Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (December 2023)
52 slides from Haci Omer Sabanci Holding A.s's investor presentation, December 2023
Slide 1: Investor Presentation Group Strategy December 2023
DECEMBER 2023 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: Financial Track Record
01 /07 Financial Track Record
Slide 4: Well-diversified portfolio continued to support earnings quality
FINANCIAL TRACK RECORD Our well-diversified portfolio continued to support earning earnings quality … Combined Revenue(1) (TL Bn) Combined EBITDA(1) (TL Bn) Consolidated Net Income(1) (TL Bn) Non-bank Bank Non-bank Bank Non-bank Bank CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 47% 63% 65% 43% 74% 46% 449.7 401
Slide 5: Resilient non-bank ROE and operational cash flow
FINANCIAL TRACK RECORD …that lead to a resilient non-bank ROE performance with cash flow exceeding 2022 full year figure… Return on Equity (ROE) (1) Operational Cash Flow, Combined for Non-Bank (2) (TL bn) Bank ROE Consolidated ROE Non-Bank ROE 116% 13.7% 13.1% 17.1% 23.9% 31.1% 26.6% 27.7% 27.2% 28
Slide 6: Further deleveraging, strong cash at holding level
FINANCIAL TRACK RECORD …resulting further deleveraging, supported by strong cash at the holding level Holding Only - Net cash position (TL bn) Combined Net Financial Debt to Non-Bank EBITDA (1) 2,3x 2,2x 5,9 Midterm Guidance: ≤ 2x 4,4 1,5x 1,2x 3,1 2,6 2,5 0,7x 1,7 1,1 0,4x 0,4x 2018 2019 2020 2021
Slide 7: 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) Non-bank Capex/Sales Dividend Yield (%) (1) 4,41 4,27 4,42 3,82 3,79 +86% 2,87 ~14,0% 1,75 >2x 3,25 10,3% 10,3% +42% 7,0% 6,6% 0,75 1,75 0,33 0,35 0,30 0,30 20
Slide 8: Capital Allocation
02 /07 Capital Allocation
Slide 9: 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 10: 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 11: Delivering on strategic initiatives: 77% of investments to new economy
CAPITAL ALLOCATION Continuing to deliver on our strategic initiatives: 77% of investments to new economy Dynamic Portfolio Management Turkey’s 1st Green Hydrogen: Digital Investment: Climate Tech & Renewable Energy in the USA: R&D Project for Turkey's first hydrogen Start of Operations of Sabancı Gl
Slide 12: Sustainability
03 /07 Sustainability
Slide 13: Prioritizing ESG to transform our portfolio
SUSTAINABILITY Prioritizing ESG to transform our portfolio for the future… 11% 12% Foster Sustainable Act on Climate Emergency 9% Business Models Reduction in Scope 1 and 2 GHG Reduction in energy Reduction in water emissions(1) consumption(1) consumption(1) USD 5 Billion SDG-related operational spe
Slide 14: Improving our ESG performance further
SUSTAINABILITY ...while improving our ESG performance further MSCI Rating AA 2023 2022 2023 MSCI 14.2 A Bloomberg GEI Sustainalytics BBB 4 notches increase in First and Only Low ESG Risk 4 years BB Conglomerate from Low Risk B In Diversified Financials Category Türkiye to be included twice in a row
Slide 15: Improving Corporate Governance Framework
SUSTAINABILITY Improving Corporate Governance Framework 9 BoD members (3 Independent) Shareholder Structure Board Members 44% non-family, 44% women Sabancı Family 49.5% Early Detection of Risk Assumes some of the roles of the Portfolio Committee Corporate Management Committee, terminated in Governan
Slide 16: NAV & Stock Performance
04 /07 NAV & Stock Performance
Slide 17: Almost doubling NAV in USD terms with attractive NAV discount
NAV & STOCK PERFORMANCE Almost doubling NAV in USD terms with an attractive NAV discount NAV (USD mn)(1) & NAV(1) Discount NAV(1) Bridge 90% 7.590 4.573 3.988 4.5… Q3 2021 Q3 2022 Q3 2023 -28,8% -41,4% -50,8% -13pp Q3 2021 NAV Average NAV Discount: Last 3- Year Last 5-Year Last 10-Year NAV Shares: 3
Slide 18: Shifting towards a more balanced portfolio with higher new economy weight
NAV & STOCK PERFORMANCE Shifting towards a more balanced portfolio with higher weight of new economy NAV Breakdown Based on Book Value for Unlisted Assets NAV Breakdown Based on Independent Valuation(2) for Unlisted Assets Cash Cash Other(1) 2% Other(1) Digital 5% 3% Technologies Digital 5% Technolo
Slide 19: SAHOL trades at a discount to historical P/E averages
NAV & STOCK PERFORMANCE SAHOL shares continue to trade at a material discount to its historical P/E averages Stock Relative-Performance (USD basis) Earnings Per Share vs. Price/Earnings(1) SAHOL BIST 30 SAHOL USD NAV EPS P/E 300 250 5,1 4,9 4,0 200 2,2 2,1 2,3 150 26,1 114 100 103 21,5 101 50 0 5,9
Slide 20: Recent Acquisitions
05 /07 Recent Acquisitions
Slide 21: Investing in new economy for a major transformation
RECENT ACQUISITIONS Investing in new economy for a major transformation in Sabancı Group Energy & Climate Technologies Advanced Material Technologies Digital Technologies Renewables Electrification Sustainable Telematics Chemicals loT 4.0 Cybersecurity Digital Marketing E-mobility Digitalization Lig
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 24 5 3.7 GW Power Plants Technologies Installed Capacity (5 GW in 2026) 14 6 Cities Metropoles 14.6 TWh 45.5%
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(1) 1000 MW YEKA-2 Wind Power Plant Investment (USD 1.2 bn) ÇANAKKALE Currently 2026 250 MW BALIKESİR 45% 59% 250 MW Renewables Renewables AYDIN 1,000MW Total Wind Power
