Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Sabancı Holding — Investor Presentation (April 2020)
24 slides from Haci Omer Sabanci Holding A.s's investor presentation, April 2020
Slide 1: Investor Presentation: COVID-19 & BoD Update
Sabancı Holding Investor Presentation: COVID-19 & BoD Update April 2020
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
Slide 3: Group's message: Health and well-being of our employees is our priority
3 Group’s Health and well-being of our 60K+ employees is our priority message 1 • Incident Management Team established headed by our CEO Rapid response to • Evaluating COVID-19 related developments in real time and managing communications COVID-19 outbreak • Aligning the execution strategies of grou
Slide 4: COVID-19 Responses: Sustainability measures during the crisis
4 COVID-19 Sustainability measures during the crisis Responses 11. Uninterrupted production and services particularly in the bank, energy and food retail businesses • Initiatives taken to cope with increased e-commerce demand on food and technology retail; • Optimize supply chains to ensure continui
Slide 5: Group's opportunities: Post-crisis strategies and initiatives
5 Group’s opportunities Post-crisis strategies and initiatives Explore local/global consolidation opportunities Integrate digitalization in production processes Building materials Diversify export markets Pursue market share gains in existing markets Akçansa & Çimsa Reduce financing cost on higher g
Slide 6: Group's strengths: Pillars of the Group to seize post-crises opportunities
6 Group’s strengths Pillars of the Group to seize post-crises opportunities Quick and sound reflexes Management’s rapid response on non-vital expense/CAPEX cuts and sound working capital management Immune to FX volatility Well hedged against currency volatility: >US$400mn consolidated long FX positi
Slide 7: Group's cyclicality exposure
7 Group’s cyclicality Relatively low exposure to highly cyclical industries limits downside risk exposure Moderate Business Share in NAV* Low cyclicality High cyclicality cyclicality Energy 21% Food retail 8% Other** 12% Banking 41% Financial services 5% High: 13% Industrials 8% Low: 41% Building ma
Slide 8: Board of Directors' update
8 Board of Directors’ Corporate governance strengthened to increase independence and to update change decision making architecture The Board has unanimously voted in favor of the following resolutions: 11. Reduction of family members at the BOD • The Board has commenced a recruitment process to hire
Slide 9: Business Units update
9 Business Units Strategic business units redefined to better achieve long-term update strategies Strategic Business Units are re-defined and renamed to expand scope: •A Energy and Industry Groups’ role definitions have renewed covering necessary adjacencies •B Insurance Group renamed as Financial S
Slide 10: Appendix
Sabancı Holding Appendix
Slide 11: New Generation's Sabancı
11 New Generation’s Sabancı Building “New Generation’s” Sabancı Sabancı Holding Energy and utilities Industrials Financial Services Digital Businesses Growing ▪ Organic Regulated Asset Base (RAB) ▪ Growth in Composites ▪ Continued organic growth the Core expansion ▪ Global white cement leadership ▪
Slide 12: The focus for New Generation's Sabancı
12 Appendix The focus for New Generation’s Sabancı • 90+ years of creating market leaders in large and growing business areas, evolving through dynamic portfolio management and leveraging our industrial heritage and the experience of our JV partners • Strong financial track record of real growth a
Slide 13: Portfolio companies' responses to COVID-19
13 Group companies’ Portfolio companies’ responses to COVID-19 responses Energy Food retail Other Enerjisa Enerji Carrefoursa Philsa • Focus on the power flowing for 9.6mn • As a provider of necessities, the priority is • To date, the company has seen no customers and vital sites like hospitals to e
Slide 14: Portfolio companies' responses to COVID-19 cont'
14 Group companies’ responses Portfolio companies’ responses to COVID-19 cont’… Banking Financial Services Akbank Avivasa • Teams are divided and transferred to • Medical and sanitary precautions separate locations to ensure full continuity introduced of service • Review of prioritization in IT proj
Slide 15: Portfolio companies' responses during COVID-19 cont'
15 Group companies’ responses Portfolio companies’ responses during COVID-19 cont’… Building Materials Industrials Technology retail Akçansa Kordsa Teknosa • Facing lower volumes/demand and • Partial production interruption various • All stores were shut-down by March 22nd, impacted by weekend curfe
Slide 16: Sabancı Holding Executive Leadership, redefined
16 Appendix Sabancı Holding Executive Leadership, redefined Barış Oran – CFO Tamer Saka – Building Materials 24 years of US and International Experience First joined Sabancı Group in 2004 13 years within Sabancı Group Served as the CEO of Kibar Holding between 2014-2018 CFO of Holding Company since
Slide 17: Sabancı Holding Discount to NAV and FX linked Revenues
17 Appendix Sabancı Holding Discount to NAV* and FX linked Revenues Sabancı Holding Discount to NAV* Share of FX linked Revenues in Total Revenues USDmn Mar-2020 Dec-2019 Direct Value of Value of Kordsa 100% Companies Stakes (%)* Valuation Method Mcap Stake % of NAV Stake % of NAV Akbank 40,8% Marke
Slide 18: An effective shareholder structure to maximize value creation
18 Appendix An effective shareholder structure to maximize value creation Shareholder base Other 41.5% Sabancı Family 55.2% Other Sabancı Entities 3.3%1 1. Sabancı Foundation, Sabancı University and bought back shares Note: As of 26 March 2020.
Slide 19: 2019 – Financial performance snapshot
19 Appendix 2019 – Financial performance snapshot Combined Net Sales2 Combined EBITDA1 Consolidated Net Income TLm TLm TLm 97.047 +12% +9% 3.831 3.759 -2% 86.868 16.882 15.420 41.278 Bank 38.166 +8% Bank Bank 7.549 2.269 +3% 2.227 7.338 -2% Non-bank 55.769 +15% 48.702 +15% 9.334 Non-bank Non-bank 8.
Slide 20: Favorable trend in Return on Equity
20 Appendix Favorable trend in Return on Equity on improved capital allocation and performance focus Return on Equity Sabancı Holding consolidated ROE 15-19 Equity Segment ROE1 2015 2016 2017 2018 2019 ∆ ppts Share2 14,5% Energy 0.4% 3.0% 4.6% 11.4% 18.2% +17.8% 17.3% 13,7% 12,7% Cement 22.8% 21.0%
Slide 21: Government's and Group's quick health related responses
21 Appendix Government’s and Group’s quick health related responses 21 March: Curfew for 27 March: Some 13 March: Remote risky population incl. Northern cities access tests, common 19 March: Social citizens over 65 years of quarantined, all spaces shut down distancing age, operations of all int’l fl
Slide 22: COVID-19 Evolution in Turkey
22 Appendix COVID-19 Evolution in Turkey 140.000 3.500 120.000 3.000 100.000 2.500 80.000 2.000 60.000 1.500 40.000 1.000 20.000 500 0 0 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Apr-20 Mar-20 Mar-20 Mar-20 Mar-20 Mar-20 Mar-20 Mar-20 Mar-20 Mar-20 Ma
Slide 23: Government's Economic Stability Shield Program and other measures
23 Appendix Government’s Economic Stability Shield Program and other measures Government’s measures: 1) announced 19-point stimulus package (Economic Stability Shield), which is worth TL100bn, or about 2.3% of GDP (details below), 2) CBT cut rates by a total 300bps to 8.75%, 3) enabled state banks t
Slide 24: Investor relations key contacts
24 Appendix Investor relations key contacts investor.relations@sabanci.com Kerem Tezcan Investor Relations Director ktezcan@sabanci.com +90 212 385 81 75