Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — H1 2013 Earnings Presentation
35 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2013
Slide 1: 2013 Mid-Year Earnings Results Presentation
2013 Mid-Year Earnings Results Presentation 1
Slide 2: Disclaimer Statement
Disclaimer Statement 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
Slide 3: The Effects of New IFRS Standards Regulating Consolidation and the New CMB Regulation
The Effects of New IFRS Standards Regulating Consolidation and the New CMB Regulation Regarding Financial Income •The new IFRS standards (IFRS 10 & IFRS 11) changed Sabancı Holding’s Net Sales, Operating Profit and EBITDA figures and footnotes. SONRA •In accordance with the new practice of consolida
Slide 4: Turkey Macro Outlook Update-Q2 2013
Turkey Macro Outlook Update-Q2 2013 • Moderate recovery in domestic demand continued. • Private consumption spending remains as the driving force of GDP growth. • Weak investment recovery. • Export demand remained weak due to slow recovery in global economic activity and continued contraction in the
Slide 5: 2013 Expectations
2013 Expectations 2012 Prior 2013(E) Current 2013(E) GDP Growth,% 2.2 3.5 3.0 Change in CPI (%), annual 6.2 6.3 7.5 USD/TL, year end 1.783 1.876 2.030 Higher volatility in financial markets result in weaker growth expectations… 5
Slide 6: Key Takeaways
KEY TAKEAWAYS SONRA • Strong EBITDA growth in all segments • Net income well exceeding last year • Keeping our guidance for the year-end • No FX position, no impact from exchange rate swings • Focus on closing corporate transactions 6
Slide 7: Calculation of Net Income Excluding Non-Operational Items
Calculation of Net Income Excluding Non- Operational Items 2012 H1 2013 H1 2012 Q2 2013 Q2 NET INCOME 719 1.089 423 519 Akbank Turkish Competition Board Penalty - (53) - - Aksigorta gain on asset sale - 38 - 38 Income from NPL sale - 19 - 19 Carrefoursa Provision for Lawsuit - (10) - (10) Enerjisa C
Slide 8: Results Snapshot
Results Snapshot High growth in Operating operating profit. 3.955 Profit* 2.564 54% 36% 1.814 1.331 (Million TL) 2012 H1 2013 H1 2012 Q2 2013 Q2 1.104 Net Income** 719 54% Robust net 18% 496 income (Million TL) 423 generation. 2012 H1 2013 H 1 2012 Q2 2013 Q2 Strong growth in operating profit… *
Slide 9: Treatment of Subsidiaries' Share Sales
Treatment of Subsidiaries’ Share Sales MILLION TL NET INCOME FOR Q2 2013 519 GAIN FROM SALE OF SABANCI HOLDING SHARES BY SUBSIDIARIES* 192 NET INCOME INCLUDING THE GAIN FROM SALE OF SABANCI HOLDING SHARES BY SUBSIDIARIES 711 •IAS 32, paragraph 33. If an entity reacquires its own equity instruments,
Slide 10: Non-bank Results-2013 H1&Q2
Non-bank Results-2013 H1&Q2 CEMENT ENERGY OTHER RETAIL INDUSTRY INSURANCE 252 232 -7% 16 43 23 179 Net Income 44 -76% Donations/expenditures 80 8 41 9 related to share sales, Breakdown 35 12 weak operating 134 49 35 performance of Diasa (Million TL)* 147 76 72 consolidation ellimination 45 10 of gai
Slide 11: Energy
Energy TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change SALES 2.243 2.531 13% - - - EBITDA* 241 346 44% - - - NET INCOME* 161 18 (89%) 80 9 (89%) EBITDA MARGIN 10,7% 13,7% TOTAL BEFORE CONSOLIDATION
