Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (July 2022)
52 slides from Haci Omer Sabanci Holding A.s's investor presentation, July 2022
Slide 1: Investor Presentation July 2022
INVESTOR PRESENTATION July 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: Agenda
01 Capital Allocation 02 Sustainability 03 Operational & Financial Performance 04 Strategic Business Units & Digital 05 Holding Value Add 06 Mid-Term Guidance 3
Slide 4: Capital Allocation
01 Capital Allocation 4
Slide 5: Doubling CAPEX to accelerate both organic and inorganic growth
Capital Allocation Doubling CAPEX to accelerate both organic and inorganic growth… DOUBLING CAPEX | 25/75 SPLIT BETWEEN CORE & NEW INVESTMENTS Grow and Protect the Core Invest in New Platforms ➲ Strengthen our market leading positions ➲ Increasing share of new economy: ➲ Profitable growth driven by
Slide 6: Coherent strategic plan on core and new platforms
Capital Allocation …with a coherent strategic plan on core and new platforms… 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 global /
Slide 7: Successful delivery on our strategic initiatives
Capital Allocation …and successful delivery on our strategic initiatives Dynamic Portfolio Management Transfer of Aviva Shares to Ageas: Transfer of TTKOM shares owned by LYY*: Solar Power Plant Investment Plan of Çimsa: New partnership with Ageas in life business Completion of 55% of TTKOM shares Ç
Slide 8: Sustainability
Sustainability al & Financial nce 4 3
Slide 9: Prioritizing ESG to transform our portfolio for the future
Sustainability Sustainability Prioritizing ESG to transform our portfolio for the future… we transform the core …and grow in sustainable platforms Among our growth platforms… TL 5.9 BN1 44%2 SDG-linked net sales revenues SDG-oriented R&D 87% 3 12.5GWh 2x 19% 4 E-mobility Electrification Renewables N
Slide 10: Improving our ESG performance
Capital Mid-term Sustainability Allocation Guidance … while impoving our ESG performance 01 02 03 04 REFINITIV 2021 MSCI 2021 CDP Climate 2022 GEI 2022 Refinitiv 2 notches increase 2 notches increase Only Turkish Hold Co. Excellent Performance in 9 Months Management Level Bloomberg Out of 50+ Compan
Slide 11: Improving Corporate Governance Framework
Sustainability Improving Corporate Governance Framework Shareholder Structure Board Members 9 BoD members (3 Independent) 56% non-family, 44% women Sabancı Family 50.9% Early Detection of Risk Committee Corporate Governance, Nomination and Remuneration Committee Assumes some of the roles of the Port
Slide 12: Sustainability Roadmap
Sustainability Sustainability Roadmap Act on Maximize Foster Sustainable 01 Climate Emergency 02 Positive Impact 03 Business Models Become 'Net Zero Emissions’ and Create shared value for all Develop innovative products, services 'Zero Waste' by 2050 at the latest stakeholders, with social programs
Slide 13: Adapting to the Future of Work
Sustainability Adapting to the Future of Work Smart Physical and Flexible & High New Talent and TL 200 MN Planned Investment Performance Work Mental Health Skill Paradigm Within 2 years Workforce 1,500+ Planned Actions for 2021-2023 Purpose Driven Digital & Agile Leadership Organization Organization
Slide 14: Operational & Financial Performance
03 Operational & Financial Performance 14
Slide 15: Solid global footprint & strong global partnerships
Operational & Financial Performance Solid global footprint & strong global partnerships Romania 7 Partnerships Germany Netherlands Spain China 13 Countries USA Turkey France 60K+ Thailand Malta Brazil Italy Indonesia Employment 15
Slide 16: Complementary business units with increasing share of non-bank
Operational & Financial Performance Complementary business units with increasing share of non-bank NAV Breakdown Non-Bank Bank Retail Bank 8% Bank 32% ROE: ROE: 42% 38.6% 12.1% Energy Bank 19% 37% Listed NAV*: USD 2.8 bn Building Materials 10% Fin.Serv. Non-Bank Industrials 5% ROE: 21% Non-Bank 68%
