Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Day (October 2024)
74 slides from Haci Omer Sabanci Holding A.s's investor day presentation, Oct 9, 2024
Slide 1: Capital Markets Day
Capital Markets Day Sustainable, Digital, Scalable LONDON, OCTOBER 9, 2024
Slide 2: Welcome
Welcome Kerem TEZCAN Head of IR
Slide 3: Disclaimer
Disclaimer The information and opinions presented in this document have been compiled by Hacı Ömer Sabancı Holding A.Ş. (“Holding”) from sources deemed reliable and in good faith; however, no representation or warranty, either express or implied, is made regarding their accuracy, completeness, or co
Slide 4: Today's Agenda
Today’s Agenda 09:00 Welcome (IR) 11:20 Q&A 09:05 Unlocking the Sabancı of the World 12:00 Lunch 09:10 Sustainable, Digital, Scalable 13:10 1-on-1/Group Meetings 09:30 Local Strength, Global Reach: Shaping Energy’s Future 09:45 Financial Powerhouse to Capture Sustainable Profitability 14:00 1-on-1/G
Slide 5: Today's Speakers
Today’s Speakers Güler SABANCI Chair Cenk ALPER Board Member and CEO Kıvanç ZAİMLER Haluk DİNÇER Cevdet ALEMDAR Energy Financial Services Mobility Solutions Group President Group President Group President Hakan BİNBAŞGİL Max SPEUR Burak ORHUN Banking Digital Material Technologies Group President Gro
Slide 6: Unlocking the Sabancı of the World
Unlocking the Sabancı of the World Güler SABANCI Chair
Slide 7: Sustainable, Digital, Scalable
Sustainable, Digital, Scalable Cenk ALPER Board Member and CEO
Slide 8: We unite Türkiye and the World for a sustainable life
We unite Türkiye and the World for a sustainable life with leading enterprises 8
Slide 9: Türkiye's Preeminent Investment Holding Company
Türkiye’s Preeminent Investment Holding Company with Leading Position in Various Industries 100 USD10bn ~USD24bn 6% Years Of History Net Asset Value Combined Revenue Of BIST MCAP as of September 2024 in 2023 15 16 6 60K+ Portfolio Companies Countries Covering Global Business Employees Global Footpri
Slide 10: Why Invest in Sabancı?
Why Invest in Sabancı? Best proxy for Türkiye with an expansive global vision Leveraging our DNA and expertise to dynamically manage a portfolio for growth and competitive advantage Ample balance sheet capacity to accelerate portfolio transformation with scalable investments Pioneering in climate tr
Slide 11: Best Proxy for Türkiye with an Expansive Global Vision
Best Proxy for Türkiye GDP Growth vs Sabancı Growth Türkiye Industrial Turnover Index vs Sabancı Industrial Turnover Türkiye with 800 800 700 700 an Expansive 600 600 500 500 Global Vision 400 400 300 300 200 200 100 100 2018 2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 Türkiye Industrial
Slide 12: Diversified with Market Leading Positions
Diversified with Market Leading Positions 46.8% 53.2% Sabancı Family Free Float DIGITAL BANKING & ENERGY & CLIMATE MATERIAL MOBILITY TECHNOLOGIES FINANCIAL SERVICES TECHNOLOGIES TECHNOLOGIES SOLUTIONS & OTHER(1) % of NAV:42% % of NAV:33% % of NAV:13% % of NAV:5% % of NAV:7% SAHOL: 40.7% SAHOL: 50.0%
Slide 13: Dynamic Portfolio Management to Enable NAV Growth
Dynamic Portfolio Management to Enable NAV Growth Sabancı Holding driven NAV growth NAV Growth driven by Group Companies Network Optimization in Building Materials Business SBS US Grinding (EUR110mn) Facility Investment Acquisition of (USD82mn) Acquisition of Bulutistan Sale of Philsa & (USD39mn) Ac
Slide 14: Well on Track to Deliver on Previous Guidance
Well on Track to Deliver on Previous Guidance for All Key Metrics 2021-2023 Figures 2021-2025 Targets Status Combined Revenue Growth CPI + 28% CPI + 8% Delivered Combined EBITDA(1) Growth CPI + 34% CPI + 10% Delivered Net Debt/EBITDA (1)(4) 0.8x <2.0x Delivered Consolidated ROE(5) 34.4% 15%-20% Deli
