Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (September 2023)
48 slides from Haci Omer Sabanci Holding A.s's investor presentation, September 2023
Slide 1: Investor Presentation Group Strategy
SEPTEMBER 2023 INVESTOR PRESENTATION GROUP STRATEGY
Slide 2: Disclaimer
INVESTOR PRESENTATION GROUP STRATEGY 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 thei
Slide 3: Financial Track Record
01 /07 Financial Track Record
Slide 4: Strong results with improved earnings quality from bank and non-bank businesses
FINANCIAL TRACK RECORD Strong set of results achieved with an improvement in earnings quality driven by both bank and non- bank businesses… 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:
Slide 5: Improving ROE and strong operating cash generation
FINANCIAL TRACK RECORD …coupled with a continuous improvement in ROE & exceptionally strong cash generation at operating level… Return on Equity (ROE)* Operational Cash Flow, Combined for Non-Bank* (TL bn) Bank ROE Consolidated ROE Non-Bank ROE 28.7 13.7% 13.1% 17.1% 23.9% 31.1% 26.6% 27.2% 50% 54.7
Slide 6: Healthy balance sheet at ≤2x
FINANCIAL TRACK RECORD …& by maintaining a healthy balance sheet Holding Only - Net cash position (TL bn) Combined Net Financial Debt to Non-Bank EBITDA* 2.3x 2.2x 5.5 Midterm Guidance: 4.5 ≤ 2x 1.5x 1.3x 3.1 1.2x 2.6 2.5 1.7 0.5x 1.1 0.4x 2018 2019 2020 2021 2022 H1 2022 H1 2023 2018 2019 2020 2021
Slide 7: Sustainable dividend growth and effective capital allocation
FINANCIAL TRACK RECORD Sustainable dividend growth and effective capital allocation DPS (TL) Share Buy-Back Program Non-bank Capex/Sales* (TL bn) 4.41 4.27 4.42 3.82 3.79 +86% 2.87 ~14.0% 1.75 >2x 3.25 10.3% +42% 8.6% 7.3% 7.4% 6.6% 0.75 1.75 0.33 0.35 0.30 0.30 2018 2019 2020 2021 2022 2023 2020 20
Slide 8: Capital Allocation
02 /07 Capital Allocation
Slide 9: 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 Invest in New Platforms Grow and Protect the Core Increasing share of new economy in nonbank CT INV combined revenue : T E ES Strengthen our market leading p
Slide 10: Coherent strategic plan on core and new platforms
CAPITAL ALLOCATION …with a coherent strategic plan on core and new platforms We unite Türkiye and the World Purpose for a sustainable life with leading enterprises Strategic Transform into an agile Lead in digital, material and Commercialize innovation Pioneer in “sustainability Adapt to “Future of
Slide 11: Delivering on strategic initiatives: 76% of investments to new economy
CAPITAL ALLOCATION Continuing to deliver on our strategic initiatives: 76% of investments to new economy Dynamic Portfolio Management Turkey’s 1st Green Hydrogen: Capacity Increase in CAC: Digital Investment: Kordsa Capacity Investments: Renewable Energy Investment Production and use of green Çimsa’
Slide 12: Sustainability
03 /07 Sustainability
Slide 13: Prioritizing ESG to transform our portfolio for the future
SUSTAINABILITY Prioritizing ESG to transform our portfolio for the future… Foster Sustainable Act on Climate Business Models Emergency 11% Reduction in Scope 1 and 2 GHG emissions* 3.3x Renewable 31% Total water reused* electricity usage* Green hydrogen pilot More renewable electricity 1st productio
Slide 14: Improving our ESG performance further
SUSTAINABILITY ...while improving our ESG performance further MSCI Rating A 2023 2022 2022 MSCI 13.9 BBB Bloomberg GEI Sustainalytics 3 notches increase in BB First and Only Low ESG Risk 3 years B Conglomerate from Low Risk In Diversified Financials Category Türkiye to be included twice in a row A J
Slide 15: Improving Corporate Governance Framework
SUSTAINABILITY Improving Corporate Governance Framework Shareholder Structure 9 BoD members (3 Independent) Board Members 56% non-family, 44% women Sabancı Family 49.6% Early Detection of Risk Assumes some of the roles of the Portfolio Committee Corporate Management Committee, terminated in Governan
Slide 16: NAV & Stock Performance
04 /07 NAV & Stock Performance
Slide 17: Improving NAV discount despite solid growth in USD asset value
NAV & STOCK PERFORMANCE Improving NAV discount in the long-run despite solid growth in asset value in USD terms NAV* (USD mn) & NAV* Discount NAV* Bridge 43% 6,703 5,706 5,095 3,987 3,567 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 -26.6% -26.1% -28.8% -28.6% -35.1% +6pp Average NAV Discount: Last 3- Ye
Slide 18: Shifting towards more balanced portfolio
NAV & STOCK PERFORMANCE Shifting towards more balanced portfolio NAV Breakdown Current NAV Breakdown Based on EY Report Cash Cash Other** 3% Other** Digital 3% 6% 6% Digital Technologies Technologies 3% Banking & 4% Financial Banking & Financial Services Services 27% 36% Energy & Climate Technologie
