Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (January 2023)
60 slides from Haci Omer Sabanci Holding A.s's investor presentation, January 2023
Slide 1: Investor Presentation January 2023
INVESTOR PRESENTATION January 2023
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 Recent Acquistions 03 Sustainability Operational & Financial 04 Performance Strategic Business Units 05 & Digital 06 Holding Value Add 07 Mid-Term Guidance 3
Slide 4: Capital Allocation
01 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: …with 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 Transform into an agile Lead in digital, material and Commercialize innovation Pioneer in “sustainability as a Adapt to “Futur
Slide 7: …and successful delivery on our strategic initiatives
Capital Allocation … and successful delivery on our strategic initiatives 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 use of green Çimsa’s investment
Slide 8: Recent Acquisitions
02 Recent Acquisitions : pos “Strategic TR ™& Digital j Value Add: Wi =
Slide 9: Climate Technologies, Advanced Material, Digital Technologies
Recent Sustainability 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 Electrification New Energy V
Slide 10: USA came to the fore as world's 2nd largest renewable energy market
Recent Acquisitions USA came to the fore with the attraction of being world’s 2nd largest renewable energy market & the largest corporate venture ecosystem Facts on Renewable Energy Investments Solar Resource Potential Wind Resource Potential 170 TW potential capacity 10.6 TW potential capacity ➢ US
Slide 11: First solar project in Texas
Recent After detailed research & studies, first solar project in Texas has initiated that offers a variety Acquisitions of 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 ➢ Shovel-ready p
Slide 12: Expanding renewables investment beyond Turkey
Recent 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 the USA and Europ
Slide 13: Major expansion project in Türkiye, renewables share in Enerjisa Üretim
Recent 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% 42% 34% Renewables Natural Gas Natural Gas
Slide 14: Creation of a global digital business with acquisitions
Recent 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. Cyber Security Digital Marke
Slide 15: Global Players in Mobility Market
Recent Acquisitions Global Players in Mobility Market Expansion in Composites Growth in New Mobility Solutions Microtex: Arvento: ▪ Acquired by Kordsa ▪ Acquired by Brisa ▪ Deal Size: EUR24.6mn ▪ Deal Size: ~EUR22mn* ▪ Product and geographic diversification in ▪ Become a sustainable mobility solutio
Slide 16: Sustainability
itions 03 Sustainability | & Financial 1ce
Slide 17: We prioritize ESG to transform our portfolio for the future
Sustainability Sustainability We prioritize ESG to transform our portfolio for the future… TL 7.7 BN1 51%2 43.1GWh SDG-linked net sales SDG-oriented R&D energy recovery revenues We transform the core 80%3 23%4 2x more alternative fuel use 116% increase in renewable waste recovery water recovery and
Slide 18: Improving our ESG performance further
Sustainability ... while improving our ESG performance further 01 02 03 04 06 2022 MSCI 2022 CDP 2022 GEI 2022 Refinitiv 2022 Sustainalytics Only Turkish Hold Co. Excellent Performance Low ESG Risk 3 notches increase in 3 years Management Level Bloomberg Gender Out of 58 Companies in 52nd out of 900
Slide 19: 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 50.4% Early Detection of Risk Committee Corporate Governance, Nomination and Remuneration Committee Assumes some of the roles of the Port
Slide 20: 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 21: Adapting to the Future of Work
Sustainability Adapting to the Future of Work Smart Work Physical and Mental Health Flexible & High Performance New Talent and Skill Paradigm TL 200 MN Workforce Planned Investment Within 2 years 1,500+ Planned Actions for 2021-2023 82% completed in 2022 Purpose Driven Digital & Agile Leadership Org
Slide 22: Operational & Financial Performance
Operational & Financial Performance
Slide 23: Solid global footprint & strong global partnerships
Operational & Financial Performance Solid global footprint & strong global partnerships UK Hungary Turkey 7 Partnerships Germany Netherlands Spain 14 Countries USA Israel France Thailand Brazil Italy Malta Indonesia 60K+ Employment 23
Slide 24: Complementary business units with increasing share of non-bank
Operational & Financial Performance Complementary business units with increasing share of non-bank NAV* Breakdown Non-Bank Bank Retail Bank 7% Bank ROE: ROE: 34% Energy 42% 55.1% 12.1% 14% Consolidated Bank ROE: 41% Building Listed NAV: Consolidated 41.4% Materials USD 3.1 bn ROE: 10.1% 11% Non-Bank
Slide 25: Faster topline growth with improvement in earnings quality
Operational & Financial Performance Faster topline growth with improvement 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: 23% 175% 23% 259% 29% 321% 275.4 97.7 74
Slide 26: Operational cash flow recovery, deleveraging & higher dividend
Operational & Financial Performance Substantial recovery in operational cash flow, remarkable deleveraging & higher dividend Operational Cash Flow, Combined Non-bank* Combined Net Financial Debt to Dividend Performance (TL Bn) Non-Bank EBITDA* Dividends Paid (TL Mn) Dividends Received (TL Mn) DPS (T
Slide 27: Solid liquidity maintained
Operational & Financial Performance Solid liquidity maintained Holding Only - Net cash position (TL bn) Consolidated long FX position (USD mn, excluding Bank) Y/Y: 80% 415 4.4 318 308 255 2.6 231 2.5 1.9 1.7 1.7 155 1.1 99 2017 2018 2019 2020 2021 9M 2021 9M2022 2017 2018 2019 2020 2021 9M 2021 9M20
Slide 28: Strategic Business Units & Digital
OQBaAncI Strategic Business Units & Digital og
Slide 29: Energy SBU
Energy SBU Well Positioned & Strong Leader in Turkish Energy Industry Distribution & Retail AYEDAŞ 14 11.8 mn 22 mn BAŞKENT Cities Connections Population Ankara (Başkent) 10.5 mn 35.8 TWh 316,376 km Customers 2021 Trade Volume Network Adana Generation & Trading 4 HEPP Gaziantep TOROSLAR 6 HEPP 1st 2
Slide 30: Energy SBU Financial Performance
Energy SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Bn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 30% 239% 26% 137% 81% 187% 23% 23% 22% 21% 18% 19% 14% 102.8 13.9 7.4 8.7 47.0 4.3 6.8 5.9 5.9 31.1 5.3 30.4 3.0 26.0 2.4 2.6 23.6 3.5 16.
