Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (October 2021)
50 slides from Haci Omer Sabanci Holding A.s's investor presentation, October 2021
Slide 1: Sabancı of New Generation Investor Presentation October 2021
# SabancıofNewGeneration INVESTOR PRESENTATION October 2021
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: Heatmap
Heatmap Q2’20 Q3’20 Q4’20 Q1’21 Q2’21 July’21 August’21 September’21 Q3’21 Growth (y/y) -10.4% 6.3% 6.2% 7.2% 21.7% CPI (y/y) 11.6% 11.8% 13.5% 15.6% 17.1% 18.9% 19.2% 19.6% 19.3% Unemployment (y/y) 13.5% 13.3% 12.8% 13.0% 12.3% 12.0% Industrial Production Growth (y/y) -16.6% 7.7% 10.2% 12.1% 41.2%
Slide 4: Group Strategy, Sustainability, Operational & Financial Performance
01 Group Strategy 02 Sustainability 03 Operational & Financial Performance 04 Strategic Business Units & Digital 05 Holding Value Add 06 Mid-Term Guidance 4
Slide 5: Group Strategy
01 Group Strategy 5
Slide 6: Sabancı, a story of Growth, Capital Return, Sustainability
Strategy Sabancı, a story of … 01 Growth 02 Capital Return 03 Sustainability 6
Slide 7: Growth, Capital Return & Sustainability
Strategy Growth, Capital Return & Sustainability We unite Turkey and the World Purpose for a sustainable life with leading enterprises Strategic Provide wider Transform into an agile Pioneer in Lead in digital & Adapt to direction customer experience global / local footprint sustainability material
Slide 8: Group strategy underpinned by a strong capital discipline
Strategy Group strategy underpinned by a strong capital discipline Objectives Capital allocation priorities 01 Sustain business unit growth/performance Stringent capital allocation to further improve returns 02 Rigorously implementing capital allocation policy Predictably growing dividend To keep 19
Slide 9: Sustainability
Sustainability al & Financial nce
Slide 10: Delivering on ESG with a double rating upgrade
Sustainability Delivering on ESG with a double rating upgrade Reintroduced to the 43% 2 TL 5,9 billion 100% E economy 87% 19% Proportion of environmental Share of renewable Number of Group companies that are Revenues from products and services E energy in the 565 MW with positive expenditure over of
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 & Corporate Governance, Nomination and Remuneration Committees Assumes some of the roles of the Portfolio
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 Remote Physical & Flexible & High New Talent & TL 200 MN Planned Investment Performance Work Mental Health Skill Paradigm Within 2 years Workforce 1,500+ Planned Actions Leadership with Purpose Driven Resilient and Agile Head, Heart & Organization Organi
Slide 14: Operational & Financial Performance
03 Operational & Financial Performance 14
Slide 15: Solid global footprint with a large customer base & strong global partnerships
Operational & Financial Performance Solid global footprint with a large customer base & strong global partnerships Romania Russia 40M+ Customers1 Germany Netherlands 8 Partnerships Spain 14 China USA Turkey Countries France Thailand 60K+ Malta Brazil Italy Indonesia Employment 1. Includes Enerjisa,
Slide 16: Complementary business units with increasing share of non-bank
Operational & Financial Performance Complementary business units with increasing share of non-bank Share in NAV Non-Bank Bank Retail 12% Bank ROE: Bank ROE: 31% 12.8% Energy Bank 42% 12.1% 37% Bank ROE: 16% 59 Listed NAV*: 18.9% % USD 3.4 bn Building Materials 9% Industrials Fin.Serv. Non-Bank 18% 7
Slide 17: Balanced & growth driven business model
Operational & Financial Performance Balanced & growth driven business model Cyclicality of listed businesses* Growth driven listed businesses* High Low cyclicality cyclicality 29% 26% Value Industrials + Energy & Building Materials Food Retail 21% +Tech Retail Growth 56% Cash Generator 24% Bank & Fi
Slide 18: 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) 2.6 Y/Y: 13% 319 308 268 1.8 1.7 1.6 155 1.1 2018 2019 2020 H1 2020 H1 2021 2018 2019 2020 H1 2021 18
Slide 19: Solid and consistently improving financial performance…
Operational & Financial Performance Solid and consistently improving financial performance… 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: 18% 27% 18% 33% 17% 48% 5.2 104.0 20.9 97.6
Slide 20: … with continuously enhancing earnings quality, debt profile & dividends
Operational & Financial Performance … with continuously enhancing earnings quality, debt profile & dividends Operational Cash Flow, Combined Non-bank* Combined Net Financial Debt to Dividend Performance (TL Bn) Non-Bank EBITDA* Dividends Received (TL Mn) Dividends Paid (TL Mn) DPS (TL) CAGR: Y/Y: 0.
