Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q1 2016 Earnings Presentation
37 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2016
Slide 1: 2016 Q1 Earnings Presentation
1 2016 Q1 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: Key Highlights
Key Highlights 3 − Robust operational performance in Enerjisa. Enerjisa Retail has a strong base effect in Q1 2015. − Despite additional capacity in the market, increased profitability in Cement mainly due to volume growth and successful regional and product diversification strategy. − Operational e
Slide 4: Net Sales
Net Sales 4 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q1 2015 Q1 2016 % Change TOTAL 11.797 13.607 15% BANK 4.258 5.273 24% NON-BANK 7.539 8.335 11% ENERGY 3.039 3.270 8% CEMENT 534 583 9% RETAIL 1.444 1.872 30% RETAIL-Adjusted for comparison* 1.444 1.697 17% INSURANCE 513 570 11%
Slide 5: EBITDA (Excluding Non Operational Items)
EBITDA (Excluding Non Operational Items) 5 EBITDA - MILLION TL Q1 2015 Q1 2016 % Change TOTAL 2.738 3.188 16% BANK 1.073 1.411 31% NON-BANK 1.665 1.778 7% ENERGY 451 576 28% CEMENT 139 154 11% RETAIL 34 3 -90% RETAIL-Adjusted for comparison* 34 21 -39% INSURANCE 26 49 89% INDUSTRIALS 189 250 32% OTH
Slide 6: Results Snapshot
Results Snapshot 6 16% 3.188 2.738 COMBINED 1.778 1.665 7% o Strong profitability growth EBITDA* (MILLION TL) 1.073 31% 1.411 Q1 2015 Q1 2016 Bank Non Bank 29% 673 521 COMPARATIVE 232 CONSOLIDATED 191 21% o Sustained growth in Industrials and 330 441 Cement positively affecting non-bank NET INCOME**
Slide 7: Non-bank Results- Q1 2016
Non-bank Results- Q1 2016 7 MILLION TL Q1 2015 Q1 2016 % Change CONSOLIDATED NET INCOME* 205 219 6% ENERGY 92 83 -9% ENERGY-Adjusted for comparison** 85 75 -12% CEMENT 41 44 7% RETAIL -5 -42 N.M RETAIL-Adjusted for comparison** -5 -20 N.M INSURANCE 12 16 35% INDUSTRIALS 85 123 45% INDUSTRIALS-Adjust
Slide 8: Segment Assessment - Energy
Segment Assessment - Energy 8 Current Assessment Critical to Watch Distribution − Robust operational performance − Expansion of Regulated Asset Base − Low electricity prices positively impacting − Free market volume growth operational profitability in free market − Renewable tariff effect on free ma
Slide 9: Energy
Energy 9 TOTAL BEFORE CONTRIBUTION TO CONSOLIDATION ADJUSTMENTS CONSOLIDATED FINANCIALS (COMBINED) MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 3.039 3.270 8% 0 0 N.M EBITDA* 451 576 28% 92 83 -9% NET INCOME* 184 167 -9% 92 83 -9% NET INCOME** - Adjusted for comparison 170 150
Slide 10: Enerjisa
Enerjisa 10 Demand (TWh) Turkey Total Installed Capacity (GW) Q1’16 vs Q1’15: 4,2% growth Average Temperatures Turkey Hydro Generation (GWh) Q1’16 vs Q1’15: 23% increase Average Q1’16 vs Q1’15 ∆: +1 increase Robust growth in hydro generation affecting market prices
Slide 11: Energy – Distribution Business
Energy – Distribution Business 11 MILLION TL Q1 2015 Q1 2016 % Change SALES 566 796 41% EBITDA 115 258 125% EBITDA MARGIN 20,3% 32,4% Robust profitability in 2016 driven by the new tariff and higher Regulatory Asset Base Regulatory Asset Base (RAB) -4 258 in accordance with IFRS (MTL) 84 64 2.946 3.