Slide 31: Industrials SBU
Industrials SBU Global Players in Mobility Market Tire & Mobility Solutions Germany 1/3 CDP A- 37% of every Passenger Climate Change Exports in Car Tire in Turkey Category Revenue 105 13.5 Mn 7,300 USA Turkey Otopratik & Propratik Total Tire Point of Sales Mobility Service Shops Production Capacity
Slide 32: Industrials SBU Financial Performance
Industrials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 22% 141% 30% 88% 34% 106% 22% 22% 19% 17% 17% 17% 23.3 15% 4.0 2,765 3.1 14.6 2,023 9.7 9.7 2.1 8.8 8.7 1,342 1.6 1.6 6.6 1.4 1.1 776
Slide 33: Building Materials SBU
Building Materials SBU Leader in Turkish Cement Industry With An Ambition For International Expansion Turkey’s Leading Exporter Germany Netherlands 3 >3.5 mn ton* 2 Integrated plants Export Volume Ports Spain 9.2 mn ton 35% 93% USA Turkey Cement capacity FX in Revenues Capacity Utilization Italy Lea
Slide 34: Building Materials SBU Financial Performance
Building Materials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 27% 189% 12% 154% 14% 200% 23% 21% 18% 18% 15% 15% 13% 15.0 2,299 1,370 7.9 1,060 5.2 905 522 4.2 724 764 457 680 3.4 3.6 548
Slide 35: Financial Services SBU
Financial Services SBU Well Positioned in Both Non-Life and Life Insurance Markets Aksigorta Gross Written Premiums Trend (bn TL) Non-Life Insurance CAGR: Y/Y: 28% 92% Leader in 3,600+ 7.2% # of Agencies Market Share 8.6 4.5 5.3 7.0 4.5 TL 8.6 bn TL 6.5 bn 2.6 3.4 GWP** AuM*** 2017 2018 2019 2020 20
Slide 36: 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: 31% 88% 39% -5% 37% 33% 11.0 1,194 999 9.0 999 799 734 784 6.6 742 697 602 5.9 569 5.5 510 414 4.0 3.1 324 281 2017 2018 2019 2020 2021 9M 2021
Slide 37: Retail SBU
Retail SBU Accelerated Growth While Maintaining Operating Profitability Food & Non-Food Retail 44 836 523k sqm Cities Stores Sales Area 158 mn* 10,745 Annual Visitors Employees Food Retail E-Commerce Sales Electronic Retail GMV Comparable EBITDA*** Margin (TL mn) (TL mn) by segment Technology Retail
Slide 38: Retail SBU Financial Performance
Retail SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: 21% 104% 43% 151% 23.7 6% 5% 5% 4% 3% 3% 3% 168 16.9 1,297 13.5 11.6 927 -81 10.5 8.7 -159 7.9 640 -220 518 -241 341 224 215 -354 -436 2017 2018 2019
Slide 39: Banking: 2022 leveraging our strength while carrying out priorities
Banking 2022: Leveraging our strength while carrying out priorities 2022 Revised 9M 2022 Key Takeaways Guidance TL Loan Growth > 50% 54.4% Momentum across all business lines including subsidiaries continue as the bank deploys its capital with sustainable FX Loan Growth (in USD) Shrinkage -9.3% profi
Slide 40: Banking Financial Performance
Financial Performance Financial Performance Capital Adequacy Ratio* & Tier 1 Ratio* Combined Net Income** & Reported ROE Total Asset & Reported ROA (TL bn, %) (TL bn, %) 9M 2022 9M 2022 Excess Excess CAGR: Y/Y: CAGR: Y/Y: Capital*: Tier 1*: 22% 420% 22% 81% TL 54 bn TL 45.1 bn 51.5% Capital Adequacy
Slide 41: Sabancı Digital Business
Digital Invest in rapidly growing digital businesses and expand beyond Turkey Before Transactions After Transactions Sabancı Digital Business Consumer Marketing Cyber Security Cloud & Digital Product & Technology Business Business Business Services Product & Services Software Develop ment Software A
Slide 42: Holding Value Add / Mid-Term Guidance
OQBaAncI ole O; Strategic Business Digital Holding Value Add : Mid-Term Guidance 7... Sie
Slide 43: Innovation & Corporate Venture Capital
Holding Value Add Innovation & Corporate Venture Capital • 2 years, 500 alumni, 10 • 150 ideas in 2 years, 13 Company participants, 45 • Launched in Sep’22, 15 • Investments in 10 companies (8 in Ideathon projects, 3 startups, 20 weeks Commercialization projects, 75% MVP, 23% 2022) and deployed ~USD
Slide 44: Sabancı Ventures: Focus on Growth, Technology and Innovation