Slide 21: Strategic Business Units & Digital
04 Strategic Business Units & Digital 21
Slide 22: Energy SBU: Leader in Turkish Energy Industry
Energy SBU Leader in Turkish Energy Industry AYEDAŞ Distribution & Retail Ankara BAŞKENT 14 6 21+ m (Başkent) Cities Metropoles Population Adana 10.2 m 34 TWh 11.6 m 4 HEPP Gaziantep Customers Trade Volume* Connections TOROSLAR 6 HEPP TL10.8 bn 244,880 km RAB Network Enerjisa Üretim Powerplant Locat
Slide 23: Energy SBU Financial Performance
Energy SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* & EBITDA* Margin (TL Bn) Combined Net Income* (TL Bn) CAGR: CAGR: CAGR: 25% 29% 80% 24% 23% 23% 22% 22% 21% 20% 31.1 3.0 6.8 Y/Y: Y/Y: Y/Y: 26.0 2.4 17% 5.9 6% 4% 23.6 5.3 17.7 1.6 1.7 16.5 3.8 15.1 3.5 3.6 1.4 12.6 2.5 0.4 0
Slide 24: Industrials SBU: Global Players in Mobility Market
Industrials SBU Global Players in Mobility Market Tire & Mobility Solutions Germany 1/3 CDP A- 38% of every Passenger Climate Change Exports in Car Tire in Turkey Category Revenue USA Turkey 93 13.5 Mn 6000+ Otopratik & Propratik Total Tire Point of Sales France Mobility Service Shops Production Cap
Slide 25: Industrials SBU Financial Performance
Industrials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* & EBITDA* Margin (TL Bn) Combined Net Income* (TL Mn) CAGR: CAGR: CAGR: 13% 14% 5% 23% 19% 19% 18% 17% 17% 15% Y/Y: Y/Y: Y/Y: 65% 115% 326% 9.7 1.6 1.6 942 8.8 8.7 1.4 1.4 776 6.6 1.1 6.2 634 631 639 1.0 5.2 496 3.7 0.7
Slide 26: Building Materials SBU: Leader in Turkish Cement Industry
Building Materials SBU Leader in Turkish Cement Industry With An Ambition For International Expansion Russia No.1 Clinker Exporter ** Romania Germany 3 4.1 mn ton* 2 Integrated plants Export Volume Ports Spain 9.2 mn ton 38% 93% USA Turkey Cement capacity Export in Revenues Capacity Utilization Ital
Slide 27: Building Materials SBU Financial Performance
Building Materials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* & EBITDA* Margin (TL Mn) Combined Net Income* (TL Mn) CAGR: CAGR: CAGR: 13% 1% 80% 28% 23% 21% 20% 18% 15% 14% 4.2 477 Y/Y: 67% 3.6 Y/Y: 3.4 141% 743 764 334 3.0 3.0 724 313 680 2.6 612 246 226 548 1.8 254 6 -23 2
Slide 28: Financial Services SBU: 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) Non-Life Insurance CAGR: Y/Y: 29% 32% Leader in 3,300+ 34% 8.2% # of Agencies RoE Market Share 5.3 4.5 3.4 3.0 1.9 2.6 2.3 TL 3.0 bn TL 6.1 bn TL 3.7 bn GWP** Total Asset
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: CAGR: CAGR: 32% 14% 36% 6.6 999 734 Y/Y: Y/Y: Y/Y: 5.5 32% 7% 15% 569 697 4.0 3.9 540 414 421 3.1 510 506 367 2.9 2.2 281 324 212 231 2016 2017 2018 2019 2020 H1 2020 H1
Slide 30: Retail SBU: Turnaround Continues
Retail SBU Turnaround Continues Food & Non-Food Retail 41 703 503k sqm Cities Stores Sales Area 135 mn* 11,307 Annual Customers Employees E-commerce sales, (TL mn) Sales per sqm* & % of total sales (K TL/m2) 11.5% Technology Retail 10.1% Carrefoursa Teknosa 3.1% 645 728 61.0 68 201** 100k sqm Cities
Slide 31: Retail SBU Financial Performance
Retail SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) Combined Net Income* (TL Mn) CAGR: CAGR: CAGR: 16% 67% 28% 13.5 640 2016 2017 2018 2019 2020 H1 2020 H1 2021 Y/Y: Y/Y: 28% 150% 10.5 -83 8.7 7.9 7.6 341 7.2 -198 -198 5.6 265 -220 224 215 -310 106 -354 83 -436 2016 20
Slide 32: Bank: Excellently positioned to improve profitability & build the future
Bank Excellently positioned to improve profitability & build the future Superior CAR Capital buffers 20.0%* Medium-term Targets Low ➲ Achieve mid-to high-teens ROE leverage 8.0x ➲ Solid growth … to improve ➲ Committed to sustainable dividend distribution profitability ➲ Customer acquisition ➲ Mainta
Slide 33: Akbank Financial Performance
