Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (March 2023)
65 slides from Haci Omer Sabanci Holding A.s's investor presentation, March 2023
Slide 1: Investor Presentation March 2023
INVESTOR PRESENTATION March 2023
Slide 2: Disclaimer
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, completeness or correctne
Slide 3: Agenda
01 Capital Allocation 02 Recent Acquisitions 03 Sustainability Operational & Financial 04 Performance 05 Stock Performance Strategic Business Units & 06 Digital 07 Holding Value Add 08 Mid-term Guidance 3
Slide 4: Capital Allocation
01 01 Capital Allocation 4
Slide 5: Doubling CAPEX to accelerate both organic and inorganic growth
Capital Allocation Doubling CAPEX to accelerate both organic and inorganic growth… DOUBLING CAPEX | 25/75 SPLIT BETWEEN CORE & NEW INVESTMENTS Grow and Protect the Core Invest in New Platforms ➲ Strengthen our market leading positions ➲ Increasing share of new economy in nonbank ➲ Profitable growth
Slide 6: Coherent strategic plan on core and new platforms
Capital Capital Allocation 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 Transform into an agile Lead in digital, material and Commercialize innovation Pioneer in “sustainability A
Slide 7: Continuing to deliver on strategic initiatives: 76% of investments to new economy
Capital Allocation Continuing to deliver on our strategic initiatives: 76% of investments to new economy Dynamic Portfolio Management Kordsa Capacity Investments: Turkey’s 1st Green Hydrogen: Capacity Increase in CAC: Digital Investment: Kordsa Turkey: Investment for single-end cord Production and u
Slide 8: Increasing investments that accelerate Group's transformation strategy
Capital Capital Allocation Allocation Increasing investments that accelerate Group’s transformation strategy Business Composition* Sector Composition* Non-bank Capex/Sales* ~14.0% Digital; 7% >2x 10.3% Core Businesses; 24% Building Materials; 24% 7.3% 6.6% Energy; 55% New Economy Businesses; 76% Ind
Slide 9: Recent Acquisitions
O1 02 Recent Acquisitions : x Stok "Tore > Busine Nits & al . —
Slide 10: Investing in new economy for a major transformation
Recent Sustainability Acquisitions Investing in new economy for a major transformation in Sabancı Group Climate Advanced Material Digital Technologies Technologies Technologies E-mobility Renewables Sustainable Telematics Chemicals loT 4.0 Cybersecurity Digital Marketing Electrification New Energy V
Slide 11: USA: world's 2nd largest renewable energy market and largest corporate venture ecosystem
Recent Acquisitions USA 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 Solar Resource Potential Wind Resource Potential 170 TW potential capacity 10.6 TW potential capacity ➢ US
Slide 12: First solar project in Texas
Recent After detailed research & studies, first solar project in Texas has initiated that offers a variety Acquisitions of opportunities for the future growth Market potential for proxy businesses in Texas West 272 MW Solar Power Plant Project ➢ Region close to Houston - high demand ➢ Shovel-ready p
Slide 13: Expanding renewables investment beyond Turkey
Recent Acquisitions Expanding renewables investment beyond Turkey Sabancı Climate Technologies, wholly owned subsidiary of Sabancı Holding, will undertake renewable energy power plant investments and strategic investments in various venture capital funds and start-ups, primarily in the USA and Europ
Slide 14: Major expansion project in Türkiye: 57% renewables share in Enerjisa Üretim
Recent A major expansion project has been initiated in Türkiye while reaching 57% renewables share in Acquisitions Enerjisa Üretim Installed Generation Capacity Mix* 1,000 MW YEKA-2 Wind Power Plant Investment (USD1.2bn) Currently 2026 Çanakkale 250 MW 45% 43% 34% Renewables Natural Gas Natural Gas
Slide 15: Creation of a global digital business with acquisitions
