Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (November 2023)
69 slides from Haci Omer Sabanci Holding A.s's investor presentation, November 2023
Slide 1: Investor Presentation November 2023
NOVEMBER 2023 INVESTOR PRESENTATION
Slide 2: Disclaimer
INVESTOR 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
Slide 3: Capital Allocation
01 /08 Capital Allocation
Slide 4: Doubling CAPEX to accelerate organic and inorganic growth
CAPITAL ALLOCATION Doubling CAPEX to accelerate both organic and inorganic growth… DOUBLING CAPEX | 25/75 SPLIT BETWEEN CORE & NEW INVESTMENTS Invest in New Platforms Grow and Protect the Core Increasing share of new economy in nonbank CT INV combined revenue : T E ES Strengthen our market leading p
Slide 5: A coherent strategic plan on core and new platforms
CAPITAL ALLOCATION …with a coherent strategic plan on core and new platforms We unite Türkiye and the World Purpose for a sustainable life with leading enterprises Strategic Agile global / local footprint Future-ready Digital & AI transformation Innovation for growth Sustainability for a better life
Slide 6: 77% of investments to new economy
CAPITAL ALLOCATION Continuing to deliver on our strategic initiatives: 77% of investments to new economy Dynamic Portfolio Management Turkey’s 1st Green Hydrogen: Digital Investment: Climate Tech & Renewable Energy in the USA: R&D Project for Turkey's first hydrogen Start of Operations of Sabancı Gl
Slide 7: Recent Acquisitions
02 /08 Recent Acquisitions
Slide 8: Investing in new economy for a major transformation
RECENT ACQUISITIONS Investing in new economy for a major transformation in Sabancı Group Energy & Climate Technologies Advanced Material Technologies Digital Technologies Renewables Electrification Sustainable Telematics Chemicals loT 4.0 Cybersecurity Digital Marketing E-mobility Digitalization Lig
Slide 9: Leveraging core capabilities in the Energy SBU
RECENT ACQUISITIONS It is time to leverage core capabilities in the Energy SBU & expand the business to create higher value for all stakeholders We lead energy and climate transition by bridging the gap between emerging and developed markets Sabancı Climate Technologies, wholly owned subsidiary of S
Slide 10: US renewable energy market and venture ecosystem
RECENT ACQUISITIONS US came to the fore with the attraction of being world’s 2nd largest renewable energy market & the largest corporate venture ecosystem Facts on Renewable Energy Investments US is the 2nd largest renewable energy market following China. Solar Resource Potential Wind Resource Poten
Slide 11: Oriana and Cutlass II solar projects
RECENT ACQUISITIONS Sabancı Group’s generation capacity to reach 500 MW in the US once the 2nd project “Oriana Solar Power Plant” completed… Oriana Cutlass II 232 MW 272 MW Solar Power Plant Project Solar Power Plant Project With 60 MW Project Acquisition: October’22 Battery Storage EPC Agreement wi
Slide 12: Texas region opportunities for future growth
RECENT ACQUISITIONS …in a region that is offering a variety of opportunities for the future growth Market potential for proxy businesses in Texas West Close to the major load centers of Houston and Corpus Christi, anticipated centers of future green fuel investment, as well as the increasing LNG rel
Slide 13: Sabancı Climate Ventures innovation ecosystem
