Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Sabancı Holding — Q2 2020 Earnings Presentation
25 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2020
Slide 1: Sabancı Holding Q2 2020 Earnings Presentation
Sabancı Holding Q2 2020 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: Q2 2020 Highlights
3 Q2 2020 Highlights Solid non-bank results during the peak of COVID-19 pandemic Robust B/S, strong cash flow generation, & low leverage are intact Keeping all COVID-19 related health & business measures in place
Slide 4: COVID-19 Responses: Success in sustainability measures during COVID-19 peak
4 COVID-19 Success in all sustainability measures during COVID-19 peak Responses Business Initiative: To focus on uninterrupted production & services mainly in the bank, energy and food retail sustainability & • E-commerce demand met: Both on food & technology retail through prior e-commerce investm
Slide 5: Q2 2020 Stable operational cash flow and net debt/EBITDA
5 Q2 2020 Stable operational cash flow and net debt/EBITDA Operational Cash Flow, Combined for Non-Bank* (TL bn) Combined Net Financial Debt to Non-Bank EBITDA** 10,0 9,5 6,0 Deleveraging despite 8,0 5,0 Akbank capital 5,6 4,0 increase 6,0 4,6 4,1 4,0 3,6 3,0 5,3 4,6 2,2 2,2 4,0 3,7 2,0 1,3 1,4 2,0
Slide 6: Q2 2020 Financial performance summary
6 Q2 2020 Financial performance summary Combined Revenue* (TL mn) Combined EBITDA* (TL mn) Consolidated Net Income* (TL mn) 24.331 -2% 4.950 23.763 4.303 +15% 1.203 +25% 2.251 1.733 965 10.665 9.512 Bank*** 646 Bank Bank 514 2.699 Non-bank** 13.667 14.250 Non-bank** 2.570 Non-bank** 450 557 Q2 2019
Slide 7: Q2 2020 High ROE in a lower cost of capital environment
7 Q2 2020 High ROE in a lower cost of capital environment Return on Equity* Holding Only - Net cash position (TL bn) 18% 16% 14% 12% 2,6 10% 8% 1,7 1,7 1,5 1,6 6% 1,1 4% 2% 0,6 0% 0,1 2014 2015 2016 2017 2018 2019 H1 2019 H1 2020 Non-Bank Cons. ROE 6,5% 7,3% 8,4% 9,3% 13,7% 12,6% 15,9% 13,3% 2014 20
Slide 8: Combined Revenues: Non-bank growth on Energy, Retail & Financial Services
8 Combined Non-bank growth on Energy, Retail & Financial Services Revenues Combined Revenue* (TL mn) Combined Revenue* Breakdown 108 262 BANK RETAIL 959 1.276 1.015 12% 1.362 INDUST.** ENERGY** 2.182 1.525 6% ENERGY** 2.564 31% 2.810 RETAIL FIN. SERV. 6.578 6% INDUST.** 7.275 BUILD. MAT. FIN. SERV.
Slide 9: Combined EBITDA: Non-bank growth driven by Energy and Financial Services
9 Combined Non-bank growth driven by Energy and Financial Services EBITDA Combined EBITDA* (TL mn) Combined EBITDA* Breakdown 188 ENERGY**; 12 37% 166 330 INDUST.**; BANK 61 5% 268 RETAIL**; 163 80 ENERGY** 1% 395 INDUSTRIALS** 1.840 FIN. SERV.; 7% 1.771 RETAIL** BUILD. MAT.; FIN. SERV. 4% BUILD. MA
Slide 10: Consolidated Net Income: Solid profitability on pass-through and financing
10 Consolidated Solid profitability on pass-through and well-managed financing Net Income Consolidated Net Income* (TL mn) Consolidated Net Income* Breakdown ENERGY**; INDUST.**; 30% 80 3% 30 BANK 90 36 41 FIN. SERV.; 52 8% ENERGY** 118 361 INDUSTRIALS** BUILD. MAT.; 318 2% RETAIL** OTHER; 7% FIN. S
Slide 11: Group's cyclicality exposure
11 Group’s cyclicality Relatively low exposure to highly cyclical industries limits downside risk exposure Share in Low Moderate High Q2 comparable EBITDA Business NAV* cyclicality cyclicality cyclicality performance (y/y chg.) Energy 22% +4% Food retail 8% -27% Other** 11% sharp improvement Banking
Slide 12: Energy: Proven resilience with robust results in COVID-19
12 Energy Proven resilience with robust results in COVID-19 Energy Segment Summary Financials* Current Assessment MILLION TL Q2 2019 Q2 2020 % Change H1 2019 H1 2020 % Change • Distribution & Retail: EBITDA was up by SALES 6.569 7.275 11% 12.400 15.140 22% 4% y/y on higher RAB (+20% y/y in Q2) EBITD
