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

Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q3 2020 Earnings Presentation

21 slides from Haci Omer Sabanci Holding A.s's earnings presentation, Nov 5, 2020

  1. Slide 1: Q3 2020 Earnings Presentation

    #SabancıofNewGeneration Q3 2020 EARNINGS PRESENTATION Nov. 5, 2020 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: Q3 2020 Highlights

    Q3 2020 Highlights Sharp improvement in non-bank results during the economic recovery Robust B/S, a marked increase in cash flow generation, declining leverage, a record-high non-bank ROE Keeping all COVID-19 related health & business measures in place 3

  4. Slide 4: Remarkable cash flow generation & material improvement net debt / EBITDA

    Q3 2020 / Remarkable cash flow generation & material improvement net debt / EBITDA Operational Cash Flow, Combined for Non-Bank* Combined Net Financial Debt to Non-Bank EBITDA** (TL bn) Deleveraging despite Akbank 5,3 capital 9,5 increase 4,6 4,0 3,7 5,6 3,1 4,6 2,3 4,1 2,2 3,6 3,5 1,8 2,1 1,3 1,4 2

  5. Slide 5: Financial performance summary

    Q3 2020 / Financial performance summary Combined Revenue* Combined EBITDA* Consolidated Net Income* (TL mn) (TL mn) (TL mn) Non-bank** Non-bank** Non-bank** Bank*** Bank Bank +11% +33% 1.617 +75% 26.987 5.577 24.307 9.177 4.178 724 2.473 9.980 926 1.887 556 17.810 14.327 3.103 893 2.291 370 Q3 2019

  6. Slide 6: A sharp improvement in ROE

    Q3 2020 / A sharp improvement in ROE Return on Equity* Holding Only - Net cash position (TL bn) 18% 16% 14% 12% 2,6 10% 1,7 1,7 1,8 8% 1,5 6% 1,1 4% 0,6 2% 0,1 0% 2014 2015 2016 2017 2018 2019 9M 2019 9M 2020 Non-Bank Cons. ROE 6,5% 7,3% 8,4% 9,3% 13,7% 12,6% 13,6% 16,7% 2014 2015 2016 2017 2018 201

  7. Slide 7: Combined Revenues: Non-bank growth on Energy, Retail & Financial Services

    Combined Revenues / Non-bank growth on Energy, Retail & Financial Services Combined Revenue* (TL mn) Combined Revenue* Breakdown 647 RETAIL 14% BANK 100 1.197 INDUST.** 1.596 964 8% 1.231 2.211 ENERGY ENERGY 2.299 31% 3.718 2.743 FIN. SERV. RETAIL 6% INDUST.** 6.990 8.440 BUILD. MAT. 5% FIN. SERV. O

  8. Slide 8: Combined EBITDA: Non-bank growth driven by Energy, Retail, Building Materials

    Combined EBITDA / Non-bank growth driven by Energy, Retail, Building Materials Combined EBITDA* (TL mn) Combined EBITDA* Breakdown 77 278 INDUST.**; ENERGY; OTHER 272 8% 33% 165 211 450 BUILD. MAT. RETAIL**; 172 105 4% FIN. SERV. 481 1.815 FIN. SERV.; 5% RETAIL** 1.374 BUILD. MAT.; 5% INDUSTRIALS**

  9. Slide 9: Consolidated Net Income: Solid EBITDA pass-through, well-managed financing & FX gains

    Consolidated Net Income / Solid EBITDA pass-through, well-managed financing & FX gains Consolidated Net Income* (TL mn) Consolidated Net Income* Breakdown RETAIL**; INDUST.**; 1% 9% OTHER 231 FIN. SERV.; 59 5% BUILD. MAT. 79 22 BUILD. MAT.; ENERGY; 138 4% 23% 10 FIN. SERV. 51 365 183 RETAIL** OTHER;

