Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — H1 2022 Earnings Presentation
52 slides from Haci Omer Sabanci Holding A.s's earnings presentation, September 2022
Slide 1: Investor Presentation September 2022
INVESTOR PRESENTATION September 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: Capital Allocation Sustainability Operational & Financial
01 Capital Allocation 02 Sustainability 03 Operational & Financial Performance 04 Strategic Business Units & Digital 05 Holding Value Add 06 Mid-Term Guidance 3
Slide 4: Capital Allocation
01 Capital Allocation 4
Slide 5: Doubling CAPEX to accelerate both organic and inorganic growth
Capital Allocation Doubling CAPEX to accelerate both organic and inorganic growth… DOUBLING CAPEX | 25/75 SPLIT BETWEEN CORE & NEW INVESTMENTS Grow and Protect the Core Invest in New Platforms ➲ Strengthen our market leading positions ➲ Increasing share of new economy: ➲ Profitable growth driven by
Slide 6: A coherent strategic plan on core and new platforms
Capital Allocation …with a coherent strategic plan on core and new platforms… We unite Turkey and the World Purpose for a sustainable life with leading enterprises Strategic Innovate to provide wider Transform into an agile Pioneer in Lead in digital & Adapt to direction customer experience global /
Slide 7: Successful delivery on our strategic initiatives
Capital Allocation …and successful delivery on our strategic initiatives Dynamic Portfolio Management Turkey’s 1st Green Hydrogen: Capacity Increase in HMLS Polyester Yarn: Network Optimization in Building Production and use of green hydrogen Kordsa’s investment at USD9.8mn, Materials Business at En
Slide 8: Sustainability
Sustainability al & Financial nce 4 3
Slide 9: Prioritizing ESG to transform our portfolio for the future
Sustainability Sustainability Prioritizing ESG to transform our portfolio for the future… we transform the core …and grow in sustainable platforms Among our growth platforms… TL 7.7 BN1 51%2 43.1GWh SDG-linked net sales revenues SDG-oriented R&D energy recovery 80%3 23% 2x Telematics Digitalization
Slide 10: Improving our ESG performance
Capital Mid-term Sustainability Allocation Guidance … while improving our ESG performance 01 02 03 04 REFINITIV 2021 MSCI 2021 CDP Climate 2022 GEI 2022 Refinitiv 2 notches increase 2 notches increase Only Turkish Hold Co. Excellent Performance in 9 Months Management Level Bloomberg Out of 50+ Compa
Slide 11: Improving Corporate Governance Framework
Sustainability Improving Corporate Governance Framework Shareholder Structure Board Members 9 BoD members (3 Independent) 56% non-family, 44% women Sabancı Family 50.9% Early Detection of Risk Committee Corporate Governance, Nomination and Remuneration Committee Assumes some of the roles of the Port
Slide 12: Sustainability Roadmap
Sustainability Sustainability Roadmap Act on Maximize Foster Sustainable 01 Climate Emergency 02 Positive Impact 03 Business Models Become 'Net Zero Emissions’ and Create shared value for all Develop innovative products, services 'Zero Waste' by 2050 at the latest stakeholders, with social programs
Slide 13: Adapting to the Future of Work
Sustainability Adapting to the Future of Work Smart Work Physical and Mental Health Flexible & High Performance New Talent and Skill Paradigm TL 200 MN Workforce Planned Investment Within 2 years 1,500+ Planned Actions for 2021-2023 42% completed in 2021 Purpose Driven Digital & Agile Leadership Org
Slide 14: Operational & Financial Performance
03 Operational & Financial Performance 14
Slide 15: Solid global footprint & strong global partnerships
