Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (October 2022)
58 slides from Haci Omer Sabanci Holding A.s's investor presentation, October 2022
Slide 1: Investor Presentation October 2022
INVESTOR PRESENTATION October 2022
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: Agenda
01 Capital Allocation 02 Recent Acquistions 03 Sustainability Operational & Financial 04 Performance Strategic Business Units 05 & Digital 06 Holding Value Add 07 Mid-Term Guidance 3
Slide 4: Capital Allocation
01 01 Capital Allocation 4
Slide 5: 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 Grow and Protect the Core Invest in New Platforms ➲ Strengthen our market leading positions ➲ Increasing share of new economy: ➲ Profitable growth driven by
Slide 6: A coherent strategic plan on core and new platforms
Capital Allocation …with a coherent strategic plan on core and new platforms… We unite Turkey and the World Purpose for a sustainable life with leading enterprises Strategic Innovate to provide wider Transform into an agile Pioneer in Lead in digital & Adapt to direction customer experience global /
Slide 7: Successful delivery on our strategic initiatives
Capital Allocation … and successful delivery on our strategic initiatives Dynamic Portfolio Management Turkey’s 1st Green Hydrogen: Capacity Increase in CAC: Digital Investment: Çimsa’s investment at USD45mn, Kordsa Capacity Investments: Production and use of green Acquisition of 100% of SEM**, for
Slide 8: Recent Acquisitions
02 Recent Acquisitions :
Slide 9: Investing in new economy for a major transformation
Recent Sustainability Acquisitions Investing in new economy for a major transformation in Sabancı Group Climate Advanced Material Digital Technologies Technologies Technologies E-mobility Renewables Sustainable Telematics Chemicals loT 4.0 Cybersecurity Digital Marketing Electrification New Energy V
Slide 10: USA attraction as second largest renewable market and venture ecosystem
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 Solar Resource Potential Wind Resource Potential 170 TW potential capacity 10.6 TW potential capacity ➢ US
Slide 11: First solar project in Texas
Recent After detailed research & studies, first solar project in Texas has initiated that offers a variety Acquisitions of opportunities for the future growth Market potential for proxy businesses in Texas West 272 MW Solar Power Plant Project ➢ Region close to Houston - high demand ➢ Shovel-ready p
Slide 12: Expanding renewables investment beyond Turkey
Recent Acquisitions Expanding renewables investment beyond Turkey… 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 13: Major wind expansion in Türkiye at Enerjisa Üretim
Recent … A major expansion project has initiated in Türkiye while reaching 57% renewables share in Acquisitions Enerjisa Üretim Installed Generation Capacity Mix* 1,000 MW YEKA-2 Wind Power Plant Investment (USD1.2bn) Currently 2026** Çanakkale 250 MW 44% 44% 34% Renewables Natural Gas Natural Gas B
Slide 14: Creation of a global digital business with acquisitions
Recent Acquisitions Creation of a global digital business with acquisitions Dx Technology Services and Investment BV (DxBV), a wholly owned subsidiary of Sabancı Holding and established in the Netherlands, will undertake Sabancı Group’s investments in digital businesses. Cyber Security Digital Marke
Slide 15: 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 solutio
Slide 16: Sustainability
itions 03 Sustainability | & Financial 1ce
Slide 17: We prioritize ESG to transform our portfolio
Sustainability Sustainability We prioritize ESG to transform our portfolio for the future… TL 7.7 BN1 51%2 43.1GWh SDG-linked net sales SDG-oriented R&D energy recovery revenues We transform the core 80%3 23%4 2x more alternative fuel use 116% increase in renewable waste recovery water recovery and
Slide 18: Improving our ESG performance
