Haci Omer Sabanci Holding A.s. · BIST:SAHOL

Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q3 2023 Earnings Presentation

33 slides from Haci Omer Sabanci Holding A.s's earnings presentation, Nov 9, 2023

  1. Slide 1: Q3 2023 Earnings Presentation

    NOVEMBER 9, 2023 Q3 2023 EARNINGS PRESENTATION

  2. Slide 2: Disclaimer

    EARNINGS PRESENTATION 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, com

  3. Slide 3: 9M'23 Highlights

    EARNINGS PRESENTATION 9M’23 Highlights Strong profitability maintained Healthy balance sheet with Robust NAV growth amid macro challenges ample liquidity with an attractive discount Top-line(1) growth Net debt/EBITDA(2) NAV(3) growth 63% 0.4x 90% in USD EBITDA(1) growth Consolidated Long FX position

  4. Slide 4: Combined Financials 9M Results

    01 /06 Combined Financials 9M Results

  5. Slide 5: While inflationary pressures are still weighing on the Turkish economy…

    COMBINED FINANCIALS While inflationary pressures are still weighing on the Turkish economy… Bloomberg Commodity & Energy Index (YoY Change) Wage Increase(1) (Minimum Wage, Gross) Bloomberg Commodity Index Bloomberg Energy Index 107% 364 375 80% 67% 34% 33% 32% 34% 28% 201 15% 181 1% 166 144 114 -8%

  6. Slide 6: …our well-diversified portfolio continued to support earnings quality…

    COMBINED FINANCIALS …our well-diversified portfolio continued to support earnings quality… Combined Revenue(1) (TL mn) Combined EBITDA(1) (TL mn) Consolidated Net Income(1) (TL mn) Non-bank Bank Non-bank Bank Non-bank Bank 63% 43% 46% 449,717 107,825 191,071 96% 34,184 275,363 75,205 38% 71,812 36%

  7. Slide 7: …resilient non-bank ROE performance with cash flow exceeding 2022 full year

    COMBINED FINANCIALS …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% 28.8%

  8. Slide 8: …resulting further deleveraging, supported by strong cash at the holding level

    COMBINED FINANCIALS …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 202

  9. Slide 9: Combined Financials Q3 Results

    02 /06 Combined Financials Q3 Results

  10. Slide 10: Combined Revenue / Strong topline growth driven by banking business

    COMBINED FINANCIALS Combined Revenue / Strong topline growth driven by banking business Segments’ Contribution to Combined Revenues(1) (TL Mn) 70% Segment Annual 105% 22% 60% 64% 120% 126% 84% Revenue Growth: Share in Q3’23 46% 26% 5% 7% 5% 6% 5% Combined Revenue: (1) Holding dividend income is excl

  11. Slide 11: Combined EBITDA / Solid EBITDA growth by both bank and non-bank businesses

    COMBINED FINANCIALS Combined EBITDA / Solid EBITDA growth by both bank and non-bank businesses Segment’s Contribution to Combined EBITDA(1) (TL Mn) 46% Segment Annual 36% 52% 162% 66% 78% 141% 97% EBITDA Growth: Share in Q3’23 68% 17% 5% 5% 1% 2% 2% Combined EBITDA: (1) Excludes non-operational and

  12. Slide 12: Consolidated Net Income / A marked improvement in Energy business

    COMBINED FINANCIALS Consolidated Net Income / A marked improvement in Energy business beyond bank’s contribution Segments’ Contribution to Consolidated Net Income(1)(TL Mn) 40% Segment Annual 20% 131% 204% 14% 65% 73% -11% Net Income Growth: Share in Q3’23 Consolidated Net 60% 24% 6% 4% 2% 0% 3% Inc

  13. Slide 13: NAV & Stock Performance

    03 /06 NAV & Stock Performance

  14. Slide 14: Almost doubling NAV in USD terms with an 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 4,573 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 39% 31%

