Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q2 2014 Earnings Presentation
34 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2014
Slide 1: 2014 Second Quarter Earnings Release
1 2014 Second Quarter Earnings Release
Slide 2: Disclaimer Statement
Disclaimer Statement 2 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
Slide 3: 2014 Expectations
2014 Expectations 3 2012 2013 2014(E) GDP Growth,% 2.2 4.0 3.0-3.5 Consumer Inflation (%), 6.16 7.4 9.4 Annual USD/TL, Year end 1.78 2.13 2.24 CA Balance/GNP, % -6.1 -7.4 -5.9 Improved GDP Growth Expectation
Slide 4: 2014 Developments
2014 Developments 4 Energy • Kavşakbendi and Arkun hydros operational • 900 MTL capital increase in Enerjisa Cement • Çimsa acquiring Sançim shares, subject to Competition Board approval Insurance • Application to amend Articles of Association of Avivasa, in line with CMB regulations Industrials • P
Slide 5: Net Sales
Net Sales 5 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2013 Q2 2014 % Change H1 2013 H1 2014 % Change TOTAL 8.480 11.083 31% 17.303 21.981 27% BANK 3.711 4.530 22% 7.470 8.362 12% NON-BANK 4.769 6.553 37% 9.833 13.619 39% ENERGY 1.259 2.615 108% 2.531 5.251 107% RETAIL 1.288 1.4
Slide 6: EBITDA (Excluding Non Operational Items)
EBITDA (Excluding Non Operational Items) 6 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2013 Q2 2014 % Change H1 2013 H1 2014 % Change TOTAL 1.988 1.811 -9% 4.357 4.059 -7% BANK 1.441 1.137 -21% 2.759 2.033 -26% NON-BANK 547 673 23% 1.598 2.026 27% ENERGY 167 218 31% 336 458 36% R
Slide 7: Results Snapshot
Results Snapshot 7 4.237 4.148 1.997 1.549 COMBINED 1.863 2.073 498 684 o Robust Non-Bank EBITDA EBITDA* 1.499 1.179 2.688 2.075 growth. (MILLION TL) Q2 2013 Q2 2014 H1 2013 H1 2014 Bank Non Bank o Bottom line affected by: 1.116 • Record profitability in 1.043 918 cement and industrials 244 125 509
Slide 8: Non-bank Results- H1 2014
Non-bank Results- H1 2014 8 MILLION TL Q2 2013 Q2 2014 % Change H1 2013 H1 2014 % Change CONSOLIDATED NET INCOME* 54 168 211% 244 290 19% ENERGY -30 24 N.M 9 -12 N.M RETAIL -16 -6 N.M -23 -9 N.M CEMENT 35 58 66% 44 96 116% INSURANCE 24 10 -57% 36 34 -6% INDUSTRIALS 72 91 26% 134 210 57% OTHER -31 -8
Slide 9: FX Position and Leverage
FX Position and Leverage 9 *Capitalized borrowings of Energy segment amounting to 366 MEUR and the other FX assets/liabilities that do not create FX gain/loss are excluded (Capitalized borrowings Dec 31, 2013: 497 MEUR) .Holding Only Net Debt is 346 MTL Effective Management of FX Exposure On 15 Jul
Slide 10: Energy
Energy 10 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 1.259 2.615 108% - - N.M EBITDA* 167 218 31% -30 24 N.M NET INCOME* -60 48 N.M -30 24 N.M EBITDA MARGIN 13,2% 8,3% MILLION TL H1 2013
Slide 11: Enerjisa Excluding Acquisition Impact
Enerjisa Excluding Acquisition Impact 11 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 1.259 1.418 13% - - N.M EBITDA* 167 171 2% -30 53 N.M NET INCOME* -60 105 N.M -30 53 N.M EBITDA MARGIN
Slide 12: Enerjisa
Enerjisa 12 Demand (GWh) 3.7% Demand Growth in H1’14 and 4.2% in Q2’14.. Average Temperatures ..and temperatures in line with last year’s levels, but milder in May. Water Inflow - Turkey Drought continues to affect generation mix.
