Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Presentation (December 2022)
40 slides from Haci Omer Sabanci Holding A.s's investor presentation, December 2022
Slide 1: Investor Presentation: Group Strategy December 2022
INVESTOR PRESENTATION GROUP STRATEGY December 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: Financial Track Record Capital Allocation Recent Acquisitions
01 Financial Track Record 02 Capital Allocation 03 Recent Acquisitions 04 Strategic Business Units & Digital 05 Mid-Term Guidance 3
Slide 4: Financial Track Record
01 02 Financial Track Record
Slide 5: Faster topline growth with improvement in earnings quality
Financial Track Record Faster topline growth with improvement in 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% 175% 23% 259% 29% 321% 275.4 97.7 74.7 23.4 150.
Slide 6: Further improvement in ROE with higher dividends and solid liquidity
Financial Track Record …led to a further improvement in ROE coupled with higher dividends and solid liquidity Return on Equity* Dividends Paid (TL Mn) Holding Only - Net cash position (TL Bn) DPS (TL) 27.7% 23.9% CAGR: 0.75 17.1% 17.5% 30% 13.7% 13.1% 9.3% 41.4% 1,530 4.4 0.33 0.35 0.30 0.30 0.20 2.
Slide 7: Substantial recovery in operational cash flow & remarkable deleveraging
Financial Track Record Substantial recovery in operational cash flow & remarkable deleveraging Operational Cash Flow, Combined for Non-Bank* Combined Net Financial Debt to Non-Bank EBITDA* (TL bn) CAGR: 28% 3.1x 13.4 12.4 2.3x 2.2x 10.8 9.5 8.1 1.5x 1.4x 1.2x 5.6 4.6 0.7x 2017 2018 2019 2020 2021 9M
Slide 8: Capital Allocation
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Slide 9: Doubling CAPEX to accelerate 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 10: A coherent strategic plan on core and new platforms
Capital Capital Allocation 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 Transform into an agile Lead in digital, material and Commercialize innovation Pioneer in “sustainability as
Slide 11: Continuing to deliver on our strategic initiatives
Capital Allocation Continuing to deliver on our strategic initiatives Dynamic Portfolio Management Kordsa Capacity Investments: Turkey’s 1st Green Hydrogen: Capacity Increase in CAC: Digital Investment: Kordsa Turkey: Investment for single-end cord Production and use of green Çimsa’s investment at U
Slide 12: Prioritizing ESG to transform our portfolio for the future
Capital Sustainability Allocation Prioritizing ESG to transform our portfolio for the future… TL 7.7 BN1 51%2 43.1GWh SDG-linked net sales SDG-oriented R&D energy recovery revenues We transform the core 80%3 23%4 2x more alternative fuel use 116% increase in renewable waste recovery water recovery a
Slide 13: Improving our ESG performance further
Sustainability ... while improving our ESG performance further 01 02 03 04 05 2022 MSCI 2021 CDP Climate 2022 GEI 2022 Refinitiv 2022 Sustainalytics A from MSCI ACWI* 2 notches increase Only Turkish Hold Co. Excellent Performance Low Risk among 197 company Management Level on Bloomberg Gender Out of
Slide 14: Recent Acquisitions
03 Recent Acquisitions 05}
Slide 15: Investing in new economy for a major transformation
Recent Recent Sustainability Acquisitions Acquisitions Investing in new economy for a major transformation in Sabancı Group Climate Advanced Material Digital Technologies Technologies Technologies E-mobility Renewables Sustainable Telematics Chemicals loT 4.0 Cybersecurity Digital Marketing Electrif
Slide 16: USA came to the fore as 2nd largest renewable energy market
Recent Acquisitions USA came to the fore with the attraction of being world’s 2nd largest renewable energy market & the largest corporate venture ecosystem Facts on Renewable Energy Investments Solar Resource Potential Wind Resource Potential 170 TW potential capacity 10.6 TW potential capacity ➢ US
Slide 17: First solar project in Texas initiated
Recent After detailed research & studies, first solar project in Texas has initiated that offers a variety Acquisitions of opportunities for the future growth Market potential for proxy businesses in Texas West 272 MW Solar Power Plant Project ➢ Region close to Houston - high demand ➢ Shovel-ready p
Slide 18: Expanding renewables investment beyond Turkey
Recent Acquisitions Expanding renewables investment beyond Turkey Sabancı Climate Technologies, wholly owned subsidiary of Sabancı Holding, will undertake renewable energy power plant investments and strategic investments in various venture capital funds and start-ups, primarily in the USA and Europ
Slide 19: Major expansion project initiated in Türkiye: Enerjisa Üretim
