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

Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q3 2017 Earnings Presentation

27 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2017

  1. Slide 1: Sabancı Holding Q3 2017 Earnings Presentation

    Sabancı Holding Q3 2017 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: Key Highlights: Strong Operational Profitability in All Segments in Q3

    3 Key Highlights Strong Operational Profitability in All Segments in Q3 Energy segment continues to drive non-bank EBITDA with 45% y/y growth (10% on comparable basis), providing 54% of total EBITDA Retail segment improvement on track, 3.7% EBITDA margin in Q3 (+450bps y/y, +100 bps q/q) Industrial

  4. Slide 4: Revenues: Energy and Industrial Segments Growth Drives Q3 Non-bank Revenues

    4 Revenues Energy and Industrial Segments Growth Drives Q3 Non-bank Revenues TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change TOTAL* 12.774 16.685 31% 39.780 47.034 18% Energy top line driven with retail sales BANK 5.573 6.910 24% 16.568

  5. Slide 5: EBITDA: Energy and Retail Top Contributors to Q3 Non-Bank EBITDA Growth

    5 EBITDA Energy and Retail: Top Contributors to Q3 Non-Bank EBITDA Growth MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change TOTAL* 2.649 3.351 26% 7.763 9.710 25% BANK 1.693 1.958 16% 4.743 5.916 25% NON-BANK* 957 1.393 46% 3.021 3.794 26% Energy operational profitability was driven ENERG

  6. Slide 6: Consolidated Net Income: Non-bank Bottom-line Driven with Industrials and Cement

    6 Consolidated Net Income Non-bank Bottom-line Driven with Industrials and Cement in Q3 MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change CONSOLIDATED NET INCOME* 669 863 29% 2.007 2.378 18% Consolidated net income growth driven BANK 531 614 16% 1.488 1.855 25% with non-bank part in Q3 NO

  7. Slide 7: Energy Spin-off and Re-organization Completed

    7 Energy Spin-off and Re-organization Completed 50% 50% 50% 50% Enerjisa Üretim Enerjisa Enerji A.Ş Santralleri (Distribution & Retail) (Generation&Trading Co) Retail Distribution Business Business Başkent Retail Başkent Distribution Company Company Ayedaş Retail Ayedaş Distribution Company Company

  8. Slide 8: Energy Improved Profitability Driven by Downstream Business

    8 Energy Improved Profitability Driven by Downstream Business MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change SALES 3.065 4.359 42% 9.265 11.553 25% EBITDA* 502 728 45% 1.628 2.143 32% NET INCOME* -43 57 231% 178 51 -72% EBITDA* MARGIN 16,4% 16,7% 17,6% 18,5% *Excludes non-operational o

  9. Slide 9: Energy Segment Figures Adjusted for Comparison

    9 Energy Segment Figures Adjusted for Comparison MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change SALES 3.065 4.359 42% 9.265 11.553 25% EBITDA* - Adjusted for comparison 665 728 10% 1.820 2.143 18% Net Income* - Adjusted for comparison 86 57 -34% 302 51 -83% EBITDA* - Adjusted for compa

  10. Slide 10: Enerjisa Enerji: Strong Profitability Continues

    10 Enerjisa Enerji A.Ş. Strong Profitability Continues Q3 Q3 % 9M 9M MILLION TL 2016 2017 Change 2016 2017 % Change Net sales 2.406 3.143 31% 6.919 8.592 24%  High inflation trend and EBITDA - Adjusted for comparison* 510 574 13% 1.227 1.512 23% acceleration of EBITDA - Adjusted for comparison (%)*

  11. Slide 11: Enerjisa Enerji Balance Sheet and Cash Flows

    11 Enerjisa Enerji A.Ş. Balance Sheet and Cash Flows MILLION TL DEC 2016 9M 2017 % Change Cash 75 155 108% Trade Receivables 1.721 2.167 26% Financial Assets 4.293 5.534 29% Fixed Assets (inc Intangible Assets) 7.949 7.833 -1% Other Assets* 1.094 1.122 3% TOTAL ASSETS 15.131 16.811 11% Bank Borrowin

  12. Slide 12: Distribution Business: Growth Driven by Accelerated Investments

    12 Enerjisa Enerji A.Ş. Distribution Growth Driven by Accelerated Investments Business MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change SALES 994 1.119 13% 2.579 3.214 25% EBITDA - Adjusted for comparison* 467 493 5% 996 1.355 36% EBITDA - Adjusted for comparison (%)* 47,0% 44,0% 38,6% 4

  13. Slide 13: Retail Business: Higher Volume and Collection Performance

    13 Enerjisa Enerji A.Ş. Retail Business Higher Volume and Collection Performance MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change SALES 2.152 2.872 33% 6.507 7.737 19% EBITDA - Adjusted for comparison* 44 92 112% 231 168 -27% EBITDA - Adjusted for comparison (%)* 2,0% 3,2% 3,6% 2,2% * 20

  14. Slide 14: Generation Sector: Strong Growth in Electricity Demand in Q3

    14 Generation Sector Strong Growth in Electricity Demand in Q3 Electricity consumption (GWh) Q3 [10% growth] Electricity production by source in Q3 (TWh) 35.000 Q3 2016: 72.9 TWh Q3 2017: 80.1 TWh Natural Gas 28.097 30.000 26.68627.853 24.610 24.141 Hydro 25.000 21.612 20.000 Coal 15.000 Lignite 10.

