Haci Omer Sabanci Holding A.s. · BIST:SAHOL

Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q1 2022 Earnings Presentation

27 slides from Haci Omer Sabanci Holding A.s's earnings presentation, May 11, 2022

  1. Slide 1: Q1 2022 Earnings Presentation

    Q1 2022 EARNINGS PRESENTATION May 11, 2022

  2. 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

  3. Slide 3: Q1 2022 Highlights

    Q1 2022 Highlights Profitable growth despite highly volatile & challenging environment All-time high consolidated ROE* reaching 24.7% Healthy balance sheet with ample liquidity to undertake future investments Another recognition in sustainability: Excellent performance in Refinitiv among 50+ global

  4. Slide 4: Successful execution on our strategic initiatives

    Successful execution on our strategic initiatives… Dynamic Portfolio Management Transfer of Aviva Shares to Ageas: Increase in Shareholding in Eşarj: Transfer of Turk Telekom shares owned by LYY*: New partnership with Ageas in life business Increase in Enerjisa Enerji’s effective Completion of 55% o

  5. Slide 5: Profitable growth despite inflationary pressures & market volatility

    …and profitable growth despite inflationary pressures & market volatility… Combined Revenue* Combined EBITDA* Consolidated Net Income* (TL mn) (TL mn) (TL mn) Non-bank** Non-bank 70,652 Bank 17,536 Non-bank** Bank** Bank +141% +192% +221% 5,605 23,064 10,882 3,282 29,345 6,000 10,625 47,588 1,746 2,

  6. Slide 6: Solid ROE and a sharp increase in liquidity

    …with solid ROE and a sharp increase in liquidity Return on Equity* Holding Only - Net cash position (TL bn) Sahol Cons. ROE Bank ROE** Non-Bank ROE Annual: +264% 38.6% 7.7 24.7% 23.9% 23.5% 22.6% 17.1% 13.7% 17.9% 16.2% 13.1% 14.5% 13.7% 13.6% 14.5% 2.6 2.5 10.9% 2.1 1.7 1.7 9.3% 1.1 12.2% 10.9% 20

  7. Slide 7: Healthy balance sheet despite contraction in cash flow

    Healthy balance sheet despite contraction in cash flow Operational Cash Flow, Combined for Non-Bank* Combined Net Financial Debt to Non-Bank EBITDA* (TL bn) CAGR: +28% 12.4 3.1x 10.8 9.5 2.3x 2.2x 5.6 1.5x 4.6 1.2x 1.2x 2.1 -1.7 2017 2018 2019 2020 2021 Q1 2021 Q1 2022 2017 2018 2019 2020 2021 Q1 20

  8. Slide 8: Combined Revenues / Real topline growth driven by both bank and non-bank

    Combined Revenues / Real topline growth driven by both bank and non-bank Combined Revenue* (TL mn) Combined Revenue* Breakdown 689 3,490 3,157 BUILD OTHER 6,875 FIN. MAT. 1% SERV. 5% 141% 6,046 4% INDUST. 10% OTHER* ENERGY 23,064 39% 70.7 BULD. MAT. RETAIL FIN. SERV. 9% 1,253 1,984 447 INDUSTRIAL 2,

  9. Slide 9: Combined EBITDA / Margin improvement despite cost pressures

    Combined EBITDA / Margin improvement despite increasing cost side pressures Combined EBITDA* (TL mn) Combined EBITDA* Breakdown 379 62 265 112 FIN. SERV. OTHER 1% 0% 1,569 RETAIL** BUILD. MAT 2% 2% INDUSTRIALS 192% 9% ENERGY 24% OTHER 10,882 BULD. MAT. FIN. SERV. 17.5 RETAIL** 219 257 152 40 BN TL I

  10. Slide 10: Consolidated Net Income / Solid operational performance

    Consolidated Net Income / Solid operational performance & favorable cash position Consolidated Net Income* (TL mn) Consolidated Net Income* Breakdown 672 62 75 564 OTHER 12% ENERGY 17% 221% INDUSTRIALS OTHER 10% FIN. SERV. BULD. MAT. FIN. SERV. 3,282 1% BUILD. MAT. 5.6 1% RETAIL** 75 128 BN TL 271 7

  11. Slide 11: Creation of a global digital business with 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 Marketing Radiflow SEM* ▪

  12. Slide 12: Invest in rapidly growing digital businesses and expand beyond Turkey

    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 Advance d

  13. Slide 13: Transformation in industrials through new acquisitions

    Transformation in industrials through new acquisitions 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 soluti

