Haci Omer Sabanci Holding A.s. · BIST:SAHOL

Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q3 2018 Earnings Presentation

21 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2018

  1. Slide 1: Sabancı Holding Q3 2018 Earnings Presentation

    Sabancı Holding Q3 2018 Earnings Presentation

  2. Slide 2: Disclaimer

    2 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 correct

  3. Slide 3: Stellar Non-Bank Outperformance

    3 Stellar Non-Bank Outperformance Combined Net Sales MILLION TL Q3 2017 Q3 2018 % Change Market share gains TOTAL* 16.685 22.521 35% BANK 6.910 9.731 41% Pass through of cost increases NON-BANK* 9.775 12.790 31% Rise in exports Combined EBITDA MILLION TL Q3 2017 Q3 2018 % Change Disciplined cost man

  4. Slide 4: Revenues: Topline driven by Energy and Industrials

    4 Revenues Topline driven by Energy and Industrials TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2017 Q3 2018 % Change 9M 2017 9M 2018 % Change TOTAL* 16.685 22.521 35% 46.155 61.230 33% Price and volume gains drove Energy top line BANK 6.910 9.731 41% 19.743 26.903 36% NON-BANK*

  5. Slide 5: EBITDA: Supportive Regulation at Energy and FX revenues at Industrials

    5 EBITDA** Supportive Regulation at Energy and FX revenues at Industrials TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2017 Q3 2018 % Change 9M 2017 9M 2018 % Change Energy was driven by efficiency and TOTAL* 3.408 4.072 19% 9.723 11.376 17% productivity gains both in upstream and

  6. Slide 6: Consolidated FX long position supported bottom line

    6 Consolidated Net Income Consolidated FX long position supported bottom line MILLION TL Q3 2017 Q3 2018 % Change 9M 2017 9M 2018 % Change CONSOLIDATED NET INCOME* 863 1.154 34% 2.378 2.987 26% BANK 614 575 -6% 1.855 1.810 -2% Strong FX risk management… Energy NON-BANK 249 579 132% 524 1.177 125% se

  7. Slide 7: Energy: Strong Operational performance in Both Businesses

    7 Energy Strong Operational performance in Both Businesses BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2017 Q3 2018 % Change 9M 2017 9M 2018 % Change SALES 4.359 6.165 41% 11.553 16.077 39% EBITDA* 773 1.209 56% 2.143 3.228 51% NET INCOME* 57 -6 -110% 51 344 580% EBITDA* MARGIN 17,7% 1

  8. Slide 8: Generation Sector: Jump in Electricity Prices in Q3

    8 Generation Jump in Electricity Prices in Q3.. Dollarized prices Sector Spot Electricity Prices (TL/MWh, LHS) vs NG Prices Spot prices vs Feed-in-tariff (USD/MWh) 350 (TL/sm3) 80 300 Spot Prices (TL/MWh) 1,700 60 250 1,400 NG Prices TL/sm3 40 200 1,100 150 20 0,800 FIT (USD/MWh) Spot prices (USD/MW

  9. Slide 9: Enerjisa Üretim Santralleri: Effective operations across the board

    9 Enerjisa Üretim Santralleri A.Ş. Effective operations across the board  26% Higher renewable volume and USD MILLION TL Q3 2017 Q3 2018 % Change 9M 2017 9M 2018 % Change based feed in tariff revenue Net sales 965 1.494 55% 2.962 3.578 21%  Favorable market prices and operational EBITDA* 152 399 1

  10. Slide 10: Outstanding Free Cash Flow Generation; Deleveraging on track

    10 Enerjisa Üretim Outstanding Free Cash Flow Generation; Santralleri A.Ş. Deleveraging on track Total Debt (MEUR Equivalent) 2.200 1.900 Free Cash Flow Generation (MTL) 1.600 1.500 1.300 1.000 1.000 2015 YE 2016 YE 2017 YE Sep'2018 500 0 Net Debt (MEUR Equivalent) -500 1.700 -1.000 1.400 * Adjusted

