Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (November 2021)
48 slides from Haci Omer Sabanci Holding A.s's investor presentation, November 2021
Slide 1: Investor Presentation November 2021
INVESTOR PRESENTATION November 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: 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 both 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: ➲ Profitable growth driven by
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 Provide wider Transform into an agile Pioneer in Lead in digital & Adapt to direction customer experience global / local footp
Slide 7: Sustainability
Sustainability al & Financial nce
Slide 8: Prioritizing ESG to transform our portfolio for the future
Sustainability Prioritizing ESG to transform our portfolio for the future to maximize shareholder value we transform the core …and grow in sustainable platforms MSCI ESG BBB Rating Among our growth platforms… TL 5.9 BN1 44%2 SDG-linked net sales revenues SDG-oriented R&D E-mobility Electrification R
Slide 9: 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 M
Slide 10: 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 11: 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 12: Operational & Financial Performance
03 Operational & Financial Performance 12
Slide 13: 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 14: 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: 29% Bank ROE: Bank 14.9% Energy 42% 12.1% 36% Bank ROE: 16% 59 Listed NAV*: 18.9% % USD 3.5 bn Building Materials 10% Fin.Serv. Industrials Non-Bank 6% 7
Slide 15: 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 32% 26% Value Energy & Industrials + 21% Food Retail Building Materials +Tech Retail Growth 56% Cash Generator 23% Bank & Fi
Slide 16: 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: 8% 319 308 1.9 1.8 231 1.7 155 1.1 2018 2019 2020 9M 2020 9M 2021 2018 2019 2020 9M 2021 16
Slide 17: 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% 33% 18% 38% 17% 45% 104.0 20.9 20.8 97.
Slide 18: 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 19: Strategic Business Units & Digital
04 Strategic Business Units & Digital 19
Slide 20: 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 TL11.2 bn 245,943 km RAB Network Enerjisa Üretim Powerplant Locat
Slide 21: Energy SBU Financial Performance
Energy SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* & EBITDA* Margin (TL Bn) Combined Net Income* (TL Bn) 23% 23% 23% CAGR: Y/Y: 21% 22% CAGR: Y/Y: 25% 29% 20% 19% 80% 6% CAGR: Y/Y: 29% 8% 31.1 3.0 30.4 6.8 2.6 26.0 2.4 2.5 5.9 5.9 23.6 23.6 5.4 5.3 16.5 3.5 1.4 12.6 2.5 0.4 0
Slide 22: 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 23: Industrials SBU Financial Performance
Industrials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* & EBITDA* Margin (TL Bn) Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 13% 62% 14% 91% 5% 179% 22% 19% 19% 19% 17% 17% 15% 1,342 9.7 9.7 8.8 8.7 2.1 6.6 1.6 1.6 6.0 776 1.4 5.2 1.1 634 631 639 1.1 1.0 496
Slide 24: Building Materials SBU: Leader in Turkish Cement Industry
Building Materials SBU Leader in Turkish Cement Industry With An Ambition For International Expansion Russia Romania to Istanbul’s Waste Solution Partner Germany 3 4.1 mn ton* 2 Integrated plants Export Volume Ports Spain 9.2 mn ton 38% 94% USA Turkey Cement capacity Export in Revenues Capacity Util
Slide 25: 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: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 13% 72% 1% 70% 80% 240% 28% 23% 21% 18% 18% 18% 15% 477 5.2 457 4.2 905 313 3.6 743 764 3.4 724 680 246 3.0 3.0 226 2.6 548 53
Slide 26: 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) CAGR: Y/Y: Non-Life Insurance 29% 27% Leader in 3,300+ 30% 8.2% # of Agencies RoE Market Share 5.3 4.5 4.5 3.4 3.5 1.9 2.6 TL 4.5 bn TL 6.2 bn TL 3.8 bn GWP** Total Asset
Slide 27: 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: 32% 30% 14% 1% 36% 9% 6.6 999 734 5.9 5.5 622 778 784 569 570 4.5 697 4.0 414 3.1 510 2.2 281 324 212 231 2016 2017 2018 2019 2020 9M 2020 9M 2
Slide 28: Retail SBU: Turnaround Continues
Retail SBU Turnaround Continues Food & Non-Food Retail 41 720 501k sqm Cities Stores Sales Area 135 mn* 10,427 Annual Customers Employees E-commerce sales, (TL mn) Sales per sqm* & % of total sales (K TL/m2) 9.2% 9.0% Technology Retail Carrefoursa Teknosa 3.1% 1,044 70.0 69 201** 101k sqm 857 Cities
Slide 29: Retail SBU Financial Performance
Retail SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: 16% 24% 67% 63% 28% 13.5 640 2016 2017 2018 2019 2020 9M 2020 9M 2021 11.6 518 10.5 -83 9.3 8.7 7.9 7.6 341 -166 318 -220 -241 224 215 -310 -354 83 -436 2016 20
Slide 30: Bank: Excellently positioned to improve profitability & build the future
Bank Excellently positioned to improve profitability & build the future Superior CAR Capital buffers 19.4%* Medium-term Targets ➲ Achieve mid-to high-teens ROE Low ➲ Committed to sustainable dividend distribution leverage 8.4x ➲ Solid growth … to improve ➲ Maintain best-in-class CIR profitability ➲
Slide 31: Akbank Financial Performance
Financial Performance Akbank Financial Performance Capital Adequacy Ratio* (%) Tier 1 Ratio* (%) Combined Net Income** & Reported ROE (TL bn, %) 9M 2021 9M 2021 16.0% 16.2% Excess Excess 13.6% 14.9% Capital*: Tier 1*: 10.9% 10.9% 10.4% TL 32.3 bn TL 24.1 bn Y/Y: 60% 19.8 16.9 16.9 19.7 19.4 15.5 7.9
Slide 32: 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 Product & Services ➲ Pratis ➲ International sales ➲ Edoksis ➲ Bo
Slide 33: Holding Value Add
OQBaAncI Strategic Busine & Digital Holding Value Add Mid-Term Guidance Bal --
Slide 34: 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 35: 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 36: 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 37: Mid-Term Guidance
06 Mid-Term Guidance 37
Slide 38: 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 2015-2020 targets Revenue growth CPI2 + 4% CPI1 + 8% Dividend policy Zero Waste 5%-20% of net income Net Zero Emissions by 2050 EBITDA3 growth CPI2 + 8% CPI1 + 10%
Slide 39: Appendix
APPENDIX 39
Slide 40: 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 41: 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 42: 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 43: Sabancı Holding Discount to NAV
Appendix / Sabancı Holding Discount to NAV USDmn September 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 3,120 1,271 27.8% 1,978 33.6% Enerjisa Enerji 40% Market value 1,385 554 12.1% 796 13.5% Ak
Slide 44: 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 45: 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 46: Financials in detail
Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q3 2020 Q3 2021 Change 9M 2020 9M 2021 Change Q3 2020 Q3 2021 Change 9M 2020 9M 2021 Change Q3 2020 Q3 2021 Change 9M 2020 9M 2021 Change TOTAL 27,015 38,560 43% 75,314 100,053 33% 5,700 8,259 45%
Slide 47: 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 48: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Kerem TEZCAN Investor Relations Director For Further ktezcan@sabanci.com Details ir.sabanci.com Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Specialist skardicalioglu@sabanci.com investor.relations@sabanci.com
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