Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q4 2021 Earnings Presentation
25 slides from Haci Omer Sabanci Holding A.s's earnings presentation, Feb 25, 2022
Slide 1: Q4 2021 Earnings Presentation
Q4 2021 EARNINGS PRESENTATION February 25, 2022
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: 2021 Highlights
2021 Highlights Record-high top-line growth & exceptional financial performance Further improvement in indebtedness & operational cash flow Results in line with midterm guidance MSCI: 2 notches upgrade to BBB CDP: 2 notches upgrade to B GEI: First & only Turkish conglomerate added in index Full cons
Slide 4: Successful delivery on our strategic initiatives
Capital Successful delivery on our strategic initiatives… Allocation Dynamic Portfolio Management Transfer of Aviva Shares to Ageas: Network Optimization Acquisition of Arvento Shares: New partnership with Ageas in life business in Building Materials Business: Share purchase agreement for the acquis
Slide 5: Our strategic roadmap promising for higher future growth
Capital …and our strategic roadmap promising for higher future growth… Allocation We unite Turkey and the World Purpose for a sustainable life with leading enterprises Strategic Innovate to provide wider Transform into an agile Pioneer in Lead in digital & Adapt to direction customer experience glob
Slide 6: Supported by robust ESG performance
Mid-term …supported by robust ESG performance Guidance 01 02 03 2021 MSCI 2021 CDP Climate 2022 GEI 2 Notches Increase ↑ 2 nothes increase ↑ for the 1st time in 9 Months Management Level Bloomberg Gender Equality Index on Successful Execution on Climate Performance in All Aspects of E, S & G B Clima
Slide 7: 2021 / Strong profitable growth
2021 / Strong profitable growth... Combined Revenue* Combined EBITDA* Consolidated Net Income* (TL mn) (TL mn) (TL mn) Non-bank** Bank Non-bank 150,050 +45% Non-bank** 32,869 +61% +95% Bank** Bank 10,136 53,006 103,562 17,688 20,429 5,479 37,976 5,209 9,466 2,760 97,044 65,587 15,181 4,657 10,963 2,
Slide 8: Solid cash flow generation & ongoing deleveraging
2021 / ...with solid cash flow generation & ongoing deleveraging… Operational Cash Flow, Combined for Non-Bank* Combined Net Financial Debt to Non-Bank EBITDA* (TL bn) CAGR: Annual: +28% +15% 3.1x 12.4 10.8 2.3x 2.2x 9.5 1.5x 5.6 1.2x 4.6 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 *Excludes F
Slide 9: All-time-high non-bank ROE & strong liquidity
2021 / …leading to an all-time-high non-bank ROE & strong liquidity Return on Equity* Holding Only - Net cash position (TL bn) Annual: Non-Bank +124% ROE : 23.9% 2.6 2.5 17.1% 22.6% 17.9% 16.2% 13.1% 14.5% 13.7% 14.5% 1.7 1.7 13.7% 13.6% 10.9% 1.1 9.3% 12.2% 10.9% 2017 2018 2019 2020 2021 2017 2018
Slide 10: Q4 Combined Revenues / Strong non-bank revenue growth
Q4 Combined Revenues / Strong non-bank revenue growth Combined Revenue* (TL mn) Combined Revenue* Breakdown 480 2,735 77% 3,138 BUILD MAT. OTHER 1% FIN. 5% 4,869 SERV. 6% 5,303 INDUST. ENERGY 10% 33% OTHER* BULD. MAT. 1,228 288 FIN. SERV. 2,085 2,794 16,842 50.0 INDUSTRIAL RETAIL 4,174 RETAIL 11% BN
Slide 11: Q4 Combined EBITDA / Growing more than 2x
Q4 Combined EBITDA / Growing more than 2x Combined EBITDA* (TL mn) Combined EBITDA* Breakdown 155 90 FIN. SERV. OTHER 409 410 3% 1% 1,013 RETAIL** BUILD. MAT 128% 3% 1% ENERGY INDUSTRIALS 23% 10% OTHER 7,196 BULD. MAT. FIN. SERV. 23 12.0 232 221 RETAIL** 512 322 BN TL INDUSTRIALS BANK 2,562 ENERGY 2
Slide 12: Q4 Consolidated Net Income
Q4 Consolidated Net Income / Solid operational performance pass through & deleveraging Consolidated Net Income* (TL mn) Consolidated Net Income* Breakdown 673 16 144 OTHER 260% 41 15% ENERGY 419 18% OTHER BULD. MAT. INDUSTRIALS 4.3 10% FIN. SERV. RETAIL** 2,264 INDUSTRIALS FIN. SERV. 3% BN TL BANK 4
Slide 13: Energy / Strong profitability despite liberalized margins and hydrology