Recent Acquisitions Creation of a global digital business with acquisitions Dx Technology Services and Investment BV (DxBV), a wholly owned subsidiary of Sabancı Holding and established in the Netherlands, will undertake Sabancı Group’s investments in digital businesses. Cyber Security Digital Marke
Slide 16: Global Players in Mobility Market
Recent Acquisitions Global Players in Mobility Market Expansion in Composites Growth in New Mobility Solutions Microtex: Arvento: ▪ Acquired by Kordsa ▪ Acquired by Brisa ▪ Deal Size: EUR24.6mn ▪ Deal Size: ~EUR22mn* ▪ Product and geographic diversification in ▪ Become a sustainable mobility solutio
Slide 17: Sustainability
itions 03 Sustainability | & Financial 04 a
Slide 18: We prioritize ESG to transform our portfolio for the future
Sustainability Sustainability We prioritize ESG to transform our portfolio for the future… TL 7.7 BN1 51% 2 100%3 SDG-linked product and SDG-oriented R&D and Share of renewable services revenues innovation energy in the 1,000 MW We transform new investment plan the core 80%4 23%5 2x more alternative
Slide 19: Improving our ESG performance further
Sustainability ... while improving our ESG performance further 2022 MSCI 2022 CDP 2023 Bloomberg GEI 2022 Refinitiv 2022 Sustainalytics Excellent Performance Low ESG Risk Management Level First and Only Conglomerate from More than 50 companies in In Diversified Financials 3 notches increase in 3 yea
Slide 20: Improving Corporate Governance Framework
Sustainability Improving Corporate Governance Framework Shareholder Structure Board Members 9 BoD members (3 Independent) 56% non-family, 44% women Sabancı Family 50.3% Early Detection of Risk Committee Corporate Governance, Nomination and Remuneration Committee Assumes some of the roles of the Port
Slide 21: Sustainability Roadmap
Sustainability Sustainability Roadmap Act on Maximize Foster Sustainable 01 Climate Emergency 02 Positive Impact 03 Business Models Become 'Net Zero Emissions’ and Create shared value for all Develop innovative products, services 'Zero Waste' by 2050 at the latest stakeholders, with social programs
Slide 22: Adapting to the Future of Work
Sustainability Adapting to the Future of Work Smart Work Physical and Mental Health Flexible & High Performance New Talent and Skill Paradigm TL 200 MN Workforce Planned Investment Within 2 years 1,500+ Planned Actions for 2021-2023 93% completed in 2022 Purpose Driven Digital & Agile Leadership Org
Slide 23: Operational & Financial Performance
Operational & Financial Performance
Slide 24: Solid global footprint & strong global partnerships
Operational & Financial Performance Solid global footprint & strong global partnerships UK Hungary Turkey 6 Partnerships Germany Netherlands Spain 14 Countries USA Israel France Thailand Brazil Italy Malta Indonesia 60K+ Employment 24
Slide 25: Complementary business units with increasing share of non-bank
Operational & Financial Performance Complementary business units with increasing share of non-bank NAV* Breakdown Non-Bank Bank Retail Bank 8% Bank ROE: ROE: 34% 42% 54.7% Energy 12.1% 16% Bank Consolidated ROE: 39% Listed NAV: Consolidated 31.1% Building USD 5.6 bn ROE: 10.1% Materials 12% Non-Bank
Slide 26: Strong real growth across the board with major improvement in earnings quality
Operational & Capital Financial Allocation We achieved strong real growth across the board with a major improvement Performance in earnings quality Combined Revenue* (TL Bn) Combined EBITDA* (TL Bn) Consolidated Net Income* (TL Bn) Non-bank** Bank Non-bank** Bank Non-bank** Bank CAGR: Y/Y: CAGR: Y/Y
Slide 27: Operational cash flow recovery, deleveraging & higher dividend