  15. Slide 15: Shifting towards a more balanced portfolio with higher weight of new economy

    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

  16. Slide 16: SAHOL shares continue to trade at a material 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) EPS P/E SAHOL BIST 30 SAHOL USD NAV 300 5.1 4.9 250 4.0 200 2.2 2.1 2.3 190 172 164 26.1 150 21.5 100 50 5.9 0

  17. Slide 17: Segment Financials

    04 /06 Segment Financials

  18. Slide 18: Bank / Strong customer acquisition & agile asset-liability management boosted profitability

    SEGMENT FINANCIALS Bank / Strong customer acquisition & agile asset-liability management boosted profitability Bank Summary Financials Current Assessment Added 1.7 mn net active customers in 9M23 MILLION TL Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change reaching a cumulative c. 50% increase in less R

  19. Slide 19: Energy / Profitability remained solid with a balanced contribution from both businesses

    SEGMENT FINANCIALS Energy / Profitability remained solid with a balanced contribution from both businesses Energy Segment Summary Financials(1) MILLION TL Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Current Assessment REVENUE 40,762 49,884 22% 102,819 126,445 23% EBITDA(2) 5,025 7,645 52% 13,947 2

  20. Slide 20: Building Materials / Robust operating performance with major improvement in earnings quality

    SEGMENT FINANCIALS Building Materials/ Robust operating performance with a major improvement in earnings quality Building Materials Summary Financials(1) MILLION TL Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Current Assessment REVENUE 6,154 9,876 60% 14,992 24,304 62% Sales mix optimization EBITD

  21. Slide 21: Industrials / Good performance in tire and composites

    SEGMENT FINANCIALS Industrials / Good performance in tire and composites more than offset the weakness in tire reinforcement Industrials Summary Financials(1) MILLION TL Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Current Assessment REVENUE 8,585 14,039 64% 23,336 33,401 43% Strong domestic demand

  22. Slide 22: Financial Services / Strong top-line growth with continuous improvement in profitability

    SEGMENT FINANCIALS Financial Services / Strong top-line growth with continuous improvement in profitability Financial Services Summary Financials(1) MILLION TL Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Current Assessment REVENUE 3,959 8,711 120% 11,047 23,027 108% EBITDA(2) 350 622 78% 742 2,072

  23. Slide 23: Digital / Solid top-line growth & profitability

    SEGMENT FINANCIALS Digital / Solid top-line growth & profitability driven by strong demand environment with higher contribution from e-commerce sales Digital Summary Financials(1) MILLION TL Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Current Assessment REVENUE 4,822 10,913 126% 11,671 26,181 124%

  24. Slide 24: Retail / Improvement in operational profitability

    SEGMENT FINANCIALS Retail / Improvement in operational profitability Retail Summary Financials(1) MILLION TL Q3 2022 Q3 2023 Change 9M 2022 9M 2023 Change Current Assessment REVENUE 5,386 10,253 90% 12,870 24,831 93% Strong like for like sales EBITDA(2) 405 818 102% 903 1,588 76% EBITDA(2) MARGIN 7.

  25. Slide 25: Guidance

    05 /06 Guidance

  26. Slide 26: 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 sha

  27. Slide 27: 9M'23 Highlights

    EARNINGS PRESENTATION 9M’23 Highlights Improvement in earnings quality driven by non-bank Non-bank ROE reached 28.8% business amid macro challenges with a solid contribution from Energy business Cash flow generation more than Non-bank Net Debt / EBITDA(1) 90% y/y NAV(2) growth doubled driven by Ener

  28. Slide 28: Appendix

    06 /06 Appendix

  29. Slide 29: 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

  30. Slide 30: 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

  31. Slide 31: 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

  32. Slide 32: 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

  33. Slide 33: For Further Details ir.sabanci.com

    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

Hacı Ömer Sabancı Holding A.Ş. — Q3 2023 Earnings Presentation on 6ix