9 170 342.8 454.4 2.7 -59% 139 151.6 113 -15% 114.4 7.8 111.7 92.4 90.0 -3.4 81.5 47.4 -5.1 -19% 474.5 404.8 -7.8 56.5 55.5
Slide 8: Material Improvement in Non-Bank Operating Profitability on a quarter basis
Material Improvement in Non-Bank Operating Profitability on a quarter basis Combined Revenue (TL bn)(1) Consolidated EBITDA (TL bn) Net Income (TL mn) 0% -55% 303.0 304.2 208 14% 170 55.2 138.2 158.0 -81% 139 151.6 113 2.2 0.0 -11% 36.6 111.7 -2.8 25.1 90.0 81.5 -2% -9.0 -2.8 6.9 164.8 -11.3 146.2 5
Slide 9: Resilient Portfolio Delivering Returns Even in Challenging Times
Resilient Portfolio Delivering Returns Return on Equity Even in Challenging Times Bank Non-Bank Consolidated 19.8% Operational Cash Flow, Combined & Non-bank (TL bn)(1) 7.0% 2.5% 24.7% 14.4% 64.1 11.2% 48.9 40.1 39 1.7% 4.3% -0.5% 2022 2023 9M 2023 9M 2024 2022 20222022 2023 20232023 9M 2024 9M 2024
Slide 10: Ample Balance Sheet Capacity to Finance Growth
Ample Balance Sheet Capacity Non-Bank Capex/Sales to Finance Growth 12.6% Combined Net Financial Debt to Holding Only - Net cash Non-Bank EBITDA(1) (TL bn) 10.5% 10.3% Target: ≤ 2x 12.2 1.1x 7.0 0.8x 0.5x 3.1 2022 2023 9M 2024 2022 2023 9M 2024 2022 2023 9M 2024 (1) Excludes Banking and net cash pos
Slide 11: Well on Track to Deliver on Previous Guidance for All Key Metrics
Well on Track to Deliver on Previous Guidance for All Key Metrics 2021-2023 Figures 2021-2025 Targets Status Combined Revenue Growth CPI + 28% CPI + 8% Delivered Combined EBITDA(1) Growth CPI + 34% CPI + 10% Delivered Net Debt/EBITDA(1)(4) 0.8x <2.0x Delivered Consolidated ROE(5) 34.4% 15%-20% Deliv
Slide 12: Sustainable and Balanced Dividend Income Between Bank and Non-bank
Sustainable and Balanced Dividend Income Between Bank and Non-bank Dividends Received (TL bn) DPS (TL) Non-Bank Bank 9.4 74% 19% Outflow/Inflow Pay-Out Ratio 5 year 5 year on average on average 7.1 57% 48% 2.1 2.94 1.6 43% 52% 1.75 77% 0.5 84% 0.75 100% 23% 0.33 0.35 16% 2020 2021 2022 2023 2024 202
Slide 13: Pioneer in Global Climate Transition with a Clear Strategy and Strong Return Profile
Pioneer in Global Climate Transition with a Clear Strategy and Strong Return Profile Transforming Our Portfolio To Enable Decarbonization Because It Makes Business Sense 20% 24% 42% Decrease in Scope 1 & 2 Water consumption Reduction target in Scope 1&2 Favorable Funding emissions(2) emissions(1) re
Slide 14: Top-notch performance in ESG Indices
LOCAL RANK GLOBAL RANK Top-notch performance in ESG Indices CLIMATE CHANGE Among Local WATER SECURITY and Global Peers 5 Sabancı Holding has been awarded with six diamonds by EFQM and won special award of Outstanding Achievement for Sustainability Disclaimer: The use by Sabancı Holding of any MCSI E
Slide 15: Investments with Attractive Long Term Growth Prospects to Enhance Value
Investments with Attractive Long Term Growth Prospects to Enhance Value Forward Looking EV/EBITDA Energy & Mobility Solutions Material Technologies Digital Technologies Climate Technologies 19.4 ~3x ~2x 10.6 ~2x ~3x 10.5 8.5 6.4 4.5 4.9 2.4 Conventional Renewables Conventional Advanced Conventional
Slide 16: Net Zero drives major transition in key areas, as a basis of our portfolio
Net Zero drives major transition in key areas, as a basis of our portfolio and investment plan Mobility Transition Energy Transition Innovation across micro-mobility, Growth in renewables, grid electric / alternative fuel vehicles modernization, new technologies such and autonomous driving as carbon
Slide 17: A Clear Capital Allocation Framework Providing Long Term Visibility
A Clear Capital Allocation Framework Providing Long Term Visibility Grow and Protect the Core CT SU Sustainability / Net Zero Transition T E NET Z STA O ER I ๏ Strengthen our market leading positions PR ORE O ๏ Focus on selective and scalable NA TRA industries with higher multiples TH & BI NSI C ๏ C
Slide 18: More Balanced NAV with a Solid Growth and Higher Return
More Balanced NAV with a 2029 TARGET NAV Solid Growth and Higher Return Energy & Climate Tech. 2019 NAV Current NAV 36% 19% Digital Tech. 1% 14% Material Tech. 13% 19% & Mobility Solutions USD20bn USD6bn USD9.4bn 2% 53% 38% Banking & Financial Services WACC Adjusted Return: +20 bps WACC Adjusted Ret
Slide 19: Our Roadmap to Enhance Value
Our Roadmap to Enhance Value 2024-2029 GUIDANCE NET ASSET VALUE (USD)(1) USD20bn WACC ADJUSTED RETURN(2) +120-150bps CAPEX / REVENUES(3) 15 %- 20 % FX SHARE in REVENUES(4) 30 % + NET DEBT / EBITDA(3) ≤2.0 x Decreasing Scope 1 and 2 GHG(5) 42% by 2030 Ratio of Women leaders at Holding 50% by 2030 (1)
Slide 20: Sustainable, Digital, Scalable Strategic Business Units
