Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (2023)
46 slides from Haci Omer Sabanci Holding A.s's investor presentation, 2023
Slide 1: Investor Presentation Group Strategy 2022 YE
INVESTOR PRESENTATION GROUP STRATEGY 2022 YE
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: Financial Track Record Capital Allocation Sustainability
01 Financial Track Record 02 Capital Allocation 03 Sustainability 04 Stock Performance 05 Recent Acquisitions Strategic Business Units & 06 Digital 07 Mid-Term Guidance 3
Slide 4: Financial Track Record
01 01 Financial Track Record 4
Slide 5: Strong real growth across the board with major improvement in earnings quality
FinancialCapital Track We achieved strong real growth across the board with a major improvement Record Allocation in earnings quality… 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:
Slide 6: Sharp improvement in ROE with higher dividends and solid liquidity
FinancialCapital Track …that resulted in a sharp improvement in ROE coupled with higher dividends & solid liquidity Record Allocation at the Holding level despite faster pace in investments… Return on Equity* Dividends Paid (TL Mn) Holding Only - Net cash position (TL Bn) Non-bank ROE Consolidated R
Slide 7: Cash flow more than doubled, balance sheet further improved
FinancialCapital Track …while cash flow more than doubled, balance sheet further improved that provides flexibility Record Allocation for potential headwinds & new investments Operational Cash Flow, Combined for Non-Bank* Combined Net Financial Debt to Non-Bank EBITDA* (TL bn) 28.7 2.3x 2.2x Midterm
Slide 8: Capital Allocation
01 02 Capital Allocation
Slide 9: Doubling CAPEX to accelerate organic and inorganic growth
Capital Capital Allocation 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 in nonbank C
Slide 10: Coherent strategic plan on core and new platforms
Capital Capital Allocation Allocation …with a coherent strategic plan on core and new platforms We unite Türkiye and the World Purpose for a sustainable life with leading enterprises Strategic Transform into an agile Lead in digital, material and Commercialize innovation Pioneer in “sustainability A
Slide 11: Delivering on strategic initiatives: 76% of investments to new economy
Capital Allocation Continuing to deliver on our strategic initiatives: 76% of investments to new economy Dynamic Portfolio Management Kordsa Capacity Investments: Turkey’s 1st Green Hydrogen: Capacity Increase in CAC: Digital Investment: Kordsa Turkey: Investment for single-end cord Production and u
Slide 12: Increasing investments that accelerate Group's transformation strategy
Capital Capital Allocation Allocation Increasing investments that accelerate Group’s transformation strategy Business Composition* Sector Composition* Non-bank Capex/Sales* ~14.0% Digital; 7% >2x 10.3% Core Businesses; 24% Building Materials; 24% 7.3% 6.6% Energy; 55% New Economy Businesses; 76% Ind
Slide 13: Sustainability
Sustainability 03 formance go
Slide 14: Prioritizing ESG to transform our portfolio for the future
Sustainability Prioritizing ESG to transform our portfolio for the future… TL 7.7 BN1 51% 2 100%3 SDG-linked product and SDG-oriented R&D and Share of renewable services revenues innovation energy in the 1,000 MW We transform new investment plan the core 80%4 23%5 2x more alternative fuel use 116%6
Slide 15: Improving our ESG performance further
Sustainability ... while improving our ESG performance further 2022 MSCI 2022 CDP 2023 Bloomberg GEI 2022 Refinitiv 2022 Sustainalytics Excellent Performance Low ESG Risk Management Level First and Only Conglomerate from More than 50 companies in In Diversified Financials 3 notches increase in 3 yea
Slide 16: F ial Tra
ps F ial Tra apital Alloca Sustainability » Stock Performance U Recent Acquisitions U Strategic Business U Digital Mid-Tenm Guidance fi - OQBaAncI
Slide 17: Market has recognized transformation on NAV discount
Stock Sustainability Performance Market has recognized Sabancı Holding’s transformation on NAV discount… NAV (USD mn) &NAV Discount NAV Bridge +81% 6,699 3,710 3,762 3,987 3,565 YE 2021 Q1 2022 Q2 2022 Q3 2022 YE 2022 -28.8% -26.6% -35.0% -35.0% -45.4% +19pp Average NAV Discount: Last 3- Year Last 5
Slide 18: Discount to historical average P/E
Stock Sustainability Performance …but not entirely, considering discount to historical average P/E Stock Relative-Performance Earnings Per Share vs. Price/Earnings* (USD basis) EPS P/E SAHOL BIST 30 300 5.1 4.9 4.0 254 250 2.2 2.1 209 21.5 200 150 11.4x 100 5.9 50 1.9 1.9 2.3 0 Feb-22 Jun-22 Mar-22