Slide 17: Resilient against FX volatility
Operational & Financial Performance Resilient against FX volatility Holding Only - Net cash position (TL bn) Consolidated long FX position (USD mn, excluding Bank) Y/Y: Y/Y: 264% 88% 394 7.7 318 308 255 210 155 2.6 2.5 99 2.1 1.7 1.7 1.1 2017 2018 2019 2020 2021 Q1 2021 Q1 2022 2017 2018 2019 2020 2
Slide 18: Profitable growth despite inflationary pressures & market volatility
Operational & Financial Performance Profitable growth despite inflationary pressures & market volatility Combined Revenue* (TL Bn) Combined EBITDA* (TL Bn) Consolidated Net Income* (TL Bn) Non-bank** Bank Non-bank** Bank Non-bank** Bank CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 23% 141% 23% 192% 29% 221% 150
Slide 19: Higher dividend payments & healthy balance sheet
Operational & Financial Performance Higher dividend payments & healthy balance sheet despite contraction in cash flow Operational Cash Flow, Combined Non-bank* Combined Net Financial Debt to Dividend Performance (TL Bn) Non-Bank EBITDA* Dividends Paid (TL Mn) Dividends Received (TL Mn) DPS (TL) 0.75
Slide 20: Strategic Business Units & Digital
04 Strategic Business Units & Digital 20
Slide 21: Energy SBU
Energy SBU Well Positioned & Strong Leader in Turkish Energy Industry AYEDAŞ Distribution & Retail 14 6 21+ m BAŞKENT Ankara (Başkent) Cities Metropoles Population Adana 10.4 m 35.8 TWh 11.7 m 4 HEPP Gaziantep Customers 2021 Trade Connections TOROSLAR Volume 6 HEPP TL16.4 bn 312,559 km RAB Network E
Slide 22: Energy SBU Financial Performance
Energy SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Bn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 30% 222% 26% 128% 81% 117% 21% 23% 23% 22% 22% 18% 16% 47.0 4.3 8.7 6.8 3.0 31.1 27.3 5.9 26.0 5.3 2.4 23.6 2.0 4.3 16.5 3.5 1.4 0.9 8.5 1
Slide 23: Industrials SBU
Industrials SBU Global Players in Mobility Market Tire & Mobility Solutions Germany 1/3 CDP A- 37% of every Passenger Climate Change Exports in Car Tire in Turkey Category Revenue 95 13.5 Mn 7,300 USA Turkey Otopratik & Propratik Total Tire Point of Sales Mobility Service Shops Production Capacity i
Slide 24: Transformation in industrials through new acquisitions
Capital Allocation Transformation in industrials through new acquisitions Expansion in Composites Growth in New Mobility Solutions Microtex: Arvento: ▪ Acquired by Kordsa ▪ Acquired by Brisa ▪ Deal Size: EUR24.6mn ▪ Deal Size: ~EUR22mn* ▪ Product and geographic diversification in ▪ Become a sustaina
Slide 25: Industrials SBU Financial Performance
Industrials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 22% 130% 30% 120% 34% 128% 24% 23% 22% 19% 17% 17% 15% 2,023 14.6 3.1 9.7 8.8 8.8 1,099 6.6 6.9 1.6 1.6 1.6 776 1.4 1.1 631 639 496 4
Slide 26: Building Materials SBU
Building Materials SBU Leader in Turkish Cement Industry With An Ambition For International Expansion Leading source of US cement Romania Germany 3 3.7 mn ton* 2 imports Integrated plants Export Volume Ports Spain 9.2 mn ton 41% 96% USA Turkey Cement capacity Export in Revenues Capacity Utilization
Slide 27: Building Materials SBU Financial Performance
Building Materials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 27% 179% 12% 73% 14% -6% 23% 21% 18% 18% 15% 13% 11% 522 7.9 1,060 313 764 724 680 246 226 4.2 3.6 548 3.4 3.5 3.0 129 122 379
Slide 28: Financial Services SBU
Financial Services SBU Well Positioned in Both Non-Life and Life Insurance Markets Aksigorta Gross Written Premiums Trend (bn TL) Non-Life Insurance CAGR: Y/Y: 28% 57% Leader in 3,500+ 7.2% # of Agencies Market Share 7.0 3.4 4.5 5.3 TL 2.5 bn TL 13.0 bn TL 4.3 bn 2.6 2.5 GWP** Total Assets AuM*** 1.