Operational & Financial Performance Substantial recovery in operational cash flow, remarkable deleveraging & higher dividend Operational Cash Flow, Combined Non-bank* Combined Net Financial Debt to Dividend Performance (TL Bn) Non-Bank EBITDA* Dividends Paid (TL Mn) Dividends Received (TL Mn) DPS (T
Slide 28: Solid liquidity maintained
Operational & Financial Performance Solid liquidity maintained Holding Only - Net cash position (TL bn) Consolidated long FX position (USD mn, excluding Bank) 318 3.1 308 2.6 255 2.5 1.7 155 148 1.1 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 28
Slide 29: Stock Performance
ecent Acquis ability | Opera & Fin Perfc ce 0 Stock Performance 0 Strategic Business U Holding Value Add e cn Mic Tegaicance OQBaAncI
Slide 30: Market has recognized transformation on NAV discount
Stock Performance Market has recognized Sabancı Holding’s transformation on NAV discount… NAV (USD mn) &NAV Discount +81% 213 6,699 772 -87 -17 6,699 958 3,710 3,762 3,987 1,150 3,565 3,710 YE 2021 Q1 2022 Q2 2022 Q3 2022 YE 2022 -28.8% -26.6% -35.0% -35.0% -45.4% +19pp Average NAV Discount: NAV Sha
Slide 31: Stock relative performance and EPS vs. P/E
Stock Performance …but not entirely, considering discount to historical average P/E Stock Relative-Performance Earnings Per Share vs. Price/Earnings* (USD basis) EPS P/E SAHOL BIST 30 300 5.1 4.9 4.0 254 250 2.2 2.1 209 21.5 200 150 11.4x 100 5.9 50 1.9 1.9 2.3 0 Aug-22 Jun-22 Feb-22 Sep-22 Nov-22 M
Slide 32: Strategic Business Units & Digital
OQBaAncI i 06 | Strategic Business Units & Digital A
Slide 33: Energy SBU
Energy SBU Well Positioned & Strong Leader in Turkish Energy Industry Distribution & Retail AYEDAŞ 14 11.9 mn 22 mn BAŞKENT Cities Connections Population Ankara (Başkent) 10.6 mn 39.2 TWh 317,757 km Customers 2022 Sales Volume Network Adana Generation & Trading 4 HEPP Gaziantep TOROSLAR 6 HEPP 1st 2
Slide 34: Energy SBU Financial Performance
Energy SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Bn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 56% 199% 38% 123% 67% 156% 23% 23% 22% 140.5 18% 14% 19.4 11.0 47.0 8.7 31.1 6.8 4.3 5.9 26.0 5.3 23.6 3.0 2.4 1.4 2018 2019 2020 2021 202
Slide 35: Industrials SBU
Industrials SBU Global Players in Mobility Market Tire & Mobility Solutions Germany 1/3 CDP A- 40% of every Passenger Climate Change International Car Tire in Turkey Category Revenue 112 13.5 Mn 7,300 USA Turkey Otopratik & Propratik Total Tire Point of Sales Mobility Service Shops Production Capaci
Slide 36: Industrials SBU Financial Performance
Industrials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 39% 123% 39% 68% 61% 64% 22% 19% 17% 16% 15% 32.5 5.2 3,322 3.1 2,023 14.6 9.7 8.8 8.7 1.6 1.6 1.4 776 639 496 2018 2019 2020 2021 20
Slide 37: Building Materials SBU
Building Materials SBU Leader in Turkish Cement Industry With An Ambition For International Expansion Turkey’s Leading Exporter Germany Netherlands 3 >3 mn ton 2 Integrated plants Export Volume Ports Spain 9.2 mn ton 30% 93% USA Turkey Cement capacity FX in Revenues Capacity Utilization Italy Leadin
Slide 38: Building Materials SBU Financial Performance
Building Materials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 59% 173% 43% 185% 63% 233% 21% 18% 15% 14% 13% 21.6 1,736 3,016 7.9 1,060 522 724 764 4.2 3.4 3.6 548 246 226 2018 2019 2020 2
Slide 39: Financial Services SBU
Financial Services SBU Well Positioned in Both Non-Life and Life Insurance Markets Aksigorta Gross Written Premiums Trend (bn TL) Non-Life Insurance CAGR: Y/Y: 39% 94% Leader in 3,600+ 6.9% # of Agencies Market Share 13.6 7.0 TL 13.6 bn TL 7.6 bn 4.5 5.3 GWP** AuM*** 2.6 3.4 2017 2018 2019 2020 2021
Slide 40: Financial Services SBU Financial Performance
Financial Services SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 44% 92% 13% -29% 24% 6% 1,194 17.2 989 934 999 845 734 697 569 9.0 510 414 6.6 5.5 4.0 2018 2019 2020 2021 2022 2018 2019 2020 2021 2022 2018 2
Slide 41: Retail SBU