Slide 15: Resilient Portfolio Delivering Returns Even in Challenging Times
Resilient Portfolio Delivering Returns Even in Challenging Times Combined Revenue (TL bn)(1) Consolidated EBITDA (TL bn) Return on Equity(2) 31.1% 28.2% 13.3% 811 763 208 208 8.5% 170 45.4% 632 170 282 354 34.4% 139 282 151.6 152 113 401 113 111.7 112 90.0 90 150 81.5 81 481 457 350 251 56.5 58.1 11
Slide 16: Ample Balance Sheet Capacity to Finance Growth
Ample Balance Sheet Capacity Non-Bank Capex/Sales to Finance Growth Combined Net Financial Debt to 11.5% Holding Only - Net cash Non-Bank EBITDA(1) (TL bn) 11.3% 1.3x Target: ≤ 2x 12.0 0.8x 7.0 10.5% 0.5x 3.1 2022 2023 H1 2024 2022 2023 H1 2024 2022 2023 H1 2024 (1) Excludes Banking and net cash pos
Slide 17: Sustainable and Balanced Dividend Income
Sustainable and Balanced Dividend Income Between Bank and Non-bank Dividends Received (TL bn) DPS (TL) Non-Bank Bank 9.4 74% 19% Outflow/Inflow Pay-Out Ratio 5 year 5 year on average on average 7.1 57% 48% 2.1 2.94 1.6 43% 52% 1.75 77% 0.5 84% 0.75 100% 23% 0.33 0.35 16% 2020 2021 2022 2023 2024 202
Slide 18: Establishing a Strong Foundation Focusing on Value Creation
Establishing a Strong Foundation Focusing on Value Creation Value Preservation Value Creation Operational Reduce cost of debt to Capitalize on the growing Access to new Leverage on growing excellence maximize return demand on a sustainable markets and assets Incentives economy Attract and retain Bec
Slide 19: Pioneer in Global Climate Transition
Pioneer in Global Climate Transition with a Clear Strategy and Strong Return Profile Transforming Our Portfolio To Enable Decarbonization Because It Makes Business Sense 20% 24% 42% Decrease in Scope 1 & 2 Water consumption Reduction target in Scope 1&2 Favorable Funding emissions(2) reduction (1) e
Slide 20: Net Zero drives major transition in key areas
Net Zero drives major transition in key areas, as a basis of our portfolio and investment plan Mobility Transition Energy Transition Innovation across micro-mobility, Growth in renewables, grid electric / alternative fuel vehicles modernization, new technologies such and autonomous driving as carbon
Slide 21: Investments with Attractive Long Term Growth Prospects
Investments with Attractive Long Term Growth Prospects to Enhance Value Forward Looking EV/EBITDA Energy & Mobility Solutions Material Technologies Digital Technologies Climate Technologies 19.4 ~3x ~2x 10.6 ~2x ~3x 10.5 8.5 6.4 4.5 4.9 2.4 Conventional Renewables Conventional Advanced Conventional
Slide 22: Diversified and Disciplined Decision-Making Organization
Diversified and Disciplined Decision-Making Organization Key Policies Responsible Investment Women in Management Capital Allocation Framework 9 Members Sabancı Holding Sabancı Holding 41% 3 Independent Board of Directors vs. EU Average of 35% 44% Woman CEO Code of Business Ethics Woman Chair Anti-Br
Slide 23: Top-notch performance in ESG Indices
LOCAL RANK GLOBAL RANK Top-notch performance in ESG Indices CLIMATE CHANGE Among Local WATER SECURITY and Global Peers 5 Sabancı Holding has been awarded with six diamonds by EFQM and won special award of Outstanding Achievement for Sustainability Disclaimer: The use by Sabancı Holding of any MCSI E
Slide 24: Proactive and Transparent Investor Relations
Proactive and Among Emerging EMEA Industrials 3 Years in a Row Transparent Investor Relations Best Best Best Company CEO CFO Board Most Honored Company in Emerging EMEA Industrials Best Team Best Corporate Best IR in Investor in Investor Program Relations Relations 2024 Grand Prix Grand Prix Best Te
Slide 25: Disciplined Leadership with Extensive Expertise