Sustainable, Digital, Scalable Strategic Business Units
Slide 21: Energy: Leading Energy Transformation in Türkiye, Exploring New Technologies Globally
Energy: Leading Energy Transformation in Türkiye, Exploring New Technologies Globally Distribution & Retail Generation & Trade Generation & Ventures ๏ Electricity distribution and retail services ๏ Multiple generation technologies and digital ๏ Renewable electricity generation in with ~25% market sh
Slide 22: Digital: Empowering Digital Growth
Digital: Empowering Digital Digital SBU established in March 2023 aligned with the Sabancı Group’s commitment to invest in digital space positioning as a major Growth business pillar for growth Data Center Hybrid Cloud Retail Electronics ๏ Hyperscale/ wholesale grade ๏ Multi – hybrid Cloud focus ๏ H
Slide 23: Material Technologies: Transforming into Advanced Materials
Material Construction Composite Technologies: Reinforcement (Epoxies/Carbon Fiber/Ceramic Fiber) Transforming into ๏ Innovative reinforcement materials ๏ Aerospace and automotive industry ๏ Fiber reinforcement for concrete ๏ US, Italy and Türkiye Advanced Materials and cement-based mixes ๏ B787 Drea
Slide 24: Mobility Solutions: Driving Mobility Forward
Mobility Solutions: Over With globally Driving Mobility Forward 50 years leading partners Tires and Tire Centric Solutions Access to global markets ๏ >6000 Sales Points globally, in 80+ countries ๏ Tire Market Leader in Türkiye and 5 Export Countries USD892mn USD1,045mn ๏ Substantial CV market share
Slide 25: Banking: Well-positioned as a Full Scale Financial Powerhouse
Banking: Well-positioned Akbank Group’s European flagship with a robust CAR exceeding 36% as of 2023, as a Full Scale Financial Banking strongly positioned for substantial growth in the years to come Powerhouse Net lease receivables market share of 11.8%(4) Leasing Leader in corporate bond issuances
Slide 26: Financial Services: Strong Portfolio Companies in Life, Non-life and Health Businesses
Financial Services: Strong Portfolio Companies in Life, Non-life and Health Businesses Life & Pension Non-Life Health 5 Years CAGR 1st 58% 60+ 2.6 million Green-field competence center In Private Pension AuM focusing on health (+2pp vs. market) Years Experience Customer Technology, organization and
Slide 27: Appendix
Sustainable, Digital, Scalable Appendix
Slide 28: Disciplined Leadership with Extensive Expertise
Disciplined Leadership with Extensive Expertise Cenk ALPER / BOARD MEMBER & CEO Joined Sabancı Group in 1996. 5 years of international experience in the US and Europe with N.V. Bekaert. Led Kordsa‘s transformation and SPO as CEO. After managing Industrials SBU between 2017 and 2019, appointed as the
Slide 29: Diversified and Disciplined Decision-Making Organization Key Policies
Diversified and Disciplined Decision-Making Organization Key Policies Responsible Investment Women in Management Capital Allocation Framework 9 Members Sabancı Holding Sabancı Holding 41% 3 Independent Board of Directors vs. EU Average of 35% 44% Woman CEO Code of Business Ethics Woman Chair Anti-Br
Slide 30: Sabancı Holding NAV After Independent Valuation Reports
Sabancı Holding NAV After Independent Valuation Reports USDmn October 2024 December 2023 Companies Free Float Direct Stake Valuation Method Mcap Value to Sabancı Holding % of NAV Value to Sabancı Holding % of NAV Akbank 53% 41% Market value 7,698 3,137 33.5% 2,629 30.0% Enerjisa Enerji 20% 40% Marke
Slide 31: Financials in detail
Financials in detail Combined Revenue(1) Combined EBITDA Consolidated Net Income MILLION TL Q3 2023 Q3 2024 Change 9M 2023 9M 2024 Change Q3 2023 Q3 2024 Change 9M 2023 9M 2024 Change Q3 2023 Q3 2024 Change 9M 2023 9M 2024 Change TOTAL 302,960 304,174 0% 817,265 859,211 5% 55,194 25,100 -55% 169,922
Slide 32: Dividend Performance
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 1,318 Saba
Slide 33: Proactive and Transparent Investor Relations
Proactive and Among Emerging EMEA Industrials 3 Years in a Row Transparent Investor Relations Best Best Best Company CEO CFO Board Most Honored Company in Emerging EMEA Industrials Best Team Best Corporate Best IR in Investor in Investor Program Relations Relations 2024 Grand Prix Grand Prix Best Te
Slide 34: Investor Relations
Meet SirA, Sabancı Holding's digital Capital Markets Investor Presentation - ir.sabanci.com investor relations assistant ! Day 2024 Group Strategy Türkiye’s First Investor Relations Dedicated Assistant ! SBU Presentation – Energy & Earnings 2023 Annual Climate Technologies Presentation Report Kerem
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