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

Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q2 2017 Earnings Presentation

27 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2017

  1. Slide 1: Sabancı Holding Q2 2017 Earnings Presentation

    Sabancı Holding Q2 2017 Earnings Presentation

  2. Slide 2: Disclaimer

    2 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 correct

  3. Slide 3: Key Highlights: Strong Top Line and EBITDA growth continues in Q2

    3 Key Highlights Strong Top Line and EBITDA growth continues in Q2 Energy segment continues to drive non-bank EBITDA with 37% y/y growth, now providing 58% of total Retail segment improvement on track, 380 bps increase in EBITDA margin in Q2 y/y Rising pension penetration, effective claims managemen

  4. Slide 4: Revenues: Energy Segment Growth Drives Q2 Non-bank Revenues

    4 Revenues Energy Segment Growth Drives Q2 Non-bank Revenues TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change Energy top line driven with new capacities TOTAL* 13.345 15.369 15% 26.251 29.470 12% and higher renewable proceeds in BANK 5.66

  5. Slide 5: EBITDA: Energy and Retail Top Contributors to Q2 Non-Bank EBITDA Growth

    5 EBITDA Energy and Retail: Top Contributors to Q2 Non-Bank EBITDA Growth TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change TOTAL* 2.681 3.342 25% 5.114 6.314 23% Energy operational profitability was driven BANK 1.639 2.053 25% 3.050 3.959

  6. Slide 6: Consolidated Net Income

    6 Consolidated Despite Recovery in Retail and Insurance, Cement and Industrials Drags Down Net Income Bottom-line Performance MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change CONSOLIDATED NET INCOME* 679 794 17% 1.338 1.516 13% Banking segment net income drives BANK 516 645 25% 957 1.241

  7. Slide 7: Energy Strong Operational Profitability Continues

    7 Energy Strong Operational Profitability Continues MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change SALES 2.931 3.712 27% 6.201 7.194 16% EBITDA* 550 754 37% 1.126 1.369 22% NET INCOME 79 45 -43% 246 -234 -195% NET INCOME* 55 48 -12% 222 -6 -103% EBITDA* MARGIN 18,8% 20,3% 18,2% 19,0% *

  8. Slide 8: Restructuring Energy Business to Increase Focus on Separate Business Lines

    8 Restructuring Energy Business to Increase Focus on Separate Energy Business Lines Current Structure Target Structure 50% 50% Enerjisa Consolidated – 50% 50% 50% 50% JV Enerjisa Electricity Enerjisa Electricity Enerjisa Generation Enerjisa Generation Distribution Distribution and Trading and Tradin

  9. Slide 9: Enerjisa Distribution & Retail: Strong Profitability in Q2'17

    Enerjisa Distribution & Strong Profitability in Q2’17; further improvement on top of Q1’17 Retail % MILLION TL Q2 2016 Q2 2017 Change H1 2016 H1 2017 % Change Net sales 2.144 2.750 28% 4.514 5.449 21% EBITDA* 310 481 55% 652 894 37% EBITDA* margin (%) 14,5% 17,5% 3,0pp 14,4% 16,4% 2,0pp Depreciation

  10. Slide 10: Enerjisa Distribution & Retail Balance Sheet and Cash Flows

    10 Enerjisa Distribution & Retail Balance Sheet and Cash Flows MILLION TL DEC 2016 H1 2017 % Change Cash 75 570 665% Trade Receivables 1.721 1.898 10% Financial Assets 4.293 4.962 16% Fixed Assets (inc Intangible Assets) 7.949 7.866 -1% Other Assets* 1.094 1.189 9% TOTAL ASSETS 15.131 16.485 9% Bank

  11. Slide 11: Enerjisa Distribution Business: Growth in Asset Base and Higher Inflation

    11 Enerjisa Growth in Asset Base and Higher Inflation on Top of Operational Distribution Business Efficiencies MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change SALES 789 1.045 32% 1.585 2.115 33% EBITDA* 235 462 97% 493 856 74% EBITDA* MARGIN 29,7% 44,2% 31,1% 40,5% *Excludes non-operati

  12. Slide 12: Enerjisa Retail Business: Squeezed Margins Due to Sourcing Costs

    12 Enerjisa Retail Business Squeezed Margins Due to Sourcing Costs MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change SALES 2.000 2.441 22% 4.355 4.865 12% EBITDA 77 20 -74% 160 39 -76% EBITDA MARGIN 3,8% 0,8% 3,7% 0,8%  Reduction in national tariff compared to last year hinders profitabi

  13. Slide 13: Generation Sector: Flat Growth in Power Consumption in Q2

    13 Generation Flat Growth in Power Consumption in Q2 Sector Electricity consumption (GWh) Q2 [1.0% growth] Electricity production by source in Q2 (TWh) 30.000 Q2 2016: 67.174 GWh Q2 2017: 67.821 GWh Natural Gas 23.38922.574 25.000 21.57422.162 22.21223.084 Hydro 20.000 Coal 15.000 Lignite 10.000 Geo