Retail SBU Accelerated Growth While Maintaining Operating Profitability Food & Non-Food Retail 45 895 537k sqm Cities Stores Sales Area 164 mn* 10,663 Annual Visitors Employees Food Retail E-Commerce Sales Electronic Retail GMV Comparable EBITDA*** Margin (TL mn) (TL mn) by segment Technology Retail
Slide 42: Retail SBU Financial Performance
Retail SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: 43% 117% 76% 122% 36.7 6% 6% 5% 345 3% 3% 2,055 16.9 13.5 -81 927 10.5 -159 8.7 640 341 215 -354 -436 2018 2019 2020 2021 2022 2018 2019 2020 2021 20
Slide 43: Banking 2022: Strong delivery on guidance
Banking 2022: Strong delivery on guidance Key Takeaways 2022 Guidance 2022 Momentum across all business lines including subsidiaries TL Loan Growth > 50% 77.8% continue as the bank advance in innovative offerings, using AI % cutting-edge technology while investing in people. FX Loan Growth (in USD)
Slide 44: Banking Financial Performance
Financial Performance Financial Performance Capital Adequacy Ratio* & Tier 1 Ratio* Combined Net Income** & Reported ROE Total Asset & Reported ROA 2022 (TL bn, %) (TL bn, %) Excess 2022 Excess CAGR: Y/Y: CAGR: Y/Y: Capital*: Tier 1*: 81% 384% 34% 51% TL 73.1 Tier-1 Ratio bn TL 63.8 bn 6.2% 16.9% 16
Slide 45: Invest in rapidly growing digital businesses and expand beyond Turkey
Digital Invest in rapidly growing digital businesses and expand beyond Turkey Before Transactions After Transactions Sabancı Digital Business Consumer Marketing Cyber Security Cloud & Digital Product & Technology Business Business Business Services Product & Services Software Develop ment Software A
Slide 46: Holding Value Add
OQBaAncI Capital Allocatio ecent Acquisi Sustainability Operational & Financial Perform Stock Performance Strategic Business L Holding Value Add Uo} Mid-7 guidance
Slide 47: Innovation & Corporate Venture Capital
Holding Value Add Innovation & Corporate Venture Capital • 2 years, 500 alumni, 10 • 150 ideas in 2 years, 13 Company participants, 45 • Launched in Sep’22, 15 • Investments in 10 companies (8 in Ideathon projects, 3 startups, 20 weeks Commercialization projects, 75% MVP, 23% 2022) and deployed ~USD
Slide 48: Sabancı Ventures: Focus on Growth, Technology and Innovation
Holding Holding Value Add Sabancı Ventures: Focus on Growth, Technology and Innovation Value Add Key Highlights Purpose ➲ To gain early access to new technologies/innovative business models/markets and to build technology- driven growth platforms while creating value for both the ecosystem and Group
Slide 49: Corporate Venture Capital Investments Through Subsidiaries and Timeline
Holding Value Add Corporate Venture Capital Investments Through Subsidiaries and Timeline Establishment of Sabancı Ventures Invested in Invested in Invested in Sabancı Climate Tech Invested in Safar Partnership Lumnion Zack.ai Albert Health Partners, CFS and Quasie Energy with ecoLocked April 2020 S
Slide 50: Leveraging Synergies Within Sabancı Ecosystem
Holding Holding Value Value Add Add Leveraging Synergies Within Sabancı Ecosystem The first, fastest and largest E-charge station network in Turkey Solar Power Plants within the Group in Cooperation with Enerjisa Enerji 75K m2 6,226 kWp 10,400 Ground Area Solar Production Capacity Solar Panels Eşarj
Slide 51: Leveraging Synergies: Bancassurance and Kordsa & Cement Cooperation
Holding Value Add Leveraging Synergies Within Sabancı Ecosystem Strong collaboration in Bancassurance Kordsa & Cement Companies Cooperation ➲ Exclusive bancassurance agreement with Akbank ➲ Presence in all physical and digital channels ➲ Joint vision in digital with Akbank ➲ Effective governance mod
Slide 52: Management Incentives: Total Income Package
