Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q1 2020 Earnings Presentation
25 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2020
Slide 1: Sabancı Holding Q1 2020 Earnings Presentation
Sabancı Holding Q1 2020 Earnings Presentation
Slide 2: CEO's message
2 CEO’s message Top priority: Health & wellbeing of our employees & community Rapid measures against COVID-19 pandemic • Banking, food retailing & energy transformed into public services • Uninterrupted production & services through digitalization • Top financial priorities: Business sustainability,
Slide 3: Q1 2020 Highlights
3 Q1 2020 Highlights Solid non-bank operational performance Robust balance sheet, solid liquidity and low leverage Rapid measures against COVID-19 pandemic Corporate governance strengthened to increase independence
Slide 4: COVID-19 Responses: Sustainability measures during crisis
4 COVID-19 Sustainability measures during crisis Responses Focus on uninterrupted production & services mainly in the bank, energy and food retail businesses Business sustainability & • Initiatives taken to cope with increased e-commerce demand on food and technology retail continuity • Optimize sup
Slide 5: Governance update
5 Governance Corporate governance strengthened to increase independence update Majority • The Board has commenced a recruitment process to hire new non-executive members, with the professionals and final objective of the Board being composed of majority non-family members independents in • Sakıp Sab
Slide 6: Q1 2020 Net debt/EBITDA improved
6 Q1 2020 Net debt/EBITDA improved Operational Cash Flow, Combined for Non-Bank* (TL bn) Combined Net Financial Debt to Non-Bank EBITDA** 10,0 9,5 6,0 Deleveraging despite 8,0 5,0 Akbank capital 6,0 5,6 4,0 increase 4,6 4,1 4,0 3,6 3,0 5,3 4,6 4,0 3,7 1,4 1,7 3,1 2,0 1,3 1,2 2,0 2,3 2,2 2,1 0,0 1,0
Slide 7: Q1 2020 Financial performance summary
7 Q1 2020 Financial performance summary Combined Revenue* (TL mn) Combined EBITDA* (TL mn) Consolidated Net Income* (TL mn) 24.497 +7% 4.612 22.854 4.153 +11% +12% 1.179 1.054 9.129 2.180 Bank*** 10.698 2.071 634 Bank Bank 616 15.369 2.432 Non-bank** 12.156 Non-bank** 2.082 Non-bank** 545 438 Q1 201
Slide 8: High ROE in a lower cost of capital environment
8 Q1 2020 High ROE in a lower cost of capital environment Return on Equity* Holding Only - Net cash position (TL bn) 18% 16% 14% Akbank capital increase 12% 2,6 10% 8% 2,0 1,7 1,7 1,6 6% 4% 1,1 2% 0,6 0% 2014 2015 2016 2017 2018 2019 Q1 2019 Q1 2020 0,1 Non-Bank Cons. ROE 6,5% 7,3% 8,4% 9,3% 13,7% 1
Slide 9: Combined Revenues
9 Combined Above-inflation non-bank growth on Energy, Retail & Industrials Revenues Combined Revenue* (TL mn) Combined Revenue* Breakdown 151 86 797 RETAIL BANK 1.562 744 12% INDUST.** 1.236 2.176 9% ENERGY 2.043 ENERGY 2.819 32% 2.217 RETAIL FIN. SERV. 6% 5.831 7.865 INDUSTRIALS** BUILD. MAT. 3% FI
Slide 10: Combined EBITDA
10 Combined Non-bank growth driven by Energy and Industrials EBITDA Combined EBITDA* (TL mn) Combined EBITDA* Breakdown 65 94 ENERGY; 176 45 38% BANK 389 169 19 319 INDUST.**; ENERGY 8% RETAIL**; 1.768 INDUSTRIALS** 1% 1.503 FIN. SERV.; 4% RETAIL** BUILD. MAT.; 1% FIN. SERV. OTHER; 0% BUILD. MAT. 2.