Financial Performance Akbank Financial Performance Capital Adequacy Ratio* (%) Tier 1 Ratio* (%) Combined Net Income** & Reported ROE (TL bn, %) H1 2021 H1 2021 Excess Excess Capital*: Tier 1*: TL 32.4 bn TL 24.2 bn 16.0% 16.2% 13.6% 12.8% 10.9% 10.9% 10.4% 19.8 20.0 16.9 16.9 19.7 16.0 6.3 6.0 16.8
Slide 34: SabancıDx: Leading digital and analytics solutions company
Digital SabancıDx: The leading digital and analytics solutions & product company in the region Value Creating New Generation Products Growth & Excellence ➲ Perfx ➲ Pratis ➲ Higher margins ➲ Thanxie ➲ Edoksis ➲ Higher growth ➲ CDx ➲ HR Web ➲ Product enhancement Product & Services ➲ International sale
Slide 35: Holding Value Add
OQBaAncI Strategic Busine & Digital Holding Value Add Mid-Term Guidance Bal --
Slide 36: Sabancı Ventures: Focus on Growth, Technology and Innovation
Holding Value Add Sabancı Ventures: Focus on Growth, Technology and Innovation Purpose Key Highlights ➲ To gain early and economical access to new technological developments /markets/ innovations and to create agile and technology-driven growth platforms Investment Strategy $30m ➲ Seed, Series A-B s
Slide 37: 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 38: 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 39: Mid-Term Guidance
06 Mid-Term Guidance 39
Slide 40: Mid-Term Guidance
Mid-term Guidance Mid-Term Guidance 01 Growth Mid-term 02 Capital Return 03 Sustainability 2014-19 targets Revenue growth CPI2 + 6% CPI1 + 8% Dividend payment Zero Waste Net Zero Emissions EBITDA3 growth CPI2 + 8% CPI1 + 10% High dividend by 2050 coupled with higher ROE Consolidated ROE3 12.0%4 High
Slide 41: Appendix
APPENDIX 41
Slide 42: 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 “New Generation’s Sabancı” Initial Diversification Partnerships-Conglomeration JVs formed with, Aviva and Ageas JVs formed with Ver
Slide 43: Executive Leadership
Appendix / Executive Leadership Orhun Köstem - CFO 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 CFO in
Slide 44: Dividend Performance
Appendix/ Dividend Performance TL mn 2016 2017 2018 2019 2020 2021 Akbank 245 367 652 - - 255 Akçansa 102 94 51 61 18 42 Aksigorta - - 40 73 73 110 Agesa 12 9 19 40 64 64 Brisa 68 - - - 12 107 Carrefoursa - - - - - Çimsa 99 95 33 - - Kordsa 43 41 48 48 35 Teknosa - - - - - Yünsa 2 - - 3 - Enerjisa E
Slide 45: Sabancı Holding Discount to NAV
Appendix / Sabancı Holding Discount to NAV USDmn June 2021 December 2020 Companies Direct Stakes Valuation Method Mcap Value of Stake % of NAV Value of Stake % of NAV Akbank 41% Market value 3,157 1,286 29.4% 1,978 33.6% Enerjisa Enerji 40% Market value 1,405 562 12.9% 796 13.5% Aksigorta 36% Market
Slide 46: Overview of Corporate Structure
Appendix / Overview of Corporate Structure BANKING & FINANCIAL ENERGY RETAIL BUILDING MATERIALS INDUSTRIALS SERVICES SAHOL: 40.0% SAHOL: 57.1% SAHOL: 54.5% SAHOL: 40.7% SAHOL: 71.1% E.ON: 40.0% Carrefour: 37.5% Akçansa: 9.0% Free Float: 50.6% Free Float: 28.9% Free Float: 20.0% Free Float: 5.3% Othe
Slide 47: 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 Associates Not included Proportion of ownership interest * Net income Proportion of ownership interest * Net income Consolidated Net Sal
Slide 48: Financials in detail
Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q2 2020 Q2 2021 Change H1 2020 H1 2021 Change Q2 2020 Q2 2021 Change H1 2020 H1 2021 Change Q2 2020 Q2 2021 Change H1 2020 H1 2021 Change TOTAL 23,778 32,148 35% 48,299 61,493 27% 5,073 6,850 35% 9
Slide 49: 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 50: Thank You - Investor Relations Contacts
INVESTOR RELATIONS THANK YOU CONTACTS Kerem TEZCAN Investor Relations Director ktezcan@sabanci.com Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Specialist skardicalioglu@sabanci.com investor.relations@sabanci.com
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