Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q1 2014 Earnings Presentation
36 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2014
Slide 1: 2014 First Quarter Earnings Release
1 2014 First Quarter Earnings Release
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: 2014 Expectations
2014 Expectations 3 2012 2013 2014(E) GDP Growth,% 2.2 4.0 2.0-2.5 Consumer Inflation (%), 6.16 7.4 8.6 Annual USD/TL, Year end 1.78 2.13 2.25 CA Balance/GNP, % -6.1 -7.4 -6.0 Decelaration in Q1 & Signs of recovery in Q2
Slide 4: 2014 Q1 Developments
2014 Q1 Developments 4 • Divestment of SASA shares • Partnership with Marubeni in Temsa İs Makineleri • Kavşakbendi HEPP is operational and construction of Arkun HEPP is complete.
Slide 5: 2014 Priorities
2014 Priorities 5 • Integration of Ayedas & Toroslar Regions • Completion of 4 Hydro electric power plants with an installed capacity of 440 MW. • Turnaround of Carrefoursa • Working towards the crystallization of value through IPOs • Further transactions in our underperforming companies • Realizing
Slide 6: Net Sales
Net Sales 6 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q1 2013 Q1 2014 % Change TOTAL 8.823 10.898 24% BANK 3.759 3.832 2% NON-BANK 5.065 7.066 40% ENERGY 1.272 2.636 107% RETAIL 1.260 1.380 10% CEMENT 424 550 30% INSURANCE 471 533 13% INDUSTRIALS 1.014 1.303 29% OTHER 624 664 6% S
Slide 7: EBITDA (Excluding Non Operational Items)
EBITDA (Excluding Non Operational Items) 7 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q1 2013 Q1 2014 % Change TOTAL 2.369 2.234 -6% BANK 1.318 896 -32% NON-BANK 1.051 1.338 27% ENERGY 170 240 41% RETAIL 34 37 11% CEMENT 66 142 117% INSURANCE 27 64 134% INDUSTRIALS 156 236 52% OTHE
Slide 8: Results Snapshot
Results Snapshot 8 2.369 2.234 COMBINED 1.051 1.338 Non Bank EBITDA* o Robust EBITDA growth in 1.318 Bank Non-Bank segment. (MILLION TL) 896 Q1 2013 Q1 2014 607 507 Net Income Effect o Bottom line affected by: 397 of Acquisitions • Dilutive Effect of Ayedas CONSOLIDATED 190 110 Non Bank & Toroslar N
Slide 9: Non-bank Results- Q1 2014
Non-bank Results- Q1 2014 9 MILLION TL Q1 2013 Q1 2014 % Change CONSOLIDATED NET INCOME* 190 121 -36% ENERGY 39 -36 N.M RETAIL -8 -2 N.M CEMENT 10 38 295% INSURANCE 12 23 93% INDUSTRIALS 62 119 93% OTHER 76 -21 N.M *Excluding non operational items. Step jump in net income in Industrials, Cement and
Slide 10: FX Position and Leverage
FX Position and Leverage 10 MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2013 MAR 31, 2014 ENERGY* -420 -494 INDUSTRIALS 41 19 CEMENT 4 5 RETAIL -5 -2 HOLDING, INSURANCE & OTHER 20 18 TOTAL CONSOLIDATED FX POSITION -360 -454 COMBINED NET DEBT (excl. Bank) M€ DEC 31, 2013 MAR 31,
Slide 11: Energy
Energy 11 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2013 Q1 2014 % Change Q1 2013 Q1 2014 % Change SALES 1.272 2.636 107% - - N.M EBITDA 170 240 41% 39 -36 N.M NET INCOME 78 -73 N.M 39 -36 N.M EBITDA MARGIN 13,4% 9,1% Topline growth drive
Slide 12: Enerjisa Excluding Acquisition Impact
Enerjisa Excluding Acquisition Impact 12 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2013 Q1 2014 % Change Q1 2013 Q1 2014 % Change SALES 1.272 1.373 8% - - N.M EBITDA 170 198 17% 39 60 54% NET INCOME 78 120 54% 39 60 54% EBITDA MARGIN 13,4
Slide 13: Enerjisa demand, temperatures and water inflow
Enerjisa 13 22.000 Demand (GWh) Recovering demand 20.000 2014 Q1 Demand Growth: 3.2% 18.000 Jan Feb Mar 2012 21.359 20.006 20.685 2013 21.275 18.842 20.464 2014 21.899 19.670 20.923 12 Average Temperatures Degrees Celcius 6 …with milder temperatures… 0 Jan Feb Mar 2012 2 1 5 2013 4 7 9 2014 6 7 11 1
Slide 14: Power Plants Completed in 2014
Power Plants Completed in 2014 14 ARKUN KAVŞAKBENDİ 237 MW 186 MW 50% of Enerjisa Installed Capacity is renewables During the last 12 months, Enerjisa completed the construction of 8 hydro plants.