Slide 12: Enerjisa
Enerjisa TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 Q2 2013 Q2 % Change 2012 Q2 2013 Q2 % Change SALES (NET) 1.115 1.259 13% - - - EBITDA* 162 170 5% - - - NET INCOME* 99 (64) (165%) 49 (30) (160%) EBITDA Margin (%) 14,5% 13,5% - - The g
Slide 13: Enerjisa
Enerjisa 22,000 Electricity Demand (GWh) Lower electricity 21,000 demand in Q1 20,000 exactly offset by 19,000 higher electricity 18,000 demand in Q2 as 17,000 compared to 2012... January February March April May June 2012 21,359 20,006 20,686 18,233 19,004 20,061 2013 21,275 18,842 20,464 19,139
Slide 14: Enerjisa Projects
Enerjisa Projects √ √ Increasing diversified asset portfolio through new investments. 12 Plants completed in 2013
Slide 15: New Distribution Regions
New Distribution Regions Başkent EDAŞ – Overview (2012) Ayedaş – Overview (2011) Population (mn) 6.9 Population (mn) 4.8 Area (km2) 63,398 2 Area (km ) 1,869 Subscribers(mn) 3.56 Subscribers(mn) 2.39 Electricity sales (TWh) 11 Electricity sales (TWh) 7.8 Theft & Loss Rate 8.2% Covered area Istanbul
Slide 16: Enerjisa Balance Sheet
Enerjisa Balance Sheet TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL 2012 YE 2013 Q2 % Change CASH AND CASH EQUIVALENTS 348 656 88% TRADE RECEIVABLES 547 670 23% OTHER CURRENT ASSETS 307 393 28% TOTAL CURRENT ASSETS 1.203 1.719 43% PROPERTY, PLANT AND EQUIPMENT 6.035 7.157 19% INTANGI
Slide 17: Retail
Retail TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change SALES 2.204 2.547 16% 991 1.351 36% EBITDA* 58 55 (6%) 39 43 10% NET INCOME (11) (71) N.M 0 (23) N.M EBITDA MARGIN 2,7% 2,2% 3,9% 3,2% MILLION
Slide 18: Cement
Cement TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change SALES 901 1.016 13% 396 469 18% EBITDA 195 217 11% 84 97 17% NET INCOME 105 109 3% 43 44 3% EBITDA MARGIN 21,6% 21,3% 21,1% 20,8% MILLION TL 2
Slide 19: Insurance
Insurance MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change SALES 806 893 11% - - - EBITDA* 34 87 154% - - - NET INCOME 35 52 46% 16 24 51% EBITDA MARGIN 4,2% 9,7% 2012 Q2 2013 Q2 % Change 2012 Q2 2013 Q2 % Change SALES (NET) 388 422 9% - - - EBITDA* 15 59 295% - - - NET INCOME 17 23 36%
Slide 20: Avivasa
Avivasa TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change SALES 100 128 28% - - - OPERATING INCOME 19 24 24% - - - NET INCOME 23 37 65% 11 19 65% MILLION TL 2012 Q2 2013 Q2 % Change 2012 Q2 2013 Q2 %
Slide 21: Industrials
Industrials TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change SALES (NET) 2.694 2.714 1% 2.035 2.034 0% EBITDA 267 282 6% 184 166 (10%) NET INCOME 182 176 (3%) 147 134 (9%) EBITDA MARGIN 9,9% 10,4% 9
Slide 22: Brisa
Brisa TOTAL BEFORE CONSOLIDATION ADJUSTMENTS CONTRIBUTION TO CONSOLIDATED (COMBINED) FINANCIALS MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change SALES 659 676 2% - - - EBITDA 82 120 47% - - - NET INCOME 29 55 90% 13 24 90% EBITDA MARGIN 12,4% 17,8% 2012 Q2 2013 Q2 % Change 2012 Q2 2013 Q
Slide 23: Kordsa Global
Kordsa Global TOTAL BEFORE CONSOLIDATION ADJUSTMENTS CONTRIBUTION TO CONSOLIDATED (COMBINED) FINANCIALS MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change SALES 786 735 (6%) 786 735 (6%) EBITDA 102 56 -45% 102 56 -45% NET INCOME 54 2 (97%) 49 2 (97%) EBITDA MARGIN 13,0% 7,7% 13,0% 7,7% 201