Slide 19: Recent Acquisitions
03 O05 | Recent Acquisitions ea 2gie-Business é ’ .
Slide 20: Investing in new economy for a major transformation
Recent Recent Sustainability Acquisitions Acquisitions Investing in new economy for a major transformation in Sabancı Group Climate Advanced Material Digital Technologies Technologies Technologies E-mobility Renewables Sustainable Telematics Chemicals loT 4.0 Cybersecurity Digital Marketing Electrif
Slide 21: USA: world's 2nd largest renewable energy market and venture ecosystem
Recent Sustainability USA came to the fore with the attraction of being world’s 2nd largest renewable energy market & Acquisitions the largest corporate venture ecosystem Facts on Renewable Energy Investments Solar Resource Potential Wind Resource Potential 170 TW potential capacity 10.6 TW potentia
Slide 22: First solar project in Texas
Recent Sustainability After detailed research & studies, first solar project in Texas has initiated that offers a variety of Acquisitions opportunities for the future growth Market potential for proxy businesses in Texas West 272 MW Solar Power Plant Project ➢ Region close to Houston - high demand ➢
Slide 23: Expanding renewables investment beyond Turkey
Recent Sustainability Acquisitions Expanding renewables investment beyond Turkey Sabancı Climate Technologies, wholly owned subsidiary of Sabancı Holding, will undertake renewable energy power plant investments and strategic investments in various venture capital funds and start-ups, primarily in th
Slide 24: Major expansion project in Türkiye reaching 57% renewables share
Recent Sustainability A major expansion project has been initiated in Türkiye while reaching 57% renewables share in Acquisitions Enerjisa Üretim Installed Generation Capacity Mix* 1,000 MW YEKA-2 Wind Power Plant Investment (USD1.2bn) Currently 2026 Çanakkale 250 MW 45% 43% 34% Renewables Natural G
Slide 25: Creation of a global digital business with acquisitions
Recent Sustainability Acquisitions Creation of a global digital business with acquisitions Dx Technology Services and Investment BV (DxBV), a wholly owned subsidiary of Sabancı Holding and established in the Netherlands, will undertake Sabancı Group’s investments in digital businesses. CT INV TE ES
Slide 26: Global players in mobility market
Recent Sustainability Acquisitions Global Players in Mobility Market Expansion in Composites Growth in New Mobility Solutions CT INV Microtex: TE ES Arvento: O PLA T PR ORE TF IN MS C TH & ▪ Acquired by Kordsa ▪ Acquired by Brisa NE OR GROW E W ▪ Deal Size: EUR24.6mn ▪ Deal Size: ~EUR22mn* ▪ Product
Slide 27: Investing in tech-based start-ups via Sabancı Ventures
Recent Sustainability Acquisitions Investing in Tech-based Start-ups via Sabancı Ventures 2022 Performance 2022 Investments # of Companies #1 local public and private Initial Fund Size: USD30Mn cloud services company in Türkiye 30m $ Preliminary 170+ screening Leading AI-powered virtual Ticket Size:
Slide 28: Strategic Business Units & Digital
OQBaAncI qui Strategic Business Units & Digital la
Slide 29: Energy SBU's Strategy House
Strategic Sustainability Business Units Energy SBU’s Strategy House Beyond Power: Green, Sustainable and Digital 1 PROTECT AND GROW THE CORE 2 TRANSFORM Renewable Generation Growth • Additional Wind and Solar Projects New Energy Technologies Investment - Abroad • Hybrid Projects Exploring New Fuel E
Slide 30: Energy SBU's Future Vision
Strategic Strategic Sustainability Business Units Energy SBU’s Future Vision Business Units Preparing For a Sustainable Future With Valuable Competencies CURRENT FUTURE Sustained market leadership position through aggressive growth in Well-positioned energy portfolio in a vertical way (generation, t
Slide 31: Industrials SBU's Strategy House
Strategic Strategic Sustainability Business Units Industrials SBU’s Strategy House Business Units We unite Turkey and the World for a sustainable life Grow into an Integrated Advanced Materials and Mobility Business 1 PROTECT AND GROW THE CORE 2 TRANSFORM Advanced Materials Protect the core with • C
Slide 32: Industrials SBU's Future Vision
Strategic Strategic Sustainability Business Units Industrials SBU’s Future Vision Business Units We unite Turkey and the World for a sustainable life We unite Turkey and the World for a sustainable life Grow Growinto intoanan Integrated IntegratedAdvanced AdvancedMaterials Materialsand andMobility M