  14. Slide 14: Improvement in ESG performance continues

    Capital Mid-term Impovement in ESG performance continues Allocation Guidance 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+ Companies in on Su

  15. Slide 15: Energy / Robust performance driven by generation business

    Energy / Robust performance driven by tripling net income in generation business Energy Segment Summary Financials* MILLION TL Q1 2021 Q1 2022 Change SALES 8,500 27,332 222% Current Assessment EBITDA** 1,874 4,268 128% EBITDA** MARGIN 22.0% 15.6% Distribution & Retail: EBITDA growth on higher RAB, i

  16. Slide 16: Industrials / Second largest contributor on higher exports

    Industrials / Second largest contributor to the combined results on higher exports Industrials Summary Financials* MILLION TL Q1 2021 Q1 2022 Change SALES 2,987 6,875 130% Current Assessment EBITDA** 713 1,569 120% EBITDA** MARGIN 23.9% 22.8% Better pricing flexibility NET INCOME** 482 1,099 128% We

  17. Slide 17: Building Materials / Lower margins on escalated cost pressures

    Building Materials / Lower margins on escalated cost side pressures Building Materials Summary Financials* MILLION TL Q1 2021 Q1 2022 Change Current Assessment SALES 1,253 3,490 179% Sustained demand & better pricing EBITDA** 219 379 73% flexibility supporting topline growth EBITDA** MARGIN 17.5% 10

  18. Slide 18: Retail / Accelerated growth while maintaining operating profitability

    Retail / Accelerated growth while maintaining operating profitability Retail Summary Financials* MILLION TL Q1 2021 Q1 2022 Change SALES 3,550 6,046 70% Current Assessment EBITDA** 287 429 50% Segment’s top line growth above inflation EBITDA**-Comparable 152 265 75% EBITDA** MARGIN 8.1% 7.1% Compara

  19. Slide 19: Financial Services / Life offset contraction in non-life

    Financial Services/ Solid performance in life business offset contraction in non-life business Financial Services (pension & insurance) Summary Financials* MILLION TL Q1 2021 Q1 2022 Change SALES 1,984 3,157 59% Current Assessment EBITDA** 257 112 -57% Life: Robust technical income driven by life LI

  20. Slide 20: Bank / Robust customer acquisition drives core performance

    Bank / Robust customer acquisition drives solid core operating performance Summary Combined Financials Current Assesment MILLION TL Q1 2021 Q1 2022 Change Reached an outstanding 4.0% ROA & with robust REVENUE 10,625 23,064 117% 17.7% CAR*** EBITDA 2,744 10,882 297% Recorded 38.6% ROE with 9.4x lever

  21. Slide 21: Q1 2022 Highlights

    Q1 2022 Highlights Profitable growth despite highly volatile & challenging environment All-time high consolidated ROE* reaching 24.7% Healthy balance sheet with ample liquidity to undertake future investments Another recognition in sustainability: Excellent performance in Refinitiv among 50+ global

  22. Slide 22: Investor Relations Contacts

    INVESTOR RELATIONS CONTACTS ➢ Kerem TEZCAN Investor Relations Director ➢ Şule GENÇTÜRK KARDIÇALIOĞLU For Further Investor Relations Manager Details ➢ Hamza SÜMER ir.sabanci.com Investor Relations Specialist ➢ Arda KAYMAZ Investor Relations Specialist ➢ investor.relations@sabanci.com

  23. Slide 23: Appendix

    APPENDIX 23

  24. Slide 24: Appendix / Financials in detail

    Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q1 2021 Q1 2022 Change Q1 2021 Q1 2022 Change Q1 2021 Q1 2022 Change TOTAL 29,345 70,652 141% 6,135 17,700 189% 1,739 5,598 222% TOTAL*-Comparable 29,345 70,652 141% 6,000 17,536 192% 1,746 5,605 2

  25. Slide 25: Appendix / Sabancı Holding Discount to NAV & Cash

    Appendix / Sabancı Holding Discount to NAV & Cash USDmn March 2022 December 2021 NAV Discount Companies Direct Stakes Valuation Method Mcap Value of Stake % of NAV Value of Stake % of NAV March 2022 December 2021 December 2020 Akbank 41% Market value 2,578 1,050 27.9% 1,144 30.8% Enerjisa Enerji 40%

  26. Slide 26: Future Growth Underpinned By Capital Return and Sustainability

    Appendix/ 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% Share Buyb

  27. Slide 27: Appendix / 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

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