Slide 12: Energy – Retail Business
Energy – Retail Business 12 MILLION TL Q1 2015 Q1 2016 % Change SALES 2.872 2.623 -9% EBITDA 125 77 -38% EBITDA MARGIN 4,3% 2,9% Strong base effect in Q1 2015 with non-recurring operational items Sales (TWh) -20% -34 11,2 8,9 30 -18 2,5 -16 -52 42 2,8 125 8,7 75 77 6,1 EBITDA Strong Q1 Renewable EBI
Slide 13: Energy – Generation Business
Energy – Generation Business 13 MILLION TL Q1 2015 Q1 2016 % Change SALES 690 977 42% EBITDA* 192 237 23% EBITDA MARGIN 27,8% 24,3% * Excluding non operational items Despite low spot prices, jump in profitability thanks to sales on the renewable tariff 192 -6 86 -5 -30 237 Generation (TWh) 6% 2,0 1,
Slide 14: Enerjisa Balance Sheet
Enerjisa Balance Sheet 14 MILLION TL 2015 YE 2016 Q1 % Change Cash 258 415 61% Trade Receivables 1.987 2.060 4% Other Current Assets 1.579 1.558 -1% TOTAL CURRENT ASSETS 3.824 4.033 5% Fixed Assets 16.140 16.140 0% Other Non Current Assets 6.865 7.084 3% TOTAL NONCURRENT ASSETS 23.005 23.225 1% TOTA
Slide 15: Enerjisa Financing Cost Drivers
Enerjisa Financing Cost Drivers 15 Q1 2015 Q1 2016 Operational FX Gain / Loss & 34 10 Interest Expense (Net) Interest Expense (Net) -156 -218 Fx Gain/ Loss -6 -58 Total Financial Expenses -129 -266 Successful FX risk management
Slide 16: Enerjisa Leverage
Enerjisa Leverage 16 Enerjisa Loans* Original Currency Total TL Equivalent Million TL EUR Generation 483 1.964 6.782 Distribution 5.846 81 6.106 Total 6.329 2.044 12.889 Original Currency Total TL Equivalent Million TL EUR Fixed 4.068 878 6.884 Floating 1.096 1.167 4.839 PPI Indexed 1.166 - 1.166 To
Slide 17: Segment Assessment - Cement
Segment Assessment - Cement 17 Current Assessment Critical to Watch − Strong volume growth in Q1 − Highly competitive landscape − Low freight and fuel costs to continue sustained − Differentiation of Sabancı − Strong prices in regions other Companies through higher than Mediterranean value added pro
Slide 18: Cement
Cement 18 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 534 583 9% 235 254 8% EBITDA 139 154 11% 81 94 15% NET INCOME 90 98 9% 41 44 7% EBITDA MARGIN 26,1% 26,5% Sustained topline growth an
Slide 19: Akçansa
Akçansa 19 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 299 329 10% 0 0 N.M EBITDA 79 81 3% 27 27 3% NET INCOME 67 69 3% 27 27 3% EBITDA MARGIN 26,3% 24,5% Topline growth driven by strong
Slide 20: Çimsa
Çimsa 20 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 235 254 8% 235 254 8% EBITDA 61 74 21% 61 74 21% NET INCOME 38 41 8% 19 22 15% EBITDA MARGIN 25,9% 29,0% Product and regional diversif
Slide 21: Segment Assessment - Retail
Segment Assessment - Retail 21 Current Assessment Critical to Watch − New management working on − Management action plan in increasing profitability in food food retail retail. Store optimization, Retail efficiency and organic top-line − Consumer sentiment to drive spending level growth through incr
Slide 22: Retail
Retail 22 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 1.444 1.872 30% 1.443 1.871 30% EBITDA* 34 3 -90% 34 3 -90% NET INCOME* -8 -81 N.M -5 -42 N.M NET INCOME** - Adjusted for comparison
Slide 23: Carrefoursa
Carrefoursa 23 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 779 1.097 41% 779 1.097 41% EBITDA* 25 -8 N.M 25 -8 N.M EBITDA** - Adjusted for comparison 25 9 -62% 25 9 -62% NET INCOME* 3 -68
Slide 24: Carrefoursa – Action Plan
Carrefoursa – Action Plan 24 1. Assortment - Improvement in assortment 2. Reduce stockouts - Optimum stock levels 3. Pricing actions/perception – Customer-oriented pricing 4. Costs - Right sizing, energy costs, product losses 5. Store optimization - Optimizing store network, bottom slicing + Kiler i
Slide 25: Segment Assessment - Insurance
Segment Assessment - Insurance 25 Current Assessment Critical to Watch − Strong performance of bancassurance channel − Accelaration in the growth of − Consumer loan growth Insurance life premiums − Claims management & claims − Sustained high growth in ratio pension − No additional reserves for MTPL
Slide 26: Insurance
Insurance 26 TOTAL BEFORE CONTRIBUTION TO CONSOLIDATION CONSOLIDATED FINANCIALS ADJUSTMENTS (COMBINED) MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 513 570 11% 0 0 N.M EBITDA 26 49 89% 12 16 35% NET INCOME 29 42 45% 12 16 35% Normalization of non-life insurance profitability.