Capital Mid-term Sustainability Allocation Guidance … while improving our ESG performance 01 02 03 04 REFINITIV 2021 MSCI 2021 CDP Climate 2022 GEI 2022 Refinitiv 2 notches increase 2 notches increase Only Turkish Hold Co. Excellent Performance in 9 Months Management Level Bloomberg Out of 50+ Compa
Slide 19: Improving Corporate Governance Framework
Sustainability Improving Corporate Governance Framework Shareholder Structure Board Members 9 BoD members (3 Independent) 56% non-family, 44% women Sabancı Family 50.9% Early Detection of Risk Committee Corporate Governance, Nomination and Remuneration Committee Assumes some of the roles of the Port
Slide 20: Sustainability Roadmap
Sustainability Sustainability Roadmap Act on Maximize Foster Sustainable 01 Climate Emergency 02 Positive Impact 03 Business Models Become 'Net Zero Emissions’ and Create shared value for all Develop innovative products, services 'Zero Waste' by 2050 at the latest stakeholders, with social programs
Slide 21: Adapting to the Future of Work
Sustainability Adapting to the Future of Work Smart Work Physical and Mental Health Flexible & High Performance New Talent and Skill Paradigm TL 200 MN Workforce Planned Investment Within 2 years 1,500+ Planned Actions for 2021-2023 42% completed in 2021 Purpose Driven Digital & Agile Leadership Org
Slide 22: Operational & Financial Performance
Operational & Financial Performance
Slide 23: Solid global footprint & strong global partnerships
Operational & Financial Performance Solid global footprint & strong global partnerships UK Hungary Turkey 7 Partnerships Germany Netherlands Spain 14 Countries USA Israel France Thailand Brazil Italy Malta Indonesia 60K+ Employment 23
Slide 24: Complementary business units with increasing share of non-bank
Operational & Financial Performance Complementary business units with increasing share of non-bank NAV* Breakdown Non-Bank Bank Retail Bank 7% Bank 32% ROE: ROE: 42% 47.1% Energy 12.1% 14% Bank Consolidated 38% ROE: Building Listed NAV: Consolidated 33.6% Materials USD 2.7 bn ROE: 10.1% 9% Non-Bank
Slide 25: Accelerated topline growth and profitability
Operational & Financial Performance Accelerated topline growth and profitability with improved earnings quality 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: 23% 165% 23% 242% 29% 3
Slide 26: Higher dividend payments & healthy balance sheet
Operational & Financial Higher dividend payments & healthy balance sheet maintained despite slowdown Performance in cash flow generation Operational Cash Flow, Combined Non-bank* Combined Net Financial Debt to Dividend Performance (TL Bn) Non-Bank EBITDA* Dividends Paid (TL Mn) Dividends Received (T
Slide 27: Resilient against FX volatility
Operational & Financial Performance Resilient against FX volatility Holding Only - Net cash position (TL bn) Consolidated long FX position (USD mn, excluding Bank) Y/Y: 32% 355 318 308 5.5 268 255 155 2.6 2.5 1.7 1.8 1.7 99 1.1 2017 2018 2019 2020 2021 H1 2021 H1 2022 2017 2018 2019 2020 2021 H1 202
Slide 28: Strategic Business Units & Digital
OQBaAncI Strategic Business Units & Digital g 28
Slide 29: Energy SBU
Energy SBU Well Positioned & Strong Leader in Turkish Energy Industry AYEDAŞ Distribution & Retail 14 6 21+ m BAŞKENT Ankara (Başkent) Cities Metropoles Population Adana 10.4 m 35.8 TWh 11.8 m 4 HEPP Gaziantep Customers 2021 Trade Volume Connections TOROSLAR 6 HEPP TL18.7 bn 315,242 km RAB Network E
Slide 30: Energy SBU Financial Performance
Energy SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Bn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 30% 250% 26% 134% 81% 159% 23% 23% 22% 21% 22% 18% 14% 62.1 8.9 47.0 8.7 4.3 4.3 6.8 5.9 31.1 5.3 3.0 26.0 23.6 2.4 3.5 3.8 17.7 1.7 16.5
Slide 31: Industrials SBU
Industrials SBU Global Players in Mobility Market Tire & Mobility Solutions Germany 1/3 CDP A- 37% of every Passenger Climate Change Exports in Car Tire in Turkey Category Revenue 95 13.5 Mn 7,300 USA Turkey Otopratik & Propratik Total Tire Point of Sales Mobility Service Shops Production Capacity i
Slide 32: Industrials SBU Financial Performance
