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

Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q1 2021 Earnings Presentation

21 slides from Haci Omer Sabanci Holding A.s's earnings presentation, May 6, 2021

  1. Slide 1: Q1 2021 Earnings Presentation

    #SabancıofNewGeneration Q1 2021 EARNINGS PRESENTATION May 6, 2021 1

  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 2021 Highlights

    Q1 2021 Highlights Strong volume growth well above recovery of demand Sharply improving cash flow on solid working capital management despite accelerating growth A record-high non-bank ROE of 18.5% One notch upgrade from MSCI ESG Ratings; 2nd upgrade in the last 9 months All COVID-19 measures are in

  4. Slide 4: Q1 2021 / Solid recovery despite COVID restrictions

    Q1 2021 / Solid recovery despite COVID restrictions Combined Revenue* Combined EBITDA* Consolidated Net Income* (TL mn) (TL mn) (TL mn) Non-bank Non-bank** Non-bank** Bank** Bank Bank +20% 6,000 +30% +48% 29,345 1,745 24,521 10,625 4,612 2,744 9,129 1,179 829 2,180 634 18,720 3,256 15,392 916 2,432

  5. Slide 5: Outstanding cash flow generation & solid debt profile

    Q1 2021 / Outstanding cash flow generation & solid debt profile Operational Cash Flow, Combined for Non-Bank* Combined Net Financial Debt to Non-Bank EBITDA* (TL bn) Deleveraging 3.7x despite Akbank 10.8 capital CAGR: increase +28% 9.5 3.1x 2.3x 2.2x Annual: 5.6 +66% 4.6 1.5x 4.1 1.4x 2.1 1.3 2016 2

  6. Slide 6: A record-high non-bank ROE

    Q1 2021 / A record-high non-bank ROE Return on Equity* Holding Only - Net cash position (TL bn) Non-Bank ROE : 18.5% 17.1% 2.6 16.0% 16.2% 13.7% 13.1% 14.5% 14.5% 15.0% 2.0 2.1 12.7% 12.9% 13.7% 13.6% 12.2% 10.9% 10.9% 1.7 1.7 9.3% 8.4% 1.1 1.1 2016 2017 2018 2019 2020 Q1 2021 2016 2017 2018 2019 20

  7. Slide 7: Combined Revenues / Non-bank growth across the board

    Combined Revenues/ Non-bank growth across the board Combined Revenue* (TL mn) Combined Revenue* Breakdown 20% 447 1,253 BUILD OTHER 1,984 MAT. 2% 151 FIN. 4% 797 2,987 SERV. 1,562 7% ENERGY 2,200 3,550 29% INDUST. OTHER* 2,819 10% BULD. MAT. FIN. SERV. 10,625 29.3 9,129 INDUSTRIAL RETAIL RETAIL BN T

  8. Slide 8: Combined EBITDA / Strong performance in all segments

    Combined EBITDA/ Strong performance in all segments Combined EBITDA* (TL mn) Combined EBITDA* Breakdown 30% 219 40 152 257 BUILD. FIN. MAT OTHER 713 SER. 4% 1% 65 176 RETAIL** 4% 389 45 3% ENERGY 31% INDUSTRIALS OTHER 2,744 12% BULD. MAT. FIN. SERV. 2,180 6.0 RETAIL** BN TL INDUSTRIALS BANK 1,768 1,

  9. Slide 9: Consolidated Net Income / Solid EBITDA performance & well-managed financing

    Consolidated Net Income / Solid EBITDA performance & well-managed financing activities Consolidated Net Income* (TL mn) Consolidated Net Income* Breakdown 48% 128 75 OTHER 78 7% ENERGY 271 INDUSTRIALS 23% 109 16% 47 OTHER 103 BULD. MAT. 829 FIN. SERV. 4% 1.7 FIN. SERV. RETAIL** 634 RETAIL** -2% BN T