Slide 24: Yünsa
Yünsa TOTAL BEFORE CONSOLIDATION ADJUSTMENTS CONTRIBUTION TO CONSOLIDATED (COMBINED) FINANCIALS MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change SALES 139 139 0% 139 139 0% EBITDA 12 20 74% 12 20 74% NET INCOME 5 7 39% 5 7 39% EBITDA MARGIN 8,4% 14,5% 8,4% 14,5% 2012 Q2 2013 Q2 % Change
Slide 25: Sasa
Sasa TOTAL BEFORE CONSOLIDATION ADJUSTMENTS CONTRIBUTION TO CONSOLIDATED (COMBINED) FINANCIALS MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change SALES 511 535 5% 511 535 5% EBITDA 12 26 110% 12 26 110% NET INCOME (7) 1 N.M. (7) 1 N.M. EBITDA MARGIN 2,4% 4,8% 2,4% 4,8% 2012 Q2 2013 Q2 % Ch
Slide 26: Temsa
Temsa BUS 2013 H1 AUTOMOTIVES 2013 H1 CONS. EQUIP. 2013 H1 SALES 321 SALES 138 SALES 172 EBITDA 27 EBITDA 2 EBITDA 13 NET INCOME 6 NET INCOME 0 NET INCOME 8 EBITDA MARGIN 8,5% EBITDA MARGIN 1,2% EBITDA MARGIN 7,6% TEMSA CONSOLIDATED CONTRIBUTION TO (ALL BUSINESS LINES TOTAL BEFORE CONSOLIDATION CONS
Slide 27: Net Sales
Net Sales TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change TOTAL 15,997 17,838 12% 10,002 11,349 13% BANK 6,549 7,470 14% 6,549 7,470 14% NON-BANK 9,448 10,368 10% 3,477 3,897 12% ENERGY 2,243 2,531
Slide 28: EBITDA (Excluding Non Operational Items)
EBITDA (EXCLUDING NON OPERATIONAL ITEMS) TOTAL BEFORE CONSOLIDATION ADJUSTMENTS CONTRIBUTION TO CONSOLIDATED FINANCIALS (COMBINED) MILLION TL 2012 H1 2013 H1 % Change 2012 H1 2013 H1 % Change TOTAL 2.846 4.392 54% 1.809 3.047 68% BANK 1.511 2.764 83% 1.511 2.764 83% NON-BANK 1.334 1.628 22% 298 283
Slide 29: Leverage and FX Position
Leverage and FX Position Million Euro NET FX POSITION (excl. bank) December 31, 2012 June 30, 2013 SEGMENT TOTALS ENERGY (1.700) (1.685) INDUSTRY (74) (118) CEMENT 4 21 RETAIL (10) 1 HOLDING,INSURANCE&OTHER 378 387 TOTAL CONSOLIDATED* (209) 29 Million Euro NET DEBT / (CASH) (excl. bank & ins.) Decem
Slide 30: Details of FX Gain/Loss
Details of FX Gain/Loss FX GAIN (LOSS) 2012 H1 2013 H1 2012 Q2 2013 Q2 Sabancı Holding (49) 63 1 63 Enerjisa Consolidated (%50) 70 (58) 43 (73) Net Effect 21 5 44 (10) Consolidation Eliminations 20 (26) (0) (26) Net Consolidated Effect 41 (21) 44 (36) • FX Currency risk of Enerjisa debt affecting Co
Slide 31: Organic Growth / Investments (Million TL)
Organic Growth / Investments (Million TL) %54 1.595 1.034 2012 H1 2013 H1 Our investments are accelarating 1% 2012 H1 2013 H1 3% 3% 6% 1% 4% 1% 0% Bank Insurance 9% 4% 19% Industrials 6% Cement 65% Energy Retail 79% Other 31
Slide 32: Upcoming IR Events
Upcoming IR Events • Insurance Day : October 3 • Tire & Tire Reinforcements Day : October 11 • Retail Day : December 12 • Cement Day: TBD • In the next 4 months Sabancı IR and Executives will attend:7 conferences in Turkey, New York, London, Vienna, • Roadshows in 21 cities incl. Edinburgh, Paris, N
Slide 33: 2013 Update
2013 Update 33
Slide 34: 2013 Combined Guidance
2013 Combined Guidance Sales EBITDA Energy ~ + 15% ~ +35-40% Cement ~ + 5-10% ~ + 5-10% Retail ~ +10% ~ +5% Insurance ~ +15% ~ +30% Industrials ~ +10% ~ +15% * Excluding the new distribution regions 34
Slide 35: Q&A
Q&A 35
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