Slide 19: SAHOL shares trade at discount to historical P/E averages
NAV & STOCK PERFORMANCE Despite rerating SAHOL shares continue to trade at a material discount to its historical P/E averages Stock Relative-Performance (USD basis) Earnings Per Share vs. Price/Earnings* EPS P/E 5.1 4.9 4.0 2.2 2.1 2.0 1.5 21.5 1 1 9.5 8.1 5.9 1.9 1.9 2.3 2018 2019 2020 2021 2022 H1
Slide 20: Recent Acquisitions
05 /07 Recent Acquisitions
Slide 21: Investing in new economy for major transformation
RECENT ACQUISITIONS Investing in new economy for a major transformation in Sabancı Group Energy & Climate Technologies Advanced Material Technologies Digital Technologies E-mobility Renewables Telematics Sustainable Chemicals loT 4.0 Cybersecurity Digital Marketing Electrification New Energy Vehicle
Slide 22: USA as 2nd largest renewable energy market and largest venture ecosystem
RECENT ACQUISITIONS USA came to the fore with the attraction of being world’s 2nd largest renewable energy market & the largest corporate venture ecosystem Facts on Renewable Energy Investments USA is the 2nd largest renewable energy market following China. Solar Resource Potential Wind Resource Pot
Slide 23: First solar project in Texas
RECENT ACQUISITIONS After detailed research & studies, first solar project in Texas has initiated that offers a variety of opportunities for the future growth Market potential for Region close to Houston - high demand proxy businesses in 272 MW Texas West Solar Power Shovel-ready project with low ex
Slide 24: Expanding renewables investment beyond Türkiye
RECENT ACQUISITIONS Expanding renewables investment beyond Türkiye Sabancı Climate Technologies, wholly owned subsidiary of Sabancı Holding, will undertake renewable energy power plant investments and strategic investments in various venture capital funds and start-ups, primarily in the USA and Euro
Slide 25: Major expansion in Türkiye with 57% renewables share in Enerjisa Üretim
RECENT ACQUISITIONS A major expansion project has been initiated in Türkiye while reaching 57% renewables share in Enerjisa Üretim Installed Generation Capacity Mix* 1000 MW YEKA-2 Wind Power Plant Investment (USD 1.2 bn) ÇANAKKALE Currently 2026 250 MW BALIKESİR Renewables Natural Gas 250 MW 45% 43
Slide 26: Creation of a global digital business with acquisitions
RECENT ACQUISITIONS Creation of a global digital business with acquisitions Dx Technology Services and BV (DxBV), a wholly owned subsidiary of Sabancı Holding and established in the Netherlands, will undertake Investment Sabancı Group’s investments in digital businesses. Cyber Security Digital Marke
Slide 27: Global Players in Mobility Market
RECENT ACQUISITIONS Global Players in Mobility Market Expansion in Composites Growth in New Mobility Solutions Microtex: Arvento: CT INV T E ES O PLA T PR ORE T Acquired by Kordsa Acquired by Brisa IN RMS TH & FO EC W NE GRO Deal Size: EUR24.6mn Deal Size: ~EUR22mn* W Product and geographic diversif
Slide 28: Investing in Tech-based Start-ups via Sabancı Ventures
RECENT ACQUISITIONS Investing in Tech-based Start-ups via Sabancı Ventures 2022 & 2023 Q2 2022 & 2023 Q2 Performance Investments # of Companies #1 local public and private cloud services company in Türkiye USD30Mn Initial Fund Size Preliminary Leading AI-powered virtual screening assistants for e-co
Slide 29: Strategic Business Units
06 /07 Strategic Business Units
Slide 30: Energy SBU's Strategy House: Beyond Power
STRATEGIC BUSINESS UNITS Energy SBU’s Strategy House Beyond Power Green, Sustainable and Digital 01 PROTECT AND GROW THE CORE 02 TRANSFORM Renewable Generation Growth New Energy Technologies Exploring New Fuel Additional Wind and Solar Projects Hybrid Projects Investment - Abroad Economics (Hydrogen
Slide 31: Energy SBU's Strategy House: Preparing For a Sustainable Future
STRATEGIC BUSINESS UNITS Energy SBU’s Strategy House Preparing For a Sustainable Future With Valuable Competencies CURRENT FUTURE Well-positioned energy portfolio in a vertical way (generation, Sustained market leadership position through aggressive growth trading, distribution and retail) in core b
Slide 32: Industrials SBU's Strategy House
STRATEGIC BUSINESS UNITS Industrials SBU’s Strategy House We unite Turkey and the World for a sustainable life Grow into an Integrated Advanced Materials and Mobility Business PROTECT AND GROW THE CORE TRANSFORM Protect the core with Advanced Materials Delivering Profitable Growth with Global Busine
Slide 33: Industrials SBU's Future Vision