Disciplined Leadership with Extensive Expertise Cenk ALPER Board Member & CEO Burak ORHUN Gökhan EYİGÜN Max SPEUR Strategy & Business Material Technologies Digital Development Cevdet ALEMDAR Hakan BİNBAŞGİL Orhun KÖSTEM Mobility Solutions Banking Finance Filiz Karagül TÜZÜN Haluk DİNÇER Şebnem ÖNDER
Slide 26: Local Strength, Global Reach: Shaping Energy's Future
Local Strength, Global Reach: Shaping Energy’s Future Kıvanç ZAİMLER Energy
Slide 27: Key Takeaways
Key Takeaways Leading energy Driving growth through Focus on earnings growth transformation through renewable energy generation, paired with stable electrification, advanced distribution networks, digital profitability and attractive energy and climate services, e-mobility and dividends, while provi
Slide 28: Leading Energy Transformation in Türkiye
Leading Energy Transformation in Türkiye, Exploring New Technologies Globally Distribution & Retail Generation & Trade Generation & Ventures ๏ Electricity distribution and retail services ๏ Multiple generation technologies and digital ๏ Renewable electricity generation in with ~25% market share comp
Slide 29: Leveraging Our Large-Scale Activities in Türkiye, Expanding Internationally
Leveraging Our Large-Scale Activities in Türkiye, Expanding Internationally Leveraging Core ๏ Core competencies in skills, Strategic Agility and ๏ Navigating in a growing, people, resources highly competitive and Competencies Capitalizing Existing liberal market for Market Market Opportunities ๏ Lea
Slide 30: Navigating Volatility with a Strong Growth Potential
Navigating Volatility with a Strong Growth Potential Enerjisa Enerji: Regulated Asset Base (TL bn) Dividends Paid to Sabancı Holding (USD mn) and and Network Connections (mn) Combined EBITDA (USD mn) 12.5 19.9 34.3 56.2 60 170 11.2 50 1,600 200 12.0 9.4 40 1,500 11.5 8.4 30 1,400 84 63 150 3.9 5.3 6
Slide 31: Demonstrated Success across the Entire Value Chain
Demonstrated YEKA Wind Project Cutlass II & Oriana SPPs ๏ 272 MW operational solar power plant and ๏ ~ USD1.3bn investment Success across the ๏ 9 active construction sites ๏ One of the largest wind power projects ๏ 232 MW is underway with USD650mn total investment Securing long term revenue with PPA
Slide 32: Leading Energy Transformation, with High Growth and Return
Leading Energy Transformation, with High Growth and Return GROWTH VALUE ๏ Renewable energy generation in Türkiye ๏ Earnings growth paired with stable and U.S. profitability ๏ Expansion of commodity trade and digital ๏ Attractive dividend services businesses ๏ Value enhancement and realization ๏ Dist
Slide 33: Financial Powerhouse to Capture Sustainable Profitability
Financial Powerhouse to Capture Sustainable Profitability Hakan BİNBAŞGİL Banking
Slide 34: Key Takeaways
Key Takeaways Türkiye’s key Banking sector’s Akbank’s strong growth drivers operating environment strategic positioning Young demographics, Policy squeeze limits short- Full scale financial rising female labor force term profitability; expected powerhouse with robust participation, strong disinflati
Slide 35: Türkiye's Banking Sector: Untapped Potential Remains Intact
Türkiye’s Banking Sector: Untapped Potential ๏ A growing, young, and dynamic population forms a strong labor pool, continuously driving domestic demand ๏ Low levels of public and household debt contribute to Remains Intact financial stability, even in turbulent times ๏ Lower household indebtedness c
Slide 36: Akbank: Well-positioned as a Full Scale Financial Powerhouse
Akbank: Well-positioned Akbank Group’s European flagship, with a robust CAR(1) exceeding 36%(4) , as a Full Scale Financial Banking is strongly positioned for substantial growth in the years to come Powerhouse Net lease receivables market share of 11.5%(5) Leasing Leader in corporate bond issuances(
Slide 37: Akbank's Bifocal Strategy