RECENT ACQUISITIONS Sabancı Climate Ventures will create extended innovation ecosystem & enable early access to disrupting technologies… Sabancı Climate Ventures is a necessity to Value Proposition to Start-Ups position for the future and not competing with Acceleration, piloting, and commercializat
Slide 14: Climate technology fund and start-up investments
RECENT ACQUISITIONS ….via the investments in climate technologies fund & investments directly to start-up companies Invested in a venture fund with a Coming out of MIT's Plasma Coming out of MIT and reached a Founded in San Francisco in 2021 portfolio of start-ups from seed to Science and Fusion Cen
Slide 15: Step towards +5,000 MW installed capacity target
RECENT ACQUISITIONS A significant step towards +5,000 MW installed capacity target has been taken Installed Generation Capacity Mix(1) 1000 MW YEKA-2 Wind Power Plant Investment (USD 1.2 bn) ÇANAKKALE Currently 2026 250 MW BALIKESİR Renewables Natural Gas 250 MW 45% 43% 32% AYDIN 1,000MW Total Wind
Slide 16: Creation of a global digital business with acquisitions
RECENT ACQUISITIONS Creation of a global digital business with acquisitions Dx Technology Services and BV (DxBV), a wholly owned subsidiary of Sabancı Holding and established in the Netherlands, will undertake Investment Sabancı Group’s investments in digital businesses. Cyber Security Digital Marke
Slide 17: Global players in mobility market
RECENT ACQUISITIONS Global Players in Mobility Market Expansion in Composites Growth in New Mobility Solutions Microtex: Arvento: CT INV T E ES O PLA T PR ORE T Acquired by Kordsa Acquired by Brisa IN RMS TH & FO EC W NE GRO Deal Size: EUR24.6mn Deal Size: ~EUR22mn (1) W Product and geographic diver
Slide 18: Sustainability
03 /08 Sustainability
Slide 19: Prioritizing ESG to transform our portfolio
SUSTAINABILITY Prioritizing ESG to transform our portfolio for the future… 11% 12% Foster Sustainable Act on Climate Emergency 9% Business Models Reduction in Scope 1 and 2 GHG Reduction in energy Reduction in water emissions(1) consumption(1) consumption(1) USD 5 Billion SDG-related operational spe
Slide 20: Improving our ESG performance further
SUSTAINABILITY ...while improving our ESG performance further MSCI Rating A 2023 2022 2022 MSCI 14.2 BBB Bloomberg GEI Sustainalytics 3 notches increase in BB First and Only Low ESG Risk 3 years B Conglomerate from Low Risk In Diversified Financials Category Türkiye to be included twice in a row A J
Slide 21: Improving Corporate Governance Framework
SUSTAINABILITY Improving Corporate Governance Framework 9 BoD members (3 Independent) Shareholder Structure Board Members 56% non-family, 44% women Sabancı Family 49.5% Early Detection of Risk Assumes some of the roles of the Portfolio Committee Corporate Management Committee, terminated in Governan
Slide 22: Sustainability Roadmap
SUSTAINABILITY Sustainability Roadmap Act on Climate Emergency 01 Maximize Positive Impact 02 Foster Sustainable Business Models 03 Become 'Net Zero Emissions’ and 'Zero Waste' by 2050 at the latest Create shared value for all stakeholders, Develop innovative products, services with social programs
Slide 23: Adapting to the Future of Work
SUSTAINABILITY Adapting to the Future of Work Smart Mental & New Talent TL 200 MN Flexible & High Work Physical Health Performance Workforce & Skill Paradigm Planned Investment Within 2 years Leadership Purpose Driven Digital & Agile 1,500+Planned Actions for 2021-2023 Organization and Culture Organ