Industrials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 22% 139% 30% 93% 34% 95% 22% 23% 19% 19% 17% 17% 15% 14.6 14.8 3.1 2.7 2,023 9.7 1,837 8.8 8.7 6.6 1.6 1.6 6.2 1.4 1.4 942 1.1 776 63
Slide 33: Building Materials SBU
Building Materials SBU Leader in Turkish Cement Industry With An Ambition For International Expansion Turkey’s Leading Exporter Germany Netherlands 3 >3.5 mn ton* 2 Integrated plants Export Volume Ports Spain 9.2 mn ton 35% 94% USA Turkey Cement capacity FX in Revenues Capacity Utilization Italy Lea
Slide 34: Building Materials SBU Financial Performance
Building Materials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 27% 191% 12% 125% 14% 138% 23% 21% 20% 18% 15% 16% 13% 794 8.8 7.9 1,374 522 1,060 764 313 334 4.2 724 680 3.6 612 246 226 3.4
Slide 35: Financial Services SBU
Financial Services SBU Well Positioned in Both Non-Life and Life Insurance Markets Aksigorta Gross Written Premiums Trend (bn TL) Non-Life Insurance CAGR: Y/Y: 28% 84% Leader in 3,600+ 7.5% # of Agencies Market Share 7.0 4.5 5.3 5.5 TL 5.5 bn TL 4.5 bn 3.4 3.0 2.6 GWP** AuM*** 2017 2018 2019 2020 20
Slide 36: Financial Services SBU Financial Performance
Financial Services SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 31% 84% 39% -26% 37% 13% 9.0 1.194 999 999 7.1 6.6 734 5.5 697 569 4.0 540 468 3.9 510 414 414 3.1 399 324 281 2017 2018 2019 2020 2021 H1 2021
Slide 37: Retail SBU
Retail SBU Accelerated Growth While Maintaining Operating Profitability Food & Non-Food Retail 40 797 514k sqm Cities Stores Sales Area 148 mn* 11,154 Annual Visitors Employees Food Retail E-Commerce Sales Electronic Retail GMV Comparable EBITDA*** Margin (TL mn) (TL mn) by segment Technology Retail
Slide 38: Retail SBU Financial Performance
Retail SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: 21% 91% 43% 165% 6% 5% 5% 4% 3% 3% 3% 2017 2018 2019 2020 2021 H1 2021 H1 2022 16.9 927 37 13.7 13.5 701 640 -81 10.5 -159 8.7 -198 7.9 -220 7.2 341
Slide 39: Banking 2022 guidance and key drivers
Banking 2022: Leveraging our strength while carrying out priorities 2022 Previous 2022 Revised H1 2022 2022 Guidance Key Drivers TL Loan Growth ~30% > 50% 39.4% • Our robust 18% CAR(3) & 14.7% Tier 1(3) creates ammunition for sustainable profitable growth while providing resilience FX Loan Growth (i
Slide 40: Banking Financial Performance
Financial Performance Financial Performance Capital Adequacy Ratio* & Tier 1 Ratio* Combined Net Income** & Reported ROE Total Asset & Reported ROA (TL bn, %) (TL bn, %) H1 2022 H1 2022 Excess CAGR: Y/Y: CAGR: Y/Y: Excess 22% Capital*: Tier 1*: 22% 412% 82% TL 38.9 bn TL 30.4 bn 47.1% 16.9% 16.9% 16
Slide 41: Digital: invest in rapidly growing digital businesses
Digital Invest in rapidly growing digital businesses and expand beyond Turkey Before Transactions After Transactions Sabancı Digital Business Consumer Marketing Cyber Security Cloud & Digital Product & Technology Business Business Business Services Product & Services Software Develop ment Software A
Slide 42: Holding Value Add
OQBaAncI ole O; Strategic Business Digital Holding Value Add i Mid-Term Guidance q 7 a \ e.. 42
Slide 43: Sabancı Ventures: Focus on Growth, Technology and Innovation
Holding Holding Value Add Sabancı Ventures: Focus on Growth, Technology and Innovation Value Add Key Highlights Purpose ➲ To gain early and economical access to new technological developments /markets/ innovations and to create agile and technology-driven growth platforms Investment Strategy ➲ Seed,
Slide 44: Leveraging Synergies Within Sabancı Ecosystem
Holding Holding Value Value Add Add Leveraging Synergies Within Sabancı Ecosystem The first, fastest and largest E-charge station network in Turkey Solar Power Plants within the Group in Cooperation with Enerjisa Enerji 60K m2 Ground Area 3,370 kWp 7,479 Solar Panels Solar Production Capacity Eşarj
Slide 45: Leveraging Synergies: Bancassurance and Cooperation
