Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (November 2020)
19 slides from Haci Omer Sabanci Holding A.s's investor presentation, November 2020
Slide 1: Energy SBU Strategies
#SabancıofNewGeneration ENERGY SBU STRATEGIES November 2020 1
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: Content
Content Turkish Electricity Sector and its Importance for Sabancı 4-7 Generation Segment 8-11 Distribution and Retail Segment 12-14 Energy SBU Financials 15 Strategies for Future 16-18
Slide 4: Energy is an attractive sector for Sabancı
Energy SBU / Energy is an attractive sector for Sabancı….and it’s getting more important… Directly linked with the welfare and development of the country Share of Energy Increasing in Non-bank Combined EBITDA* Attractive growth potential (demographics, urbanization) Strategic Well positioned in the
Slide 5: Turkish Electricity Market Framework Replicates the Tested Electricity Market Structures
Turkish Electricity Market Framework Replicates the Tested Energy SBU / Electricity Market Structures Leading Player in Electricity Generation and Trading Leading Player in Electricity Distribution and Retail 5% of Turkey 26% of Turkey Physical Flow 1 1 Generation Transmission Distribution Strong pr
Slide 6: Well Positioned & Strong Leader in Turkish Energy Industry
Energy SBU / Well Positioned & Strong Leader in Turkish Energy Industry AYEDAŞ Distribution & Retail BAŞKENT 14 6 21+ m Ankara Cities Metropoles Population (Başkent) 9.9 m 36,1 TWh 11.2 m Adana Customers Trade Volume Connections 4 HEPP Gaziantep TOROSLAR TL8.4bn 232,000 km 6 HEPP 2019 RAB Network We
Slide 7: Well Focused to Adapt to Market Developments by Splitting Business Lines
Energy SBU / Well Focused to Adapt to Market Developments by Splitting Business Lines Growth & High Investment Turnaround Capital Recycling 2006-2013 2013-2017 2017 onwards 2010 – 2016 Hydro, wind and PV portfolio commissions to optimize existing generation fleet 2018 Partnership Partnership Decisio
Slide 8: Strong foundations in established regulatory framework and clear energy policy targets
Strong foundations in established regulatory framework Energy SBU Generation / and clear energy policy targets Consumption Growth to Outpace EU Countries Electricity demand grew by CAGR ~5% in the last 15 Electricity consumption per capita (MWh), 2017 Strong electricity years and projected to contin
Slide 9: A well-balanced, Efficient and Diversified Portfolio
A well-balanced, Efficient and Diversified Portfolio Energy SBU Generation / A Hard Currency Business… Breakdown of Generation EBITDA (2019) Competitive advantages Asset Light Tolling, 3% Natural Gas : Market leader amongst private generators prop trading etc. Thermal 30% Merchant play (~42 USD/MWh)
Slide 10: Outstanding Free Cash Flow Generation; Deleveraging on Track
Outstanding Free Cash Flow Generation; Energy SBU Generation / Deleveraging on Track… Strong Free Cash Flow Generation (MTL) Net Debt (MEUR Equivalent) 3.000 1.800 1.600 2.500 1.400 2.000 1.200 1.000 1.500 800 1.678 1.000 600 1.042 500 400 763 554 200 0 0 2017 2018 2019 Sept. 2020 -500 -1.000 2014 2
Slide 11: Effective Operations Across the Board
Effective Operations Across the Board Energy SBU Generation / More Liberalized Pricing Mechanism Generation: Latest Financials Spot prices started to recover with demand recovery TL Spot Electricity Prices (TL/MWh, LHS) vs Natural Gas Prices(TL/sm3) MILLION TL Q3 2019 Q3 2020 % Change 9M 2019 9M 202
Slide 12: Strong Fundamentals for Continued Growth
Energy SBU Distribution & Retail / Strong Fundamentals for Continued Growth Population growth of 1.4% p.a. since 2000, expected 0.6% Electricity Consumption per Capita p.a. until 2042 Significantly Below European Countries Strong macro 60 Economic growth driven by increasing population and Netherlan
Slide 13: Strong Position in Distribution and Retail
Strong Position in Distribution and Retail Energy SBU Distribution & Retail / An Inflation Linked Business w Real Return Supportive and Transparent Regulatory Framework Competitive advantages Breakdown of EBITDA (2019) Turkey’s leading electricity distribution and retail company – Economies of Scale
Slide 14: Distribution – Heavily Concentrated on Network
Distribution – Heavily Concentrated on Network Energy SBU Distribution & Retail / Investments but also an Important Efficiency Game Regulation Incentivizes Investments Distribution Operational Earnings* Strong Historical Growth and Untapped Potential Regulated WACC (real) Breakdown (2019) Regulated
Slide 15: Real Growth above GDP Growth and Favorable Trend in Performance and Returns
Real Growth above GDP Growth and Favorable Trend Energy SBU / in Performance and Returns Strong growth in EBITDA Improvement in ROE Combined EBITDA & EBITDA margin (TL bn, %) Return on Equity (%) 21,0% 18,2% 23% 23% 7.000 22% 21% 20% 5.735 6.000 11,4% 5.337 5.423 5.000 13% 3.468 4.000 4,6% 3.000 3,0
Slide 16: Clear strategies for sustained and profitable growth
Clear strategies for sustained and profitable growth Energy SBU / with efficient investments and operational excellence Leverage Customer Base into New Services and Customer Healthier Financials and first dividend payout in 2021 Solutions Capitalize growth opportunities by asset light options Benefi
Slide 17: Potential areas in line with current capabilities and business
Energy SBU / Potential areas in line with current capabilities and business Global and Electrification regional play Solar PV Energy SBU Hybrid Solutions Alternative Electricity Digitalization Sources assessed new Strong growth (PV&Solar) Microgrid Security of business areas Management ELECTRON Ener
Slide 18: New Generation Sabancı
Energy SBU / New Generation Sabancı Digitalization and Data Analytics 01 We are committed to staying at the center of the technologies that will shape the future energy world Early Adopter of Game-Changing Technologies Enhanced Customer 02 We aim to build our human capital and competencies to enhanc
Slide 19: Investor Relations Key Contacts
INVESTOR RELATIONS KEY CONTACTS investor.relations@sabanci.com Kerem TEZCAN Investor Relations Director ktezcan@sabanci.com
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