Slide 13: Enerjisa Balance Sheet
Enerjisa Balance Sheet 13 MILLION TL 2013 YE H1 2014 % Change Cash 865 1.396 61% Trade Receivables 1.749 1.752 0% Other Current Assets 743 897 21% TOTAL CURRENT ASSETS 3.357 4.045 20% Fixed Assets 15.109 15.341 2% Other Non Current Assets 4.921 5.128 4% TOTAL NONCURRENT ASSETS 20.030 20.469 2% TOTAL
Slide 14: Enerjisa Leverage (Excl. Cash on hand)
Enerjisa Leverage (Excl. Cash on hand) 14 Enerjisa Loans Original Currency Total TL Million TL EUR Equivalent Generation 263 1.885 5.716 Distribution 5.365 90 5.625 Total 5.628 1.976 11.341 Original Currency Total TL Million TL EUR Equivalent Fixed 906 1.156 4.249 Floating 1.193 820 3.564 PPI Indexe
Slide 15: ENERJISA Financing Cost Drivers
ENERJISA Financing Cost Drivers 15 Favorable quarter in terms of financing costs
Slide 16: Retail
Retail 16 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 1.288 1.476 15% 690 1.474 114% EBITDA* 33 42 29% 26 42 62% NET INCOME* -47 -11 N.M -16 -6 N.M EBITDA MARGIN 2,6% 2,9% MILLION TL H1 2
Slide 17: Carrefoursa
Carrefoursa 17 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 598 768 29% - 768 N.M EBITDA* 3 32 825% -3 32 N.M NET INCOME* -8 0 N.M -3 0 N.M EBITDA MARGIN 0,6% 4,2% MILLION TL H1 2013 H1 20
Slide 18: Key Achievements in Carrefoursa
Key Achievements in Carrefoursa 18 Number of stores by format Carrefoursa Mini (as of June 30, 2014) # 28 17 60 166 TOTAL 271 368 k m2 total selling space • 100 new store openings for 2014 • Carrefoursa Mini is expanding with new store openings • Continuous investments in IT infrastructure • Complet
Slide 19: Teknosa
Teknosa 19 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 690 707 3% 690 707 3% EBITDA 32 10 -68% 32 10 -68% NET INCOME 15 -11 N.M 9 -7 N.M EBITDA MARGIN 4,6% 1,4% MILLION TL H1 2013 H1 2014
Slide 20: Cement
Cement 20 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 591 697 18% 279 310 11% EBITDA 132 210 59% 76 123 62% NET INCOME 77 129 68% 35 58 66% EBITDA MARGIN 22,3% 30,1% MILLION TL H1 2013 H1
Slide 21: Insurance
Insurance 21 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 422 550 30% - - N.M EBITDA* 57 17 -70% 24 10 -57% NET INCOME* 58 18 -68% 24 10 -57% EBITDA MARGIN 13,5% 3,1% MILLION TL H1 2013 H1
Slide 22: Aksigorta
Aksigorta 22 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 354 475 34% - - N.M EBITDA 42 -7 N.M 14 - 3 -120% NET INCOME* 38 -7 N.M 14 - 3 -120% MILLION TL H1 2013 H1 2014 % Change H1 2013 H
Slide 23: Avivasa
Avivasa 23 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 68 75 11% - - N.M EBITDA* 15 24 58% 10 13 26% NET INCOME* 20 26 26% 10 13 26% MILLION TL H1 2013 H1 2014 % Change H1 2013 H1 2014 %
Slide 24: Avivasa - Key Metrics in Pension
Avivasa - Key Metrics in Pension 24 Assets Under Management (MTL) 34% 4.488 6.001 2013 H1 2014 H1 *Including state contributions Number of New Participants 5% 14% 59.656 62.835 27.406 31.199 2013 H1 2014 H1 2013 Q2 2014 Q2 Net Contributions (MTL) 26% 29% 376 473 204 263 2013 H1 2014 H1 2013 Q2 2014
Slide 25: Avivasa - Key Metrics
Avivasa - Key Metrics 25 MCEV (MTL) 13% MCEV measures at a point in time the long-term value 1.096 embedded into the existing 974 business of a life and pension company assuming 2013 H1 2014 H1 that no additional new business is written. The MCEV does not include the value of the future new VNB meas
Slide 26: Industrials
Industrials 26 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 1.165 1.187 2% 804 788 -2% EBITDA 165 193 17% 122 136 12% NET INCOME 98 133 35% 72 91 26% EBITDA MARGIN 14,1% 16,2% MILLION TL H
Slide 27: Kordsa Global
Kordsa Global 27 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 378 431 14% 378 431 14% EBITDA 28 49 80% 28 49 80% NET INCOME 2 24 N.M 2 22 N.M EBITDA MARGIN 7,3% 11,5% MILLION TL H1 2013 H1
Slide 28: Brisa
Brisa 28 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 357 399 12% - - N.M EBITDA 57 71 24% 13 14 7% NET INCOME 29 31 7% 13 14 7% EBITDA MARGIN 16,0% 17,7% MILLION TL H1 2013 H1 2014 % Chan
Slide 29: Yünsa
Yünsa 29 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q2 2013 Q2 2014 % Change Q2 2013 Q2 2014 % Change SALES 67 83 25% 67 83 25% EBITDA 10 11 11% 10 11 11% NET INCOME* 5 5 -1% 3 3 -1% EBITDA MARGIN 15,4% 13,7% MILLION TL H1 2013 H1 2014 % Chan
Slide 30: Temsa
Temsa 30 TEMSA BUS CONTRIBUTION TO SABANCI STAND ALONE FINANCIALS HOLDING CONSOLIDATED FINANCIALS MILLION TL H1 2013 H1 2014 % Change H1 2013 H1 2014 % Change SALES 321 385 20% 321 385 20% EBITDA* 28 42 48% 28 42 48% NET INCOME* 7 28 N.M 3 14 N.M EBITDA MARGIN 8,8% 10,9% TEMSA CONSTRUCTION EQUIPMENT
Slide 31: Non-Operational and Non-Recurring Items
Non-Operational and Non-Recurring Items 31 Q2 2013 Q2 2014 H1 2013 H1 2014 NET INCOME 534 559 1.089 979 Akbank Turkish Competition Board Penalty 0 0 53 0 Income from Akbank NPL Sale -19 -14 -19 -14 Aksigorta Gain on Asset Sale -26 0 -26 0 Carrefoursa Provision for Lawsuit 10 0 10 0 Yünsa Gain on Ass
Slide 32: 2014 Guidance
2014 GUIDANCE 32 REVISED SALES EBITDA EBITDA GROWTH GROWTH GUIDANCE Energy 45-50% 30-35% Cement 10-15% 30-35% Retail 15-20% 5-15% Industrials 15-20% 25-30% Insurance 10-15% 10-15% Higher EBITDA growth expectation in cement, lower in retail
Slide 33: Key Takeaways
Key Takeaways: 33 Strong operating profitability continues in industrials and cement companies Continuing the successful turnaround of Carrefoursa Cement acquisition Positive impact on Enerjisa bottom line from lower interest rates in PPI linked loans and appreciation of TL Arkun Hydro is
Slide 34: Q&A
Q&A OQBANcI
Hacı Ömer Sabancı Holding A.Ş. — Q2 2014 Earnings Presentation on 6ix