Akbank’s Bifocal Strategy Running the Bank Crafting the future ๏ Strong customer acquisition ๏ Superior customer experience ๏ Effective asset liability management ๏ Advanced analytics & excellence in digital ๏ Risk & return focused sustainable growth ๏ Innovative culture empowering new ๏ Robust digi
Slide 38: Digital Migration Strengthens Customer Driven Recurring Revenue Base
Digital Migration Strengthens In H1 2024 Customer Driven Recurring Revenue Base 33x x2 Monthly avg mobile login Digital customer x-sell 2/3 of frequency per customer compared to non-digital new to bank customer Active(1) Digital Customer acquisition via DoB(2) 68% 83% (mn) Credit Cards sold through
Slide 39: Sustaining Top Efficiency Among Peers
Sustaining Top Efficiency Among Peers Revenue (1)(2) / Employee (TL mn) Fee(2) / Employee 8.5 4.9 (TL mn) H1 2024 H1 2024 CIR(3): Ambition remains intact Loan / Employee at mid to low Deposit / Employee 89.1 (TL mn) 30%’s 112.7 (TL mn) H1 2024 H1 2024 Akbank Peer 1 Peer 2 Peer 3 39 (1) Swap adj. NII
Slide 40: Well-Positioned for Sustainable Growth & Profitability
Well-Positioned for Sustainable Growth & Profitability ๏ Superior track record in customer acquisition, revenue and market share gains, and efficiency ๏ Competitive advantage stemming from outstanding talent, digital & AI capabilities ๏ Solid capital buffers, creating a substantial advantage for fur
Slide 41: Next-Gen Insurance: Digital & Customer-Centric
Next-Gen Insurance: Digital & Customer-Centric Haluk DİNÇER Financial Services
Slide 42: Key Takeaways
Key Takeaways Complementary portfolio of Strong basis and clear Well-positioned with sector companies to become the strategy for capturing leading capabilities to be the leading insurance group in a additional profitable growth next-gen 360° insurance fast-growing market with one- opportunities acro
Slide 43: Strong Portfolio Companies with One-Stop-Shop Offerings
Strong Portfolio Companies with One-Stop-Shop Offerings in Life, Non-life and Health Businesses Life & Pension Non-Life Health 5 Years CAGR 1st 58% 60+ 2.6 million Green-field competence center In Private Pension AuM focusing on health (+2pp vs. market) Years Experience Customer Technology, organiza
Slide 44: Solid Financial Track Record
Solid Financial Track Record Life market share Pension market share(1) Net Profit (USD mn) Life & 2019 H1 2024 H1 2024 80 Pension 8.2% 14.5% 19.7% 45 5th 1st 1st 2019 2023 GWP (TL mn) Financial Income (TL mn) G&A/GWP Ratio 27,299 Non-Life x6 2,917 2023 4,474 476 3.9% 1st in private 2019 2023 2019 20
Slide 45: Clear Strategy for Capturing Additional Profitable Growth
Clear Strategy for Capturing Additional Profitable Growth Opportunities as a Group Life & Pension Non-Life Health “Synergies will be maximized through a single and common vision with centralized governance structure and harmonized back-offices that drive operational excellence” 45
Slide 46: Becoming Leading Next-Gen 360° Insurance Services Provider
Well-Positioned with Sector Leading Capabilities, to Become Leading Next-Gen 360° Insurance Services Provider PROTECT AND GROW TRANSFORM Omni-channel Life & Pension ๏ ๏ Partnership with Akbank Unique DSF channel with ~1.000 MP Positioned to lead profitability ๏ Extensive Agency network, ~#4.000 Digi
Slide 47: Break
Sustainable, Digital, Scalable Break
Slide 48: Empowering Digital Growth
Empowering Digital Growth Max SPEUR Digital
Slide 49: Key Takeaways
Key Takeaways Aiming to build a global Expanding our cloud services Enabling and supporting digital hyperscale and in Türkiye and Europe and journeys with best-in-class wholesale co-location invest in AI platform hybrid & multi cloud solutions data center platform infrastructure capabilities and tec
Slide 50: Digital SBU Focus Areas
