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

Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — FY2022 Earnings Presentation

34 slides from Haci Omer Sabanci Holding A.s's earnings presentation, Mar 2, 2023

  1. Slide 1: 2022 YE Earnings Presentation

    2022 YE EARNINGS PRESENTATION March 2, 2023

  2. 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

  3. Slide 3: We were, and will continue to be in the region until all wounds are healed

    We were, and will continue to be in the region until all wounds are healed… 3

  4. Slide 4: 2022 Highlights Strong Financial Results

    2022 Highlights Strong Financial Dynamic Portfolio Improved ESG Results Management Performance Topline growth: 168% PMI Disposal: TL3.1bn 3 notches increase from MSCI in 3 years Net income* growth: 258% 2 new acquisitions**: TL0.7bn 1st conglomerate from Türkiye in Bloomberg GEI Net debt/EBITDA* < 1

  5. Slide 5: Strengthening Our Presence in New Economy As We Committed

    Strengthening Our Presence in New Economy As We Committed Investments in New Growth Platforms (76% of total investments) Energy & Climate Advanced Material Digital Technologies Technologies Technologies Türkiye’s first green hydrogen production Acquisition of Microtex in Italy Acquisition of Arvento

  6. Slide 6: We are Investing in Tech-based Start-ups via Sabancı Ventures

    We are Investing in Tech-based Start-ups via Sabancı Ventures 2022 Performance 2022 Investments # of Companies #1 local public and private Initial Fund Size: USD30Mn cloud services company in Türkiye 30m $ Preliminary 170+ screening Leading AI-powered virtual Ticket Size: USD500k – USD4Mn assistants

  7. Slide 7: 4 Strategic Initiatives has driven Transformation across the Group in 2022

    4 Strategic Initiatives has driven Transformation across the Group in 2022 We are 35% ahead of schedule in # of actions in our Sustainable Innovation Sustainability Roadmap 4 Sabancı ARF ESG in Capital Allocation EIT ClimAccelarator Climate KIG 3 Exit from tobacco Decarbonization Establishment of Sa

  8. Slide 8: Combined Financials

    COMBINED FINANCIALS 8

  9. Slide 9: Despite global & local inflationary pressures & weak TL

    Despite global & local inflationary pressures & weak TL… Bloomberg Commodity Index (YoY Change) Bloomberg Energy Subindex (YoY Change) 42.4% 37.2% 104.0% 32.6% 28.1% 69.9% 23.4% 67.6% 67.0% 13.0% 36.0% 31.9% Q1 2022 Q2 2022 Q3 2022 Q4 2022 2021 2022 Q1 2022 Q2 2022 Q3 2022 Q4 2022 2021 2022 Average

  10. Slide 10: We achieved strong real growth across the board with a major improvement in earnings quality

    …we achieved strong real growth across the board with a major improvement in earnings quality… Combined Revenue* Combined EBITDA* Consolidated Net Income (TL mn) (TL mn) (TL mn) Non-bank Bank Non-bank Bank Non-Bank Bank One-Off +168% +242% +264% 401,483 112,276 43,828 One-off: TL9,248Mn 150,384 +184

  11. Slide 11: Sharp improvement in ROE coupled with solid liquidity at the Holding level

    …that resulted in a sharp improvement in ROE coupled with solid liquidity at the Holding level despite faster pace in investments… Return on Equity (ROE)* Holding Only - Net cash position (TL bn) Non-bank ROE Consolidated ROE 31.1% 3.1 45.4% 23.9% 2.6 2.5 17.1% 13.7% 13.1% 9.3% 1.7 1.7 22.6% 1.1 14.