Operational & Financial Performance Solid global footprint & strong global partnerships UK Hungary Turkey 7 Partnerships Germany Netherlands Spain 14 Countries USA Israel France Thailand Brazil Italy Malta Indonesia 60K+ Employment 15
Slide 16: Complementary business units with increasing share of non-bank
Operational & Financial Performance Complementary business units with increasing share of non-bank NAV* Breakdown Non-Bank Bank Retail Bank 7% Bank 32% ROE: ROE: 42% 47.1% Energy 12.1% 14% Bank Consolidated 38% ROE: Building Listed NAV: Consolidated 33.6% Materials USD 2.7 bn ROE: 10.1% 9% Non-Bank
Slide 17: Accelerated topline growth and profitability with improved earnings quality
Operational & Financial Performance Accelerated topline growth and profitability with improved earnings quality Combined Revenue* (TL Bn) Combined EBITDA* (TL Bn) Consolidated Net Income* (TL Bn) Non-bank** Bank Non-bank** Bank Non-bank** Bank CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 23% 165% 23% 242% 29% 3
Slide 18: Higher dividend payments & healthy balance sheet
Operational & Financial Higher dividend payments & healthy balance sheet maintained despite slowdown Performance in cash flow generation Operational Cash Flow, Combined Non-bank* Combined Net Financial Debt to Dividend Performance (TL Bn) Non-Bank EBITDA* Dividends Paid (TL Mn) Dividends Received (T
Slide 19: Resilient against FX volatility
Operational & Financial Performance Resilient against FX volatility Holding Only - Net cash position (TL bn) Consolidated long FX position (USD mn, excluding Bank) Y/Y: 32% 355 318 308 5.5 268 255 155 2.6 2.5 1.7 1.8 1.7 99 1.1 2017 2018 2019 2020 2021 H1 2021 H1 2022 2017 2018 2019 2020 2021 H1 202
Slide 20: Strategic Business Units & Digital
04 Strategic Business Units & Digital 20
Slide 21: Energy SBU: Well Positioned & Strong Leader in Turkish Energy Industry
Energy SBU Well Positioned & Strong Leader in Turkish Energy Industry AYEDAŞ Distribution & Retail 14 6 21+ m BAŞKENT Ankara (Başkent) Cities Metropoles Population Adana 10.4 m 35.8 TWh 11.8 m 4 HEPP Gaziantep Customers 2021 Trade Volume Connections TOROSLAR 6 HEPP TL18.7 bn 315,242 km RAB Network E
Slide 22: Energy SBU Financial Performance
Energy SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Bn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 30% 250% 26% 134% 81% 159% 23% 23% 22% 21% 22% 18% 14% 62.1 8.9 47.0 8.7 4.3 4.3 6.8 5.9 31.1 5.3 3.0 26.0 23.6 2.4 3.5 3.8 17.7 1.7 16.5
Slide 23: Industrials SBU: Global Players in Mobility Market
Industrials SBU Global Players in Mobility Market Tire & Mobility Solutions Germany 1/3 CDP A- 37% of every Passenger Climate Change Exports in Car Tire in Turkey Category Revenue 95 13.5 Mn 7,300 USA Turkey Otopratik & Propratik Total Tire Point of Sales Mobility Service Shops Production Capacity i
Slide 24: Global Players in Mobility Market
Industrials SBU Global Players in Mobility Market Expansion in Composites Growth in New Mobility Solutions Microtex: Arvento: ▪ Acquired by Kordsa ▪ Acquired by Brisa ▪ Deal Size: EUR24.6mn ▪ Deal Size: ~EUR22mn* ▪ Product and geographic diversification in ▪ Become a sustainable mobility solutions c
Slide 25: Industrials SBU Financial Performance
Industrials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Bn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 22% 139% 30% 93% 34% 95% 22% 23% 19% 19% 17% 17% 15% 14.6 14.8 3.1 2.7 2,023 9.7 1,837 8.8 8.7 6.6 1.6 1.6 6.2 1.4 1.4 942 1.1 776 63
Slide 26: Building Materials SBU: Leader in Turkish Cement Industry
Building Materials SBU Leader in Turkish Cement Industry With An Ambition For International Expansion Turkey’s Leading Exporter Germany Netherlands 3 >3.5 mn ton* 2 Integrated plants Export Volume Ports Spain 9.2 mn ton 35% 94% USA Turkey Cement capacity FX in Revenues Capacity Utilization Italy Lea