Slide 27: Avivasa
Avivasa 27 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 58 71 22% - - N.M EBITDA 25 28 11% 12 11 -8% NET INCOME 29 28 -5% 12 11 -8% FX loss in 2016 resulted in lower financial income. Oper
Slide 28: Aksigorta
Aksigorta 28 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 456 499 10% - - N.M EBITDA 1 22 1817% -0 5 N.M NET INCOME -0 14 N.M -0 5 N.M No additional reserves; normalization of profitabilit
Slide 29: Segment Assessment - Industrials
Segment Assessment - Industrials 29 Current Assessment Critical to Watch − Operational excellence and efficiency − Turkish Lira and other EM − Improvement in European currencies demand − Pricing / Commodity prices Industrials − Low raw material prices − Pace of European and US − Volume growth in Kor
Slide 30: Industrials
Industrials 30 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO ADJUSTMENTS (COMBINED) CONSOLIDATED FINANCIALS MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 1.131 1.245 10% 742 843 14% EBITDA* 189 250 32% 144 192 33% NET INCOME* 126 171 36% 85 123 45% NET INCOME* - Adjusted for compar
Slide 31: Kordsa Global
Kordsa Global 31 CONTRIBUTION TO STANDALONE FINANCIALS CONSOLIDATED FINANCIALS MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 385 488 27% 385 488 27% EBITDA* 45 78 72% 45 78 72% NET INCOME* 14 64 375% 10 38 293% EBITDA MARGIN 11,7% 16,0% Continued margin expansion and top line gr
Slide 32: Brisa
Brisa 32 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q1 2015 Q1 2016 % Change Q1 2015 Q1 2016 % Change SALES 389 402 3% - - N.M EBITDA 58 68 17% 12 10 -20% NET INCOME 28 23 -20% 12 10 -20% EBITDA MARGIN 14,9% 16,9% Low commodity prices support
Slide 33: FX Position and Leverage
FX Position and Leverage 33 MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2015 MAR 31, 2016 ENERGY* -124 -191 INDUSTRIALS 2 0 CEMENT -1 6 RETAIL -4 -1 HOLDING 115 143 INSURANCE & OTHER 13 15 TOTAL CONSOLIDATED FX POSITION AFFECTING PL 1 -29 *Capitalized borrowings of Energy segme
Slide 34: Investments
Investments 34 Q1 2015 :766 MTL Q1 2016 :673 MTL 1% 1% 1% 6% 3% 9% BANK 17% 6% 1% ENERGY 6% CEMENT 4% RETAIL INSURANCE 47% INDUSTRIALS 27% 71% OTHER
Slide 35: Non-Operational and Non-Recurring Items
Non-Operational and Non-Recurring Items 35 2015 Q1 2016 Q1 NET INCOME EXCLUDING NON OPERATIONAL & NON 535 659 RECURRING ITEMS Enerjisa gain on asset sale 52 0 Carrefoursa gain on asset sale;SAP transition;litigation 56 -13 resolution;restructuring Temsa gain on asset sale 5 0 Other 0 -6 NET INCOME 6
Slide 36: 2016 GUIDANCE
2016 GUIDANCE 36 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% Maintaining our guidance * One off items and Other segment excluded
Slide 37: Q&A
Q&A OQBANcI
Hacı Ömer Sabancı Holding A.Ş. — Q1 2016 Earnings Presentation on 6ix