  15. Slide 15: Enerjisa Üretim: Lost EBITDA due to Outages Partially Recovered in Q4

    15 Enerjisa Üretim Santralleri A.Ş. Lost EBITDA due to unexpected outages will be partially recovered in Q4 MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change Sales ( TWh) Net sales 965 966 0% 2.983 2.962 -1% 16.5 17.2 EBITDA* 164 156 -5% 631 629 0% 7,7 EBITDA* margin (%) 17% 16% -0,8pp 21

  16. Slide 16: Enerjisa Üretim Balance Sheet and Cash Flows

    16 Enerjisa Üretim Santralleri A.Ş. Balance Sheet and Cash Flows MILLION TL DEC 2016 9M 2017 % Change Cash 28 78 181% Trade Receivables 418 364 -13% Fixed Assets 10.950 10.775 -2% 16 krş 20 krş Other Assets* 1.955 1.431 -27% TOTAL ASSETS 13.351 12.649 -5% Bank Borrowings 7.371 7.493 2% Trade Payable

  17. Slide 17: Cement: Pricing Improvement in Q3 Helps Recover H1 Weakness

    17 Cement Pricing Improvement in Q3 Helps Recover Weaknesses in 1H BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Current Assessment MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change  Q3 showed signs of improvement after demand drop SALES 647 826 28% 1.969 2.146 9% in H1. Domestic consumpti

  18. Slide 18: Retail: Operational Improvement Continues to Deliver

    18 Retail Operational Improvement Continues to Deliver BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Current Assessment MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change SALES 1.844 2.073 12% 5.655 5.761 2% EBITDA* -14 77 641% -33 172 616% − Double digit LfL growth in both businesses NET IN

  19. Slide 19: Carrefoursa: Improvement in LfL Customer Growth and Basket Size

    19 Carrefoursa Improvement in LfL Customer Growth and Basket Size BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Q3 Highlights MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change SALES 1.153 1.191 3% 3.386 3.347 -1% EBITDA* -5 32 729% -37 59 258% − Broad-based operational improvement across al

  20. Slide 20: Insurance: Strong AUM Growth and Solid Underwriting Performance

    20 Strong AUM Growth and Solid Underwriting Performance Drove Q3 Insurance EBITDA BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Current Assessment MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change SALES 480 751 56% 1.598 2.100 31% − 27% growth in elementary insurance premiums, driven EBITDA

  21. Slide 21: Industrials: Hard Currency Revenue Streams Support Growth

    21 Industrials Hard Currency Revenue Streams Support Growth and Profitability BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Current Assessment MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change SALES 1.141 1.722 51% 3.803 4.739 25% −Strong Q3 due to favorable raw material cost EBITDA* 219 30

  22. Slide 22: Kordsa: Balanced Global Footprint and Hard Currency Revenues

    22 Kordsa Balanced Global Footprint and Hard Currency Revenues MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change SALES 443 599 35% 1.403 1.838 31% EBITDA* 61 80 32% 215 273 27% NET INCOME* 26 37 43% 138 146 6% EBITDA* MARGIN 13,7% 13,4% 15,3% 14,9% Regional sales distribution Q3 Highlight

  23. Slide 23: Brisa: Profitability Boost in Q3 with Better Pricing

    23 Brisa Profitability Boost in Q3 with Better Pricing BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Current Assessment MILLION TL Q3 2016 Q3 2017 % Change 9M 2016 9M 2017 % Change SALES 408 613 50% 1.272 1.621 27% EBITDA 36 115 215% 169 240 42% −Effective pricing, increased sales of high value added

  24. Slide 24: FX Position

    24 FX Position MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2016 SEP 30, 2017 ENERGY -271 -252 INDUSTRIALS -25 -17 CEMENT -8 8 RETAIL 3 1 INSURANCE 6 6 HOLDING & OTHER 167 326 TOTAL CONSOLIDATED FX POSITION AFFECTING PL -128 72 Holding Only Cash Position is 1.571 MTL

  25. Slide 25: Maintaining Guidance for 2017

    25 2017 Maintaining Guidance for 2017 2017 Growth Guidance SALES 10-15% ENERGY* EBITDA 10-15% SALES 5-15% INDUSTRIALS* EBITDA 5-15% SABANCI HOLDING SALES 5-10% COMBINED NON-BANK ** EBITDA 10-15% * One off items excluded. ** Including «other» segment

  26. Slide 26: Q&A

    Q&A

  27. Slide 27: Non-Operational and Non-Recurring Items

    27 2017 Non-Operational and Non-Recurring Items Non-Operational and Non-Recurring Items Q3 2016 Q3 2017 9M 2016 9M 2017 NET INCOME EXCLUDING NON OPERATIONAL & NON RECURRING ITEMS 669 863 2.007 2.378 Gain on sales of Akbank visa shares 0 0 66 0 Enerjisa asset impairment 0 -3 0 -114 Carrefoursa gain o

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