Slide 29: Financial Services SBU Financial Performance
Financial Services SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 31% 59% 39% -57% 37% -12% 9.0 1.194 999 999 6.6 734 5.5 697 569 4.0 510 414 3.1 3.2 324 281 2.0 257 201 178 112 2017 2018 2019 2020 2021 Q1 202
Slide 30: Retail SBU
Retail SBU Accelerated Growth While Maintaining Operating Profitability Food & Non-Food Retail 40 764 509k sqm Cities Stores Sales Area 137 mn* 10,435 Annual Visitors Employees E-commerce sales, (TL mn) Sales per sqm* & % of total sales (K TL/m2) Technology Retail 8.4% Carrefoursa Teknosa 7.3% 5.0%
Slide 31: Retail SBU Financial Performance
Retail SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: 21% 70% 43% 75% 6% 5% 4% 4% 3% 3% 3% 2017 2018 2019 2020 2021 Q1 2021 Q1 2022 927 16.9 -36 -81 -74 13.5 640 -159 10.5 -220 8.7 7.9 341 6.0 265 -354 2
Slide 32: Banking 2022 guidance
Banking 2022: Leveraging our strength while carrying out priorities 2022 Guidance Q1 2022 2022 Guidance Key Drivers ~ 30% 19.0% • Our robust 17.7%CAR(3) & 14.4% Tier 1(3) creates ammunition for TL Loan Growth sustainable profitable growth while providing resilience Flattish 4.1% • TL loan growth wit
Slide 33: Banking Financial Performance
Financial Performance Financial Performance Capital Adequacy Ratio* & Tier 1 Ratio* Combined Net Income** & Reported ROE Total Asset & Reported ROA (TL bn, %) 39% (TL bn, %) 4% Q1 2022 Q1 2022 Excess Excess 2% 2% 2% 2% 1% 1% Capital*: Tier 1*: 16% 18% 13% TL 33.8 bn TL 26.2 bn 14% 11% 11% 17% 17% 16
Slide 34: Creation of a global digital business with acquisitions
Digital Creation of a global digital business with acquisitions Dx Technology Services and Investment BV (DxBV), a wholly owned subsidiary of Sabancı Holding and established in the Netherlands, will undertake Sabancı Group’s investments in digital businesses. Cyber Security Digital Marketing Radiflo
Slide 35: Invest in rapidly growing digital businesses beyond Turkey
Digital Invest in rapidly growing digital businesses and expand beyond Turkey Before Transactions After Transactions Sabancı Digital Business Consumer Marketing Cyber Security Cloud & Digital Product & Technology Business Business Business Services Product & Services Software Develop ment Software A
Slide 36: Holding Value Add
OQBaAncI Strategic Busine & Digital Holding Value Add Mid-Term Guidance Bal --
Slide 37: Sabancı Ventures: Focus on Growth, Technology and Innovation
Holding Holding Value Add Value Add Sabancı Ventures: Focus on Growth, Technology and Innovation Key Highlights Purpose ➲ To gain early and economical access to new technological developments /markets/ innovations and to create agile and technology-driven growth platforms Investment Strategy ➲ Seed,
Slide 38: Leveraging Synergies Within Sabancı Ecosystem
Holding Value Add Leveraging Synergies Within Sabancı Ecosystem Strong collaboration in Bancassurance E-Mobility Projects among Sabancı Companies ➲ Exclusive bancassurance agreement with Akbank ➲ Presence in all physical and digital channels ➲ Joint vision in digital with Akbank ➲ Effective governan