  10. Slide 10: Energy: Successful results despite COVID-19 pandemic

    Energy / Successful results despite COVID-19 pandemic Energy Segment Summary Financials* MILLION TL Q3 2019 Q3 2020 % Change 9M 2019 9M 2020 % Change SALES 6.990 8.440 21% 19.390 23.580 22% Current Assessment EBITDA** 1.374 1.815 32% 4.647 5.423 17% NET INCOME** 481 857 78% 1.851 2.459 33% Distribut

  11. Slide 11: Financial Services (Insurance): Maintaining strong premium growth and profitability

    Financial Services (Insurance) / Maintaining strong premium growth and profitability Financial Services (pension & insurance) Summary Financials* MILLION TL Q3 2019 Q3 2020 % Change 9M 2019 9M 2020 % Change Current Assessment SALES 1.231 1.596 30% 3.742 4.519 21% EBITDA** 172 272 58% 504 778 55% Pen

  12. Slide 12: Building Materials: Pent-up demand driven recovery in the domestic market

    Building Materials / Pent-up demand driven recovery in the domestic market Building Materials Summary Financials* Current Assessment MILLION TL Q3 2019 Q3 2020 % Change 9M 2019 9M 2020 % Change SALES 964 1.197 24% 2.667 3.009 13% Sabancı domestic cement sales volume up EBITDA** 165 278 69% 425 532 2

  13. Slide 13: Retail: Sharp improvement at all lines led by electronics retail

    Retail / Sharp improvement at all lines led by electronics retail Retail Summary Financials* Current Assessment MILLION TL Q3 2019 Q3 2020 % Change 9M 2019 9M 2020 % Change SALES 2.743 3.718 36% 7.524 9.348 24% Top line supported by electronics retail EBITDA** 222 335 51% 548 688 26% Sharp improveme

  14. Slide 14: Industrials: Diminishing effects of pandemic

    Industrials / Diminishing effects of pandemic Industrials Summary Financials* Current Assessment MILLION TL Q3 2019 Q3 2020 % Change 9M 2019 9M 2020 % Change Strong local market demand, slight SALES 2.403 2.211 -8% 7.432 5.913 -20% improvement in global/export markets SALES - Comparable 2.299 2.211

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

    Bank / Well positioned to remain healthy & profitable Summary Combined Financials Current Assessment MILLION TL Q3 2019 Q3 2020 % Change 9M 2019 9M 2020 % Change Maintained solid core operating performance in REVENUE 9.980 9.177 -8% 31.342 27.818 -11% Q3 EBITDA 1.887 2.473 31% 5.691 6.904 21% Improv

  16. Slide 16: Group's Opportunities: Post-Covid-19 strategies and initiatives

    Group’sOpportunities / Post-Covid-19 strategies and initiatives Maintain a robust balance Exploit new opportunities while Cautious/prepared for the Group sheet and high liquidity the economy is rebooting relapsed Covid-19 cases BANK BUILDING MATERIALS 2020 Outlook: Moderate impact from Covid-19 2020

  17. Slide 17: Appendix

    APPENDIX

  18. Slide 18: Appendix: Financials in detail

    Appendix / Financials in detail Combined Revenue* (TL mn) Combined EBITDA* (TL mn) Consolidated Net Income* (TL mn) MILLION TL Q3 2019 Q3 2020 % Change 9M 2019 9M 2020 % Change Q3 2019 Q3 2020 % Change 9M 2019 9M 2020 % Change Q3 2019 Q3 2020 % Change 9M 2019 9M 2020 % Change TOTAL 24.411 26.987 11%

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

    Appendix / Sabancı Holding Discount to NAV NAV Discount USD mn Direct Valuation Sept-2020 Dec-2019 Mcap % of NAV % of NAV Companies Stakes (%) Method Value of Stake Value of Stake Akbank 40,8% Market Value 3.453 1.407 25,1% 2.891 46,5% Sept-2020 Dec-2019 Dec-2018 Enerjisa Enerji 40,0% Market Value 1

  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: Investor Relations Contacts

    Investor Relations Contacts: Kerem Tezcan Investor Relations Director ktezcan@sabanci.com investor.relations@sabanci.com

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