Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q3 2014 Earnings Presentation
33 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2014
Slide 1: 2014 Third Quarter Earnings Release
1 2014 Third Quarter Earnings Release
Slide 2: Disclaimer Statement
Disclaimer Statement 2 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
Slide 3: 2014 Expectations
2014 Expectations 3 2013 2014(E) 2015(E) GDP Growth,% 4.1 3.0-3.5 3.0-3.5 Increase in CPI(%) 7.4 9.3 7.6 USD/TL, Year end 2.13 2.27 2.45 CA Deficit/GDP, % 8.0 5.8 5.2 Moderate Growth Sustained in 2015
Slide 4: 2014 - Recent Developments
2014 - Recent Developments 4 Insurance • Bookbuilding completed in Avivasa IPO. Shares to start trading on November 13th Energy • Continued impact of hydrology on operational profitability; 187 MTL EBITDA effect in 9M 2014. • Continued proactive management of FX exposure through forward transactions
Slide 5: Net Sales
Net Sales 5 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2013 Q3 2014 % Change 9M 2013 9M 2014 % Change TOTAL 8.875 11.162 26% 26.178 33.144 27% BANK 3.495 4.286 23% 10.965 12.648 15% NON-BANK 5.380 6.876 28% 15.213 20.496 35% ENERGY 1.641 2.958 80% 4.173 8.210 97% ENERGY- Adjuste
Slide 6: EBITDA (Excluding Non Operational Items)
EBITDA (Excluding Non Operational Items) 6 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2013 Q3 2014 % Change 9M 2013 9M 2014 % Change TOTAL 1.497 1.823 22% 5.854 5.882 0% BANK 835 1.104 32% 3.594 3.137 -13% NON-BANK 662 719 9% 2.260 2.745 21% ENERGY 151 230 52% 487 687 41% ENERGY
Slide 7: Results Snapshot
Results Snapshot 7 5.854 5.882 2.260 2.745 o EBITDA improvement through 1.823 COMBINED 1.497 strong performance in EBITDA* 662 719 3.594 3.137 banking&cement 835 1.104 (MILLION TL) Q3 2013 Q3 2014 9M 2013 9M 2014 Bank Non Bank 1.527 1.389 1.546 o Bottom line affected by: 157 399 419 419 • Record pro
Slide 8: Non-bank Results- Q3 2014
Non-bank Results- Q3 2014 8 MILLION TL Q3 2013 Q3 2014 % Change 9M 2013 9M 2014 % Change CONSOLIDATED NET INCOME* 154 129 -16% 399 419 5% ENERGY -40 -40 N.M -31 -52 N.M ENERGY- Adjusted for comparison** -43 -7 N.M -34 105 N.M RETAIL 13 3 -74% -10 -5 N.M CEMENT 48 58 21% 92 153 67% INSURANCE 18 7 -61
Slide 9: FX Position and Leverage
FX Position and Leverage 9 MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2013 SEP 30, 2014 ENERGY* -420 -433 INDUSTRIALS 41 4 CEMENT 4 7 RETAIL -5 -5 HOLDING, INSURANCE & OTHER 20 22 TOTAL CONSOLIDATED FX POSITION AFFECTING PL -360 -405 COMBINED NET DEBT (excl. Bank) M€ DEC 31, 2
Slide 10: Energy
Energy 10 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2013 Q3 2014 % Change Q3 2013 Q3 2014 % Change SALES 1.641 2.958 80% - - N.M EBITDA 151 230 52% -40 -40 N.M NET INCOME -80 -80 N.M -40 -40 N.M EBITDA MARGIN 9,2% 7,8% MILLION TL 9M 2013
Slide 11: Energy - Excluding Acquisition Impact
Energy - Excluding Acquisition Impact 11 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2013 Q3 2014 % Change Q3 2013 Q3 2014 % Change SALES 1.316 1.418 8% - - N.M EBITDA 133 151 13% -43 -7 N.M NET INCOME -87 -15 N.M -43 -7 N.M EBITDA MARGIN 1
Slide 12: Enerjisa
Enerjisa 12 Demand (TWh) Strong demand growth in first nine months (4.6%) and Q3 2014 (6.3%) due to industrial production.. Average Temperatures ..and temperatures in line with last year’s levels, but higher in August Water Inflow - Turkey Drought continues to affect generation mix.
