Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — FY2015 Earnings Presentation
45 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2016
Slide 1: 2015 Annual Earnings Presentation
1 2015 Annual 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 and Results
2015 Guidance and Results 3 2015 2015 Growth Growth Guidance Realization SABANCI HOLDING SALES 5 - 10% 8% COMBINED NON-BANK * EBITDA 25 - 35% 29% INDUSTRIALS* SALES 5 - 15% 6% EBITDA 5 - 15% 14% SALES 5 - 10% 8% ENERGY* EBITDA 50 - 70% 80% Delivering 2015 guidance * One off items and Oth
Slide 4: Key Highlights
Key Highlights 4 1. Robust operational performance in Enerjisa carried over to the bottom line by proactive FX risk management. Feed-in-tariff & operational efficiency are key drivers for 2016. 2. Profitability boost in Cement. New capacity, export markets and infrastructure projects key for 2016. 3
Slide 5: Net Sales
Net Sales 5 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q4 2014 Q4 2015 % Change 2014 2015 % Change TOTAL 11.058 12.756 15% 44.084 47.933 9% BANK 4.298 4.765 11% 16.946 18.414 9% NON-BANK 6.759 7.991 18% 27.138 29.518 9% ENERGY 2.773 3.224 16% 10.982 11.827 8% CEMENT 602 704 17% 2.5
Slide 6: EBITDA (Excluding Non Operational Items)
EBITDA (Excluding Non Operational Items) 6 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) EBITDA - MILLION TL Q4 2014 Q4 2015 % Change 2014 2015 % Change TOTAL 1.895 2.162 14% 7.813 8.788 12% BANK 1.285 1.386 8% 4.464 4.450 0% NON-BANK 610 776 27% 3.350 4.339 30% ENERGY 146 284 94% 834 1.504 80%
Slide 7: Results Snapshot
Results Snapshot 7 7.813 12% 8.788 3.350 30% 4.339 COMBINED 1.895 14% 2.162 o Strong non-bank profitability EBITDA* 27% 610 776 4.464 0% 4.450 (MILLION TL) 1.285 8% 1.386 Q4 2014 Q4 2015 2014 2015 Bank Non Bank 1.797 15% 2.070 508 14% 578 o Key drivers of profitability in Q4 COMPARATIVE 415 69% 702
Slide 8: Non-bank Results- Q4 2015
Non-bank Results- Q4 2015 8 MILLION TL Q4 2014 Q4 2015 % Change 2014 2015 % Change CONSOLIDATED NET INCOME* 122 134 10% 538 656 22% ENERGY -31 9 N.M -83 18 N.M ENERGY-Adjusted for comparison** -39 -5 N.M -154 26 N.M CEMENT 36 50 39% 189 228 20% RETAIL 4 -47 N.M -2 -84 N.M RETAIL-Adjusted for compari
Slide 9: Segment Assessment
Segment Assessment 9 Current Assessment Critical to Watch − ~1.500 MW renewable capacity allocated − Hedged electricity prices in long-term to renewable tariff (YEKDEM) contracts are higher than baseload prices − Natural gas prices & hedging strategy for − Reservoir levels are high, strong hydro 201
Slide 10: Energy
Energy 10 TOTAL BEFORE CONTRIBUTION TO CONSOLIDATION ADJUSTMENTS CONSOLIDATED FINANCIALS (COMBINED) MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 2.773 3.224 16% - - N.M EBITDA* 146 284 94% -31 9 N.M NET INCOME* -63 18 N.M -31 9 N.M NET INCOME** - Adjusted for comparison -78 -10
Slide 11: Enerjisa market data: demand, temperatures, water inflow
Enerjisa 11 Demand (TWh) Turkey Total Installed Capacity (GW) 27,0 25,0 23,0 21,0 19,0 17,0 Q4’15 vs Jul Aug Sep Oct Nov Dec Q4’14: 2013 22,6 21,7 20,3 19,0 20,1 22,4 6,3% growth 2014 23,2 24,0 21,5 19,4 21,0 22,3 2015 23,6 25,1 21,7 21,0 21,3 24,3 Average Temperatures 6.000 35 Water Inflow - Turkey
