Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — FY2023 Earnings Presentation
32 slides from Haci Omer Sabanci Holding A.s's earnings presentation, Apr 3, 2024
Slide 1: 2023 YE Earnings Presentation
APRIL 3, 2024 2023 YE EARNINGS PRESENTATION
Slide 2: Disclaimer
EARNINGS PRESENTATION Disclaimer The Company’s financial statements dated 31.12.2023, which were disclosed to public on 02.04.2024, have been subject to inflation accounting for the first time within the framework of the “Financial Reporting in Hyperinflationary Economies Standard” (IAS 29). Financi
Slide 3: Mid-term guidance achieved for key financial metrics
MIDTERM GUIDANCE Mid-term guidance achieved for key financial metrics, rest of the targets are well on track Mid-term financial targets announced at Capital Markets Day in November 2020 for the period of 2021-2025 2021-2025 Targets 2021-2023 Figures Status Combined Revenue Growth CPI + 8% CPI + 28%
Slide 4: 2023 Highlights
EARNINGS PRESENTATION 2023 Highlights Execution on “new economy” Value-driven structural Rock-solid balance sheet and continues at full speed changes are in place increasing cash flow ✓ Increase in renewable capacity both ✓ Consolidation of Sabancı Building Top-line(1) growth Capex/Sales(1)(2) 57% 1
Slide 5: Focusing on sustainable business across all sectors
SUSTAINABILITY Focusing on sustainable business across all sectors in our portfolio Building Materials 85% 100% of cement manufactured at CSC Gold certified plants of building materials companies are aligned with the SBTi 1.5-degree pathway Energy 3GW+ 1/3 1 st Renewables portfolio will reach 3 GW+
Slide 6: Most ambitious Sustainability Roadmap among Holding companies in Türkiye
SUSTAINABILITY Most ambitious Sustainability Roadmap among all Holding companies in Türkiye TL 800 bn Best ambition level in SBTi & TL 15 bn Nature 64% Akbank’s sustainable finance pledge & balance of In terms of % CO2 reduction, decarbonizing hard Increase in the number of companies in CDP mutual f
Slide 7: Combined Financials 2023YE Results
01 /03 Combined Financials 2023YE Results
Slide 8: While inflationary pressures continue to affect the Turkish economy
COMBINED FINANCIALS While inflationary pressures continues to affect the Turkish economy… Bloomberg Commodity & Energy Index (YoY Change) Wage Increase(1) (Minimum Wage, Gross) Bloomberg Commodity Index Bloomberg Energy Index 661 67% 51% 33% 94% 32% 28% 319 -8% -12% -12% 145 176 -11% 126 -28% -39% 2
Slide 9: Our balanced portfolio continued to support earnings growth
COMBINED FINANCIALS …our balanced portfolio continued to support earnings growth Combined Revenue (TL mn) Combined EBITDA (TL mn) Consolidated Net Income (TL mn) Non-bank Bank Non-bank Bank Non-bank Bank 57% 23% 20% 631,454 138,918 41,326 281,769 87% 113,014 34,580 401,483 89,953 10% 26,354 8% 150,3
Slide 10: Inflation accounting affected net income
COMBINED FINANCIALS Inflation accounting affected net income with indexation of non-monetary items & tax effects Combined Revenue Combined EBITDA Consolidated Net Income 2022 2023 2022 2023 2022 2023 MILLION TL Change Change Change w IAS29 w IAS29 w IAS29 w IAS29 w IAS29 w IAS29 TOTAL 763,152 811,11
Slide 11: Details of inflation accounting on segments
COMBINED FINANCIALS Details of inflation accounting on segments EBITDA Margin 2023 Net Margin Bank Non-bank Bank Non-bank 31.9% 31.6% 23.0% 14.0% 10.7% 9.1% 7.1% 1.1% w/o IAS29 w IAS29 w/o IAS29 w IAS29 w/o IAS29 w IAS29 w/o IAS29 w IAS29 EBITDA Margin 2022 Net Margin Bank Non-bank Bank Non-bank 54.
