Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Sabancı Holding — Q2 2018 Earnings Presentation
18 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2018
Slide 1: Sabancı Holding Q2 2018 Earnings Presentation
Sabancı Holding Q2 2018 Earnings Presentation
Slide 2: Disclaimer
2 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 correct
Slide 3: Outstanding Non-Bank Outperformance
3 Outstanding Non-Bank Outperformance Combined Net Sales MILLION TL Q2 2017 Q2 2018 % Change Demand => Strong Start, Moderated TOTAL* 15.369 19.990 30% BANK 6.675 9.210 38% High Pricing Power NON-BANK* 8.694 10.779 24% Exports: Positive FX Impact Combined EBITDA MILLION TL Q2 2017 Q2 2018 % Change H
Slide 4: Revenues: Topline driven by Energy, Industrials and Insurance
4 Revenues Topline driven by Energy, Industrials and Insurance TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2017 Q2 2018 % Change H1 2017 H1 2018 % Change Energy top line driven by regulated sales TOTAL* 15.369 19.990 30% 29.470 38.709 31% volume BANK 6.675 9.210 38% 12.834 17.172
Slide 5: EBITDA: Supportive Regulation and Improved Cement margins
5 EBITDA Supportive Regulation and Improved Cement margins TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2017 Q2 2018 % Change H1 2017 H1 2018 % Change TOTAL* 3.343 3.600 8% 6.315 7.304 16% Energy was driven by growing asset base and higher returns in downstream business. BANK 2.05
Slide 6: Energy and Financial Income at Holding Level boosted bottomline
6 Consolidated Net Income Energy and Financial Income at Holding Level boosted bottomline MILLION TL Q2 2017 Q2 2018 % Change H1 2017 H1 2018 % Change CONSOLIDATED NET INCOME* 794 940 18% 1.516 1.834 21% BANK 645 543 -16% 1.241 1.235 -1% Strong operational profitability growth NON-BANK 149 397 275 5
Slide 7: Energy Upstream and Downstream Business Contributing to Profitability
7 Energy Upstream and Downstream Business Contributing to Profitability BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2017 Q2 2018 % Change H1 2017 H1 2018 % Change SALES 3.712 4.754 28% 7.194 9.912 38% EBITDA* 755 1.124 49% 1.370 2.019 47% NET INCOME* 48 251 422% -6 350 5842% EBITDA* MA
Slide 8: Generation Sector: 3% Growth in Electricity Demand in Q2
8 Generation 3% Growth in Electricity Demand in Q2 Sector
Slide 9: Enerjisa Üretim: Renewables and Capacity Payment drive EBITDA growth
9 Enerjisa Üretim Santralleri A.Ş. Renewables and Capacity Payment drive EBITDA growth MILLION TL Q2 2017 Q2 2018 % Change H1 2017 H1 2018 % Change Sales ( TWh) Net sales 1.089 997 -8% 1.997 2.085 4% EBITDA* 275 343 25% 478 627 31% EBITDA* margin (%) 25% 34% 9,1pp 24% 30% 6,1pp 4,9 4,5 Depreciation
Slide 10: Enerjisa Üretim: Free Cash Flow Generation; Deleveraging on track
10 Enerjisa Üretim Continuous Improvements in Free Cash Flow Generation; Santralleri A.Ş. Deleveraging on track Generation & Trading Debt (MEUR Equivalent) 2.200 1.900 1.600 1.300 2.000 Free Cash Flow Generation (MTL) 1.000 2015 YE 2016 YE 2017 YE Jun'2018 1.000 0 2014 2015 2016 2017 Jun'2017* Jun'2
Slide 11: Cement: Increased Exports
11 Cement Increased Exports Current Assessment BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Following a strong start to the year (Q1:+15%), MILLION TL Q2 2017 Q2 2018 % Change H1 2017 H1 2018 % Change domestic consumption contracted in Q2 (Apr- SALES 773 955 24% 1.320 1.703 29% May18: -1% y-o-y). E
Slide 12: Retail: Strong LfL and deleveraging
12 Retail Strong LfL and deleveraging BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2017 Q2 2018 % Change H1 2017 H1 2018 % Change SALES 1.952 2.132 9% 3.688 4.089 11% EBITDA* 52 27 -48% 95 35 -63% NET INCOME* -54 -94 -73% -105 -211 -101% EBITDA* MARGIN 2,7% 1,3% 2,6% 0,9% *Excludes non-
Slide 13: Insurance: Motor Third Party Liability Products Lead the Growth
13 Insurance Motor Third Party Liability Products Lead the Growth Current Assessment BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) − 48% growth in non-life insurance premiums, driven by MILLION TL Q2 2017 Q2 2018 % Change H1 2017 H1 2018 % Change MTPL** (~4x) SALES 621 889 43% 1.349 1.961 45% − Pensio
Slide 14: Industrials: Strong Results driven by FX linked Revenues
14 Industrials Strong Results driven by FX linked Revenues BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2017 Q2 2018 % Change H1 2017 H1 2018 % Change SALES 1.601 2.010 26% 3.017 3.771 25% EBITDA* 240 293 22% 494 584 18% NET INCOME* 117 115 -2% 265 240 -9% EBITDA* MARGIN 15,0% 14,6% 16,
Slide 15: FX Position Long FX
15 FX Position Long FX MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) Dec 31, 2017 June 30, 2018 ENERGY -240 -166 INDUSTRIALS 1 -1 CEMENT 4 0 RETAIL 0 -7 INSURANCE 7 16 HOLDING & OTHER 327 244 TOTAL CONSOLIDATED FX POSITION AFFECTING PL 99 85 Holding Only Cash Position increased to 2.3BTL De
Slide 16: Key Developments In Q2 2018
16 2018 Key Developments In Q2 Solid operational and financial performance continues in our B2B businesses Kordsa completed acquisition of two composite plants in US Deleveraging continues with real asset sales in food retail
Slide 17: Q&A
Q&A OQBANc!
Slide 18: Non-Operational and Non-Recurring Items
18 2018 Non-Operational and Non-Recurring Items Non-Operational and Non-Recurring Items Q2 2017 Q2 2018 H1 2017 H1 2018 NET INCOME EXCLUDING NON OPERATIONAL & NON RECURRING ITEMS 794 940 1.516 1.834 Gain on sales of Enerjisa Enerji shares (IPO proceeds) 0 0 0 123 Carrefoursa gain on asset sale;litig