Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q2 2022 Earnings Presentation
26 slides from Haci Omer Sabanci Holding A.s's earnings presentation, Aug 12, 2022
Slide 1: Q2 2022 Earnings Presentation
Q2 2022 EARNINGS PRESENTATION August 12, 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: Successful delivery on our strategic initiatives
Successful delivery on our strategic initiatives Dynamic Portfolio Management Turkey’s 1st Green Hydrogen: Capacity Increase in HMLS Polyester Yarn: Production and use of green hydrogen Kordsa’s investment at USD9.8mn, at Enerjisa Üretim’s Bandırma facility for capacity increase in HMLS Polyester Ya
Slide 4: Prioritizing ESG to transform our portfolio for the future
Sustainability Prioritizing ESG to transform our portfolio for the future we transform the core …and grow in sustainable platforms Among our growth platforms… TL 7.7 BN1 51%2 43.1GWh SDG-linked net sales revenues SDG-oriented R&D energy recovery 80%3 23% 2x Telematics Digitalization & 116% E-mobilit
Slide 5: Q2 2022 Highlights
Q2 2022 Highlights Profitable growth with robust earnings quality Consolidated ROE* more than tripled, reaching 53% in Q2 Maintained healthy balance sheet Solar Power Plant Investments of Group companies Installation of 495 DC charging stations in 53 cities New acquisitions in digital – Radiflow & S
Slide 6: Accelerated topline growth and profitability with improved earnings quality
Accelerated topline growth and profitability with improved earnings quality… Combined Revenue* Combined EBITDA* Consolidated Net Income* (TL mn) (TL mn) (TL mn) 162,867 +165% 43,409 +242% +301% Non-bank Non-bank** Bank** Bank Non-bank** 13,608 55,144 Bank 29,096 8,626 61,493 107,723 12,707 22,626 3,
Slide 7: Healthy ROE improvement and solid liquidity
…accompanied by healthy ROE improvement and solid liquidity Consolidated Return on Equity (ROE)* Holding Only - Net cash position (TL bn) 33.6% 22.6% 15.6% 14.5% 13.7% 14.5% 12.2% 5.5 2017 2018 2019 2020 2021 H1 2021 H1 2022 Non-Bank & Bank ROE* 47.1% Non-Bank ROE Bank ROE** 2.6 2.5 26.6% 1.7 1.7 1.
Slide 8: Healthy balance sheet maintained despite slowdown in cash flow generation
Healthy balance sheet maintained despite slowdown in cash flow generation Operational Cash Flow, Combined for Non-Bank* Combined Net Financial Debt to Non-Bank EBITDA* (TL bn) 12.4 10.8 3.1x 9.5 2.3x 2.2x 5.6 1.5x 4.6 1.4x 4.8 1.3x 1.2x 1.9 2017 2018 2019 2020 2021 H1 2021 H1 2022 2017 2018 2019 202
Slide 9: Combined Revenues / Energy driven topline growth
Combined Revenues / Energy driven topline growth leveraging inflation pressures Combined Revenue* (TL mn) Combined Revenue* Breakdown 566 5,348 3,930 BUILD OTHER 7,876 FIN. MAT. 1% 6% SERV. 7,688 4% 187% INDUST. 9% ENERGY OTHER* 38% 32,081 92.2 BUILD. MAT. RETAIL FIN. SERV. 8% INDUSTRIAL 1,780 1,877
Slide 10: Combined EBITDA / Four-fold EBITDA growth
Combined EBITDA / Four-fold EBITDA growth despite ongoing inflationary environment Combined EBITDA* (TL mn) Combined EBITDA* Breakdown 995 132 436 287 FIN. SERV. OTHER; 1% 1,154 1% BUILD. MAT INDUSTRIALS 4% ENERGY 4% RETAIL** 18% 2% OTHER 286% BUILD. MAT. 18,215 FIN. SERV. 25.9 RETAIL** INDUSTRIALS
Slide 11: Consolidated Net Income / Sharp earnings growth on margin expansion
Consolidated Net Income / Sharp earnings growth on margin expansion & solid cash position Consolidated Net Income* (TL mn) Consolidated Net Income* Breakdown 718 334 116 INDUSTRIALS OTHER ENERGY 406 32 5% 9% 13% FIN. SERV. 1% BUILD. MAT. OTHER 4% BUILD. MAT. FIN. SERV. 385% 5,343 8.0 RETAIL** BN TL
Slide 12: Energy / Robust performance driven by solid returns in generation
Energy / Robust performance driven by solid returns in generation business Energy Segment Summary Financials* MILLION TL Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change SALES 9,226 34,725 276% 17,725 62,057 250% Current Assessment EBITDA** 1,937 4,653 140% 3,811 8,921 134% EBITDA**MARGIN 21.0% 13.4% 2
