Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Day (November 2020)
27 slides from Haci Omer Sabanci Holding A.s's investor day presentation, Nov 30, 2020
Slide 1: Sabancı Capital Markets Day 2020: A Leap Forward
#SabancıofNewGeneration SABANCI Capital Markets Day 2020 A Leap Forward November 30, 2020 1
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: Sabancı, Executive Leadership
Sabancı, Executive Leadership Barış Oran – CFO Tamer Saka – Building Materials After 10 years of US and international experience, First joined Sabancı Group in 2004 as Chief Risk joined Sabanci Group in 2006. Holds CFO position Officer. Served as the CEO of another of Holding Company since 2016, and
Slide 4: Agenda
01 Sabancı at a Glance 02 Delivered on Key KPIs 03 Resilient Business Model in High Volatility 04 Group Strategy and Growth Themes 05 Capital Allocation and Mid-term Guidance 4
Slide 5: Sabancı at a Glance
0 1 Sabanci at a Glance SOL, inne qt arr eo
Slide 6: Sabancı at a Glance
Sabancı at a glance Sabancı, a story of … 01 Growth 02 Capital Return 03 Sustainability 6
Slide 7: Solid global footprint, complementary business units delivering sustainable growth
Sabancı at a glance Solid global footprint, complementary business units delivering sustainable growth Complementary Retail A solid global footprint business 18% Bank A large customer base 33% units1 Others ² Share in Russia 8% NAV Strong global partnerships Romania Energy & Utilities Insurance 19%
Slide 8: Creating market leaders in large and growing industries
Sabancı at a glance Creating market leaders in large and growing industries Energy & Utilities Industry pioneer in upstream / Leadership in renewable downstream electrification generation Our companies are Industrials market leaders Leader in global and regional markets Operational excellence and co
Slide 9: Delivered on Key KPIs
Banci at a Glance Delivered on Key KPIs Resilient B in High Vc Group Grow Capit Mid-t 6QBanc!
Slide 10: Sabancı has delivered on its commitments at the group level
Delivered on KPIs Sabancı has delivered on its commitments at the group level… Transforming businesses • Massive turnaround via operational excellence and financial restructuring in Energy • Aerospace value chain positioning with four complementing acquisitions in composites in the US • From a syste
Slide 11: Driven by major turnaround in strategic business units
Delivered on KPIs …driven by major turnaround in strategic business units Energy and • Expansion in distribution network investments (RAB: +43%, 2014-19 CAGR) Utilities • Renewable energy assets reached 45% of overall portfolio • Secured renewable capacity expansion (Wind 560 MW) Industrials • Globa
Slide 12: While delivering ESG with a rating upgrade
Delivered on KPIs …while delivering ESG with a rating upgrade • Reduced energy intensity by 20%¹, greenhouse gas intensity by 14%¹ and wastewater by 17%¹ Reducing • Reduced ~5.8mn tons of CO2 emissions by financing of renewable energy projects (Akbank, 2019) E environmental impact • Sabancı Holding
Slide 13: Resilient Business Model in High Volatility
03 Resilient Business Model in High Volatility 13
Slide 14: Lower dependence on Banking, increasing share of Energy & Utilities
Resilient … resulting in lower dependence on the Banking sector, whilst Business increasing the share of the Energy & Utilities business unit … Non-Bank Bank Bank ROE3: Bank ROE: 33% 10.5% 42% 12.1% Bank ROE: 59% 18.9% Non-Bank ROE3: Non-Bank 67% 16.7% ROE: 58% Non-Bank 7.3% ROE: 41% 8.1% 2010 NAV 2
Slide 15: Contributing to revenue expansion and high cash flow generation
Resilient Business … contributing to revenue expansion and high cash flow generation Combined EBITDA1 Combined Revenue (TL bn) Combined operating cash flow2 16,9 Non-Bank Bank 15,4 97,6 14,2 88,1 19% 17% EBITDA Revenue 41,3 CAGR CAGR (2014-19) 10,8 65,6 38,2 (2014-19) 9,5 53,8 8,0 47,9 27,4 7,2 44,1
Slide 16: Significant deleveraging, while increasing distribution to shareholders
Resilient Business …leading to significant deleveraging, while increasing distribution to shareholders Combined leverage ratio1 DPS2 (TL) Deleveraging Overall leverage despite Akbank’s decline TL 1.2 bn capital increase -61% 27% CAGR (2014-19) 4.6x 4.0x 0.33 3.7x 0.30 0.30 3.1x 2.3x 0.20 2.2x 1.8x 0
Slide 17: Resilient and complementing businesses delivering value, even in volatility
Resilient Business Resilient and complementing businesses delivering value, even in volatility Consolidated long FX position ($m, excl. Bank) Cyclicality of businesses High cyclicality 19% 311 308 Industrials + Tech Retail Low 2019 9M 2020 cyclicality Energy & Utilities + 43% Share in Food Retail +
Slide 18: Group Strategy and Growth Themes
04 Group Strategy and Growth Themes 18
Slide 19: Our purpose: a sustainable life with leading enterprises
Strategy Our purpose We unite Turkey and the World for a sustainable life with leading enterprises 19
Slide 20: Sabancı of New Generation
Strategy Sabancı of New Generation We unite Turkey and the World Purpose for a sustainable life with leading enterprises Strategic Provide wider Transform into an agile Pioneer in Lead in digital & Adapt to direction customer experience global / local footprint sustainability material technologies F
Slide 21: Digital businesses
Strategy Digital businesses Transform SabancıDx into a leading industrial next generation solutions provider in the region through organic and inorganic growth 01 Accelerate digital and analytical Organic transformation in the Group growth 02 Establish Sabancı Big Data Lake and driving value Sabancı
Slide 22: Solid progress in sustainability
Strategy Solid progress in sustainability Long-term strategic focus on Digitalization and Innovation including Technological Transformation Environmental Responsiveness including Climate Crises, Circular Economy People & Society including Talent Management, Equal Opportunity, Diversity and Social Co
Slide 23: Capital Allocation and Mid-term Guidance
05 Capital Allocation and Mid-term Guidance 23
Slide 24: Group strategy underpinned by a strong capital discipline
Capital Allocation and Mid-term Guidance Group strategy underpinned by a strong capital discipline Objectives Capital allocation priorities 01 Sustain business unit growth/performance Stringent capital allocation to further improve returns 02 Rigorously implementing capital allocation policy Predict
Slide 25: Sabancı Mid-term guidance
Capital Allocation and Mid-term Guidance Sabancı Mid-term guidance 01 Growth Mid-term 02 Capital Return 03 Sustainability 2014-19 targets Revenue growth CPI2 + 6% CPI1 + 8% MSCI ESG Score Dividend payment EBITDA3 growth CPI2 + 8% CPI1 + 10% High dividend Upgrade to coupled with higher ROE BBB or abo
Slide 26: Why invest in Sabancı?
Capital Allocation and Mid-term Guidance Why invest in Sabancı? Today Future 01 Driving high performance through culture 01 Value creation from a large customer base of Sabancı ecosystem 02 Transparent and sustainable corporate 02 A committed leader in sustainability and future of practices people &
Slide 27: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS Kerem TEZCAN Investor Relations Director ktezcan@sabanci.com investor.relations@sabanci.com
Hacı Ömer Sabancı Holding A.Ş. — Investor Day (November 2020) on 6ix