Slide 12: Energy – Distribution Business
Energy – Distribution Business 12 MILLION TL Q4 2014 Q4 2015 % Change SALES 600 985 64% EBITDA* 132 120 -10% EBITDA MARGIN 22,0% 12,1% MILLION TL 2014 2015 % Change SALES 2.099 2.731 30% EBITDA* 382 510 33% EBITDA MARGIN 18,2% 18,7% * Excluding non operational items Robust profitability in 2015 driv
Slide 13: Enerjisa Distribution – Key Value Drivers of the New Tariff
Enerjisa Distribution– Key Value Drivers of the New Tariff 13 Revenue Stream Changes from 2nd to 3rd regulatory period 479* 80% 864 CAPEX Allowance 2015 2016 * Normalized to 2nd regulatory period 9.97%+2pts 11.91% Regulated WACC 2015 2016 27% 735 935 OPEX Allowance 2015 2016 2015 10,713,6 2016 Theft
Slide 14: Energy – Retail Business
Energy – Retail Business 14 MILLION TL Q4 2014 Q4 2015 % Change SALES 2.207 2.537 15% EBITDA* -24 32 N.M EBITDA MARGIN -1,1% 1,2% MILLION TL 2014 2015 % Change SALES 9.205 10.492 14% EBITDA* 109 231 111% EBITDA MARGIN 1,2% 2,2% EBITDA jump in Q4 driven by higher free market margin, improved collecti
Slide 15: Enerjisa Retail – Key Value Drivers of the New Tariff
Enerjisa Retail – Key Value Drivers of the New Tariff 15 Development of end-user electricity price and retail earnings mechanism Wholesale Distribution Retail Retail Electricity Cost and Electricity Margin Price Other Costs Price Retail Margin for regulated customers Eligibility limit for 2016 annou
Slide 16: Energy – Generation Business
Energy – Generation Business 16 MILLION TL Q4 2014 Q4 2015 % Change SALES 767 901 17% EBITDA* 46 139 200% EBITDA MARGIN 6,0% 15,4% MILLION TL 2014 2015 % Change SALES 2.973 3.277 10% EBITDA* 355 775 118% EBITDA MARGIN 11,9% 23,7% * Excluding non operational items Profitability sustained in Q4 throug
Slide 17: Enerjisa Balance Sheet
Enerjisa Balance Sheet 17 MILLION TL 2014 YE 2015 YE % Change Cash 209 258 24% Trade Receivables 1.753 1.987 13% Other Current Assets 1.049 1.579 51% TOTAL CURRENT ASSETS 3.011 3.824 27% Fixed Assets 15.620 16.140 3% Other Non Current Assets 5.645 6.865 22% TOTAL NONCURRENT ASSETS 21.265 23.005 8% T
Slide 18: ENERJİSA Financing Cost Drivers
ENERJİSA Financing Cost Drivers 18 Q4 2014 Q4 2015 2014 2015 Operational FX Gain/Loss & 25 7 43 74 Net Interest Expense (Net) Interest Expense (Net) -172 -217 -803 -800 FX Gain/Loss 11 39 57 -223 Total Financial Expenses -135 -171 -703 -949 Volatile macro environment in 2015
Slide 19: Enerjisa Leverage
Enerjisa Leverage 19 Enerjisa Loans* Original Currency Total TL Million TL EUR Equivalent Generation 603 1.964 6.843 Distribution 5.571 83 5.836 Total 6.174 2.047 12.679 Original Currency Total TL Million TL EUR Equivalent Fixed 3.990 878 6.781 Floating 1.018 1.169 4.732 PPI Indexed 1.166 - 1.166 To
Slide 20: Segment Assessment
Segment Assessment 20 Current Assessment Critical to Watch − Competitive landscape with additional capacity in the Mediterranean − Differentiation of Sabancı Companies through higher value added products (white cement, specialized products) − Strong volume growth in Q4 − New investments in Afyon & E
Slide 21: Cement
Cement 21 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 602 704 17% 270 306 13% EBITDA 135 175 30% 75 96 28% NET INCOME 79 112 41% 36 50 39% EBITDA MARGIN 22,4% 24,9% MILLION TL 2014 2015 %
