Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q3 2021 Earnings Presentation
19 slides from Haci Omer Sabanci Holding A.s's earnings presentation, November 2021
Slide 1: Energy SBU Investor Presentation
ENERGY SBU INVESTOR PRESENTATION November 2021
Slide 2: Disclaimer
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 correctne
Slide 3: Content
Content Turkish Electricity Sector and its Importance for Sabancı 4-7 Generation Segment 8-11 Distribution and Retail Segment 12-14 Energy SBU Financials 15 Strategies for Future 16-18 3
Slide 4: Energy is an Attractive Sector for Sabancı
Energy SBU / Energy is An Attractive Sector for Sabancı….and It’s Getting More Important… • Directly linked with the welfare and development of the country Combined Energy SBU EBITDA* Strategic • Attractive growth potential (demographics, urbanization) • Well positioned in the entire value chain as
Slide 5: Turkish Electricity Market Framework Replicates Tested Market Structures
Energy SBU / Turkish Electricity Market Framework Replicates the Tested Electricity Market Structures Leading Player in Electricity Generation and Trading Leading Player in Electricity Distribution and Retail 5% of Turkey 23% of Turkey Physical Flow Generation 1 Transmission Distribution 1 Strong •
Slide 6: Energy SBU: Well Positioned & Strong Leader in Turkish Energy Industry
Enerji SBU / Well Positioned & Strong Leader in Turkish Energy Industry AYEDAŞ Distribution & Retail 14 6 BAŞKENT Ankara (Başkent) 21+ m Cities Metropoles Population Adana 10.2 m 34 TWh 11.6 m 4 HEPP Gaziantep Customers 2020 Trade Connections TOROSLAR 6 HEPP Volume TL11.2 bn 245,943 km RAB Network E
Slide 7: Energy SBU: Well Focused to Adapt to Market Developments by Splitting Business Lines
Enerji SBU / Well Focused to Adapt to Market Developments by Splitting Business Lines Growth & High Investment Turnaround Capital Recycling 2006-2013 2013-2017 2017 onwards 2010 – 2016 Hydro, wind and PV portfolio commissions to optimize existing generation fleet 2018 Decision to Generation defer ne
Slide 8: Generation: Strong Foundations in Established Regulatory Framework and Clear Energy Policy Targets
Enerji SBU: Generation / Strong Foundations in Established Regulatory Framework and Clear Energy Policy Targets Change of Licensed Electricity Generation as Public-Private by Years (%) • Electricity demand grew by CAGR ~5% in the last 15 Strong electricity years and projected to continue growing sin
Slide 9: Generation: A Well-balanced, Efficient and Diversified Portfolio
Enerji SBU: Generation / A Well-balanced, Efficient and Diversified Portfolio A Hard Currency Business… Competitive advantages Breakdown of Generation EBITDA (9M 2021) Tolling, Asset Light Natural Gas: • Market leader amongst private generators (Highest prop trading etc. 2% renewable portfolio) • Me
Slide 10: Generation: Resilient Operational Performance
Enerji SBU: Generation / Resilient Operational Performance Deleveraging on Track Revenue EBITDA* EBITDA Margin Strong Free Cash Flow Generation (MTL) 37% 33% 27% 30% 22% 23% 9,996 9,345 2,596 2,488 6,559 6,693 1,969 2,073 5,301 4,165 2,413 2,777 2,307 1,116 1,222 2,235 911 1,413 2017 2018 2019 2020
Slide 11: Generation: Effective Operations Across the Board
Energy SBU : Generation / Effective Operations Across the Board & More Liberalized Market Mechanism Generation: Latest Financials Higher spread due to increase in spot prices despite higher BOTAS tariff TL Spot Electricity Prices (TL/MWh, LHS) vs Natural Gas Prices(TL/sm3) MILLION TL Q3 2020 Q3 2021
Slide 12: Distribution & Retail: Strong Fundamentals for Continued Growth
Enerji SBU: Distribution & Retail / Strong Fundamentals for Continued Growth • Population growth of 1.4% p.a. since 2000, expected 0.6% Electricity per Capita Consumption p.a. until 2042 70 Room for Improvement to Reach European Countries Level GDP per capita (USDk, 2020) • Economic growth driven by
Slide 13: Distribution & Retail: Strong Position in Distribution and Retail
Energy SBU: Distribution & Retail / Strong Position in Distribution and Retail An Inflation Linked Business with Real Return Competitive Advantages Supportive and Transparent Regulatory Framework Breakdown of EBITDA (9M 2021) • Turkey’s leading electricity distribution and retail company – Economies
Slide 14: Distribution: Heavily Concentrated on Network Investments
Energy SBU Distribution & Retail / Distribution – Heavily Concentrated on Network Investments but also an Important Efficiency Game Strong Historical Growth and Untapped Potential Distribution Operational Earnings* Regulated Asset Base (TL bn) Breakdown (9M 2021) 35% 11.2 CAGR 9.4 Others 8.4 7% 6.9
Slide 15: Energy SBU: Operating Performance Remained Resilient
Energy SBU / Operating Performance Remained Resilient Despite Continuous Weakness in Hydrology Revenue EBITDA* EBITDA* Margin Improvement in ROE 23% 23% 23% Return on Equity (%) 22% 21% 19% 21.1% 21.5% 18.2% 31,103 30,355 26,013 23,647 23,580 11.4% 16,510 6,838 4.6% 5,337 5,962 5,423 5,884 3,468 201
Slide 16: Clear Strategies for Sustained and Profitable Growth
Enerji SBU / Clear Strategies for Sustained and Profitable Growth with Efficient Investments and Operational eExcellence • Leverage Customer Base into New Services and Customer • Healthier Financials and first dividend payout in 2021 Solutions • Capitalize growth opportunities by asset light options
Slide 17: Potential Areas In Line With Current Capabilities and Business
Energy SBU / Potential Areas In Line With Current Capabilities and Business Global and regional play Electrification Solar PV Alternative Electricity Energy SBU Hybrid Solutions Sources Digitalization (PV&Solar) assessed new Strong growth Microgrid Management business areas ELECTRON Security of Ener
Slide 18: New Generation Sabancı
Energy SBU / New Generation Sabancı Digitalization and 01 Data Analytics We are committed to staying at the center of the technologies that will shape the future energy world Early Adopter of Game-Changing Technologies Enhanced Customer 02 We aim to build our strong human capital and competencies to
Slide 19: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Kerem TEZCAN Investor Relations Director For Further ktezcan@sabanci.com Details ir.sabanci.com Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Specialist skardicalioglu@sabanci.com investor.relations@sabanci.com
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