Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q3 2015 Earnings Presentation
37 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2015
Slide 1: 2015 Third Quarter Earnings Presentation
1 2015 Third Quarter Earnings Presentation
Slide 2: Disclaimer Statement
Disclaimer Statement 2 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
Slide 3: 2015 Guidance
2015 GUIDANCE 3 2015 Previous 2015 Current MILLION TL Growth Growth Guidance Guidance SABANCI HOLDING SALES 5 - 10% 5 - 10% COMBINED NON-BANK * EBITDA 20 - 30% 25 - 35% SALES 5 - 15% 5 - 15% INDUSTRIALS* EBITDA 5 - 15% 5 - 15% SALES 5 - 10% 5 - 10% ENERGY EBITDA 40 - 60% 50 - 70% Profitability deliv
Slide 4: Key Highlights
Key Highlights 4 1. Continued robust operational performance in Enerjisa and FX exposure proactively managed 2. Trend of consumer confidence key for Retail 3. Operational efficiencies, export competitiveness and depreciation of EM currencies positively affecting profitability in Industrials 4. Focus
Slide 5: Net Sales
Net Sales 5 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2014 Q3 2015 % Change 9M 2014 9M 2015 % Change TOTAL 11.168 12.008 8% 33.144 35.237 6% BANK 4.286 4.751 11% 12.648 13.649 8% NON-BANK 6.883 7.257 5% 20.496 21.588 5% ENERGY 2.958 2.923 -1% 8.210 8.603 5% CEMENT 656 662 1% 1.
Slide 6: EBITDA (Excluding Non Operational Items)
EBITDA (Excluding Non Operational Items) 6 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2014 Q3 2015 % Change 9M 2014 9M 2015 % Change TOTAL 1.830 1.914 5% 5.925 6.639 12% BANK 1.104 991 -10% 3.179 3.064 -4% NON-BANK 726 923 27% 2.746 3.575 30% ENERGY 230 319 39% 687 1.220 77% CEM
Slide 7: Results Snapshot
Results Snapshot 7 12% 6.639 5.925 2.746 3.575 COMBINED 5% o Strong operating performance in 1.830 1.914 EBITDA* Energy and Industrials (MILLION TL) 726 27% 923 3.179 3.064 1.104 991 Q3 2014 Q3 2015 9M 2014 9M 2015 Bank Non Bank 1.305 14% 1.489 o Key drivers of bottom line COMPARATIVE 321 552 422 14
Slide 8: Non-bank Results- Q3 2015
Non-bank Results- Q3 2015 8 MILLION TL Q3 2014 Q3 2015 % Change 9M 2014 9M 2015 % Change CONSOLIDATED NET INCOME* 127 172 36% 417 519 25% ENERGY -40 -60 N.M -52 9 N.M CEMENT 58 62 8% 153 178 16% RETAIL 3 -14 N.M -5 -37 N.M RETAIL-Adjusted for comparison* 3 -4 N.M -5 -26 N.M INSURANCE 7 21 199% 41 49
Slide 9: Segment Assessment
Segment Assessment 9 Current Assessment Critical to Watch − Forward prices indicate price levels lower than 2014 levels − Allocation of maximum renewable capacity − Reservoir levels are high, hydro to renewable tariff (YEKDEM) Generation generation continues to be prominent − Electricity generation
Slide 10: Energy
Energy 10 TOTAL BEFORE CONTRIBUTION TO CONSOLIDATION ADJUSTMENTS CONSOLIDATED FINANCIALS (COMBINED) MILLION TL Q3 2014 Q3 2015 % Change Q3 2014 Q3 2015 % Change SALES 2.958 2.923 -1% - - N.M EBITDA* 230 319 39% -40 -60 N.M NET INCOME* -80 -119 N.M -40 -60 N.M NET INCOME* - Adjusted for comparison -1
Slide 11: Energy – Generation Business
Energy – Generation Business 11 MILLION TL Q3 2014 Q3 2015 % Change SALES 759 915 21% EBITDA* 88 152 73% EBITDA MARGIN 11,6% 16,6% MILLION TL 9M 2014 9M 2015 % Change SALES 2.206 2.376 8% EBITDA* 309 636 106% EBITDA MARGIN 14,0% 26,8% * Excluding non operational items Step jump in profitability in t
Slide 12: Enerjisa
Enerjisa 12 Demand (TWh) Turkey Total Installed Capacity (GW) Water Inflow - Turkey Average Temperatures Low demand growth coupled with high water inflow supressing prices: Hydro players benefitting
Slide 13: Energy – Distribution Business