Slide 22: Segment Assessment
Segment Assessment 22 Current Assessment Critical to Watch − Subdued consumer spending especially in discretionary items − Integration of Kiler stores to Carrefoursa’s store network − Carrefoursa and Kiler merger completed − Consumer sentiment to drive spending − New products and services in the lev
Slide 23: Retail
Retail 23 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 1.681 2.146 28% 1.680 2.145 28% EBITDA* 62 10 -84% 62 10 -84% NET INCOME* 8 -89 N.M 4 -47 N.M NET INCOME** - Adjusted for comparison
Slide 24: Carrefoursa
Carrefoursa 24 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 829 1.181 42% 829 1.181 42% EBITDA* 43 0 -99% 43 0 -99% EBITDA** - Adjusted for comparison 43 30 -31% 43 30 -31% NET INCOME* 15
Slide 25: Teknosa excluding Kliksa
Teknosa excluding Kliksa 25 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 791 859 9% 791 859 9% EBITDA* 22 15 -32% 22 15 -32% NET INCOME* -1 -9 N.M -1 -5 N.M EBITDA MARGIN 2,8% 1,8% MILLION
Slide 26: Segment Assessment
Segment Assessment 26 Current Assessment Critical to Watch − New legislation in pension is in force − Higher Loan growth − Sustained high growth in pension − Pass through of lower commissions to − Bancassurance channel impacted by low distribution channels Insurance loan growth in 2015 − New legisla
Slide 27: Insurance
Insurance 27 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 423 457 8% 0 0 N.M EBITDA* 62 -0 -100% 23 2 -93% NET INCOME* 55 1 -98% 22 2 -92% EBITDA MARGIN 14,6% 0,0% MILLION TL 2014 2015 % C
Slide 28: Avivasa
Avivasa 28 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 63 70 11% - - N.M EBITDA* 19 24 26% 11 9 -18% NET INCOME* 22 22 -1% 11 9 -18% EBITDA MARGIN 30,4% 34,6% MILLION TL 2014 2015 % Chang
Slide 29: Avivasa – Value of New Business
Avivasa – Value of New Business 29 Management Fee Lifetime of the policy First 5 years of the policy Management Premium Fee Holiday Fee Management Fee (% of periodical (2 TL / month in contribution) holiday) First 5 years of the policy Maximum limit : %8,5 of the monthly minimum wage Entry Fee Exit
Slide 30: Aksigorta
Aksigorta 30 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 360 387 7% - - N.M EBITDA* 42 -24 N.M 12 -7 N.M NET INCOME* 32 -21 N.M 12 -7 N.M EBITDA MARGIN 11,8% -6,3% MILLION TL 2014 2015 %
Slide 31: Segment Assessment
Segment Assessment 31 Current Assessment Critical to Watch − Turkish Lira and other EM currencies − 8 new product launches and strong exports in Temsa Bus − Pricing / Commodity prices − Improvement in European demand − Pace of European and US recovery Industrials − Low raw material prices − Potentia
Slide 32: Industrials
Industrials 32 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 1.241 1.385 12% 759 866 14% EBITDA* 214 308 44% 156 207 32% NET INCOME* 161 212 32% 103 131 26% NET INCOME* - Adjusted for compa
Slide 33: Brisa
Brisa 33 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 481 519 8% - - N.M EBITDA 97 134 38% 23 33 43% NET INCOME 53 76 43% 23 33 43% EBITDA MARGIN 20,2% 25,8% MILLION TL 2014 2015 % Change
Slide 34: Kordsa Global