  10. Slide 10: Energy / Strong performance despite lower hydro generation

    Energy / Strong performance despite lower hydro generation Energy Segment Summary Financials* MILLION TL Q1 2020 Q1 2021 Change SALES 7,865 8,500 8% Current Assessment EBITDA** 1,768 1,874 6% Distribution & Retail: 17% y/y EBITDA NET INCOME** 806 919 14% growth on inflation indexed revenue & EBITDA*

  11. Slide 11: Industrials / Sharp improvement on strong volumes & sales mix

    Industrials / Sharp improvement on strong volumes & sales mix Industrials Summary Financials* MILLION TL Q1 2020 Q1 2021 Change SALES 2,200 2,987 36% Current Assessment EBITDA** 389 713 84% Strong tire demand & tire reinforcement NET INCOME** 161 482 199% business EBITDA** MARGIN 17.7% 23.9% Increas

  12. Slide 12: Building Materials / Rock solid financial improvement

    Building Materials / Rock solid financial improvement on increased domestic volume Building Materials Summary Financials* MILLION TL Q1 2020 Q1 2021 Change SALES 797 1,253 57% Current Assessment EBITDA** 65 219 237% Domestic volume growth NET INCOME** -54 129 n.m. EBITDA** MARGIN 8.2% 17.5% Topline

  13. Slide 13: Retail / Strong operational performance amid COVID-19 closures

    Retail / Strong operational performance amid COVID-19 related closures Retail Summary Financials* MILLION TL Q1 2020 Q1 2021 Change SALES 2,819 3,550 26% Current Assessment EBITDA** 169 287 70% Top line growth exceeding inflation EBITDA**-Comparable 45 152 236% NET INCOME** -126 -86 32% Comparable E

  14. Slide 14: Financial Services (Insurance) / Life business-driven profitability growth

    Financial Services (Insurance) / Life business-driven profitability growth Financial Services (pension & insurance) Summary Financials* MILLION TL Q1 2020 Q1 2021 Change SALES 1,562 1,984 27% Current Assessment EBITDA** 176 257 46% Life: Higher technical income on life LIFE 60 154 157% protection vo

  15. Slide 15: Bank / Well positioned to remain healthy & profitable

    Bank / Well positioned to remain healthy & profitable Summary Combined Financials MILLION TL Q1 2020 Q1 2021 Change Achievements REVENUE 9,129 10,625 16% EBITDA 2,180 2,744 26% Generated higher pre-provision income NET INCOME* 1,556 2,034 31% despite NIM pressure Bank revenue = Interest income + com

  16. Slide 16: Appendix

    APPENDIX 16

  17. Slide 17: Capital Allocation and Mid-term Guidance

    Capital Allocation and Mid-term Capital Allocation and Mid-term Guidance / Sabancı Mid-term guidance Guidance 01 Growth Mid-term 02 Return 03 Sustainability 2014-19 targets Revenue growth CPI2 + 6% CPI1 + 8% Dividend payment Zero Waste Net Zero Emissions EBITDA3 growth CPI2 + 8% CPI1 + 10% High divi

  18. Slide 18: Appendix / Financials in detail

    Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q1 2020 Q1 2021 % Change Q1 2020 Q1 2021 % Change Q1 2020 Q1 2021 % Change TOTAL 24,521 29,345 20% 4,735 6,135 30% 1,172 1,739 48% TOTAL*-Comparable 4,612 6,000 30% 1,179 1,745 48% BANK 9,129 10,62

  19. Slide 19: Appendix / Sabancı Holding Discount to NAV

    Appendix / Sabancı Holding Discount to NAV December USDmn March 2021 2020 NAV Discount Companies Direct Stakes Valuation Method Mcap Value of Stake % of NAV Value of Stake % of NAV Akbank 41% Market value 2,928 1,193 24.6% 1,978 33.6% March 2021 December 2020 December 2019 Enerjisa Enerji 40% Market

  20. Slide 20: 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

  21. Slide 21: Thank You

    INVESTOR RELATIONS THANK YOU CONTACTS Kerem TEZCAN Investor Relations Director ktezcan@sabanci.com Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Specialist skardicalioglu@sabanci.com investor.relations@sabanci.com

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