Slide 24: Leveraging core capabilities in the Energy SBU
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 attraction as second largest renewable market and largest venture ecosystem
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 in the US
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: 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 will create extended innovation ecosystem
RECENT ACQUISITIONS Sabancı Climate Ventures will create extended innovation ecosystem & enable 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 commercializat
Slide 29: Investments in climate technologies fund and start-ups
RECENT ACQUISITIONS ….via the investments in climate technologies fund & investments directly to start-up companies Invested in a venture fund with a Coming out of MIT's Plasma Coming out of MIT and reached a Founded in San Francisco in 2021 portfolio of start-ups from seed to Science and Fusion Cen
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 and established in the Netherlands, will undertake Investment Sabancı Group’s investments in digital businesses. Cyber Security Digital Marke
Slide 32: Investing in Tech-based Start-ups via Sabancı Ventures
HOLDING VALUE ADD Investing in Tech-based Start-ups via Sabancı Ventures 2022 & 2023 Q3 2022 & 2023 Q3 Performance Investments # of Companies #1 local public and private cloud services company in Türkiye USD30Mn Initial Fund Size Preliminary Leading AI-powered virtual assistants for e- commerce and
Slide 33: Strategic Business Units
06 /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 New Energy Technologies Exploring New Fuel Additional Wind and Solar Projects Hybrid Projects Investment - Abroad Economics (Hydrogen
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: Building Materials SBU's Strategy House
STRATEGIC BUSINESS UNITS Building Materials SBU’s Strategy House 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 Optimization 1. Insulation Customer P
Slide 39: Building Materials SBU's Future Vision
STRATEGIC BUSINESS UNITS Building Materials SBU’s Future Vision Transformation into a Global Building Materials Group CURRENT FUTURE 46% FX based revenue generation Higher FX based revenue generation 20% Revenue from international operations Higher revenue share from international operations Growth
Slide 40: Industrials SBU's Strategy House
STRATEGIC BUSINESS UNITS Industrials SBU’s Strategy House We unite Turkey 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 Profitable Growth with Global Busine
Slide 41: Industrials SBU's Future Vision
STRATEGIC BUSINESS UNITS Industrials SBU’s Future Vision We unite Turkey 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 Equipment for Climate Technologies b
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 Sabancı Digital Business Invest in rapidly growing digital businesses A Digital Ce Retail Platform With Physical and expand beyond Turkey Presence & Human Touch Consumer MarTech Cyber Security Cloud & Digital Bus
Slide 45: Mid-Term Guidance
07 /07 Mid-Term Guidance
Slide 46: Mid-Term Guidance Maintained
MIDTERM GUIDANCE Mid-Term Guidance Maintained Growth Capital Return Sustainability Mid-term targets(1) CPI + 8% 30%+ Dividend 5% - 20% 42% Reduction in policy Revenue growth FX revenue as % of of net income Scope 1 & 2 emissions combined revenue (3) by 2030 Up to 5% of paid-in capital: Share 102mn s
Slide 47: Appendix
APPENDIX
Slide 48: Dividend Performance
APPENDIX Dividend Performance TLmn 2019 2020 2021 2022 2023 Akbank - - 255 494 3,666 Akçansa 61 18 42 36 99 Aksigorta 73 73 110 - - Agesa 40 64 64 - 60 Brisa - 12 107 270 479 Carrefoursa - - - - - Çimsa - - - 109 218 Kordsa 48 35 - 114 41 Teknosa - - - - - Yünsa 3 - - - - Enerjisa Enerji 189 283 454
Slide 49: Financials in detail
APPENDIX Financials in detail Combined Revenue(1) Combined EBITDA(2) Consolidated Net Income(3) MILLION TL Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change TOTAL 112,496 191,154 70% 275,363 449,717 63% 31,465 45
Slide 50: Sabancı Holding Current NAV & Cash Breakdown
APPENDIX Sabancı Holding Current NAV & Cash Breakdown USDmn September 2023 December 2022 NAV Discount Valuation Value to Sabancı % of Value to Sabancı Companies Free Float Direct Stake Mcap % of NAV Method Holding NAV Holding Akbank 52% 41% Market value 6,355 2,590 34.1% 2,216 33.1% September 2023 D
Slide 51: Sabancı Holding NAV After EY Valuation Report
APPENDIX Sabancı Holding NAV After EY Valuation Report USDmn September 2023 Companies Free Float Direct Stake Valuation Method Mcap Value to Sabancı Holding % of NAV Akbank 52% 41% Market value 6,355 2,590 27.7% Enerjisa Enerji 20% 40% Market value 2,233 893 9.5% Aksigorta 28% 36% Market value 459 1
Slide 52: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Kerem TEZCAN Investor Relations Director Meet SirA, Sabancı Holding's digital Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager investor relations assistant ! Emine DALAN Turkey’s First Investor Relations Investor Relations Specialist Dedicated Assistant ! Hamza SÜME
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