Slide 11: Consolidated Net Income
11 Consolidated Solid profitability on well-managed financing Net Income Consolidated Net Income* (TL mn) Consolidated Net Income* Breakdown 109 0 47 BANK 85 50 103 ENERGY; 64 INDUST.**; 31% ENERGY 9% 369 321 INDUSTRIALS** FIN. SERV.; 4% RETAIL** FIN. SERV. 616 634 OTHER; 9% BUILD. MAT. OTHER -81 -5
Slide 12: Group's cyclicality exposure
12 Group’s cyclicality Relatively low exposure to highly cyclical industries limits downside risk exposure Moderate Business Share in NAV* Low cyclicality High cyclicality cyclicality Energy 21% Food retail 8% Other** 12% Banking 41% Financial services 5% High: 13% Industrials 8% Low: 41% Building m
Slide 13: Energy
13 Energy Retail margin expansion and strong generation volumes Energy Segment Summary Financials* Current Assessment MILLION TL Q1 2019 Q1 2020 % Change • Distribution & Retail: EBITDA up by SALES 5.831 7.865 35% EBITDA** 1.503 1.768 18% 14% y/y owing to increasing RAB (up by NET INCOME** 701 806 1
Slide 14: Industrials
14 Industrials Domestic market performance covers the global stagnation Industrials Summary Financials* Current Assessment • Contraction in global tire and tire MILLION TL Q1 2019 Q1 2020 % Change reinforcement market SALES 2.482 2.176 -12% SALES-Comparable 2.043 2.176 7% • Strong domestic sell-in,
Slide 15: Building materials
15 Building Exports offset weak domestic demand materials Building Materials Summary Financials* Current Assessment MILLION TL Q1 2019 Q1 2020 % Change • Positive trend in petro-coke and coal SALES 744 797 7% costs EBITDA** 94 65 -31% - NET INCOME** -9 -54 -471% • Stable sales volumes EBITDA* MARGIN
Slide 16: Retail
16 Retail Improved profitability Retail Summary Financials* Current Assessment MILLION TL Q1 2019 Q1 2020 % Change • Top line supported by overall basket size SALES 2.217 2.819 27% EBITDA** 130 169 29% • Improved operational profitability driven EBITDA**-Comparable 19 45 143% by top line growth desp
Slide 17: Financial Services
17 Financial Robust growth and high technical profit Services Financial Services Summary Financials* Current Assessment MILLION TL Q1 2019 Q1 2020 % Change SALES 1.236 1.562 26% • Pension maintains #1 position in terms of EBITDA 169 176 4% AUM with a 18,6% market share LIFE 56 60 8% NON-LIFE 113 116
Slide 18: Bank
18 Bank Best positioned to remain healthy & profitable in a challenging environment Summary Combined Financials* Key Ratios Current Assessment % Q1 2019 Q1 2020 Bps Change MILLION TL Q1 2019 Q1 2020 % Change • In Q1 20 Akbank, achieved solid core REVENUE 10,698 9,129 -15% Leverage 8,1x 7,8x -0.3x NI
Slide 19: Group's opportunities
19 Group’s Post-Covid-19 strategies and initiatives opportunities Maintain robust balance sheet and liquidity Group Exploit new opportunities for rebooting economy Cautious/prepared for a relapse of infection risk Bank Building materials 2020 Outlook: moderate impact from Covid-19 2020 Out
Slide 20: Appendix
APPENDIX OQBANc!
Slide 21: Financials in detail
21 Appendix Financials in detail Combined Revenue* (TL mn) Combined EBITDA* (TL mn) Consolidated Net Income* (TL mn) MILLION TL Q1 2019 Q1 2020 % Change MILLION TL Q1 2019 Q1 2020 % Change MILLION TL Q1 2019 Q1 2020 % Change TOTAL* 23.294 24.497 5% TOTAL* 4.261 4.735 11% TOTAL* 1.028 1.172 14% TOTAL
Slide 22: Sabancı Holding Discount to NAV
22 Appendix Sabancı Holding Discount to NAV USDmn Mar-2020 Dec-2019 NAV Discount Direct Value of Value of Companies Stakes (%)* Valuation Method Mcap Stake % of NAV Stake % of NAV Mar-2020 Dec-2019 Dec-2018 Akbank 40,8% Market value 4.428 1.805 38,3% 2.891 46,5% Enerjisa Enerji 40,0% Market value 1.
Slide 23: IFRS16 Impact on Financials
23 Appendix IFRS16 Impact on Financials • In IFRS16, the change is that now 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 bala
Slide 24: Disclaimer
24 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 correc
Slide 25: Q&A
Q&A OQBANc!
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