Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Day (July 2023)
38 slides from Haci Omer Sabanci Holding A.s's investor day presentation, Jul 18, 2023
Slide 1: Analyst & Investor Meeting
JULY 18, 2023 ANALYST & INVESTOR MEETING
Slide 2: Disclaimer
ANALYST & INVESTOR MEETING 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
Slide 3: Capital Allocation
02 /07 Capital Allocation
Slide 4: 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 Invest in New Platforms Grow and Protect the Core Increasing share of new economy in nonbank combined revenue : Strengthen our market leading positions from
Slide 5: With a coherent strategic plan on core and new platforms
CAPITAL 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 Adapt to “Future of
Slide 6: Continuing to deliver on our 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 Turkey’s 1st Green Hydrogen: Capacity Increase in CAC: Digital Investment: Kordsa Capacity Investments: Renewable Energy Investment Production and use of green Çimsa’
Slide 7: Venture Capital
01 /07 Venture Capital
Slide 8: Investing in Tech-based Start-ups via Sabancı Ventures
VENTURE CAPITAL Investing in Tech-based Start-ups via Sabancı Ventures 2022 & 2023 Q1 2022 & 2023 Q1 Performance Investments # of Companies #1 local public and private cloud services company in Türkiye USD30Mn Initial Fund Size Preliminary screening Leading AI-powered virtual assistants for e-commer
Slide 9: NAV & Stock Performance
04 /07 NAV & Stock Performance
Slide 10: Sabancı Holding Current NAV & Cash Breakdown
NAV & STOCK PERFORMANCE Sabancı Holding Current NAV & Cash Breakdown USDmn March 2023 December 2022 NAV Discount Value to Sabancı Value to Sabancı Companies Direct Stake Valuation Method Mcap % of NAV % of NAV Holding Holding Akbank 41% Market value 4,599 1,874 32.8% 2,216 33.0% March 2023 December
Slide 11: Despite declining NAV discount amid solid growth in NAV in USD terms
NAV & STOCK PERFORMANCE Despite declining NAV discount amid solid growth in NAV in USD terms… NAV* (USD mn) & NAV* Discount NAV* Bridge +54% 6,713 5,706 163 67 440 5,706 3,987 675 -188 3,696 3,565 853 3,696 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 -26.7% -26.1% -28.8% -33.8% %-35.0 +8pp Average NAV D
Slide 12: SAHOL shares trading at a material discount to historical P/E averages
NAV & STOCK PERFORMANCE …SAHOL shares are trading at a material discount to its historical P/E multiple averages Stock Relative-Performance (USD basis) Earnings Per Share vs. Price/Earnings* SAHOL BIST 30 EPS P/E 300 5.1 4.9 4.0 250 2.2 2.1 1.9 1.9 200 180 163 150 21.5 100 50 0 5.9 Nov-22 Sep-22 Dec
Slide 13: Sabancı Holding NAV After EY Valuation Report
NAV & STOCK PERFORMANCE Sabancı Holding NAV After EY Valuation Report USDmn March 2023 December 2022 Companies Direct Stake Valuation Method Mcap Value to Sabancı Holding % of NAV Value to Sabancı Holding % of NAV Akbank 41% Market Value 4,599 1,874 25.4% 2,216 33.0% Enerjisa Enerji 40% Market Value
Slide 14: Dividend
04 /07 Dividend
Slide 15: Dividend Performance
DIVIDEND Dividend Performance TLmn 2018 2019 2020 2021 2022 2023 Akbank 652 - - 255 494 3,666 Akçansa 51 61 18 42 36 99 Aksigorta 40 73 73 110 - - Agesa 19 40 64 64 - 60 Brisa - - 12 107 270 479 Carrefoursa - - - - - - Çimsa 33 - - - 109 218 Kordsa 48 48 35 - 114 41 Teknosa - - - - - - Yünsa - 3 - -
Slide 16: Sustainability
03 /07 Sustainability
Slide 17: Prioritizing ESG to transform our portfolio for the future
SUSTAINABILITY Prioritizing ESG to transform our portfolio for the future… Act on Climate Emergency Foster Sustainable Business Models Net GHG Emissions by 2050 15% Reduction in Scope 1-2 Zero through credible removal Reduction in Scope 1-2 emissions as of 2025 vs. 42% emissions as of 2030 vs. initi
Slide 18: While improving our ESG performance further
SUSTAINABILITY ... while improving our ESG performance further MSCI Rating A 2023 2022 2022 MSCI 13.9 BBB Bloomberg GEI Sustainalytics 3 notches increase in BB First and Only Low ESG Risk 3 years B Conglomerate from Low Risk In Diversified Financials Category Türkiye to be included twice in a row A
Slide 19: Improving Corporate Governance Framework
SUSTAINABILITY Improving Corporate Governance Framework Shareholder Structure 9 BoD members (3 Independent) Board Members 56% non-family, 44% women Sabancı Family 49.6% Early Detection of Risk Assumes some of the roles of the Portfolio Committee Corporate Management Committee, terminated in Governan
Slide 20: Financial Track Record
06 /07 Financial Track Record
Slide 21: Healthy growth achieved driven by balanced portfolio and transformation strategy
FINANCIAL TRACK RECORD Healthy growth achieved driven by our balanced portfolio & well-executed transformation strategy… 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: 47% 76% 65% 27
Slide 22: Combined Revenues / Topline growth driven by Banking & Energy segments
