Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q3 2022 Earnings Presentation
24 slides from Haci Omer Sabanci Holding A.s's earnings presentation, Nov 4, 2022
Slide 1: Q3 2022 Earnings Presentation
Q3 2022 EARNINGS PRESENTATION November 4, 2022
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
Slide 3: Q3 2022 Highlights
Q3 2022 Highlights Resilient growth and high-quality earnings despite accelerating cost inflation Strong balance sheet maintained ahead of upcoming investment cycle Strategic transformation momentum continues at full speed Consolidated ROE* tripled, reaching 59% in Q3 Net Debt/EBITDA fell below 1.0x
Slide 4: Continuing to deliver on our strategic initiatives
Continuing to deliver on our strategic initiatives Dynamic Portfolio Management Turkey’s 1st Green Hydrogen: Capacity Increase in CAC: Digital Investment: Çimsa’s investment at USD45mn, Kordsa Capacity Investments: Production and use of green Acquisition of 100% of SEM**, for capacity increase in CA
Slide 5: Faster topline growth with improvement in earnings quality…
Faster topline growth with improvement in earnings quality… Combined Revenue* Combined EBITDA* Consolidated Net Income* (TL mn) (TL mn) (TL mn) 275,363 Non-bank** Non-bank** Non-bank +175% 74,674 +259% Bank +321% Bank** Bank 23,435 97,693 52,140 15,582 100,053 36,164 177,670 20,823 5,563 10,492 63,8
Slide 6: …led to a further improvement in ROE coupled with solid liquidity
…led to a further improvement in ROE coupled with solid liquidity Consolidated Return on Equity (ROE)* Holding Only - Net cash position (TL bn) 41.4% 22.6% 16,3% 14.5% 13.7% 14.5% 12.2% 4.4 2017 2018 2019 2020 2021 9M 2021 9M 2022 2.6 2.5 Non-Bank ROE Bank ROE** 55.1% 1.7 1.7 1.9 27.7% 1.1 23.9% 17.
Slide 7: Swift recovery in operational cash flow & substantial deleveraging
Swift recovery in operational cash flow & substantial deleveraging Operational Cash Flow, Combined for Non-Bank* Combined Net Financial Debt to Non-Bank EBITDA* (TL bn) 13.4 12.4 10.8 3.1x 9.5 2.3x 8.1 2.2x 5.6 1.5x 4.6 1.4x 1.2x 0.7x 2017 2018 2019 2020 2021 9M 2021 9M 2022 2017 2018 2019 2020 2021
Slide 8: Combined Revenues / Energy segment driven non-bank topline growth accelerated
Combined Revenues / Energy segment driven non-bank topline growth accelerated Combined Revenue* (TL mn) Combined Revenue* Breakdown 562 6.154 3.959 BUILD 8.585 FIN. MAT. 9.925 SERV. 5% 4% INDUST. 192% 8% ENERGY OTHER* 36% 42.548 RETAIL 112.5 BUILD. MAT. 9% FIN. SERV. INDUSTRIAL 2.149 319 BN TL RETAI
Slide 9: Combined EBITDA / Four-fold EBITDA growth despite accelerating inflationary pressures
Combined EBITDA / Four-fold EBITDA growth despite accelerating inflationary pressures Combined EBITDA* (TL mn) Combined EBITDA* Breakdown 925 73 FIN. SERV. BUILD. MAT 596 343 1% 3% 1.259 RETAIL** 2% INDUSTRIALS 4% ENERGY 16% 285% OTHER 23.044 BUILD. MAT. FIN. SERV. 31.3 RETAIL** INDUSTRIALS BN TL 29
Slide 10: Consolidated Net Income / Operational performance pass through on solid deleveraging
Consolidated Net Income / Operational performance pass through on solid deleveraging Consolidated Net Income* (TL mn) Consolidated Net Income* Breakdown 478 286 131 INDUSTRIALS OTHER 71 FIN. SERV. 5% 460 5% ENERGY 1% 15% BUILD. MAT. 3% OTHER BUILD. MAT. FIN. SERV. 353% 6.957 9.8 RETAIL** BN TL INDUS
Slide 11: Energy / Exceptionally strong performance driven by stronger returns in both businesses
Energy / Exceptionally strong performance driven by stronger returns in both businesses Energy Segment Summary Financials* MILLION TL Q3 2021 Q3 2022 % Change 9M 2021 9M 2022 % Change SALES 12,630 40,762 223% 30,355 102,819 239% Current Assessment EBITDA** 2,073 5,025 142% 5,884 13,947 137% EBITDA**
Slide 12: Industrials / Escalated cost side pressures partly offset by sales mix & pricing strategy