Energy – Distribution Business 13 MILLION TL Q3 2014 Q3 2015 % Change SALES 536 612 14% EBITDA* 105 139 33% EBITDA MARGIN 19,5% 22,7% MILLION TL 9M 2014 9M 2015 % Change SALES 1.499 1.746 16% EBITDA* 250 390 56% EBITDA MARGIN 16,6% 22,3% * Excluding non operational items Profitability driven by high
Slide 14: Energy – Retail Business
Energy – Retail Business 14 MILLION TL Q3 2014 Q3 2015 % Change SALES 2.459 2.627 7% EBITDA 39 32 -18% EBITDA MARGIN 1,6% 1,2% MILLION TL 9M 2014 9M 2015 % Change SALES 6.999 7.955 14% EBITDA 133 199 50% EBITDA MARGIN 1,9% 2,5% Strong free market profitability was shadowed by temporary hit of renewa
Slide 15: Enerjisa Balance Sheet
Enerjisa Balance Sheet 15 MILLION TL 2014 YE 2015 9M % Change Cash 209 357 71% Trade Receivables 1.753 2.063 18% Other Current Assets 1.049 1.710 63% TOTAL CURRENT ASSETS 3.011 4.130 37% Fixed Assets 15.620 16.870 8% Other Non Current Assets 5.645 6.272 11% TOTAL NONCURRENT ASSETS 21.265 23.142 9% T
Slide 16: Enerjisa Financing Cost Drivers
ENERJİSA Financing Cost Drivers 16 Q3 2014 Q3 2015 9M 2014 9M 2015 Operational FX Gain/Loss & 13 27 18 67 Net Interest Expense (Net) Interest Expense (Net) -214 -221 -632 -583 FX Gain/Loss 4 -161 46 -262 Total Financial Expenses -197 -355 -568 -778 FX and interest rates, peaking in Q3, to normalize
Slide 17: Enerjisa Leverage
Enerjisa Leverage 17 Enerjisa Loans* Original Currency Total TL Million TL EUR Equivalent Generation 671 2.025 7.599 Distribution 5.657 84 5.944 Total 6.328 2.109 13.543 Original Currency Total TL Million TL EUR Equivalent Fixed 3.881 949 7.129 Floating 1.271 1.159 5.238 PPI Indexed 1.176 - 1.176 To
Slide 18: Enerjisa – Key Takeaways
Enerjisa – Key Takeaways 18 • Very strong operational performance sustained: o EBITDA* growth: 39% in Q3, 77 MTL in 9M 2015 • Proactive management of FX exposure: o Modest financial expenses given the extent of TL depreciation vs Euro in Q3 o Positive bottom line in 9M 2015; current Euro/TL level wi
Slide 19: Segment Assessment
Segment Assessment 19 Current Assessment Critical to Watch − Competitive landscape with additional capacity in the Mediterranean − Differentiation of Sabancı Companies through higher value added products − Stable volume (white cement, specialized products) Cement − Lower cost driven by low freight c
Slide 20: Cement
Cement 20 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL Q3 2014 Q3 2015 % Change Q3 2014 Q3 2015 % Change SALES 656 662 1% 289 301 4% EBITDA 205 211 3% 123 127 3% NET INCOME 128 138 8% 58 62 8% EBITDA MARGIN 31,2% 31,9% MILLION TL 9M 2014 9M 201
Slide 21: Cement – Çimsa White Cement Investment in Eskişehir
Cement – Çimsa White Cement Investment in Eskişehir 21 ESKİŞEJİR PLANT Differentiation through higher value added and higher margin products Çimsa is second largest white cement player in the global market of 20 million tons Annual international white cement trade is 5 million tons, in which Çim
Slide 22: Segment Assessment
Segment Assessment 22 Current Assessment Critical to Watch − Subdued consumer spending especially in − Consumer sentiment post elections discretionary items − Integration of Kiler stores Retail − Strong September results (shifting bayram effect, back to school postponed − Easing in credit card insta
Slide 23: Retail
Retail 23 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2014 Q3 2015 % Change Q3 2014 Q3 2015 % Change SALES 1.607 1.925 20% 1.605 1.923 20% EBITDA* 60 58 -4% 60 58 -3% NET INCOME* 6 -29 N.M 3 -14 N.M NET INCOME** - Adjusted for comparison 6
Slide 24: Carrefoursa
Carrefoursa 24 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2014 Q3 2015 % Change Q3 2014 Q3 2015 % Change SALES 831 1.111 34% 831 1.111 34% EBITDA* 36 34 -4% 36 34 -4% NET INCOME* 5 -29 N.M 2 -15 N.M NET INCOME**- Adjusted for comparison 5