Slide 15: Energy Distribution
Energy Distribution 15 Başkent EDAŞ-Overview Population (mn): 6.9 Area (km2): 61,161 Subscribers (mn): 3.5 Allowed Theft & Loss rate: 7.9% (2013) Allowed Capex: 288 MTL (2013) Ayedaş - Overview Population (mn): 4.8 Area (km2): 1,926 Subscribers (mn): 2.4 Allowed Theft & Loss rate: 6.6% (2013) Allowe
Slide 16: Enerjisa Balance Sheet
Enerjisa Balance Sheet 16 MILLION TL 2013 YE Q1 2014 % Change Cash 865 941 9% Trade Receivables 1.749 1.780 2% Other Current Assets 743 793 7% TOTAL CURRENT ASSETS 3.357 3.515 5% Fixed Assets 15.109 15.260 1% Other Non Current Assets 4.921 5.100 4% TOTAL NONCURRENT ASSETS 20.030 20.360 2% TOTAL ASSE
Slide 17: Enerjisa Leverage
Enerjisa Leverage 17 Enerjisa Loans Original Currency Total TL Million TL EUR Equivalent Generation 228 1.902 5.948 Distribution 5.396 91 5.668 Total 5.624 1.992 11.615 Original Currency Total TL Million TL EUR Equivalent Fixed 1.517 1.082 4.772 Floating 578 910 3.316 PPI Indexed 3.528 3.528 Total 5
Slide 18: Retail
Retail 18 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2013 Q1 2014 % Change Q1 2013 Q1 2014 % Change SALES 1.260 1.380 10% 661 1.377 108% EBITDA* 34 37 11% 21 37 75% NET INCOME* -24 -4 N.M -8 -2 N.M EBITDA MARGIN 2,7% 2,7% *Includes net inc
Slide 19: Teknosa
Teknosa 19 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2013 Q1 2014 % Change Q1 2013 Q1 2014 % Change SALES 661 682 3% 661 682 3% EBITDA 22 13 -43% 22 13 -43% NET INCOME 9 -4 N.M 5 -2 N.M EBITDA MARGIN 3,4% 1,9% Significant Growth in E-Comm
Slide 20: Carrefoursa
Carrefoursa 20 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2013 Q1 2014 % Change Q1 2013 Q1 2014 % Change SALES 599 698 17% - 698 N.M EBITDA* 11 25 118% -2 25 N.M NET INCOME* -6 0 N.M -2 0 N.M EBITDA MARGIN 1,9% 3,5% * Includes net income e
Slide 21: Key Achievements in Carrefoursa
Key Achievements in Carrefoursa 21 • Fresh produce direct from the field driving higher traffic. • Carrefoursa Mini, Carrefoursa Gurme and Carrefoursa Super formats have been introduced. • SAP implementation is being completed. • Meetings with suppliers were held to establish closer working relation
Slide 22: Carrefoursa Format Differentiation
Carrefoursa Format Differentiation 22 Carrefoursa Gurme Carrefoursa Mini Number of stores by format as of March 31, 2014 ‘000 New Store Formats # m2 28 192 1 2 34 9 Carrefoursa Super 183 162
Slide 23: Carrefoursa Targets / Priorities
Carrefoursa Targets / Priorities 23 • 5bn TL revenue and 5% EBITDA margin in 2016. • Back to Basics: Simplify Our Way of Doing Business,Faster and Customer Focused Approach • More Efficient IT Network enhancing the CRM and E-trade capabilities • 100 new stores in 2014 and a total of 700 stores in 20
Slide 24: Cement
Cement 24 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2013 Q1 2014 % Change Q1 2013 Q1 2014 % Change SALES 424 550 30% 190 225 19% EBITDA 66 142 117% 37 79 115% NET INCOME 23 86 271% 10 38 295% EBITDA MARGIN 15,5% 25,8% Profitability driven
Slide 25: Insurance
