Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (August 2020)
18 slides from Haci Omer Sabanci Holding A.s's investor presentation, August 2020
Slide 1: Energy SBU strategies
Energy SBU strategies
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: Energy SBU Contents
3 Energy SBU Contents Pages • Turkish Electricity Sector and its Importance for Sabanci 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 and it's getting more important
4 Energy is an attractive sector for Sabancı… Energy SBU and it’s getting more important.. Share of Energy Increasing in Non-bank Combined EBITDA* • Directly linked with the welfare and development of the Energy SBU Combined EBITDA (MTL) country ∆% Strategic • Attractive growth potential (demographi
Slide 5: Turkish Electricity Market Framework Replicates the Tested Electricity Market Structures
5 Energy SBU Turkish Electricity Market Framework Replicates the Tested Electricity Market Structures Leading Player in Electricity Leading Player in Electricity Generation and Trading Distribution and Retail Strong presence and footprint in the value chain by two leading players 5% of Turkey 1 26%
Slide 6: Well Positioned & Strong Leader in Turkish Energy Industry
6 Energy SBU Well Positioned & Strong Leader in Turkish Energy Industry Generation & Trading Distribution & Retail AYEDAŞ 3.607 MW 14 Cities 21+ m 1st Private Player Capacity Population 6 Metropoles BAŞKENT 21 Power Plants 15 TWh Ankara (Başkent) 9.9 m Customers Generation 44% Renewables +12 TWh
Slide 7: Well Focused to Adapt to Market Developments by Splitting Business Lines
7 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 Decision to defer March 2018 Ge
Slide 8: Strong foundations in established regulatory framework and clear energy policy targets
8 Energy SBU Strong foundations in established regulatory Generation framework and clear energy policy targets Consumption Growth to Outpace EU Countries • Electricity demand grew by CAGR ~5% in the last 15 years and Electricity consumption per capita (MWh), 2017 Strong electricity projected to cont
Slide 9: A well-balanced, Efficient and Diversified Portfolio
9 Energy SBU A well-balanced, Efficient and Diversified Portfolio Generation A Hard Currency Business… Competitive advantages Breakdown of Generation EBITDA (2019) Asset Light Natural Gas : Market leader amongst private generators Tolling, prop trading etc. 3% Thermal • Merchant play Well-divers
Slide 10: Outstanding Free Cash Flow Generation; Deleveraging on Track
10 Energy SBU Outstanding Free Cash Flow Generation; Generation Deleveraging on Track… Strong Free Cash Flow Generation (MTL) Net Debt (MEUR Equivalent) 2.750 1.600 2.250 1.750 1.200 1.250 800 1.678 750 1.042 250 400 763 605 -250 2014 2015 2016 2017 2018 2019 2019 1H 2020 1H 0 2017 2018 2019 Q2 '20
Slide 11: Effective Operations Across the Board
11 Energy SBU Effective Operations Across the Board Generation More Liberalized Pricing Mechanism… Generation: Latest Financials Spot prices started to recover with demand recovery MILLION TL Q2 2019 Q2 2020 % Change H1 2019 H1 2020 % Change TL Spot Electricity Prices (TL/MWh, LHS) vs Natural Gas Pr
Slide 12: Strong Fundamentals for Continued Growth
12 Energy SBU Distribution & Retail Strong Fundamentals for Continued Growth • Population growth of 1.4% p.a. since 2000, expected 0.6% p.a. until 2042 Electricity Consumption per Capita Significantly Below European Countries Strong macro with • Economic growth driven by increasing population and pr
Slide 13: Strong Position in Distribution and Retail
13 Energy SBU Strong Position in Distribution and Retail Distribution & Retail An Inflation Linked Business w Real Return Competitive advantages Supportive and Transparent Regulatory Framework Breakdown of EBITDA (2019) Turkey’s leading electricity distribution and retail company – Economies of Sc
Slide 14: Distribution – Heavily Concentrated on Network Investments but also an Important Efficiency Game
14 Energy SBU Distribution – Heavily Concentrated on Network Distribution & Retail Investments but also an Important Efficiency Game Distribution Operational Earnings* Strong Historical Growth and Untapped Potential Breakdown (2019) Regulated Asset Base (bn TL) 8,4 6,9 43% CAGR 5,3 3,9 Others 2,7 1,
Slide 15: Real Growth above GDP Growth and Favorable Trend in Performance and Returns
15 Energy SBU Real Growth above GDP Growth and Favorable Trend in Performance and Returns Strong growth in EBITDA Improvement in ROE Combined EBITDA & EBITDA margin (bn TL, %) Return on Equity (%) 7.000 24% 18,7% 23% 22% 21% 18,2% 20% 6.000 5.735 5.337 5.337 5.000 13% 11,4% 4.000 3.468 3.608 3.000 8
Slide 16: Clear strategies for sustained and profitable growth with efficient investments and operational excellence
16 Energy SBU Clear strategies for sustained and profitable growth with efficient investments and operational excellence Leverage Customer Base into Healthier Financials and first dividend payout in 2021 New Services and Customer Solutions Capitalize growth opportunities by asset light options B
Slide 17: Potential areas in line with current capabilities and business
17 Energy SBU Potential areas in line with current capabilities and business Energy SBU assessed new business areas based on Sabancı Holding investment criteria, global mega trends and industry/market dynamics Solar PV • Alternative Hybrid Electricity Sources Global and regional play Solutions • M
Slide 18: New Generation Sabancı
18 Energy SBU New Generation Sabancı Digitalization and Data Analytics • We are committed to staying at the center of the technologies that will shape the future energy Early Adopter world Enhanced of Game- Customer Changing • We aim to build our human capital and Experience Technologies competencie
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