  12. Slide 12: Cash flow more than doubled, balance sheet further improved

    …while cash flow more than doubled, balance sheet further improved that provides flexibility for potential headwinds & new investments Operational Cash Flow, Combined for Non-Bank* Combined Net Financial Debt to Non-Bank EBITDA* (TL bn) 28.7 3.1x +44% 2.3x 2.2x Midterm Guidance: ≤ 2x 1.5x 12.5 10.8

  13. Slide 13: Increasing investments that accelerate Group's transformation strategy

    Increasing investments that accelerate Group’s transformation strategy Business Composition* Sector Composition* Non-bank Capex/Sales* ~14.0% Digital; 7% >2x 10.3% Core Businesses; 24% Building Materials; 24% 7.3% 6.6% Energy; 55% New Economy Businesses; 76% Industrials; 14% 2020 2021 2022 Mid-term

  14. Slide 14: Combined Revenues / Non-bank topline growth driven energy segment

    Combined Revenues / Non-bank topline growth driven energy segment Segments’ Contribution to Combined Revenues* (TL Mn) +152% Segment Annual Revenue Growth: Share in Q4’22 Combined Revenues: *Holding dividend income is excluded. 14

  15. Slide 15: Combined EBITDA / Non-bank EBITDA more than tripled

    Combined EBITDA / Non-bank EBITDA more than tripled amid elevated inflationary pressures Segment’s Contribution to Combined EBITDA* (TL Mn) +212% Segment Annual EBITDA* Growth: Share in Q4’22 Combined EBITDA*: *Excludes non operational , non recurring one off items and IFRS16 impact in retail. 15

  16. Slide 16: Consolidated Net Income / Solid non-bank performance on deleveraging

    Consolidated Net Income / Solid non-bank performance on deleveraging despite high base Segments’ Contribution to Consolidated Net Income* (TL Mn) +171% Segment Annual Net Income Growth: Share in Q4’22 Consolidated Net Income: *Excludes non operational , non recurring one off items and IFRS16 impact

  17. Slide 17: Stock Performance

    STOCK PERFORMANCE 17

  18. Slide 18: Market has recognized Sabancı Holding's transformation on NAV discount

    Market has recognized Sabancı Holding’s transformation on NAV discount… NAV (USD mn) &NAV Discount NAV Bridge +76% 6,713 3,809 3,762 3,987 3,565 YE 2021 Q1 2022 Q2 2022 Q3 2022 YE 2022 -28.8% -26.7% -35.0% -35.0% -46.9% +20pp Average NAV Discount: NAV Shares: *Includes Exsa, Tursa, AEO and disposal

  19. Slide 19: Stock relative performance and EPS vs. P/E

    …but not entirely, considering discount to historical average P/E Stock Relative-Performance Earnings Per Share vs. Price/Earnings* (USD basis) EPS P/E SAHOL BIST 30 300 5.1 4.9 4.0 254 250 2.2 2.1 209 21.5 200 150 11.4x 100 5.9 50 1.9 1.9 2.3 0 Feb-22 Jun-22 Mar-22 Nov-22 Apr-22 Jul-22 Aug-22 Sep-2

  20. Slide 20: Segment Financials

    SEGMENT FINANCIALS 20

  21. Slide 21: Energy / Strong performance continued in both businesses

    Energy / Strong performance continued in both businesses Energy Segment Summary Financials* MILLION TL Q4 2021 Q4 2022 Change 2021 2022 Change SALES 16,631 37,697 127% 46,987 140,516 199% Current Assessment EBITDA** 2,772 5,534 100% 8,656 19,481 125% EBITDA**MARGIN 16.7% 14.7% 18.4% 13.9% Distributi

  22. Slide 22: Industrials / Lower margins on escalated inflationary pressures on costs

    Industrials / Lower margins on escalated inflationary pressures on costs Industrials Summary Financials* Current Assessment MILLION TL Q4 2021 Q4 2022 Change 2021 2022 Change SALES 4,869 9,184 89% 14,563 32,520 123% Signals of global slow down both in tire EBITDA* 1,013 1,211 20% 3,128 5,193 66% and