Digital Digital SBU established in March 2023 aligned with the Sabancı Group’s commitment to invest in digital space positioning as a major SBU Focus Areas business pillar for growth Data Center Hybrid Cloud Retail Electronics ๏ Hyperscale/ wholesale grade ๏ Multi – hybrid Cloud focus ๏ Having Türki
Slide 51: Designing a Digital-First Retail Experience
Designing a Digital-First Retail Experience Around the Next-Gen Consumer Türkiye’s Most Widespread and Reliable Technology Retail Company ๏ Having successfully transformed since 2019 from a traditional retailer to “Phygital” and integrating 64 178 Cities Stores(1) digital technologies both online an
Slide 52: Strong Demand for Cloud, AI & Data centers
๏ Strong growth in global demand, yet required supply is Strong Demand lacking for Cloud, AI & Data centers ๏ Surge in cloud and AI demand requires increased capacity Demand vs. supply imbalance in the global data center market ๏ Hyper-scalers and large-scale enterprise customers pursue long term st
Slide 53: Digital and Energy Synergies
Digital and Energy Synergies Data center and energy businesses have major similarities that can unlock intra-group synergies and enable know-how transfer Project management & ๏ Both businesses are centered around project management and financing financing focus ๏ Our experiences from energy business
Slide 54: Investments in the Digital Space
Investments in the Investing in all layers of digital infrastructure with our portfolio companies to support our customers in their digital journey Digital Space Data center Hybrid cloud Platforms and services Europe United States ๏ Fastest growing cloud company in the ๏ One of the leading companies
Slide 55: Driving Mobility Forward: Innovation and Global Reach
Driving Mobility Forward: Innovation and Global Reach Cevdet ALEMDAR Mobility Solutions
Slide 56: Key Takeaways
Key Takeaways Solid Foundation based Robust growth plan for the The preliminary stages of on Excellent decarbonizing, digital New our plan have proven to be Performance in markets World, while protecting and successful and operations extending the foundation 56
Slide 57: Solid Foundation
Over With globally Solid Foundation 50 years leading partners Tires and Tire Centric Solutions Access to global markets ๏ >6000 Sales Points globally, in 80+ countries ๏ Tire Market Leader in Türkiye and 5 Export Countries USD892mn USD1,045mn ๏ Substantial CV market share1 in US, France, Spain, Lith
Slide 58: Protecting and Extending the Foundation
Protecting and Extending the Foundation with Premium New Products and Operational Excellence Protect and Extend 2023 Q1 2024 Q2 2024 2% 14% 19% EV-Ready Sales to Total Sales Ratio Tires Tires for New Energy Vehicles Continue To Invest in Technology in Aksaray and İzmit 22% 18% 19% Strategic Mix 17%
Slide 59: Robust Value-Addition Plan for the Decarbonized, Digitalized New World
Following a Robust Value-Addition Plan, For the Decarbonized, Digitalized New World Protect and Extend Transform Tires Integrated Manufacturing Solutions Hub ๏ End-to-end Mobility Solutions ๏ Electrification of Mobility ๏ From Tracking to Fast Fit Services ๏ Factory of New Energy Vehicles Commercial
Slide 60: Our plan to add value has produced initial phases of success
Our plan to add value in a transformative way, has produced initial phases of success Integrated Solutions Integrated Solutions Manufacturing Hub Arvento is currently tracking Manufacturing >800,000 vehicles Fernhay 4-Wheel Cargo Bikes In Pratik Stores, we serve to Manufacturing Electrified Hub >375
Slide 61: Business Excellence
Integrated Manufacturing Hub End-to-End of New Energy Mobility Solutions Vehicles Business Excellence in Commercial Vehicles and Tires 61
Slide 62: Transforming Materials for a Sustainable Future
