Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (2022)
49 slides from Haci Omer Sabanci Holding A.s's investor presentation, 2022
Slide 1: Investor Presentation 2021 YE
INVESTOR PRESENTATION 2021 YE
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 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: CT INV ➲ Profitable growth dri
Slide 6: A 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: Increase in Shareholding in Eşarj: New partnership with Ageas in life business Enerjisa Enerji’s effective shareholding (40%-40% partnership structure), led to in
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 Ne
Slide 10: Achieving robust ESG results
Mid-term Sustainability Guidance …and achieving robust ESG results 01 02 03 2021 MSCI 2021 CDP Climate 2022 GEI 2 notches increase ↑ 2 notches 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,
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 Other Retail 3% Bank 9% Bank 32% ROE: ROE: 42% 17.9% Value 12.1% Energy 18% 15% Bank 39% Listed NAV*: Total NAV*: Growth Building Materials USD 2.9 bn USD 3.5 bn 52% 9% Stea
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: 124% 65% 318 2.6 308 2.5 255 1.7 1.7 155 1.1 99 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 17
Slide 18: Strong profitable growth
Operational & Financial Performance Strong profitable growth 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% 45% 23% 61% 29% 95% 150.1 10.1 32.9 53.0 103.6 5.5 97.1 17.7 20.4 86.9
Slide 19: Continuously enhancing earnings quality, debt profile & dividends
Operational & Financial Performance 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: 0.35 0.33
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 Ankara BAŞKENT 22%* 14 21+ m (Başkent) Market Share Cities Population Adana 10.3 m 35.8 TWh 11.7 m 4 HEPP Gaziantep Customers Trade Volume* Connections TOROSLAR 6 HEPP TL11.2 bn 309,907km 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% 51% 26% 27% 81% 47% 21% 23% 23% 22% 18% 47.0 4.3 8.7 6.8 31.1 3.0 5.9 26.0 5.3 2.4 23.6 16.5 3.5 1.4 0.4 2017 2018 2019 2020 2021 2017
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: 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% 66% 30% 93% 34% 161% 22% 19% 2,023 14.6 17% 17% 15% 3.1 9.7 8.8 8.8 6.6 1.6 1.6 776 1.4 1.1 631 639 496 2017 2018 2019 2020 2021
Slide 25: Building Materials SBU
Building Materials SBU Leader in Turkish Cement Industry With An Ambition For International Expansion Romania to Istanbul’s Waste Solution Partner Germany 3 3.7 mn ton* 2 Integrated plants Export Volume Ports Spain 9.2 mn ton 41% 94% USA Turkey Cement capacity Export in Revenues Capacity Utilization
Slide 26: 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% 87% 12% 39% 14% 131% 23% 21% 18% 15% 522 13% 7.9 1,060 313 246 764 226 4.2 724 680 3.4 3.6 548 3.0 -23 2017 2018 2019 2020
Slide 27: 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% 33% Leader in 3,500+ 30% 8.5% # of Agencies RoE Market Share 7.0 3.4 4.5 5.3 TL 7.0 bn TL 11.7 bn TL 4.0 bn 2.6 GWP** Total Assets AuM**
Slide 28: 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% 36% 39% 20% 37% 36% 9.0 1,194 999 999 6.6 734 5.5 697 569 4.0 510 414 3.1 324 281 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 20
Slide 29: Retail SBU: Turnaround Continues
Retail SBU Turnaround Continues Food & Non-Food Retail 40 754 508k sqm Cities Stores Sales Area 137 mn* 10,174 Annual Visitors Employees E-commerce sales, (TL mn) Sales per sqm* & % of total sales (K TL/m2) Technology Retail 9% Carrefoursa Teknosa 10% 75.6 3% 1,631 69 198** 102k sqm 1,251 55.9 Citie
Slide 30: 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% 25% 43% 45% 5.5% 4.7% 2.8% 3.2% 2.5% 2017 2018 2019 2020 2021 927 16.9 -81 13.5 640 -159 10.5 -220 8.7 7.9 341 -354 224 215 -436 2017 2018 2019 2
Slide 31: Banking 2022 guidance and key drivers
Banking 2022: Leveraging our strength while carrying out priorities 2022 Guidance Key Drivers • Macro assumptions: TL Loan Growth ~ 30% o ~ 30% YE inflation o 2022 Oct-Oct CPI linker valuation estimate: ~ 30% FX Loan Growth (in USD) Flattish o GDP growth ~ 4% NIM (swap adj.) ~150 bps improvement • O
Slide 32: Banking Financial Performance
Financial Performance Financial Performance Capital Adequacy Ratio* (%) Tier 1 Ratio* (%) Combined Net Income** & Reported ROE (TL bn, %) 2021 2021 Excess Excess Y/Y: Capital*: Tier 1*: 99% TL 29.3 bn TL 16.3 bn 17.9% 16.2% 13.6% 10.9% 10.9% 19.8 16.9 16.9 19.7 17.2 14.2 14.3 13.4 16.8 15.8 12.9 6.8
Slide 33: 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 ➲ Higher margins ➲ Thanxie ➲ Higher growth ➲ HR Web ➲ Product enhancement ➲ Pratis Product & Services ➲ International sales ➲ Edoksis ➲ Bo
Slide 34: Holding Value Add
OQBaAncI Strategic Busine & Digital Holding Value Add Mid-Term Guidance Bal --
Slide 35: 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 36: 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 37: Management Incentives
Holding Value Add Management Incentives Short Term (1-Year) Financial KPIs* Total Cash Distribution Model (%) ➲ Rtsr** ➲ Net Sales ➲ Net Financial Debt 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 38: Mid-Term Guidance
06 Mid-Term Guidance 38
Slide 39: 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 40: Appendix
APPENDIX 40
Slide 41: 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 42: 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 43: Dividend Performance
Appendix/ Dividend Performance TL mn 2017 2018 2019 2020 2021 Akbank 367 652 - - 255 Akçansa 94 51 61 18 42 Aksigorta - 40 73 73 110 Agesa 9 19 40 64 64 Brisa - - - 12 107 Carrefoursa - - - - Çimsa 95 33 - - Kordsa 41 48 48 35 Teknosa - - - - Yünsa - - 3 - Enerjisa Enerji - 142 189 283 454 Unlisted
Slide 44: 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 45: 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: 50.8% Free Float: 28.9% Free Float: 20.0% Free Float: 5.3% Othe
Slide 46: 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 47: 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 48: 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 49: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS ➢ Kerem TEZCAN Investor Relations Director ktezcan@sabanci.com ➢ Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager For Further skardicalioglu@sabanci.com Details ➢ Hamza SÜMER ir.sabanci.com Investor Relations Specialist hsumer@sabanci.com ➢ Arda KAYMAZ Investor Rela
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