Energy / Strong profitability despite deterioration in liberalized margins and hydrology Energy Segment Summary Financials* MILLION TL Q4 2020 Q4 2021 Change 2020 2021 Change SALES 7,522 16,631 121% 31,103 46,987 51% Current Assessment EBITDA** 1,416 2,772 96% 6,838 8,656 27% Distribution & Retail:
Slide 14: Industrials / Sharp improvement in earnings quality and deleveraging
Industrials / Sharp improvement in earnings quality and deleveraging Industrials Summary Financials* MILLION TL Q4 2020 Q4 2021 Change 2020 2021 Change SALES 2,794 4,869 74% 8,773 14,563 66% Current Assessment EBITDA** 512 1,013 96% 1,623 3,128 93% Ongoing volume growth in our tire & tire EBITDA** M
Slide 15: Building Materials / Robust annual performance despite cost pressures
Building Materials / Robust annual performance despite escalated cost pressures in Q4 Building Materials Summary Financials* MILLION TL Q4 2020 Q4 2021 Change 2020 2021 Change Current Assessment SALES 1,228 2,735 123% 4,238 7,916 87% EBITDA** 232 155 -33% 764 1,060 39% Sustained demand & new synergi
Slide 16: Retail / Growth in e-commerce continued
Retail / Growth in e-commerce continued Retail Summary Financials* MILLION TL Q4 2020 Q4 2021 Change 2020 2021 Change SALES 4,174 5,303 27% 13,522 16,888 25% Current Assessment EBITDA** 448 553 24% 1,135 1,490 31% Solid top line growth continued EBITDA**-Comparable 322 409 27% 640 927 45% EBITDA** M
Slide 17: Financial Services (Insurance) / Robust growth in premium and profitability
Financial Services (Insurance) / Robust growth in premium and profitability Financial Services (pension & insurance) Summary Financials* MILLION TL Q4 2020 Q4 2021 Change 2020 2021 Change SALES 2,085 3,138 50% 6,604 9,008 36% Current Assessment EBITDA** 221 410 86% 999 1,194 20% Life: Strong technic
Slide 18: Bank / Well positioned to remain healthy & profitable
Bank / Well positioned to remain healthy & profitable Summary Combined Financials Current Assesment MILLION TL Q4 2020 Q4 2021 Change 2020 2021 Change Generated all time high net income REVENUE 10,157 16,842 66% 37,976 53,006 40% EBITDA 2,562 7,196 181% 9,466 17,688 87% Reached 17.9% RoE & 2.1% RoA
Slide 19: Future Growth Underpinned By Capital Return and Sustainability
Future Growth Underpinned By Capital Return and Sustainability 01 Growth 02 Capital Return 03 Sustainability Mid-term 2017-2021 targets Revenue growth CPI1 + 5% CPI + 8% Dividend policy Zero Waste 5%-20% of net income Net Zero Emissions by 2050 EBITDA2 growth CPI1 + 5% CPI + 10% Share Buyback Capex/
Slide 20: 2021 Take-Aways
2021 Take-Aways Exceptional financial performance 2021 results is in line with our midterm guidance Doubling ESG-related R&D Investments until 2025 Enhanced focus on: • Energy & climate transition • Sustainable mobility solutions & advanced materials • Digital 20
Slide 21: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS For Further Kerem TEZCAN Investor Relations Director Details ir.sabanci.com Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Specialist investor.relations@sabanci.com
Slide 22: Appendix
APPENDIX 22
Slide 23: Appendix / Financials in detail
Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q4 2020 Q4 2021 Change 2020 2021 Change Q4 2020 Q4 2021 Change 2020 2021 Change Q4 2020 Q4 2021 Change 2020 2021 Change TOTAL 28,249 49,997 77% 103,562 150,050 45% 5,412 12,190 125% 20,925 33,433 6
Slide 24: Appendix / Sabancı Holding Discount to NAV & Cash
Appendix / Sabancı Holding Discount to NAV & Cash USDmn December 2021 December 2020 Companies Direct Stakes Valuation Method Mcap Value of Stake % of NAV Value of Stake % of NAV NAV Discount Akbank 41% Market value 2,807 1,144 30.8% 1,978 33.6% December 2021 December 2020 December 2019 Enerjisa Ener
Slide 25: 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
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