  14. Slide 14: Enerjisa Generation & Trading: EBITDA Improvement Thanks to New Capacities

    14 Enerjisa EBITDA Improvement Thanks to New Capacities, Net Income Contribution Generation & Trading Limited MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change Generation ( TWh) Net sales 966 1.089 13% 2.018 1.996 -1% 3.2 1.7X EBITDA* 236 276 17% 467 473 1% 0,6 2.0 0,1 EBITDA* margin (%)

  15. Slide 15: Enerjisa Generation & Trading Balance Sheet and Cash Flows

    15 Enerjisa Generation & Trading Balance Sheet and Cash Flows MILLION TL DEC 2016 H1 2017 % Change Cash 28 20 -27% Trade Receivables 418 305 -27% -0,3% 3,1% Fixed Assets 10.950 10.845 -1% Other Assets* 1.955 1.257 -36% TOTAL ASSETS 13.351 12.427 -7% Bank Borrowings 7.371 7.148 -3% Trade Payables 410

  16. Slide 16: Cement: Q2 EBITDA weakened with higher fuel and electricity costs

    16 Cement Q2 EBITDA weakened with higher fuel and electricity costs BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Current Assessment MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change SALES 739 773 5% 1.322 1.320 0%  Q2 showed signs of improvement after severe EBITDA 230 163 -29% 384 259 -3

  17. Slide 17: Retail Operational Improvement Program on Track

    17 Retail Operational Improvement Program on Track BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Current Assessment MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change SALES 1.940 1.952 1% 3.811 3.688 -3% EBITDA* -22 52 332% -19 95 597% − Double digit LfL growth in both businesses NET INCOME*

  18. Slide 18: Carrefoursa Focus on Operational Excellence Pays Off

    18 Carrefoursa Focus on Operational Excellence Pays Off BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Q2 Highlights MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change SALES 1.136 1.110 -2% 2.234 2.156 -3% − Improving sales performance in all store formats through EBITDA* -24 10 N.M -32 27 N.

  19. Slide 19: Teknosa Returning to Bottom-line Profitability

    19 Teknosa Returning to Bottom-line Profitability BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change Q2 Highlights SALES 803 842 5% 1.578 1.531 -3% − Sales up by 5% with 30% smaller store network EBITDA* 2 42 2494% 13 68 428% NET INCOME* -21 6 N.

  20. Slide 20: Insurance: Strong Growth in AUM and Successful Underwriting

    20 Insurance Strong Growth in AUM and Successful Underwriting Drove Q2 EBITDA BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Current Assessment MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change SALES 548 621 13% 1.118 1.349 21% − 7% growth in elementary insurance premium, driven EBITDA* 52 9

  21. Slide 21: Industrials: Hard Currency Revenue Streams Support Top Line Growth

    21 Industrials Hard Currency Revenue Streams Support Top Line Growth BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Current Assessment MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change SALES 1.417 1.601 13% 2.662 3.017 13% −Focus on export markets and hard currency EBITDA* 248 240 -3% 498 49

  22. Slide 22: Kordsa Balanced Global Footprint and Hard Currency Revenues

    22 Kordsa Balanced Global Footprint and Hard Currency Revenues STANDALONE FINANCIALS MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change SALES 473 608 29% 960 1.239 29% EBITDA* 76 82 8% 154 193 25% NET INCOME* 47 39 -18% 112 109 -2% EBITDA* MARGIN 16,1% 13,5% 16,0% 15,6% Q2 Highlights Regio

  23. Slide 23: Brisa Raw Material Price Increases Weakened EBITDA in Q2

    23 Brisa Raw Material Price Increases Weakened EBITDA in Q2 BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Current Assessment MILLION TL Q2 2016 Q2 2017 % Change H1 2016 H1 2017 % Change SALES 463 535 16% 865 1.008 17% EBITDA 65 56 -14% 133 125 -5% −Rubber prices increases in Q2, lagging market prices

  24. Slide 24: FX Position

    24 FX Position MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2016 JUN 30, 2017 ENERGY -271 -219 INDUSTRIALS -25 -23 CEMENT -8 12 RETAIL 3 3 INSURANCE 6 8 HOLDING & OTHER 167 329 TOTAL CONSOLIDATED FX POSITION AFFECTING PL -128 110 Holding Only Cash Position is 1.503 MTL

  25. Slide 25: Maintaining Guidance for 2017

    25 2017 Maintaining Guidance for 2017 2017 Growth Guidance SALES 10-15% ENERGY* EBITDA 10-15% SALES 5-15% INDUSTRIALS* EBITDA 5-15% SABANCI HOLDING SALES 5-10% COMBINED NON-BANK ** EBITDA 10-15% * One off items excluded. ** Including «other» segment

  26. Slide 26: Q&A

    Q&A

  27. Slide 27: Non-Operational and Non-Recurring Items

    27 2017 Non-Operational and Non-Recurring Items Q2 2016 Q2 2017 H1 2016 H1 2017 NET INCOME EXCLUDING NON OPERATIONAL & NON RECURRING ITEMS 679 794 1.338 1.516 Gain on sales of Akbank visa shares 66 0 66 0 Enerjisa asset impairment 0 2 0 -111 Carrefoursa gain on asset sale;litigation resolution;restr

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