Slide 13: Industrials / Exceptionally strong operational performance
Industrials / Exceptionally strong operational performance maintained in both businesses Industrials Summary Financials* MILLION TL Q2 2021 Q2 2022 % Change H1 2021 H1 2022 % Change Current Assessment SALES 3,188 7,876 147% 6,175 14,751 139% Topline pass through driven by well EBITDA 698 1,154 65% 1
Slide 14: Building Materials / Alternative fuel usage offset inflationary pressures
Building Materials / Alternative fuel usage offset ongoing inflationary pressures Building Materials Summary Financials* MILLION TL Q2 2021 Q2 2022 Change 1H 2021 1H 2022 Change Current Assessment SALES 1,780 5,348 200% 3,033 8,838 191% Solid volume & better pricing flexibility EBITDA** 392 995 154%
Slide 15: Retail / Accelerated top-line growth while improving profitability
Retail / Accelerated top-line growth while improving operational profitability Retail Summary Financials* MILLION TL Q2 2021 Q2 2022 Change 1H 2021 1H 2022 Change Current Assessment SALES 3,639 7,688 111% 7,189 13,734 91% EBITDA** 256 613 140% 542 1,042 92% Both companies recorded top line growth EB
Slide 16: Financial Services (Insurance) / Life business compensating for non-life
Financial Services (Insurance) / Life business compensating for the weakness in non-life Financial Services Summary Financials* MILLION TL Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change Current Assessment SALES 1,877 3,930 109% 3,861 7,088 84% EBITDA** 283 287 1% 540 399 -26% Life: Robust technical i
Slide 17: Bank / Robust customer acquisition drives core operating performance
Bank / Robust customer acquisition drives solid core operating performance Summary Combined Financials Current Assessment MILLION TL Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change Reached an outstanding 5.7%quarterly ROA & REVENUE 12,001 32,081 167% 22,626 55,144 144% with robust 18.0% CAR*** EBITDA
Slide 18: In Summary
In Summary Profitable growth with robust earnings quality Consolidated ROE* reached 33.6% in H1 with a healthy balance sheet Mid-term guidance maintained post H1 performance Solar Power Plant Investments of Group companies Installation of 495 DC charging stations in 53 cities New acquisitions in dig
Slide 19: Appendix
APPENDIX 19
Slide 20: Appendix / Financials in detail
Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change TOTAL* 32,148 92,215 187% 61,493 162,867 165% 6,850 26,049
Slide 21: Appendix / 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 22: Appendix / Sabancı Holding Discount to NAV & Cash
Appendix / Sabancı Holding Discount to NAV & Cash USDmn June 2022 December 2021 Companies Direct Stakes Valuation Method Mcap Value of Stake % of NAV Value of Stake % of NAV NAV Discount Akbank 41% Market value 2,503 1,020 28.6% 1,144 30.8% June 2022 December 2021 December 2020 Enerjisa Enerji 40% M
Slide 23: Appendix / Future Growth Underpinned By Capital Return and Sustainability
Appendix/ 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 Buy
Slide 24: Appendix / Improvement in ESG performance continues
Capital Mid-term Appendix / Improvement in ESG performance continues Allocation Guidance 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 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
Slide 26: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS ➢ Kerem TEZCAN Investor Relations Director ➢ Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager For Further Details ➢ Hamza SÜMER Investor Relations Specialist ir.sabanci.com ➢ Arda KAYMAZ Investor Relations Specialist ➢ Zeynep BEKTAŞ Sustainability Specialist E-mail:
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