  23. Slide 23: Building Materials / Sharp profitability growth

    Building Materials/ Sharp profitability growth on further improvement in operational excellence Building Materials Summary Financials* Current Assessment MILLION TL Q4 2021 Q4 2022 Change 2021 2022 Change SALES 2,735 6,599 141% 7,916 21,591 173% Sales mix optimization EBITDA** 155 717 363% 1,060 3,0

  24. Slide 24: Retail / Strong top-line growth led to improvement in bottom line

    Retail / Strong top-line growth led to improvement in bottom line Retail Summary Financials* MILLION TL Q4 2021 Q4 2022 Change 2021 2022 Change Current Assessment SALES 5,303 12,981 145% 16,888 36,639 117% EBITDA** 553 966 75% 1,490 2,794 87% Both companies recorded top line growth EBITDA**-Comparab

  25. Slide 25: Financial Services / Weak Non-Life business pulled down profitability

    Financial Services / Weak Non-Life business pulled down segment’s profitability Financial Services Summary Financials* MILLION TL Q4 2021 Q4 2022 Change 2021 2022 Change Current Assessment SALES 3.138 6.233 99% 9.008 17.280 92% EBITDA** 410 103 -75% 1.194 845 -29% Life: Strong technical income drive

  26. Slide 26: Bank / Solid core operating performance with stellar customer acquisition

    Bank / Solid core operating performance with stellar customer acquisition & agile ALM Summary Combined Financials 2022 Summary MILLION TL Q4 2021 Q4 2022 Change 2021 2022 Change Reached an outstanding 6.2% RoA & 54.7% REVENUE 16,842 52.691 213% 53,006 150.384 184% RoE with 7.5x leverage EBITDA 7,196

  27. Slide 27: Guidance

    GUIDANCE 27

  28. Slide 28: Mid-Term Guidance Maintained

    Mid-Term Guidance Maintained 01 Growth 02 Capital Return 03 Sustainability Mid-term targets* Dividend policy Zero Waste Revenue growth CPI + 8% Net Zero Emissions 5%-20% of net income by 2050 EBITDA1 growth CPI + 10% Share Buyback Up to 5% of paid-in capital: Capex/Revenues2 ~14% 102 mn shares Until

  29. Slide 29: 2022 Highlights Strong Financial Results

    2022 Highlights Strong Financial Dynamic Portfolio Improved ESG Results Management Performance Topline growth: 168% PMI Disposal: TL3.1bn 3 notches increase from MSCI in 3 years Net income* growth: 258% 2 new acquisitions**: TL0.7bn 1st conglomerate from Türkiye in Bloomberg GEI Net debt/EBITDA* < 1

  30. Slide 30: Appendix

    APPENDIX 30

  31. Slide 31: Appendix / Financials in detail

    Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q4 2021 Q4 2022 Change 2021 2022 Change Q4 2021 Q4 2022 Change 2021 2022 Change Q4 2021 Q4 2022 Change 2021 2022 Change TOTAL* 49,997 126,120 152% 150,050 401,483 168% 12,190 37,810 210% 33,433 113

  32. Slide 32: Appendix / Sabancı Holding Discount to NAV & Cash

    Appendix / Sabancı Holding Discount to NAV & Cash USDmn December 2022 December 2021 Value to Sabancı Value to Sabancı Companies Direct Stake Valuation Method Mcap Holding % of NAV Holding % of NAV NAV Discount Akbank 41% Market value 5,437 2,216 33.0% 1,145 30.0% Enerjisa Enerji 40% Market value 2,2

  33. Slide 33: Appendix / IFRS16 Impact on Financials

    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 sheet

  34. Slide 34: Investor Relations Contacts

    INVESTOR RELATIONS CONTACTS ➢ Kerem TEZCAN Meet SirA, Sabancı Holding's digital Investor Relations Director investor relations assistant ! ➢ Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager Turkey’s First Investor Relations Dedicated Assistant ! ➢ Hamza SÜMER For Further Investor Relations Spe

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