Slide 27: Building Materials SBU Financial Performance
Building Materials SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 27% 191% 12% 125% 14% 138% 23% 21% 20% 18% 15% 16% 13% 794 8.8 7.9 1,374 522 1,060 764 313 334 4.2 724 680 3.6 612 246 226 3.4
Slide 28: Financial Services SBU: Non-Life and Life Insurance
Financial Services SBU Well Positioned in Both Non-Life and Life Insurance Markets Aksigorta Gross Written Premiums Trend (bn TL) Non-Life Insurance CAGR: Y/Y: 28% 84% Leader in 3,600+ 7.5% # of Agencies Market Share 7.0 4.5 5.3 5.5 TL 5.5 bn TL 4.5 bn 3.4 3.0 2.6 GWP** AuM*** 2017 2018 2019 2020 20
Slide 29: Financial Services SBU Financial Performance
Financial Services SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: CAGR: Y/Y: 31% 84% 39% -26% 37% 13% 9.0 1.194 999 999 7.1 6.6 734 5.5 697 569 4.0 540 468 3.9 510 414 414 3.1 399 324 281 2017 2018 2019 2020 2021 H1 2021
Slide 30: Retail SBU: Accelerated Growth While Maintaining Operating Profitability
Retail SBU Accelerated Growth While Maintaining Operating Profitability Food & Non-Food Retail 40 797 514k sqm Cities Stores Sales Area 148 mn* 11,154 Annual Visitors Employees Food Retail E-Commerce Sales Electronic Retail GMV Comparable EBITDA*** Margin (TL mn) (TL mn) by segment Technology Retail
Slide 31: Retail SBU Financial Performance
Retail SBU Financial Performance Combined Revenue (TL Bn) Combined EBITDA* (TL Mn) & EBITDA* Margin Combined Net Income* (TL Mn) CAGR: Y/Y: CAGR: Y/Y: 21% 91% 43% 165% 6% 5% 5% 4% 3% 3% 3% 2017 2018 2019 2020 2021 H1 2021 H1 2022 16.9 927 37 13.7 13.5 701 640 -81 10.5 -159 8.7 -198 7.9 -220 7.2 341
Slide 32: Banking: 2022 Leveraging our strength while carrying out priorities
Banking 2022: Leveraging our strength while carrying out priorities 2022 Previous 2022 Revised H1 2022 2022 Guidance Key Drivers TL Loan Growth ~30% > 50% 39.4% • Our robust 18% CAR(3) & 14.7% Tier 1(3) creates ammunition for sustainable profitable growth while providing resilience FX Loan Growth (i
Slide 33: Banking Financial Performance
Financial Performance Financial Performance Capital Adequacy Ratio* & Tier 1 Ratio* Combined Net Income** & Reported ROE Total Asset & Reported ROA (TL bn, %) (TL bn, %) H1 2022 H1 2022 Excess CAGR: Y/Y: CAGR: Y/Y: Excess 22% Capital*: Tier 1*: 22% 412% 82% TL 38.9 bn TL 30.4 bn 47.1% 16.9% 16.9% 16
Slide 34: Creation of a global digital business with acquisitions
Digital Creation of a global digital business with acquisitions Dx Technology Services and Investment BV (DxBV), a wholly owned subsidiary of Sabancı Holding and established in the Netherlands, will undertake Sabancı Group’s investments in digital businesses. Cyber Security Digital Marketing Radiflo
Slide 35: Invest in rapidly growing digital businesses and expand beyond Turkey
Digital Invest in rapidly growing digital businesses and expand beyond Turkey Before Transactions After Transactions Sabancı Digital Business Consumer Marketing Cyber Security Cloud & Digital Product & Technology Business Business Business Services Product & Services Software Develop ment Software A
Slide 36: Holding Value Add
OQBaAncI Strategic Busine & Digital Holding Value Add Mid-Term Guidance Bal --
Slide 37: Sabancı Ventures: Focus on Growth, Technology and Innovation
Holding Holding Value Add Sabancı Ventures: Focus on Growth, Technology and Innovation Value Add Key Highlights Purpose ➲ To gain early and economical access to new technological developments /markets/ innovations and to create agile and technology-driven growth platforms Investment Strategy ➲ Seed,