Slide 39: Leveraging Synergies Within Sabancı Ecosystem
Holding Value Add Leveraging Synergies Within Sabancı Ecosystem Strong collaboration in Sabancı Companies Kordsa & Cement Companies Cooperation Çimsa & Enerjisa Enerji Cooperation ➲ Collaboration of Sabanci Cement companies’ with Kordsa’s 3,370 kWp ➲ Collaboration of Çimsa and Enerjisa Solar Product
Slide 40: Management Incentives
Holding Value Add Management Incentives Short Term (1-Year) Financial KPIs* Total Cash Distribution Model (%) ➲ Net Sales ➲ Net Financial Debt ➲ Rtsr** 75 ➲ EBITDA ➲ Working Capital Long Term ➲ Free Cash Flow ➲ Market Share (maximum) Capital distribution 50 and value Long Term Short Term (1-Year) No
Slide 41: Mid-Term Guidance
06 Mid-Term Guidance 41
Slide 42: Future Growth Underpinned By Capital Return and Sustainability
Mid-term Guidance 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% Sh
Slide 43: Appendix
APPENDIX 43
Slide 44: 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 JVs formed with Aviva and Ageas Kordsa’s acquisition
Slide 45: Executive Leadership
Appendix / Executive Leadership Orhun Köstem – Finance Burak Orhun - Building Materials During his 28 years of career in various After working in various management managerial positions including Investor Relations positions in finance field both in Turkey and & Corporate Finance Director and CCI CF
Slide 46: Dividend Performance
Appendix/ Dividend Performance TL mn 2017 2018 2019 2020 2021 2022 Akbank 367 652 - - 255 494 Akçansa 94 51 61 18 42 36 Aksigorta - 40 73 73 110 - Agesa 9 19 40 64 64 - Brisa - - - 12 107 270 Carrefoursa - - - - - - Çimsa 95 33 - - - 109 Kordsa 41 48 48 35 - 114 Teknosa - - - - - - Yünsa - - 3 - - -
Slide 47: Sabancı Holding Discount to NAV & Cash
Appendix / Sabancı Holding Discount to NAV & Cash USDmn March 2022 December 2021 NAV Discount Companies Direct Stakes Valuation Method Mcap Value of Stake % of NAV Value of Stake % of NAV March 2022 December 2021 December 2020 Akbank 41% Market value 2,578 1,050 27.9% 1,144 30.8% Enerjisa Enerji 40%
Slide 48: Overview of Corporate Structure
Appendix / Overview of Corporate Structure ENERGY RETAIL BANKING & FINANCIAL INDUSTRIALS DIGITAL BUILDING MATERIALS 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 Cement: 39.7% Other: 8.4% Free Float: 28.9% DxBV: 51.0% F
Slide 49: 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 o
Slide 50: Financials in detail
Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q1 2021 Q1 2022 Change Q1 2021 Q1 2022 Change Q1 2021 Q1 2022 Change TOTAL 29,345 70,652 141% 6,135 17,700 189% 1,739 5,598 222% TOTAL*-Comparable 29,345 70,652 141% 6,000 17,536 192% 1,746 5,605 2
Slide 51: 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
Slide 52: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Kerem TEZCAN Investor Relations Director For Further Şule GENÇTÜRK KARDIÇALIOĞLU Details Investor Relations Manager ir.sabanci.com Hamza SÜMER Investor Relations Specialist Arda KAYMAZ Investor Relations Specialist investor.relations@sabanci.com
Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (July 2022) on 6ix