Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Sabancı Holding — Q1 2017 Earnings Presentation
25 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2017
Slide 1: Sabancı Holding Q1 2017 Earnings Presentation
Sabancı Holding Q1 2017 Earnings Presentation
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: Key Highlights: Strong Performance in Energy, Recovery in Retail After Restructuring
3 Key Highlights Strong Performance in Energy, Recovery in Retail After Restructuring Energy segment continues to drive non-bank EBITDA, providing 58% of total Restructuring plan in Retail continues to pay off: highest Q1 EBITDA over the last five years Rising pension penetration, growing premium ge
Slide 4: Revenues
4 Revenues Base Effect in Retail Capped Non-Bank Revenue Growth in Q1 MILLION TL Q1 2016 Q1 2017 % Change TOTAL* 12.906 14.102 9% Retail revenues climbed down from a high BANK 5.326 6.159 16% base due to store network optimization NON-BANK* 7.580 7.943 5% Strong premium growth and ongoing ENERGY 3.2
Slide 5: EBITDA
5 EBITDA Energy and Retail: Top Contributors to Q1 Non-Bank EBITDA Growth MILLION TL Q1 2016 Q1 2017 % Change TOTAL* 2.434 2.972 22% Strong operational income in banking drives BANK 1.411 1.906 35% combined EBITDA in Q1 NON-BANK* 1.023 1.066 4% Energy operational profitability was driven ENERGY 576
Slide 6: Consolidated Net Income
6 Consolidated Net Income Dilutive New Capacities and FX in Energy Caused a Drop in Q1 Net Income MILLION TL Q1 2016 Q1 2017 % Change CONSOLIDATED NET INCOME* 659 722 9% BANK 441 596 35% NON-BANK 219 126 -43% New Capacities, Tufanbeyli and ENERGY 83 -27 -132% Bandırma II net income dilutive in ENERG
Slide 7: Energy
7 Energy New Capacities in Generation Business Net Income Dilutive in Q1’17 MILLION TL Q1 2016 Q1 2017 % Change SALES 3.270 3.482 6% EBITDA* 576 615 7% NET INCOME* 167 -54 -132% NET INCOME** - Adjusted for comparison 150 -54 -136% EBITDA* MARGIN 17,6% 17,7% *Excludes non-operational one off items. *
Slide 8: Energy: Restructuring Energy Business
8 Restructuring Energy Business to Increase Focus on Separate Energy Business Lines Current Structure Target Structure 50% 50% 50% 50% 50% 50% Enerjisa Consolidated – Enerjisa Generation Enerjisa Electricity JV and Trading Distribution Company (EEDAŞ) Company Enerjisa Generation Enerjisa Electricity
Slide 9: EEDAŞ Consolidated
9 EEDAŞ*** Momentum in Operational Profitability Improvement Sustained in the Consolidated New Tariff Period MILLION TL Q1 2016 Q1 2017 % Change Net sales 2.637 2.713 3% Gross margin (%)** 21,3% 27,6% 6,3pp 2 Year Turkish Government Bond Rate (%) Operational Expenses** -233 -354 -52% Other income/(e
Slide 10: EEDAŞ Consolidated Balance Sheet and Cash Flows
10 EEDAŞ Balance Sheet and Cash Flows Consolidated MILLION TL DEC 2016 MAR 2017 % Change Cash 75 724 871% Trade Receivables 1.946 1.524 -22% Financial Assets 4.292 4.409 3% Fixed Assets 5.217 5.168 -1% Other Assets* 4.030 4.417 10% TOTAL ASSETS 15.559 16.242 4% Bank Borrowings 6.190 7.241 17% Trade
Slide 11: Distribution Business
11 Distribution Investments Drive Growth in EBITDA Business MILLION TL Q1 2016 Q1 2017 % Change SALES 796 1.069 34% EBITDA 258 394 52% EBITDA MARGIN 32,4% 36,8% In Q1’17, Distribution business asset base is 1.4x last year Increase in asset base improved EBITDA by 74 70 MTL in the comparable tari
Slide 12: Retail Business
12 Retail Business Temporary Impacts Narrow Profitability MILLION TL Q1 2016 Q1 2017 % Change SALES 2.623 2.424 -8% EBITDA- Adjusted for comparison* 77 26 -66% EBITDA MARGIN 2,9% 1,1% * Intercompany corrections excluded. No impact on consolidated level Almost 1,1pp Margin reduction due to regulato
Slide 13: Generation