Slide 24: Operational & Financial Performance
Operational & & : Financial Performance 04 /08
Slide 25: Sabancı Group global footprint and business partners
OPERATIONAL FINANCIAL PERFORMANCE Sabancı Group continues to grow with its solid global footprint, thousands of employees and prominent global business partners UK Germany Hungary Türkiye 6 Business Partners Netherlands Spain 14 USA Countries Cyprus France 60K+ Thailand Malta Brazil Italy Indonesia
Slide 26: Complementary business units with increasing share of non-bank
OPERATIONAL & FINANCIAL PERFORMANCE Complementary business units with increasing share of non-bank NAV(1) Breakdown Bank Bank Digital ROE: ROE: 1% 13.6% 35% 41.2% Retail 44% 4% Energy 14% Consolidated ROE: Bank Consolidated 37.8% 41% ROE: Listed NAV: 13.7% Building USD 6.4 bn Materials 20% Non-Bank
Slide 27: Diversified portfolio supporting earnings quality
OPERATIONAL & FINANCIAL PERFORMANCE Our well-diversified portfolio continued to support earning earnings quality … Combined Revenue(1) (TL Bn) Combined EBITDA(1) (TL Bn) Consolidated Net Income(1) (TL Bn) Non-bank Bank Non-bank Bank Non-bank Bank CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 47% 63% 65% 43% 74%
Slide 28: Resilient non-bank ROE and cash flow
OPERATIONAL & FINANCIAL PERFORMANCE …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% 2
Slide 29: Further deleveraging and strong holding cash
OPERATIONAL & FINANCIAL PERFORMANCE …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 20
Slide 30: Sustainable dividend growth and effective capital allocation
OPERATIONAL & FINANCIAL PERFORMANCE Sustainable dividend growth and effective capital allocation DPS (TL) Total Funds Allocated for Share Non-bank Capex/Sales(2) Buyback (TL bn) Dividend Yield (%) (1) 4.41 4.27 4.42 3.82 3.79 +86% 2.87 14.0% 1.75 >2x 3.25 10.3% 10.3% +42% ~7.0% 1.75 6.6% 0.75 0.33 0
Slide 31: NAV & Stock Performance
05 /08 NAV & Stock Performance
Slide 32: Almost doubling NAV in USD terms with attractive 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 Shares:
Slide 33: 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
Slide 34: SAHOL trades at 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
Slide 35: Strategic Business Units
06 /08 Strategic Business Units
Slide 36: Banking: upside potential to 2023 guidance
BANKING Upside potential to 2023 profitability guidance 2023 Guidance 9M23 TL Loan Growth ~ 40% 42.0% 01 04 Retail driven growth with Taking advantage of sustainable profitability & healthy advanced analytics & FX Loan Growth (in USD) Low-single digit -3.8% market share gains in focus cutting-edge t
Slide 37: Banking Financial Performance
BANKING Financial Performance Capital Adequacy Ratio(1) & Tier 1 Ratio(1) Combined Net Income (2) & Reported ROE Total Asset & Reported ROA (TL bn, %) (TL bn, %) 9M 2023 9M 2023 CAGR: Y/Y: CAGR: Y/Y: Excess Capital(1): Excess Tier 1(1): 81% 36% 34% 61% TL 75.3 bn TL 64.3 bn 54.7% 6.2% 17.9% 16.1% 5.
Slide 38: Energy SBU: strong profitability in both businesses
ENERGY SBU Strong profitability prevailed in both businesses despite natural gas plant stoppages & lower spot prices AYEDAŞ Distribution 14 12.1 mn 22 mn & Retail BAŞKENT Cities Connections Population Ankara (Başkent) 10.7 mn 39.2 TWh 323,421 km Customers 2022 Sales Volume Network Adana 4 HEPP Gazia
Slide 39: Energy Financial Performance