Slide 13: Financial Services: Strong technical profit and diversified products
13 Fin. Serv.(pension Strong technical profit and success of diversified products & insurance) Financial Services (pension & insurance) Summary Financials* Current Assessment MILLION TL Q2 2019 Q2 2020 % Change H1 2019 H1 2020 % Change • Strong return performance in pension SALES 1.276 1.362 7% 2.51
Slide 14: Building Materials: Recovery kicked in on pent up demand
14 Building Recovery kicked-in on pent up demand Materials Building Materials Summary Financials* Current Assessment MILLION TL Q2 2019 Q2 2020 % Change H1 2019 H1 2020 % Change • Recovery in Q2 domestic sales volumes SALES 959 1.015 6% 1.702 1.812 6% despite weak sector outlook EBITDA** 166 188 14%
Slide 15: Retail: Bottom line continues to improve on lower financial expenses
15 Retail Bottom line continues to improve on lower financial expenses Retail Summary Financials* Current Assessment MILLION TL Q2 2019 Q2 2020 % Change H1 2019 H1 2020 % Change SALES 2.564 2.810 10% 4.781 5.629 18% • Top line supported by food retail EBITDA** 196 184 -6% 326 353 8% • Slight EBITDA
Slide 16: Industrials: Sharp contraction in demand driven by COVID-19
16 Industrials Sharp contraction in demand driven by COVID-19 Industrials Summary Financials* Current Assessment MILLION TL Q2 2019 Q2 2020 % Change H1 2019 H1 2020 % Change • Sharp slow-down in global tire and SALES 2.547 1.525 -40% 5.030 3.701 -26% aviation industries on adverse impact of SALES-Co
Slide 17: Bank: Well positioned to remain healthy & profitable
17 Bank Well positioned to remain healthy & profitable Summary Combined Financials* Current Assessment MILLION TL Q2 2019 Q2 2020 % Change H1 2019 H1 2020 % Change • In Q2 20 Akbank, maintained solid core REVENUE 10.665 9.512 -11% 21.363 18.641 -13% EBITDA 1.733 2.251 30% 3.804 4.431 16% operating p
Slide 18: Group's Opportunities: Post-Covid-19 strategies and initiatives
18 Group’s Post-Covid-19 strategies and initiatives Opportunities Maintain a robust balance sheet and high liquidity Group Exploit new opportunities while the economy is rebooting Cautious/prepared for a relapse of infection risk Bank Building materials 2020 Outlook: Moderate impact from Cov
Slide 19: Appendix
APPENDIX OQBANc!
Slide 20: Financials in detail
20 Appendix Financials in detail Combined Revenue* (TL mn) Combined EBITDA* (TL mn) Consolidated Net Income* (TL mn) MILLION TL Q2 2019 Q2 2020 % Change H1 2019 H1 2020 % Change Q2 2019 Q2 2020 % Change H1 2019 H1 2020 % Change Q2 2019 Q2 2020 % Change H1 2019 H1 2020 % Change TOTAL* 24.688 23.763 -
Slide 21: Sabancı Holding Discount to NAV
21 Appendix Sabancı Holding Discount to NAV USDmn Jun-2020 Dec-2019 NAV Discount Direct Value of Value of Jun-2020 Dec-2019 Dec-2018 Companies Stakes (%) Valuation Method Mcap Stake % of NAV Stake % of NAV Akbank 40,8% Market value 4.618 1.882 36,5% 2.891 46,5% Enerjisa Enerji 40,0% Market value 1.4
Slide 22: Details of one-off impact on EBITDA and net income
22 Appendix Details of one-off impact on EBITDA and net income • We have recorded impairment losses related to Enerjisa Generation’s Pervari and Incir projects as we have not started construction in these sites and decided to consider strategic opportunities including the return of the licenses in a
Slide 23: IFRS16 Impact on Financials
23 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
Slide 24: IFRIC12 Impact on Financials
24 Appendix IFRIC12 Impact on Financials • Based on IFRIC12 “Service Concession Arrangements”, the CAPEX spending on Regulated Asset Base is treated as financial asset and measured with an Internal Rate of Return Model. As one of the key parameters in energy distribution business revenue model is in
Slide 25: Q&A
Q&A OQBANc!