Slide 13: Enerjisa Leverage
Enerjisa Leverage 13 Enerjisa Loans Original Currency Total TL Million TL EUR Equivalent Generation 326 1.893 5.801 Distribution 5.002 90 5.262 Total 5.328 1.983 11.063 Original Currency Total TL Million TL EUR Equivalent Fixed 1.788 1.120 5.026 Floating 1.188 863 3.685 PPI Indexed 2.352 2.352 Total
Slide 14: Enerjisa Balance Sheet
Enerjisa Balance Sheet 14 MILLION TL 2013 YE 9M 2014 % Change Cash 865 300 -65% Trade Receivables 1.749 1.989 14% Other Current Assets 743 897 21% TOTAL CURRENT ASSETS 3.357 3.187 -5% Fixed Assets 15.109 15.458 2% Other Non Current Assets 4.921 5.270 7% TOTAL NONCURRENT ASSETS 20.030 20.728 3% TOTAL
Slide 15: ENERJISA Financing Cost Drivers
ENERJISA Financing Cost Drivers 15 Stable Euro rate positively impacts leverage
Slide 16: Retail
Retail 16 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2013 Q3 2014 % Change Q3 2013 Q3 2014 % Change SALES 1.465 1.607 10% 1.462 1.605 10% EBITDA* 59 60 1% 60 60 -1% NET INCOME* 22 6 -72% 13 3 -74% EBITDA MARGIN 4,0% 3,7% MILLION TL 9M 2013
Slide 17: Carrefoursa
Carrefoursa 17 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2013 Q3 2014 % Change Q3 2013 Q3 2014 % Change SALES 681 831 22% 681 831 22% EBITDA* 17 36 105% 17 36 105% NET INCOME* 1 5 328% 1 2 328% EBITDA MARGIN 2,6% 4,3% MILLION TL 9M 2013 9
Slide 18: Key Achievements in Carrefoursa
Key Achievements in Carrefoursa 18 • Increased traffic through clarification of store formats Number of stores by format • Focus on strategic priorities: (fresh produce display and (as of September 30, 2014) # advertisement) in category management. • Direct sourcing from farmers through the «From th
Slide 19: Cement
Cement 19 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2013 Q3 2014 % Change Q3 2013 Q3 2014 % Change SALES 598 656 10% 270 289 7% EBITDA 166 205 23% 98 123 25% NET INCOME 105 128 22% 48 58 21% EBITDA MARGIN 27,8% 31,2% MILLION TL 9M 2013 9M
Slide 20: Insurance
Insurance 20 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2013 Q3 2014 % Change Q3 2013 Q3 2014 % Change SALES 429 465 8% - - N.M EBITDA 55 4 -92% 18 7 -61% NET INCOME 44 11 -75% 18 7 -61% EBITDA MARGIN 12,8% 0,9% MILLION TL 9M 2013 9M 2014
Slide 21: Aksigorta
Aksigorta 21 *Excludes non operational items from 2013 figures Excessive claims continued in Q3 due to climate factors
Slide 22: Avivasa
Avivasa 22 CONTRIBUTION TO CONSOLIDATED STAND ALONE FINANCIALS FINANCIALS MILLION TL Q3 2013 Q3 2014 % Change Q3 2013 Q3 2014 % Change SALES 50 63 26% - - N.M EBITDA 15 17 13% 8 11 41% NET INCOME 19 22 16% 8 11 41% MILLION TL 9M 2013 9M 2014 % Change 9M 2013 9M 2014 % Change SALES 178 195 9% - - N.M
Slide 23: Avivasa - Key Metrics in Pension