Insurance 25 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2013 Q1 2014 % Change Q1 2013 Q1 2014 % Change SALES 471 533 13% - - N.M EBITDA 27 64 134% 12 23 93% NET INCOME 27 57 110% 12 23 93% EBITDA MARGIN 5,8% 11,9% Focus on profitable segme
Slide 26: Avivasa
Avivasa 26 MILLION TL 2012 2013 % Change SALES 198 233 18% EBITDA 48 55 16% NET INCOME 49 72 45% MILLION TL Q1 2013 Q1 2014 % Change SALES 60 57 -5% EBITDA 14 18 27% NET INCOME 20 21 5% Solid quarterly performance despite some pressure in credit linked life insurance business
Slide 27: Avivasa - Key Metrics in Pension
Avivasa - Key Metrics in Pension 27 Assets Under Management (MTL) 25% 24% 4.049 5.019 4.302 5.386 2012 2013 2013 Q1 2014 Q1 *Including state contributions Number of New Participants 78% -2% 125.794 70.696 32.250 31.636 2012 2013 2013 Q1 2014 Q1 Net Contributions (MTL) 40% 22% 612 859 172 210 2012 20
Slide 28: Avivasa - Key Metrics
Avivasa - Key Metrics 28 MCEV (MTL) 5% MCEV measures at a point in time the long-term value embedded into the 951 903 existing business of a life and pension company assuming that no 2013 2014 Q1 additional new business is written. The MCEV does not include the value of VNB measures the present the
Slide 29: Industrials
Industrials 29 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2013 Q1 2014 % Change Q1 2013 Q1 2014 % Change SALES 1.014 1.303 29% 695 915 32% EBITDA* 156 236 52% 112 169 51% NET INCOME* 78 179 131% 62 119 93% EBITDA MARGIN 15,4% 18,1% *Exclud
Slide 30: Kordsa Global
Kordsa Global 30 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2013 Q1 2014 % Change Q1 2013 Q1 2014 % Change SALES 358 443 24% 358 443 24% EBITDA 21 63 206% 21 63 206% NET INCOME 0 31 N.M 0 28 N.M EBITDA MARGIN 5,7% 14,2% • TR NY6.6 Expansio
Slide 31: Brisa
Brisa 31 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2013 Q1 2014 % Change Q1 2013 Q1 2014 % Change SALES 319 388 22% - - N.M EBITDA 55 89 61% 11 22 92% NET INCOME 26 50 92% 11 22 92% EBITDA MARGIN 17,3% 22,9% Successful marketing coupled w
Slide 32: Non-Operational and Non-Recurring Items
Non-Operational and Non-Recurring Items 32 Q1 2013 Q1 2014 NET INCOME 555 403 Akbank Turkish Competition Board Penalty 53 Carrefoursa Provision Reversal -2 Temsa Gain on Fixed Asset Sale -8 Temsa Legal Provision 4 NET INCOME EXCLUDING NON OPERATIONAL & NON RECURRING ITEMS* 607 397 * Net income figur
Slide 33: 2014 Guidance
2014 GUIDANCE 33 SALES EBITDA GROWTH GROWTH Energy 40-45% 30-35% Cement 10-15% 20-25% Retail 15-20% 15-20% Industrials 5-10% 25-30% Insurance 10-15% 10-15% Robust growth expectations in non-bank segments
Slide 34: Key Takeaways
Key Takeaways 34 Strong operating profitability jump in industrials, cement and insurance Off to a good start in Carrefoursa turnaround Further progress on portfolio restructuring Signs of the economy picking up after the elections Positive impact on Enerjisa bottom line from potential dec
Slide 35: Upcoming IR Events
Upcoming IR Events 35 Cement Day: June 18, 2014 Energy Day: September 24, 2014 Insurance Day: November 6, 2014 Retail Day: November 13, 2014 Industrials Day: TBD Sabancı at the City of London: September 1-2, 2014
Slide 36: Q&A
Q&A OQBANcI
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