Slide 33: Building Materials SBU's Strategy House
Strategic Strategic Sustainability Business Units Building Materials SBU’s Strategy House Business Units From Pure Cement to Building Materials From Local to Glocal, From Grey to Green 1 PROTECT AND GROW THE CORE 2 TRANSFORM Network Optimization and Integration New Growth and Diversification • Expan
Slide 34: Building Materials SBU's Future Vision
Strategic Strategic Sustainability Business Units Building Materials SBU’s Future Vision Business Units Transformation into a Global Building Materials Group CURRENT FUTURE 40% FX based revenue generation Higher FX based revenue generation 20% Revenue from international operations Higher revenue sha
Slide 35: Financial Services SBU's Strategy House
Strategic Strategic Sustainability Business Units Financial Services SBU’s Strategy House Business Units To become the leading new generation financial services provider 1 PROTECT AND GROW THE CORE 2 GROW INTO ADJACENCIES Greenfield health insurance company Act as a multi-line insurer with Aksigorta
Slide 36: Financial Services SBU's Future Vision
Strategic Strategic Sustainability Business Units Financial Services SBU’s Future Vision Business Units Smart and Sustainable Growth in Financial Services 2022 FUTURE Competitive Market Positioning; • Maintain leading position in Pension AUM with a mindful presence • Leading position in Pension AUM
Slide 37: Akbank's bifocal strategy
Strategic Strategic Sustainability Business Units Akbank’s bifocal strategy Business Units RunRun the the Bankbank Crafting Craftingthethe future future Strong customer acquisition Superior customer experience Advanced analytics & excellence in Effective asset liability management digital Risk & ret
Slide 38: ESG Strategy: Mitigate environmental footprint while increasing positive impact
Strategic Strategic Sustainability Business Units ESG Strategy: Mitigate environmental footprint while increasing positive impact Business Units Sustainable Finance Ecosystems Management • Responsible Products & Services • Digitalization • Impact Investing • Financial Inclusion To be the leading ban
Slide 39: Digital Investments to Untapped Potential
Strategic Strategic Sustainability Business Digital Units Digital Investments to Untapped Potential Business Units Digital Accelerators Sabancı Digital Business Invest in rapidly growing digital businesses and A Digital Ce Retail Platform With expand beyond Turkey Physical Presence & Human Touch Tra
Slide 40: Mid-Term Guidance
ck Perfor ent Acqu ateg ital 07 Mid-Term Guidance
Slide 41: Mid-Term Guidance Maintained
Mid-term Strategic Sustainability Guidance Mid-Term Guidance Maintained Business Units 01 Growth 02 Capital Return 03 Sustainability Mid-term targets* Dividend policy Zero Waste Revenue growth CPI + 8% Net Zero Emissions 5%-20% of net income by 2050 EBITDA1 growth CPI + 10% Share Buyback Up to 5% of
Slide 42: Appendix
APPENDIX 42
Slide 43: Time to invest for an accelerating growth theme
Appendix/ Time to invest for an accelerating growth theme 1 STRONG FINANCIAL TRACK RECORD & HEALTHY BALANCE SHEET… 2 …PAVING THE WAY TO ACCELERATE GROWTH 3 …BY SOUND AND COHERENT INVESTMENT STRATEGY 4 …UNDER A CLEAR INVESTMENT CRITERIA 5 …TO FOSTER SHAREHOLDER RETURN 43
Slide 44: Dividend Performance
Appendix/ Dividend Performance TLmn 2017 2018 2019 2020 2021 2022 Akbank 367 652 - - 255 494 Akçansa 94 51 61 18 42 36 Aksigorta - 40 73 73 110 - Agesa 9 19 40 64 64 - Brisa - - - 12 107 270 Carrefoursa - - - - - - Çimsa 95 33 - - - 109 Kordsa 41 48 48 35 - 114 Teknosa - - - - - - Yünsa - - 3 - - -
Slide 45: Sabancı Holding Discount to NAV & Cash
Appendix / Sabancı Holding Discount to NAV & Cash USDmn December 2022 December 2021 Companies Direct Stakes Valuation Method Mcap Value of Stake % of NAV Value of Stake % of NAV NAV Discount Akbank 41% Market value 5,437 2,216 33.1% 1,144 30.8% December 2022 December 2021 December 2020 Enerjisa Ener
Slide 46: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS ➢ Kerem TEZCAN Meet SirA, Sabancı Holding's digital Investor Relations Director investor relations assistant ! ➢ Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager Turkey’s First Investor Relations Dedicated Assistant ! ➢ Hamza SÜMER For Further Investor Relations Spe
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