Avivasa - Key Metrics in Pension 23 Assets Under Management (MTL) 31% 28% 6.294 4.803 3.763 9M 2012 9M 2013 9M 2014 *Including state contributions -4% 75% -22% 114% 90.080 86.661 Number of New Participants 30.424 51.599 23.826 14.205 9M 2012 9M 2013 9M 2014 Q3 2012 Q3 2013 Q3 2014 27% Net Contributi
Slide 24: Avivasa – Initial Public Offering
Avivasa – Initial Public Offering 24 • 19.67% of total shares listed • Offer Price: 47 TL/share • Market Capitalization: 1.7 BTL • Allocation: 70% international – 30% domestic • 2.6x international demand received - 3.2x domestic demand: 2.8x Overall • Trading date: November 13, 2014 • Diverse intern
Slide 25: Industrials
Industrials 25 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2013 Q3 2014 % Change Q3 2013 Q3 2014 % Change SALES 1.218 1.157 -5% 799 732 -8% EBITDA* 242 221 -9% 176 141 -20% NET INCOME* 168 169 1% 110 107 -2% EBITDA MARGIN 19,9% 19,1% MILLIO
Slide 26: Industrials –Adjusted for Sasa and Temsa Impacts
Industrials –Adjusted for Sasa and Temsa Impacts 26 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2013 Q3 2014 % Change Q3 2013 Q3 2014 % Change SALES 1.513 1.550 2% 1.093 1.125 3% EBITDA* 255 255 0% 189 175 -8% NET INCOME* 168 171 2% 110 108
Slide 27: Kordsa Global
Kordsa Global 27 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2013 Q3 2014 % Change Q3 2013 Q3 2014 % Change SALES 405 420 4% 405 420 4% EBITDA* 58 46 -20% 58 46 -20% NET INCOME* 15 17 12% 9 10 9% EBITDA MARGIN 14,4% 11,1% MILLION TL 9M 2013
Slide 28: Kordsa Global – Growth in Asia
Kordsa Global – Growth in Asia 28 Kordsa’s new PE yarn & tire cord fabric plant in Indonesia • Capacity Increase: 18kt Finished Product • Projected Annual EBITDA Generation: +10 MUSD • Contribution to Kordsa’s Market Share in APAC: +6% • Opening in November 2014
Slide 29: Brisa
Brisa 29 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q3 2013 Q3 2014 % Change Q3 2013 Q3 2014 % Change SALES 419 425 1% - - N.M EBITDA 90 88 -3% 24 23 -3% NET INCOME 54 53 -3% 24 23 -3% EBITDA MARGIN 21,6% 20,7% MILLION TL 9M 2013 9M 2014 % Ch
Slide 30: Non-Operational and Non-Recurring Items
Non-Operational and Non-Recurring Items 30 Q3 2013 Q3 2014 9M 2013 9M 2014 NET INCOME 481 456 1.570 1.435 Akbank Turkish Competition Board Penalty 0 0 53 0 Income from Akbank NPL Sale 0 0 -19 -14 Aksigorta Gain on Asset Sale 0 0 -26 0 Income from Diasa Sale -85 0 -85 0 Carrefoursa Provision Impact 1
Slide 31: 2014 GUIDANCE
2014 GUIDANCE 31 SALES EBITDA REVISED GROWTH GROWTH GUIDANCE Energy 45-50% 20-30% Cement 10-15% 35-40% Retail 15-20% 5-15% Industrials 15-20% 25-30% Insurance 10-15% 5-10% Lower EBITDA growth projection in Energy and Insurance
Slide 32: Upcoming IR Events - 2014
UPCOMING IR EVENTS - 2014 32 Industrials Day: November 12, 2014 – 10 am Energy Day: December 2014 Avivasa Analyst Day: TBD
Slide 33: Q&A
Q&A OQBANcI
Hacı Ömer Sabancı Holding A.Ş. — Q3 2014 Earnings Presentation on 6ix