13 Increasing Demand and Lower Water Inflows Result in Higher NG Generation Generation in Q1 Electricity consumption (GWh) Q1 [5.8% growth] Electricity production by source in Q1 (TWh) 30.000 Total Q1 2017: 71.358 GWh Total Q1 2016: 67.464 GWh 25.187 Natural Gas 25.000 23.912 23.753 22.586 22.398 21
Slide 14: Generation
14 Generation Challenging Market Conditions Limit Profitability MILLION TL Q1 2016 Q1 2017 % Change Generation ( TWh) Net sales 977 907 -7% 1.6X 3.2 Gross margin (%) 27% 23% -4,0pp 0,5 EBITDA 237 -80 N.M 2.0 0,2 0,6 EBITDA* 237 201 -15% 0,2 EBITDA* margin (%) 24% 22% -2,1pp 1,0 2,0 Depreciation -58
Slide 15: Generation Balance Sheet and Cash Flows
15 Generation Balance Sheet and Cash Flows MILLION TL DEC 2016 MAR 2017 % Change EUR/TL 3,88 Cash 21 42 97% 3,71 Trade Receivables 422 315 -25% Fixed Assets 11.116 11.053 -1% 3,42 1% 3,36 5% Other Assets* 1.780 1.665 -6% 3,17 3,21 3,20 TOTAL ASSETS 13.339 13.075 -2% 2,98 Bank Borrowings 7.371 7.583
Slide 16: Cement
16 Decreasing Volumes Due to Colder Weather and Jump in Fuel Cement Costs Result in a Decline in EBITDA Current Assessment MILLION TL Q1 2016 Q1 2017 % Change SALES 583 547 -6% Unusually severe winter conditions especially in January and February continues to suppress growth EBITDA 154 96 -38% in
Slide 17: Retail
17 Retail Maintaining the Positive Momentum Current Assessment MILLION TL Q1 2016 Q1 2017 % Change SALES 1.872 1.736 -7% − Positive LfL growth for both companies − Rebuilding operational profitability in both companies EBITDA* 3 43 1239% − Remodelling the way our companies do business with their NET
Slide 18: Carrefoursa
18 Carrefoursa Building a Better Carrefoursa Q1 Highlights MILLION TL Q1 2016 Q1 2017 % Change − Sales was impacted following the optimization of the store network SALES 1.097 1.047 -5% − Improving sales performance in all store formats through EBITDA* -8 16 304% positive LfL sales growth (especiall
Slide 19: Insurance
19 Insurance Strong Growth in AUM and Successful Underwriting Drove Q1 EBITDA MILLION TL Q1 2016 Q1 2017 % Change Current Assessment SALES 570 728 28% − 23% growth in elementary insurance, driven with non- EBITDA 49 70 42% motor segment − Strong underwriting profit growth thanks to 5pps NET INCOME 4
Slide 20: Industrials
20 Industrials Global Market Performance Covers Domestic Stagnation Current Assessment MILLION TL Q1 2016 Q1 2017 % Change SALES 1.245 1.416 14% −Slight improvement in global and local markets EBITDA* 250 254 2% for industrial companies compared to last year NET INCOME* 171 147 -14% −Increased commo
Slide 21: Kordsa
21 Strong Operational Performance Coupled with FX Denominated Kordsa Revenues MILLION TL Q1 2016 Q1 2017 % Change SALES 488 631 29% EBITDA* 78 111 42% NET INCOME* 64 71 10% Q1 Highlights EBITDA* MARGIN 16,0% 17,6% −Market demand is picking up globally * One off items excluded −Favorable exchange rat
Slide 22: Brisa
22 Brisa Focus on Export Markets Q1 2017 Highlights MILLION TL Q1 2016 Q1 2017 % Change SALES 402 473 18% −Macroeconomic conditions resulted in limited growth EBITDA 68 69 2% in the markets overall. NET INCOME 23 25 9% EBITDA MARGIN −Increasing rubber prices and depreciation of TL 16,9% 14,7% Sales
Slide 23: FX Position
23 FX Position Disciplined FX management MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2016 MAR 31, 2017 ENERGY* -271 -160 INDUSTRIALS -25 -7 CEMENT -8 5 RETAIL 3 7 INSURANCE 6 4 HOLDING & OTHER 167 244 TOTAL CONSOLIDATED FX POSITION AFFECTING PL -128 92 *Capitalized borrowings o
Slide 24: Maintaining Guidance for 2017
24 2017 Maintaining Guidance for 2017 2017 Growth Guidance SALES 10-15% ENERGY* EBITDA 10-15% SALES 5-15% INDUSTRIALS* EBITDA 5-15% SABANCI HOLDING SALES 5-10% COMBINED NON-BANK ** EBITDA 10-15% * One off items excluded. ** Including «other» segment
Slide 25: Q&A
Q&A