Slide 12: ROE normalized after implementing inflation accounting
COMBINED FINANCIALS ROE normalized after implementing inflation accounting, operational cash flow remains rock solid Return on Equity (ROE) (1) Operational Cash Flow, Combined for Non-Bank (2) (TL bn) Bank ROE Consolidated ROE Non-Bank ROE 36.0 13.7% 13.1% 13.1% 17.1% 17.1% 23.9% 23.9% 31.1% 31.1% 2
Slide 13: Holding cash more than doubled, indebtedness below target
COMBINED FINANCIALS Holding cash more than doubled, group wide indebtedness remained below mid-term target Holding Only - Net cash position (TL bn) Combined Net Financial Debt to Non-Bank EBITDA (1) 2.2x 7.0 Midterm Guidance: < 2x 42% 1.5x 1.2x 3.1 0.8x 2.5 0.8x 1.7 0.5x 0.4x 1.1 2019 2020 2021 2022
Slide 14: NAV & Stock Performance
02 /03 NAV & Stock Performance
Slide 15: Discount narrowed despite healthy NAV growth
NAV & STOCK PERFORMANCE Discount narrowed despite a healthy NAV growth, yet NAV discount remains attractive NAV (USD mn)(1) & NAV(1) Discount NAV(1) Bridge 10% 8,687 7,905 Dec 2023 Mar 2024 -38.2% -47.0% 8.8 pp Average NAV Discount: Last 3- Year Last 5-Year Last 10-Year NAV 39% 22% 27% 3% 6% 3% Shar
Slide 16: A more balanced portfolio with increasing share of new economy
NAV & STOCK PERFORMANCE A more balanced portfolio with increasing share of new economy March 2024 NAV(1) Breakdown Based on Book Value for Unlisted Assets March 2024 NAV(1) Breakdown Based on Independent Valuation for Unlisted Assets Cash Cash 3% Other(2) 2% Other(2) Digital 6% Digital 6% Technologi
Slide 17: Segment Financials
03 /03 Segment Financials
Slide 18: Bank / Solidified customer driven revenue base
BANKING Bank / Solidified customer driven revenue base & operational resilience Key Financial Metrics Current Assessment Q4 2022 Q4 2023 Change 2022 2023 Change Exceeded 2023 guidance with an outstanding ROE of 37.9% reaching an ROA of 4.4% with 9.0x leverage Leverage 7.5x 9.0x 1.5x 7.5x 9.0x 1.5x C
Slide 19: Energy / Effectively managed operations despite headwinds
SEGMENT FINANCIALS Energy / Effectively managed operations in both generation & distribution despite headwinds Energy Segment Summary Financials(1) MILLION TL 2022 w/o IAS29 2023 w/o IAS29 Change 2022 w IAS29 2023 w IAS29 Change Current Assessment REVENUE 140,516 158,303 13% 270,737 216,743 -20% EBI
Slide 20: Building Materials / Robust operating performance
SEGMENT FINANCIALS Building Materials/ Robust operating performance and cash flow on improved efficiency Building Materials Summary Financials(1) MILLION TL 2022 w/o IAS29 2023 w/o IAS29 Change 2022 w IAS29 2023 w IAS29 Change Current Assessment REVENUE 21,591 35,055 62% 39,735 42,408 7% Sales mix o
Slide 21: Industrials / Strong tire & composite businesses
SEGMENT FINANCIALS Industrials / Strong tire & composite businesses offset a part of the weakness in tire reinforcement Industrials Summary Financials(1) MILLION TL 2022 w/o IAS29 2023 w/o IAS29 Change 2022 w IAS29 2023 w IAS29 Change Current Assessment REVENUE 32,520 44,612 37% 57,247 50,005 -13% S
Slide 22: Financial Services / Unadjusted profitability remained intact