STRATEGIC BUSINESS UNITS Industrials SBU’s Future Vision We unite Turkey and the World for a sustainable life Grow into an Integrated Advanced Materials and Mobility Business CURRENT FUTURE Established, integrated mobility group from materials to digital services Equipment for Climate Technologies b
Slide 34: Building Materials SBU's Strategy House
STRATEGIC BUSINESS UNITS Building Materials SBU’s Strategy House From Pure Cement to Building Materials From Local to Glocal, From Grey to Green TRANSFORM PROTECT AND GROW THE CORE New Growth and Diversification Network Optimization and Integration Expand in calcium aluminate Strengthen White Cement
Slide 35: Building Materials SBU's Future Vision
STRATEGIC BUSINESS UNITS Building Materials SBU’s Future Vision Transformation into a Global Building Materials Group CURRENT FUTURE 40% FX based revenue generation Higher FX based revenue generation 20% Revenue from international operations Higher revenue share from international operations Growth
Slide 36: Financial Services SBU's Strategy House
STRATEGIC BUSINESS UNITS Financial Services SBU’s Strategy House To become the leading new generation financial services provider PROTECT AND GROW THE CORE GROW INTO ADJACENCIES Act as a multi-line insurer with Aksigorta & AgeSA Develop distribution Greenfield health insurance company investment and
Slide 37: Financial Services SBU's Future Vision
STRATEGIC BUSINESS UNITS Financial Services SBU’s Future Vision Smart and Sustainable Growth in Financial Services Q2 2023 FUTURE Competitive Market Positioning; Maintain leading position in Pension AUM with a mindful presence Leading position in Pension AUM among private companies since 2015 Leadin
Slide 38: Akbank's bifocal strategy
STRATEGIC BUSINESS UNITS Akbank’s bifocal strategy Run the bank Crafting the future Strong customer acquisition Superior customer experience Effective asset liability management Advanced analytics & excellence in digital Risk & return focused sustainable sound growth ‘Open Banking’ initiatives Robus
Slide 39: Akbank ESG Strategy
STRATEGIC BUSINESS UNITS ESG Strategy: Mitigate environmental footprint while increasing positive impact Sustainable Finance Ecosystems Management Responsible Products & Services Digitalization Impact Investing Financial Inclusion To be the leading bank that drives Türkiye into the People & Communit
Slide 40: Digital Investments to Untapped Potential
STRATEGIC BUSINESS UNITS Digital Investments to Untapped Potential Digital Accelerators Sabancı Digital Business Invest in rapidly growing digital businesses A Digital Ce Retail Platform With Physical and expand beyond Turkey Presence & Human Touch Consumer MarTech Cyber Security Cloud & Digital Bus
Slide 41: Mid-Term Guidance
07 /07 Mid-Term Guidance
Slide 42: Mid-Term Guidance Maintained
MIDTERM GUIDANCE Mid-Term Guidance Maintained Growth Capital Return Sustainability Mid-term targets* CPI + 8% 30%+ Dividend 5%-20% 42% Reduction in policy Revenue growth FX revenue as % of of net income Scope 1 & 2 emissions combined revenue (2) by 2030 Up to 5% of paid-in capital: Share 102mn share
Slide 43: Appendix
APPENDIX
Slide 44: Dividend Performance
APPENDIX Dividend Performance TLmn 2018 2019 2020 2021 2022 2023 Akbank 652 - - 255 494 3,666 Akçansa 51 61 18 42 36 99 Aksigorta 40 73 73 110 - - Agesa 19 40 64 64 - 60 Brisa - - 12 107 270 479 Carrefoursa - - - - - - Çimsa 33 - - - 109 218 Kordsa 48 48 35 - 114 41 Teknosa - - - - - - Yünsa - 3 - -
Slide 45: Financials in detail
APPENDIX Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change TOTAL 92,215 134,115 45% 162,867 258,563 59% 26,039 39,433 51
Slide 46: Sabancı Holding Current NAV & Cash Breakdown
APPENDIX Sabancı Holding Current NAV & Cash Breakdown USDmn June 2023 December 2022 NAV Discount Value to Sabancı Value to Sabancı Companies Direct Stake Valuation Method Mcap % of NAV % of NAV Holding Holding Akbank 41% Market value 4,068 1,658 32.5% 2,216 33.1% June 2023 December 2022 December 202
Slide 47: Sabancı Holding NAV After EY Valuation Report
APPENDIX Sabancı Holding NAV After EY Valuation Report USDmn June 2023 Companies Direct Stake Valuation Method Mcap Value to Sabancı Holding % of NAV Akbank 41% Market value 4,068 1,658 24.5% Enerjisa Enerji 40% Market value 1,601 640 9.5% Aksigorta 36% Market value 223 80 1.2% Agesa 40% Market valu
Slide 48: 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 ! Hamza SÜMER Turkey’s First Investor Relations Investor Relations Specialist Dedicated Assistant ! Arda KAYMA
Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (September 2023) on 6ix