Slide 25: Segment Assessment
Segment Assessment 25 Current Assessment Critical to Watch − Loan growth post elections − Implementation of new commission scheme in pension. Pass through of lower − Sustained high growth in pension commissions to distribution channels Insurance − Bancassurance channel impacted by low − MTPL profita
Slide 26: Insurance
Insurance 26 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2014 Q3 2015 % Change Q3 2014 Q3 2015 % Change SALES 465 416 -11% 0 0 N.M EBITDA 4 69 1475% 7 21 199% NET INCOME 11 54 403% 7 21 199% EBITDA MARGIN 0,9% 16,6% MILLION TL 9M 2014 9M 20
Slide 27: Avivasa
Avivasa 27 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2014 Q3 2015 % Change Q3 2014 Q3 2015 % Change SALES 63 65 4% - - N.M EBITDA 16 22 45% 11 13 15% NET INCOME 22 31 39% 11 13 15% EBITDA MARGIN 24,7% 34,4% MILLION TL 9M 2014 9M 2015 % Ch
Slide 28: Aksigorta
Aksigorta 28 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2014 Q3 2015 % Change Q3 2014 Q3 2015 % Change SALES 403 351 -13% - - N.M EBITDA -11 47 N.M - 4 8 N.M NET INCOME -12 23 N.M - 4 8 N.M EBITDA MARGIN -2,8% 13,3% MILLION TL 9M 2014 9M 2
Slide 29: Segment Assessment
Segment Assessment 29 Current Assessment Critical to Watch − Turkish Lira and other EM currencies − Pricing / Commodity prices − Sustained European and US recovery − Operational efficiencies − Improvement in European demand − Winter tyre sales Industrials − Low raw material prices − New infrastructu
Slide 30: Industrials
Industrials 30 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2014 Q3 2015 % Change Q3 2014 Q3 2015 % Change SALES 1.163 1.293 11% 738 833 13% EBITDA 228 270 19% 148 196 33% NET INCOME* 167 155 -7% 105 101 -4% NET INCOME* - Adjusted for compar
Slide 31: Brisa
Brisa 31 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2014 Q3 2015 % Change Q3 2014 Q3 2015 % Change SALES 425 459 8% - - N.M EBITDA 88 98 11% 23 23 2% NET INCOME 53 53 2% 23 23 2% EBITDA MARGIN 20,7% 21,3% MILLION TL 9M 2014 9M 2015 % Chang
Slide 32: Kordsa Global
Kordsa Global 32 CONTRIBUTION TO STANDALONE FINANCIALS CONSOLIDATED FINANCIALS MILLION TL Q3 2014 Q3 2015 % Change Q3 2014 Q3 2015 % Change SALES 426 477 12% 426 477 12% EBITDA 53 76 43% 53 76 43% NET INCOME* 11 27 141% 7 17 132% EBITDA MARGIN 12,4% 15,9% MILLION TL 9M 2014 9M 2015 % Change 9M 2014
Slide 33: FX Position and Leverage
FX Position and Leverage 33 MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2014 SEP 30, 2015 ENERGY* -346 -242 INDUSTRIALS 8 -5 CEMENT 2 18 RETAIL 0 4 HOLDING 9 113 INSURANCE & OTHER 13 18 TOTAL CONSOLIDATED FX POSITION AFFECTING PL -314 -94 *Capitalized borrowings of Energy segme
Slide 34: FX Risk Management
FX Risk Management 34 Enerjisa Short Position Long Position Energy Holding Solo Cash Enerjisa Forwards Other Businesses M EUR 495 18 589 347 130 Short FX position of energy business offset by forward contracts and holding cash
Slide 35: Non-Bank Combined Results
NON-BANK COMBINED RESULTS 35 * Excluding the effects of transactions of Temsa Construction Equipment and Sasa share sales and Kiler acquisition
Slide 36: Key Takeaways
Key Takeaways 36 Continued robust operational performance in Enerjisa and FX exposure proactively managed Trend of consumer confidence key for Retail Operational efficiencies, export competitiveness and depreciation of EM currencies positively affecting profitability in Industrials Focus on
Slide 37: Q&A
Q&A OQBANcI
Hacı Ömer Sabancı Holding A.Ş. — Q3 2015 Earnings Presentation on 6ix