Holding Holding Value Add Sabancı Ventures: Focus on Growth, Technology and Innovation Value Add Key Highlights Purpose ➲ To gain early and economical access to new technological developments /markets/ innovations and to create agile and technology-driven growth platforms Investment Strategy ➲ Seed,
Slide 45: Sabancı Ventures: Investments Through Subsidiaries and Timeline
Holding Value Add Sabancı Ventures: Investments Through Subsidiaries and Timeline Establishment of Sabancı Ventures Invested in Invested in Invested in Sabancı Climate Tech Invested in Safar Partnership Lumnion Zack.ai Albert Health Partners, CFS and Quasie Energy with ecoLocked April 2020 Sept. 202
Slide 46: Leveraging Synergies Within Sabancı Ecosystem
Holding Holding Value Value Add Add Leveraging Synergies Within Sabancı Ecosystem The first, fastest and largest E-charge station network in Turkey Solar Power Plants within the Group in Cooperation with Enerjisa Enerji 75K m2 6,226 kWp 10,400 Ground Area Solar Production Capacity Solar Panels Eşarj
Slide 47: Leveraging Synergies Within Sabancı Ecosystem: Bancassurance
Holding Value Add Leveraging Synergies Within Sabancı Ecosystem Strong collaboration in Bancassurance Kordsa & Cement Companies Cooperation ➲ Exclusive bancassurance agreement with Akbank ➲ Presence in all physical and digital channels ➲ Joint vision in digital with Akbank ➲ Effective governance mod
Slide 48: 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 49: Mid-Term Guidance
perational & 05 Strategic Busine nits & Digital 06 | Holding Value Ac 07 Mid-Term Guidance
Slide 50: 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 2017-2021 targets* Revenue growth CPI1 + 5% CPI + 8% Dividend policy Zero Waste 5%-20% of net income Net Zero Emissions by 2050 EBITDA2 growth CPI1 + 5% CPI + 10% S
Slide 51: Appendix
APPENDIX 51
Slide 52: 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 Growth and Transformation Initial Diversification Partnerships-Conglomeration JVs formed with Aviva and Ageas Kordsa’s acquisition
Slide 53: Executive Leadership
Appendix / Executive Leadership Cenk Alper Board Member and CEO Joined Sabancı Group in 1996. 5 years of international experience in the US and Europe with N.V. Bekaert. Led Kordsa‘s transformation and SPO as CEO. After managing Industrials SBU between 2017 and 2019, appointed as the CEO of Sabancı
Slide 54: Dividend Performance
Appendix/ Dividend Performance TL mn 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 55: Sabancı Holding Discount to NAV & Cash
Appendix / Sabancı Holding Discount to NAV & Cash USDmn September 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 3,170 1,292 32.4% 1,144 30.8% September 2022 December 2021 December 2020 Enerjisa En
Slide 56: Overview of Corporate Structure
Appendix / Overview of Corporate Structure ENERGY RETAIL BANKING & FINANCIAL INDUSTRIALS DIGITAL BUILDING MATERIALS SERVICES SAHOL: 40.0% SAHOL: 57.1% SAHOL: 39.7% SAHOL: 40.7% SAHOL: 71.1% SAHOL: 49.0% E.ON: 40.0% Carrefour: 32.2% Heidelberg Materials: 39.7% Other: 8.4% Free Float: 28.9% DxBV: 51.0
Slide 57: 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 Consolidated Net Sales EBITDA Net income Subsidiaries line by line line by line line by line Joint Ventures Not included Proportion of o
Slide 58: Financials in detail
Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q3 2021 Q3 2022 % Change 9M 2021 9M 2022 % Change Q3 2021 Q3 2022 Change 9M 2021 9M 2022 Change Q3 2021 Q3 2022 Change 9M 2021 9M 2022 Change TOTAL 38,560 112,496 192% 100,053 275,363 175% 8,259 31
Slide 59: 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 60: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS ➢ Kerem TEZCAN Investor Relations Director ➢ Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager For Further Details ➢ Hamza SÜMER Investor Relations Specialist ir.sabanci.com ➢ Arda KAYMAZ Investor Relations Specialist E-mail: investor.relations@sabanci.com
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