ENERGY SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA(1) (TL Bn) & EBITDA(1) Margin Combined Net Income(1) (TL Bn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 56% 23% 38% 46% 67% 116% 23% 23% 22% 16% 18% 14% 14% 140.5 126.4 20.3 19.5 16.1 102.8 13.9 11.0 47.0 8.7 7.4 6.8 31.1 5.9 26.0 5.3 4
Slide 40: Building Materials: Türkiye's Leading Exporter
BUILDING MATERIALS SBU Leading Turkish Cement Player Targeting Product and Geographic Diversification for Sustainable Growth Germany Netherlands Türkiye’s Leading 3 4 2 Exporter Integrated Ports Spain Domestic Terminals plants USA Türkiye 9.2 mn ton 25 88% Cement capacity RMC plants Capacity Utiliza
Slide 41: Building Materials Financial Performance
BUILDING MATERIALS SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA(1) (TL Bn) & EBITDA(1) Margin Combined Net Income(1) (TL Bn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 59% 62% 43% 139% 63% 218% 23% 21% 18% 15% 15% 14% 13% 5,504 4,356 24.3 21.6 15.0 3,016 1,736 2,299 1,370 7.9 522 4.2 1,0
Slide 42: Industrial SBU: Tire & Composites Reinforcer
INDUSTRIAL SBU Weakness in tire reinforcement business driven by global recessionary environment offset by strong demand in tire business Germany Tire & Mobility Solutions 1/3 CDP A- 35% of every Passenger Climate Change International Car Tire in Türkiye Category Revenue 112 13.5 Mn 7,300 USA Otopra
Slide 43: Industrial Financial Performance
INDUSTRIAL SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA(1) (TL Bn) & EBITDA(1) Margin Combined Net Income(1) (TL Bn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 39% 43% 39% 24% 61% -2% 21% 19% 19% 17% 16% 15% 15% 32.5 33.4 5.2 3,322 4.9 2,765 2,710 23.3 4.0 3.1 2,023 14.6 9.7 1.6 1.6 8.8
Slide 44: Financial Services: Non-Life and Life Insurance
FINANCIAL SERVICES SBU Well Positioned in Both Non-Life and Life Insurance Markets Aksigorta Gross Written Premiums Trend (bn TL) CAGR: Y/Y: 41% 108% 3,500+ 6.5% Non-Life Insurance # of Agencies Market Share Leader in 17.8 13.6 4.5 5.3 7.0 8.6 TL 17.8 bn TL 8.9 bn 3.4 AuM(3) GWP(2) 2018 2019 2020 20
Slide 45: Financial Services Financial Performance
FINANCIAL SERVICES SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA(1) (TL Bn) & EBITDA(1) Margin Combined Net Income(1) (TL Bn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 44% 108% 13% 179% 24% 159% 23.0 2,067 2,072 17.3 1,194 11.0 999 989 934 9.0 845 799 697 742 734 6.6 569 5.5 510 414 4.0
Slide 46: Digital SBU: Technology Retail
DIGITAL SBU Strong demand in electronics retail led to solid top-line growth Technology Retail 64 187(2) 104k sqm Cities Stores Sales Area 47 mn (1) 2,781 Annual Visitors Employees Panel & Techonline Market Growth(TL bn) Teknosa E –Commerce Sales Teknosa GMV (TL mn) (TL mn) Panel Techonline 129% YOY
Slide 47: Digital Financial Performance
DIGITAL SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA(1) (TL Bn) Combined Net Income(1) (TL Bn) +124% +102% 5% 26,181 1,801 313 300 11,671 893 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 (1) Excludes non-operational and non-recurring one off items
Slide 48: Retail SBU: Food & Non-Food Retail
RETAIL SBU Solid top-line growth exceeding inflation Food & Non-Food Retail 54 981 548k sqm Cities Stores Sales Area 48 mn (1) 10,423 Annual Visitors Employees Customer (mn) Alternative Channels Share Sales Area (3)(km2) Number of Stores (4) in Revenue(2) 931 47.6 9.1% 4.8% 11.4% 548 8.8% 523 836 5.