  11. Slide 11: Cement: Exports drive saved the day

    11 Cement Exports drive saved the day Current Assessment BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2017 Q3 2018 % Change 9M 2017 9M 2018 % Change  Following a strong start to the year (Q1:+19%) and balanced Q2, domestic consumption contracted in SALES 826 921 12% 2.146 2.624 22% Q3

  12. Slide 12: Retail: Improved profitability both in food and electronics

    12 Retail Improved profitability both in food and electronics BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2017 Q3 2018 % Change 9M 2017 9M 2018 % Change Current Assessment SALES 2.073 2.315 12% 5.761 6.404 11% − Positive customer LFL and Strong LFL revenue growth in EBITDA* 77 100 31%

  13. Slide 13: Insurance: Stellar growth in cash drives financial income

    13 Insurance Stellar growth in cash drives financial Income BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Current Assessment MILLION TL Q3 2017 Q3 2018 % Change 9M 2017 9M 2018 % Change SALES 751 907 21% 2.100 2.869 37% − 21% growth in total non-life insurance premiums, EBITDA 76 154 104% 236 362 53%

  14. Slide 14: Industrials: Strong Operational Profitability Supported by Exports

    14 Industrials Strong Operational Profitability Supported by Exports BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2017 Q3 2018 % Change 9M 2017 9M 2018 % Change SALES 1.722 2.440 42% 4.739 6.210 31% EBITDA* 319 481 51% 813 1.065 31% NET INCOME* 189 194 2% 454 433 -5% EBITDA* MARGIN 18,5

  15. Slide 15: Kordsa: Star performer of the quarter… Beyond FX

    15 Kordsa Star performer of the quarter… Beyond FX MILLION TL Q3 2017 Q3 2018 % Change 9M 2017 9M 2018 % Change SALES 599 1.237 107% 1.838 2.776 51% EBITDA* 80 233 191% 273 500 83% NET INCOME* 37 133 257% 146 286 96% EBITDA* MARGIN 13,4% 18,9% 14,9% 18,0% *Excludes non-operational one off items. EBI

  16. Slide 16: Brisa: Strong exports and deleveraging

    16 Brisa Strong exports and deleveraging MILLION TL Q3 2017 Q3 2018 % Change 9M 2017 9M 2018 % Change Current Assessment SALES 613 823 34% 1.621 2.237 38% −Improved pricing, increased sales of high value EBITDA 115 164 43% 240 372 55% added products strategy and increased export volume boosted margi

  17. Slide 17: FX Position Prudence…Long FX

    17 FX Position Prudence…Long FX MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) Dec 31, 2017 Sep 30, 2018 ENERGY -240 -160 INDUSTRIALS 1 7 CEMENT 4 6 RETAIL 0 -3 INSURANCE 7 5 HOLDING & OTHER 327 247 TOTAL CONSOLIDATED FX POSITION AFFECTING PL 99 103 Holding Only Cash Position stands at 2.7BT

  18. Slide 18: Key Developments In 3Q..Quarter of execution

    18 2018 Key Developments In 3Q..Quarter of execution Solid operational and financial performance continues in our businesses. Non Bank EBITDA grew 49% y-o-y Strategic steps to grow Composite business executed one by one Focus on cash generation and deleveraging continues.

  19. Slide 19: 2018 Guidance revised upwards reflecting confidence in future

    19 2018 Guidance revised upwards reflecting confidence in future Previous Growth Guidance Current Growth (February 26, 2018) Guidance SABANCI HOLDING SALES 15-20% 25-35% COMBINED NON-BANK * EBITDA 15-20% 35-45% * Excludes one off items.

  20. Slide 20: Q&A

    Q&A OQBANc!

  21. Slide 21: Net Income: Non-Operational and Non-Recurring Items

    21 2018 Net Income: Non-Operational and Non-Recurring Items Non-Operational and Non-Recurring Items Q3 2017 Q3 2018 9M 2017 9M 2018 CONSOLIDATED NET INCOME EXCLUDING NON OPERATIONAL & NON RECURRING ITEMS 863 1.154 2.378 2.987 Gain on sales of Enerjisa Enerji shares (IPO proceeds) 0 0 0 123 Carrefour

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