Industrials / Escalated cost side pressures partly offset by sales mix & pricing strategy Industrials Summary Financials* Current Assessment MILLION TL Q3 2021 Q3 2022 % Change 9M 2021 9M 2022 % Change SALES 3,519 8,585 144% 9,694 23,336 141% Signals of global and local slow down both EBITDA 704 1,2
Slide 13: Building Materials / Resilient financial performance in an inflationary environment
Building Materials / Resilient financial performance in an inflationary environment Building Materials Summary Financials* MILLION TL Q3 2021 Q3 2022 % Change 9M 2021 9M 2022 % Change Current Assessment SALES 2,149 6,154 186% 5,182 14,992 189% Sales mix optimization EBITDA** 293 925 215% 905 2,299 1
Slide 14: Retail / Accelerated top-line growth & improving operational profitability
Retail / Accelerated top-line growth & improving operational profitability Retail Summary Financials* MILLION TL Q3 2021 Q3 2022 % Change 9M 2021 9M 2022 % Change Current Assessment SALES 4,396 9,925 126% 11,584 23,658 104 % EBITDA** 395 785 99% 937 1,828 95% Both companies recorded top line growth
Slide 15: Financial Services (Insurance) / Solid growth driven by both life & non-life businesses
Financial Services (Insurance) / Solid growth driven by both life & non-life businesses Financial Services Summary Financials* MILLION TL Q3 2021 Q3 2022 % Change 9M 2021 9M 2022 % Change Current Assessment SALES 2,009 3,959 97% 5,870 11,047 88% EBITDA** 244 343 40% 784 742 -5% Life: Strong technica
Slide 16: Bank / Solid core operating performance with stellar customer acquisition
Bank / Solid core operating performance with stellar customer acquisition Summary Combined Financials 3Q22 Achievements MILLION TL Q3 2021 Q3 2022 % Change 9M 2021 9M 2022 % Change Reached an outstanding 6.7% quarterly RoA & REVENUE 13,539 42,548 214% 36,164 97,693 170% 59.6% RoE with 8.5x leverage
Slide 17: In Summary
In Summary Resilient growth and high-quality earnings despite accelerating cost inflation Strong balance sheet maintained ahead of upcoming investment cycle Strategic transformation momentum continues at full speed Mid-term guidance maintained post 9M performance Consolidated ROE* more than doubled,
Slide 18: Appendix
APPENDIX 18
Slide 19: Appendix / Financials in detail
Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q3 2021 Q3 2022 % Change 9M 2021 9M 2022 % Change Q3 2021 Q3 2022 Change 9M 2021 9M 2022 Change Q3 2021 Q3 2022 Change 9M 2021 9M 2022 Change TOTAL* 38,560 112,496 192% 100,053 275,363 175% 8,259 3
Slide 20: Appendix / Sabancı Holding Discount to NAV & Cash
Appendix / Sabancı Holding Discount to NAV & Cash USDmn September 2022 December 2021 Companies Direct Stakes Valuation Method Mcap Value of Stake % of NAV Value of Stake % of NAV NAV Discount Akbank 41% Market value 3,170 1,292 32.4% 1,144 30.8% September 2022 December 2021 December 2020 Enerjisa En
Slide 21: Appendix / 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 Buy
Slide 22: Appendix / Improvement in ESG performance continues
Appendix / Improvement in ESG performance continues 01 02 03 04 2022 MSCI 2021 CDP Climate 2022 GEI 2022 Refinitiv 72% increase in WAKI* 2 notches increase Only Turkish Hold Co. Excellent Performance in 2 years Management Level on Bloomberg Gender Out of 50+ Companies in Successful Execution in All
Slide 23: 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
Slide 24: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS ➢ Kerem TEZCAN Investor Relations Director ➢ Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager For Further Details ➢ Hamza SÜMER Investor Relations Specialist ir.sabanci.com ➢ Arda KAYMAZ Investor Relations Specialist E-mail: investor.relations@sabanci.com
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