Kordsa Global 34 CONTRIBUTION TO CONSOLIDATED STANDALONE FINANCIALS FINANCIALS MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 391 449 15% 391 449 15% EBITDA* 32 74 132% 32 74 132% NET INCOME* 13 51 301% 12 30 157% EBITDA MARGIN 8,1% 16,4% MILLION TL 2014 2015 % Change 2014 2015 %
Slide 35: Temsa Bus
Temsa Bus 35 CONTRIBUTION TO SABANCI STAND ALONE FINANCIALS HOLDING CONSOLIDATED MILLION TL 2014 2015 % Change 2014 2015 % Change SALES 670 750 12% 670 750 12% EBITDA* 73 102 39% 73 102 39% NET INCOME* 68 71 4% 33 34 4% NET INCOME**- Adjusted for comparison 37 71 93% 18 34 93% EBITDA MARGIN 10,9% 13
Slide 36: Temsa Bus Product Launches in 2015 and Expected in 2016
Temsa Bus 36 8 new Product Launches in 2015 and 9 Expected in 2016
Slide 37: Temsa Construction Equipment and Temsa Automotive
Temsa Construction Equipment and Temsa Automotive 37 TEMSA CONSTRUCTION EQUIPMENT MILLION TL 2014 2015 % Change 2014 2015 % Change SALES 403 484 20% 140 0 -100% EBITDA 25 25 0% 13 6 -53% NET INCOME 8 12 41% 6 6 -8% EBITDA MARGIN 6,1% 5,1% TEMSA AUTOMOTIVE MILLION TL 2014 2015 % Change 2014 2015 % Ch
Slide 38: Yünsa
Yünsa 38 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2014 Q4 2015 % Change Q4 2014 Q4 2015 % Change SALES 72 42 -42% 72 42 -42% EBITDA 9 5 -48% 9 5 -48% NET INCOME 3 -1 -119% 2 - 0 -119% EBITDA MARGIN 12,2% 10,8% MILLION TL 2014 2015 % Chan
Slide 39: FX Position and Leverage
FX Position and Leverage 39 MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2014 DEC 31, 2015 ENERGY* -346 -124 INDUSTRIALS 8 2 CEMENT 2 -1 RETAIL 0 -4 HOLDING 9 115 INSURANCE & OTHER 13 13 TOTAL CONSOLIDATED FX POSITION AFFECTING PL -314 1 *Capitalized borrowings of Energy segment
Slide 40: Cash Accumulation at the Holding Level
Cash Accumulation at the Holding Level 40 Dividends Received Dividends Distributed Robust growth in dividend received 822 644 629 550 543 204 204 204 204 306 306 Holding Only Cash/(Debt) Position 2011 2012 2013 2014 2015 2016* *Subject to General Assembly Approval Acquisition of 1.014 933 New Region
Slide 41: Non Bank Results Summary
Non Bank Results Summary 41 MILLION TL 2014 2015 % Change SABANCI HOLDING SALES 27.138 29.518 9% COMBINED NON-BANK EBITDA* 3.350 4.339 30% SABANCI HOLDING NET INCOME* 538 656 22% CONSOLIDATED NON-BANK
Slide 42: Non-Operational and Non-Recurring Items
Non-Operational and Non-Recurring Items 42 Q4 2014 Q4 2015 2014 2015 NET INCOME EXCLUDING NON OPERATIONAL & NON RECURRING ITEMS 521 565 1.920 2.024 Valuation of Regulatory Asset Base in accordance with IFRIC12 Standard 0 133 0 133 Gain on Share Sale of Sasa 0 -5 0 103 Enerjisa gain on asset sale 0 0
Slide 43: Upcoming Events
Upcoming Events 43 Sabancı Energy Day March 1, 2016 - İstanbul Sabancı at the City March 3, 2016 - London Sabancı Meets Wall Street March 4, 2016 – New York
Slide 44: 2016 GUIDANCE
2016 GUIDANCE 44 2016 Growth Guidance SABANCI HOLDING SALES 10-15% COMBINED NON-BANK * EBITDA 20-30% SALES 10-20% INDUSTRIALS* EBITDA 5-10% SALES 10-15% ENERGY* EBITDA 40-50% Projecting strong further growth in 2016 * One off items and Other segment excluded
Slide 45: Q&A
Q&A OQBANcI
Hacı Ömer Sabancı Holding A.Ş. — FY2015 Earnings Presentation on 6ix