SEGMENT FINANCIALS Financial Services / Unadjusted profitability remained intact Financial Services Summary Financials(1) MILLION TL 2022 w/o IAS29 2023 w/o IAS29 Change 2022 w IAS29 2023 w IAS29 Change Current Assessment REVENUE 17,280 34,783 101% 32,715 42,990 31% EBITDA(2) 845 3,285 288% 1,517 3,
Slide 23: Digital / Omnichannel structure continued solid cash generation
SEGMENT FINANCIALS Digital / Omnichannel structure continued to deliver solid cash generation & strong results Digital Summary Financials(1) MILLION TL 2022 w/o IAS29 2023 w/o IAS29 Change 2022 w IAS29 2023 w IAS29 Change Current Assessment REVENUE 18,925 40,531 114% 35,374 49,539 40% Strong top-lin
Slide 24: Retail / Improvement in operational profitability
SEGMENT FINANCIALS Retail / Improvement in operational profitability driven by higher LFL growth & sales mix Retail Summary Financials(1) MILLION TL 2022 w/o IAS29 2023 w/o IAS29 Change 2022 w IAS29 2023 w IAS29 Change Current Assessment REVENUE 19,198 35,775 86% 36,273 44,341 22% Strong like for li
Slide 25: 2023 Highlights
EARNINGS PRESENTATION 2023 Highlights Execution on “new economy” Value-driven structural Rock-solid balance sheet and continues at full speed changes are in place increasing cash flow ✓ Increase in renewable capacity both ✓ Consolidation of Sabancı Building Top-line(1) growth Capex/Sales(1) (2) 57%
Slide 26: Appendix
06 /06 Appendix
Slide 27: Dividend Performance
APPENDIX Dividend Performance TLmn 2020 2021 2022 2023 2024 Akbank - 255 494 3,666 4,063 Akçansa 18 42 36 99 457(2) Aksigorta 73 110 - - - Agesa 64 64 - 60 120 Brisa 12 107 270 479 452(2) Carrefoursa - - - - - Çimsa - - 109 218 545(2) Kordsa 35 - 114 41 - Teknosa - - - - - Enerjisa Enerji 283 454 58
Slide 28: Financials in detail
APPENDIX Financials in detail Combined Revenue(1) Combined EBITDA(2) Consolidated Net Income(3) 2022 w/o 2023 w/o 2022 w 2023 w 2022 w/o 2023 w/o 2022 w 2023 w 2022 w/o 2023 w/o 2022 w 2023 w MILLION TL Change Change Change Change Change Change IAS29 IAS29 IAS29 IAS29 IAS29 IAS29 IAS29 IAS29 IAS29 I
Slide 29: Details of inflation accounting on segments
APPENDIX Details of inflation accounting on segments EBITDA Margin Net Margin 2022 w/o 2022 w 2023 w/o 2023 w 2022 w/o 2022 w 2023 w/o 2023 w MILLION TL EXPLANATIONS IAS29 IAS29 IAS29 IAS29 IAS29 IAS29 IAS29 IAS29 The segment’s EBITDA margin was affected negatively as the realized hedge reserves amp
Slide 30: Sabancı Holding Current NAV & Cash Breakdown
APPENDIX Sabancı Holding Current NAV & Cash Breakdown USDmn March 2024 December 2023 Companies Free Float Direct Stake Valuation Method Mcap Value to Sabancı Holding % of NAV Value to Sabancı Holding % of NAV Akbank 52% 41% Market value 7,535 3,070 35.3% 2,629 33.3% Enerjisa Enerji 20% 40% Market va
Slide 31: Sabancı Holding NAV After Independent Valuation Reports
APPENDIX Sabancı Holding NAV After Independent Valuation Reports USDmn March 2024 Companies Free Float Direct Stake Valuation Method Mcap Value to Sabancı Holding % of NAV Akbank 41% 41% Market value 7,535 3,070 31.7% Enerjisa Enerji 40% 40% Market value 2,136 855 8.8% Aksigorta 36% 36% Market value
Slide 32: Investor Relations Contacts
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
Hacı Ömer Sabancı Holding A.Ş. — FY2023 Earnings Presentation on 6ix