Slide 38: Leveraging Synergies Within Sabancı Ecosystem
Holding Holding Value Value Add Add Leveraging Synergies Within Sabancı Ecosystem The first, fastest and largest E-charge station network in Turkey Solar Power Plants within the Group in Cooperation with Enerjisa Enerji 60K m2 Ground Area 3,370 kWp 7,479 Solar Panels Solar Production Capacity Eşarj
Slide 39: Leveraging Synergies Within Sabancı Ecosystem
Holding Value Add Leveraging Synergies Within Sabancı Ecosystem Strong collaboration in Bancassurance Kordsa & Cement Companies Cooperation ➲ Exclusive bancassurance agreement with Akbank ➲ Presence in all physical and digital channels ➲ Joint vision in digital with Akbank ➲ Effective governance mod
Slide 40: Management Incentives
Holding Value Add Management Incentives Short Term (1-Year) Financial KPIs* Total Cash Distribution Model (%) ➲ Net Sales ➲ Net Financial Debt ➲ Rtsr** 75 ➲ EBITDA ➲ Working Capital Long Term ➲ Free Cash Flow ➲ Market Share (maximum) Capital distribution 50 and value Long Term Short Term (1-Year) No
Slide 41: Mid-Term Guidance
06 Mid-Term Guidance 41
Slide 42: Future Growth Underpinned By Capital Return and Sustainability
Mid-term Guidance 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% S
Slide 43: Appendix
APPENDIX 43
Slide 44: Portfolio in Continuous Evolution
Appendix / Portfolio in Continuous Evolution 1940s - 1960s 1970s - 2000s 2000s - 2010s Present and Future Early Growth Phase - Proliferation of Global Refocus Portfolio Growth and Transformation Initial Diversification Partnerships-Conglomeration JVs formed with Aviva and Ageas Kordsa’s acquisition
Slide 45: Executive Leadership
Appendix / Executive Leadership Orhun Köstem – Finance Gökhan Eyigün - Strategy & Business During his 28 years of career in various managerial Development positions including Investor Relations & Corporate Joined Sabancı Group in 2007 at Strategy and Finance Director and CCI CFO in Anadolu Group, Bu
Slide 46: Dividend Performance
Appendix/ Dividend Performance TL mn 2017 2018 2019 2020 2021 2022 Akbank 367 652 - - 255 494 Akçansa 94 51 61 18 42 36 Aksigorta - 40 73 73 110 - Agesa 9 19 40 64 64 - Brisa - - - 12 107 270 Carrefoursa - - - - - - Çimsa 95 33 - - - 109 Kordsa 41 48 48 35 - 114 Teknosa - - - - - - Yünsa - - 3 - - -
Slide 47: Sabancı Holding Discount to NAV & Cash
Appendix / Sabancı Holding Discount to NAV & Cash USDmn June 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 2,503 1,020 28.6% 1,144 30.8% June 2022 December 2021 December 2020 Enerjisa Enerji 40% M
Slide 48: Overview of Corporate Structure
Appendix / Overview of Corporate Structure ENERGY RETAIL BANKING & FINANCIAL INDUSTRIALS DIGITAL BUILDING MATERIALS SERVICES SAHOL: 40.0% SAHOL: 57.1% SAHOL: 39.7% SAHOL: 40.7% SAHOL: 71.1% SAHOL: 49.0% E.ON: 40.0% Carrefour: 32.2% Heidelberg Cement: 39.7% Other: 8.4% Free Float: 28.9% DxBV: 51.0% F
Slide 49: Reporting
Appendix / Reporting Combined Net Sales EBITDA Net income Subsidiaries line by line line by line line by line Joint Ventures line by line line by line line by line Consolidated Net Sales EBITDA Net income Subsidiaries line by line line by line line by line Joint Ventures Not included Proportion of o
Slide 50: Financials in detail
Appendix / Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change Q2 2021 Q2 2022 Change H1 2021 H1 2022 Change TOTAL* 32,148 92,215 187% 61,493 162,867 165% 6,850 26,049
Slide 51: 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 52: 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 ➢ Zeynep BEKTAŞ Sustainability Specialist E-mail:
Hacı Ömer Sabancı Holding A.Ş. — H1 2022 Earnings Presentation on 6ix