Holding Value Add Leveraging Synergies Within Sabancı Ecosystem Strong collaboration in Bancassurance Kordsa & Cement Companies Cooperation ➲ Exclusive bancassurance agreement with Akbank ➲ Presence in all physical and digital channels ➲ Joint vision in digital with Akbank ➲ Effective governance mod
Slide 46: Management Incentives
Holding Value Add Management Incentives Short Term (1-Year) Financial KPIs* Total Cash Distribution Model (%) ➲ Net Sales ➲ Net Financial Debt ➲ Rtsr** 75 ➲ EBITDA ➲ Working Capital Long Term ➲ Free Cash Flow ➲ Market Share (maximum) Capital distribution 50 and value Long Term Short Term (1-Year) No
Slide 47: Mid-Term Guidance
perational & 05 Strategic Busine nits & Digital 06 | Holding Value Ac 07 Mid-Term Guidance
Slide 48: Future Growth Underpinned By Capital Return and Sustainability
Mid-term Guidance Future Growth Underpinned By Capital Return and Sustainability 01 Growth 02 Capital Return 03 Sustainability Mid-term 2017-2021 targets* Revenue growth CPI1 + 5% CPI + 8% Dividend policy Zero Waste 5%-20% of net income Net Zero Emissions by 2050 EBITDA2 growth CPI1 + 5% CPI + 10% S
Slide 49: Appendix
APPENDIX 49
Slide 50: Portfolio in Continuous Evolution
Appendix / Portfolio in Continuous Evolution 1940s - 1960s 1970s - 2000s 2000s - 2010s Present and Future Early Growth Phase - Proliferation of Global Refocus Portfolio Growth and Transformation Initial Diversification Partnerships-Conglomeration JVs formed with Aviva and Ageas Kordsa’s acquisition
Slide 51: Executive Leadership
Appendix / Executive Leadership Orhun Köstem – Finance Gökhan Eyigün - Strategy & Business During his 28 years of career in various managerial Development positions including Investor Relations & Corporate Joined Sabancı Group in 2007 at Strategy and Finance Director and CCI CFO in Anadolu Group, Bu
Slide 52: Dividend Performance
Appendix/ Dividend Performance TL mn 2017 2018 2019 2020 2021 2022 Akbank 367 652 - - 255 494 Akçansa 94 51 61 18 42 36 Aksigorta - 40 73 73 110 - Agesa 9 19 40 64 64 - Brisa - - - 12 107 270 Carrefoursa - - - - - - Çimsa 95 33 - - - 109 Kordsa 41 48 48 35 - 114 Teknosa - - - - - - Yünsa - - 3 - - -
Slide 53: Sabancı Holding Discount to NAV & Cash
Appendix / Sabancı Holding Discount to NAV & Cash USDmn June 2022 December 2021 Companies Direct Stakes Valuation Method Mcap Value of Stake % of NAV Value of Stake % of NAV NAV Discount Akbank 41% Market value 2,503 1,020 28.6% 1,144 30.8% June 2022 December 2021 December 2020 Enerjisa Enerji 40% M
Slide 54: Overview of Corporate Structure
Appendix / Overview of Corporate Structure ENERGY RETAIL BANKING & FINANCIAL INDUSTRIALS DIGITAL BUILDING MATERIALS SERVICES SAHOL: 40.0% SAHOL: 57.1% SAHOL: 39.7% SAHOL: 40.7% SAHOL: 71.1% SAHOL: 49.0% E.ON: 40.0% Carrefour: 32.2% Heidelberg Materials: 39.7% Other: 8.4% Free Float: 28.9% DxBV: 51.0
Slide 55: Reporting
Appendix / Reporting Combined Net Sales EBITDA Net income Subsidiaries line by line line by line line by line Joint Ventures line by line line by line line by line Consolidated Net Sales EBITDA Net income Subsidiaries line by line line by line line by line Joint Ventures Not included Proportion of o
Slide 56: Financials in detail
Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change TOTAL* 32,148 92,215 187% 61,493 162,867 165% 6,850 26,049
Slide 57: IFRS16 Impact on Financials
Appendix / IFRS16 Impact on Financials In accordance with In IFRS16, most leased items with a duration longer than one year have to be included as an asset in the company books. In addition, the payments that will be made on the lease agreement have to be reported as a liability on the balance sheet
Slide 58: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS ➢ Kerem TEZCAN Investor Relations Director ➢ Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager For Further Details ➢ Hamza SÜMER Investor Relations Specialist ir.sabanci.com ➢ Arda KAYMAZ Investor Relations Specialist E-mail: investor.relations@sabanci.com
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