Holding Value Add Management Incentives Flexible Working Recognition, Career Development Training Support Appreciation and Supportive Practices Golden Collar Awards Recognition & Appreciation Programs Sabancı Group provides a range of benefits, recognition, appreciation and supportive practices to e
Slide 53: Management Incentives
Holding Value Add Management Incentives Short Term (1-Year) Financial KPIs* Total Cash Distribution Model (%) Sample for a company general manager ➲ Net Sales ➲ Net Financial Debt ➲ Rtsr** ➲ EBITDA ➲ Working Capital Pricing ability, ➲ Free Cash Flow ➲ Market Share competitive 125 Long Term position
Slide 54: Mid-Term Guidance
oerational al -erformance stock Performar Strategic E Holding Value Add 08 | Mid-Term Guidance
Slide 55: Mid-Term Guidance Maintained
Mid-term Strategic Sustainability Guidance Mid-Term Guidance Maintained Business Units 01 Growth 02 Capital Return 03 Sustainability Mid-term targets* Dividend policy Zero Waste Revenue growth CPI + 8% Net Zero Emissions 5%-20% of net income by 2050 EBITDA1 growth CPI + 10% Share Buyback Up to 5% of
Slide 56: Appendix
APPENDIX 56
Slide 57: Portfolio in Continuous Evolution
Appendix / Portfolio in Continuous Evolution 1940s - 1960s 1970s - 2000s 2000s - 2010s Present and Future Early Growth Phase - Proliferation of Global Refocus Portfolio Growth and Transformation Initial Diversification Partnerships-Conglomeration JVs formed with Aviva and Ageas Kordsa’s acquisition
Slide 58: Executive Leadership
Appendix / Executive Leadership Cenk Alper Board Member and 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 CEO of Sabancı
Slide 59: Dividend Performance
Appendix/ Dividend Performance TL mn 2017 2018 2019 2020 2021 2022 Akbank 367 652 - - 255 494 Akçansa 94 51 61 18 42 36 Aksigorta - 40 73 73 110 - Agesa 9 19 40 64 64 - Brisa - - - 12 107 270 Carrefoursa - - - - - - Çimsa 95 33 - - - 109 Kordsa 41 48 48 35 - 114 Teknosa - - - - - - Yünsa - - 3 - - -
Slide 60: Sabancı Holding Discount to NAV & Cash
Appendix / Sabancı Holding Discount to NAV & Cash USDmn December 2022 December 2021 Companies Direct Stakes Valuation Method Mcap Value of Stake % of NAV Value of Stake % of NAV NAV Discount Akbank 41% Market value 5,437 2,216 33.1% 1,144 30.8% December 2022 December 2021 December 2020 Enerjisa Ener
Slide 61: Overview of Corporate Structure
Appendix / Overview of Corporate Structure ENERGY RETAIL BANKING & FINANCIAL INDUSTRIALS DIGITAL BUILDING MATERIALS SERVICES SAHOL: 40.0% SAHOL: 57.1% SAHOL: 39.7% SAHOL: 40.7% SAHOL: 71.1% SAHOL: 49.0% E.ON: 40.0% Carrefour: 32.2% Heidelberg Materials: 39.7% Other: 8.4% Free Float: 28.9% DxBV: 51.0
Slide 62: Reporting
Appendix / Reporting Combined Net Sales EBITDA Net income Subsidiaries line by line line by line line by line Joint Ventures line by line line by line line by line Consolidated Net Sales EBITDA Net income Subsidiaries line by line line by line line by line Joint Ventures Not included Proportion of o
Slide 63: Financials in detail
Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q4 2021 Q4 2022 Change 2021 2022 Change Q4 2021 Q4 2022 Change 2021 2022 Change Q4 2021 Q4 2022 Change 2021 2022 Change TOTAL* 49,997 126,120 152% 150,050 401,483 168% 12,190 37,810 210% 33,433 113
Slide 64: IFRS16 Impact on Financials
Appendix / IFRS16 Impact on Financials In accordance with In IFRS16, most leased items with a duration longer than one year have to be included as an asset in the company books. In addition, the payments that will be made on the lease agreement have to be reported as a liability on the balance sheet
Slide 65: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS ➢ Kerem TEZCAN Meet SirA, Sabancı Holding's digital Investor Relations Director investor relations assistant ! ➢ Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager Turkey’s First Investor Relations Dedicated Assistant ! ➢ Hamza SÜMER For Further Investor Relations Spe
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