FINANCIAL TRACK RECORD Combined Revenues / Topline growth driven by Banking & Energy segments Segments’ Contribution to Combined Revenues* (TL Mn) +76% 3,542 3,272 124,448 3,786 3,158 12,545 2,981 24,512 70,652 Segment Annual 106% 46% 43% 117% 90% 112% 94% Revenue* Growth: Share in Q1’23 38% 32% 8%
Slide 23: Combined EBITDA / Strong contribution from Banking & Energy units
FINANCIAL TRACK RECORD Combined EBITDA / Strong contribution from Banking & Energy units Segment’s Contribution to Combined EBITDA* (TL Mn) +27% 200 267 -270 22,462 564 729 3,399 -129 17,700 Segment Annual 31% 13% -8% 192% 85% 239% -105% EBITDA* Growth: Share in Q1’23 64% 22% 6% 5% 2% 2% 0% Combined
Slide 24: Consolidated Net Income / Led by Banking & Energy businesses
FINANCIAL TRACK RECORD Consolidated Net Income / Led by Banking & Energy businesses Segments’ Contribution to Consolidated Net Income*(TL Mn) +18% 478 -185 205 32 -19 -847 1,319 6,580 5,598 Segment Annual 40% 49% -33% 329% 42% -53% -140% Net Income* Growth: Share in Q1’23 70% 22% 6% 4% 2% 0% -4% Net
Slide 25: Further improvement in ROE & strong cash generation
FINANCIAL TRACK RECORD …that led to a further improvement in ROE & strong cash generation… Return on Equity (ROE)* Operational Cash Flow, Combined for Non-Bank* (TL bn) 28.7 Bank ROE Consolidated ROE Non-Bank ROE 13.7% 13.1% 17.1% 23.9% 31.1% 23.5% 23.3% 50% 54.7% 38.6% 12.5 27.9% 10.8 45.4% 9.5 9.0
Slide 26: Strong balance sheet to weather volatility & capitalize on opportunities
FINANCIAL TRACK RECORD …with strong balance sheet to weather through volatility & capitalize on opportunities Holding Only - Net cash position (TL bn) Combined Net Financial Debt to Non-Bank EBITDA* 2.3x 2.2x 7.7 Midterm Guidance: 6.5 ≤ 2x 1.5x 1.2x 1.2x 3.1 2.6 2.5 1.7 0.4x 0.4x 1.1 2018 2019 2020
Slide 27: Sustainable dividend growth and effective capital allocation
FINANCIAL TRACK RECORD Sustainable dividend growth and effective capital allocation DPS (TL) Share Buy-Back Program Non-bank Capex/Sales* (TL bn) 3.82 4.41 4.27 4.42 3.79 +86% 2.87 ~14.0% 1.75 >2x 3.25 10.3% +42% 7.3% 6.6% 0.75 1.75 0.33 0.35 0.30 0.30 2018 2019 2020 2021 2022 2023 2020 2021 2022 Mi
Slide 28: Mid-Term Guidance
07 /07 Mid-Term Guidance
Slide 29: Mid-Term Guidance Maintained
MİD-TERM GUIDANCE Mid-Term Guidance Maintained Growth Capital Return Sustainability Mid-term targets* Dividend 42% Reduction in CPI + 8% 30%+ 5%-20% Revenue growth FX revenue as % of policy of net income Scope 1 & 2 emissions combined revenue (2) by 2030 Share Up to 5% of paid-in capital: Buyback 10
Slide 30: Appendix
APPENDIX
Slide 31: Investing in new economy for a major transformation in Sabancı Group
RECENT ACQUISITIONS Investing in new economy for a major transformation in Sabancı Group Energy & Climate Technologies Advanced Material Technologies Digital Technologies E-mobility Renewables Telematics Sustainable Chemicals loT 4.0 Cybersecurity Digital Marketing Electrification New Energy Vehicle
Slide 32: USA came to the fore as 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 USA is the 2nd largest renewable energy market following China. Solar Resource Potential Wind Resource Pot
Slide 33: First solar project in Texas initiated
RECENT ACQUISITIONS After detailed research & studies, first solar project in Texas has initiated that offers a variety of opportunities for the future growth Market potential for Region close to Houston - high demand proxy businesses in 272 MW Texas West Solar Power Shovel-ready project with low ex
Slide 34: Expanding renewables investment beyond Türkiye
RECENT ACQUISITIONS Expanding renewables investment beyond Türkiye 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 Euro
Slide 35: Major expansion project initiated in Türkiye: 57% renewables share in Enerjisa Üretim
RECENT ACQUISITIONS A major expansion project has been initiated in Türkiye while reaching 57% renewables share in Enerjisa Üretim Installed Generation Capacity Mix* 1000 MW YEKA-2 Wind Power Plant Investment (USD 1.2 bn) ÇANAKKALE Currently 2026 250 MW BALIKESİR Renewables Natural Gas 250 MW 45% 43
Slide 36: Creation of a global digital business with acquisitions
RECENT ACQUISITIONS Creation of a global digital business with acquisitions Dx Technology Services and BV (DxBV), a wholly owned subsidiary of Sabancı Holding and established in the Netherlands, will undertake Investment Sabancı Group’s investments in digital businesses. Cyber Security Digital Marke
Slide 37: 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 solutions composite
Slide 38: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Kerem TEZCAN Investor Relations Director Meet SirA, Sabancı Holding's digital Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager investor relations assistant ! Hamza SÜMER Turkey’s First Investor Relations Investor Relations Specialist Dedicated Assistant ! Arda KAYMA
Hacı Ömer Sabancı Holding A.Ş. — Investor Day (July 2023) on 6ix