Transforming Materials for a Sustainable Future Burak ORHUN Material Technologies
Slide 63: Key Takeaways
Key Takeaways Well Diversified and Strong Track Record of Well-positioned to Synergistic Portfolio of Execution and Profitable Benefit from Materials Businesses with Strong Growth with Significant Value Transition – Next Net and Established Creation Opportunities Zero Frontier Leading Positions Ahea
Slide 64: Material Technologies SBU: Expanding into Advanced Materials
Material Construction Composite Technologies SBU: Reinforcement (Epoxies/Carbon Fiber/Ceramic Fiber) Expanding into ๏ Innovative reinforcement ๏ Aerospace and automotive materials industry ๏ Fiber reinforcement for concrete ๏ US, Italy and Türkiye Advanced Materials and cement-based mixes ๏ B787 Dre
Slide 65: Strong Track Record Of Execution and Profitable Growth
Strong Track Record Of Summary of 2019-2023 Value-Up/Cost-Down Execution and Profitable Growth ๏ Global expansion in White Cement via Bunol Plant in Spain EBITDA Development (USD mn) ๏ Expansion into advanced materials through Composites in US and İtaly, and CAC capacity expansion in Türkiye 373 317
Slide 66: Materials are the Next Net-Zero Frontier
Materials are the ๏ Energy and materials are strongly Next Net-Zero Frontier interconnected, and the world will also have to go through a materials transition to deliver on its net-zero ambitions Sustainability Net Zero Transition Advanced Materials Market (USD bn) Energy Mobility Transition Transit
Slide 67: Material Technologies SBU Transformation
Material Technologies SBU Transformation Material MaterialTechnologies SBU Technologies SBU Tire cord Advanced Materials Cement + Concrete 10% Advanced Materials Revenue Share ๏ Continue to Maximize Value in Tire 40% Cord and Cement + Concrete ๏ Seize M&A opportunities to scale into 90% Advanced Mat
Slide 68: Path to Enhance Value
Path to Enhance Value Orhun KÖSTEM Finance
Slide 69: A Clear Capital Allocation Framework
A Clear Capital Allocation Framework Providing Long Term Visibility Grow and Protect the Core CT SU Sustainability / Net Zero Transition T E NET Z STA O ER I ๏ Strengthen our market leading positions PR ORE O ๏ Focus on selective and scalable NA TRA industries with higher multiples TH & ๏ Customer f
Slide 70: Our Roadmap to Enhance Value
Our Roadmap to Enhance Value 2024 H1 FIGURES 2024-2029 GUIDANCE NET ASSET VALUE (USD)(1) USD10bn USD20bn WACC ADJUSTED RETURN(2) +20bps +120-150bps CAPEX / REVENUES(3) 11 % 15 %- 20 % FX SHARE in REVENUES(4) 19 % 30 % + NET DEBT / EBITDA(3) 1.3 x ≤2.0 x Decreasing Scope 1 and 2 GHG(5) 20% by 2023 (5
Slide 71: More Balanced NAV with Solid Growth and Higher Return
More Balanced NAV with a 2029 TARGET NAV Solid Growth and Higher Return Energy & Climate Tech. 2019 NAV Current NAV 33% 19% Digital Tech. 1% 14% Material Tech. 13% 18% 2% & Mobility Solutions USD20bn USD6bn USD10bn 5% 53% 42% Banking & Financial Services WACC Adjusted Return: +20 bps WACC Adjusted R
Slide 72: Why Invest in Sabancı?
Why Invest in Sabancı? Best proxy for Türkiye with an expansive global vision Leveraging our DNA and expertise to dynamically manage a portfolio for growth and competitive advantage Ample balance sheet capacity to accelerate portfolio transformation with scalable investments Pioneering in climate tr
Slide 73: Q&A
Sustainable, Digital, Scalable Q&A
Slide 74: Why Invest in Sabancı?
Why Invest in Sabancı? Best proxy for Türkiye with an expansive global vision Leveraging our DNA and expertise to dynamically manage a portfolio for growth and competitive advantage Ample balance sheet capacity to accelerate portfolio transformation with scalable investments Pioneering in climate tr
Hacı Ömer Sabancı Holding A.Ş. — Investor Day (October 2024) on 6ix