Slide 49: Retail Financial Performance
RETAIL SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA(1) (TL Bn) Combined Net Income(1) (TL Bn) +93% +76% 24,831 1,588 12,870 903 -214 -195 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 (1) Excludes non-operational and non-recurring one off items
Slide 50: Holding Value Add
07 /08
Slide 51: Innovation & Corporate Venture Capital
HOLDING VALUE ADD Innovation & Corporate Venture Capital 90 days agile business development & Launched in Sep’22, 1st batch 14 startups Investments in 9 companies (5 in collaboration platform. Over 500 accepted 8 of them got investment. 2nd 2022) and deployed ~USD10mn 3 years, 750 alumni, participan
Slide 52: Investing in Tech-based Start-ups via Sabancı Ventures
HOLDING VALUE ADD Investing in Tech-based Start-ups via Sabancı Ventures 2022 & 2023 Q3 2022 & 2023 Q3 Performance Investments # of Companies #1 local public and private cloud services company in Türkiye USD30Mn Initial Fund Size Preliminary Leading AI-powered virtual assistants for screening e-comm
Slide 53: Corporate Venture Capital Investments and Timeline
HOLDING VALUE ADD Corporate Venture Capital Investments Through Subsidiaries and Timeline Establishment of Invested in Invested in Invested in Sabancı Climate Tech Invested in Safar Partnership Invested in Segmentify Sabancı Ventures Lumnion Zack.ai Albert Health Partners, CFS and Quasie Energy with
Slide 54: Leveraging Synergies Within Sabancı Ecosystem
HOLDING VALUE ADD Leveraging Synergies Within Sabancı Ecosystem Eşarj Stations Solar Power Plants The first, fastest within the Group in and largest (in DC) Cooperation with E-mobility station Enerjisa Enerji network in Türkiye 75K m2 6,226 kWp 10,400 Ground Area Solar Production Capacity Solar Pane
Slide 55: Leveraging Synergies Within Sabancı Ecosystem: Bancassurance
HOLDING VALUE ADD Leveraging Synergies Within Sabancı Ecosystem Strong Exclusive bancassurance agreement with Akbank Presence in all physical and digital channels Kordsa & collaboration in Cement Companies Bancassurance Joint vision in Effective Cooperation digital with Akbank governance model Banca
Slide 56: Total Income Package
HOLDING VALUE ADD Management Incentives Recognition, Appreciation Flexible Working Sabancı Group provides a range of and Supportive Practices Career Development Training Support benefits, recognition, appreciation, and Goldan Collar Awards supportive practices to employees that Recognition & Appreci
Slide 57: Management Incentives
HOLDING VALUE ADD Management Incentives Total Cash Distribution Model (%) Sample for a company general manager Short Term Net Sales Net Financial Debt (1-Year) Financial KPIs* EBITDA Working Capital Free Cash Flow Market Share Long Term (maximum) 125 Short Term , (1-Year) Non- Action against the cli
Slide 58: Mid-Term Guidance
08 /08 Mid-Term Guidance
Slide 59: 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
Slide 60: Appendix
APPENDIX
Slide 61: Portfolio in Continuous Evolution
APPENDIX Portfolio in Continuous Evolution 1940s - 1960s 1970s - 2000s 2000s - 2010s Present and Future Early Growth Phase - Proliferation of Global Refocus Portfolio Growth and Transformation Initial Diversification Partnerships-Conglomeration
Slide 62: Executive Leadership
APPENDIX Executive Leadership Cenk AlperBoard Member and CEO Joined Sabancı Group in 1996. 5 years of international experience in the US and Europe with N.V. Bekaert. Led Kordsa‘s transformation and SPO as CEO. After managing Industrials SBU between 2017 and 2019, appointed as the CEO of Sabancı Hol
Slide 63: Overview of Corporate Structure
APPENDIX Overview of Corporate Structure BANKING & FINANCIAL ENERGY RETAIL BUILDING MATERIALS INDUSTRIALS DIGITAL SERVICES SAHOL: 40.0% SAHOL: 57.1% SAHOL: 39.7% SAHOL: 40.7% SAHOL: 71.1% SAHOL: 49.0% E.ON: 40.0% Carrefour: 32.2% Heidelberg Materials: 39.7% Other: 8.4% Free Float: 28.9% DxBV: 51.0%
Slide 64: Reporting
APPENDIX Reporting Combined Net Sales EBITDA Net income Subsidiaries line by line line by line line by line Joint Ventures line by line line by line line by line Consolidated Net Sales EBITDA Net income Subsidiaries line by line line by line line by line Joint Ventures Not included Proportion of own
Slide 65: 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
Slide 66: 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
Slide 67: 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
Slide 68: 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
Slide 69: 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
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