Recent Acquisitions A major expansion project has been initiated in Türkiye while reaching 57% renewables share in Enerjisa Üretim Installed Generation Capacity Mix* 1,000 MW YEKA-2 Wind Power Plant Investment (USD1.2bn) Currently 2026 Çanakkale 250 MW 45% 42% 34% Renewables Natural Gas Natural Gas
Slide 20: Creation of a global digital business with acquisitions
Recent Acquisitions 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 Marke
Slide 21: Global players in mobility market
Recent Acquisitions 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 solutio
Slide 22: Strategic Business Units & Digital
04 Strategic Business Units & Digital 22
Slide 23: Energy SBU's Strategy House
Strategic Business Units Energy SBU’s Strategy House Beyond Power: Green, Sustainable and Digital 1 PROTECT AND GROW THE CORE 2 TRANSFORM Renewable Generation Growth • Additional Wind and Solar Projects New Energy Technologies Investment - Abroad • Hybrid Projects Exploring New Fuel Economics (Hydro
Slide 24: Energy SBU's Future Vision
Strategic Business Units Energy SBU’s Future Vision Preparing For a Sustainable Future With Valuable Competencies CURRENT FUTURE Sustained market leadership position through aggressive growth in Well-positioned energy portfolio in a vertical way (generation, trading, core businesses; distribution an
Slide 25: Industrials SBU's Strategy House
Strategic Business Units Industrials SBU’s Strategy House We unite Turkey and the World for a sustainable life Grow into an Integrated Advanced Materials and Mobility Business 1 PROTECT AND GROW THE CORE 2 TRANSFORM Advanced Materials Protect the core with • Composites • Delivering Profitable Growth
Slide 26: Industrials SBU's Future Vision
Strategic Business Units Industrials SBU’s Future Vision We unite Turkey and the World for a sustainable life We unite Turkey and the World for a sustainable life Grow Growinto intoanan Integrated IntegratedAdvanced AdvancedMaterials Materialsand andMobility MobilityBusiness Business CURRENT FUTURE
Slide 27: Building Materials SBU's Strategy House
Strategic Business Units Building Materials SBU’s Strategy House From Pure Cement to Building Materials From Local to Glocal, From Grey to Green 1 PROTECT AND GROW THE CORE 2 TRANSFORM Network Optimization and Integration New Growth and Diversification • Expand in calcium aluminate Strengthen White
Slide 28: Building Materials SBU's Future Vision
Strategic Business Units Building Materials SBU’s Future Vision Transformation into a Global Building Materials Group CURRENT FUTURE 57% FX based revenue generation Higher FX based revenue generation 21% Revenue from international operations Higher revenue share from international operations 2% Reve
Slide 29: Financial Services SBU's Strategy House
Strategic Business Units Financial Services SBU’s Strategy House To become the leading new generation insurance services provider 1 PROTECT AND GROW THE CORE 2 GROW INTO ADJACENCIES Greenfield health insurance company Act as a multi-line insurer investment and becoming a healthcare player Develop di
Slide 30: Financial Services SBU's Future Vision
Strategic Business Units Financial Services SBU’s Future Vision Smart and Sustainable Growth Towards 2026 CURRENT FUTURE Leadership position in Pension & AE AUM: #2 player in total life and Leadership & growth in savings and protection personal accident Profitable growth and strengthened market posi
Slide 31: Akbank's bifocal strategy
Strategic Business Units Akbank’s bifocal strategy Run the Bank Crafting the future Run the bank Crafting the future Create Superior Customer Experience Sustainable High Profitability Leverage Digitalization & Advanced Analytics Risk & Return Focused Sound Growth Invest in Our People and the Future
Slide 32: Akbank ESG Strategy
Strategic Business Units ESG Strategy: Mitigate environmental footprint while increasing positive impact Sustainable Finance Ecosystems Management • Responsible Products & Services • Digitalization • Impact Investing • Financial Inclusion To be the leading bank that drives Turkey into the future Peo
Slide 33: Digital Investments to Untapped Potential
Digital Digital Investments to Untapped Potential Digital Accelerators Sabancı Digital Business Invest in rapidly growing digital businesses and A Digital Ce Retail Platform With expand beyond Turkey Physical Presence & Human Touch Transforming from a "traditional retailer" to a digital / Marketplac
Slide 34: Mid-Term Guidance
05 Mid-Term Guidance 34
Slide 35: 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 36: Appendix
APPENDIX 36
Slide 37: Time to invest for an accelerating growth theme
Appendix/ Time to invest for an accelerating growth theme 1 STRONG FINANCIAL TRACK RECORD & HEALTHY BALANCE SHEET… 2 …PAVING THE WAY TO ACCELERATE GROWTH 3 …BY SOUND AND COHERENT INVESTMENT STRATEGY 4 …UNDER A CLEAR INVESTMENT CRITERIA 5 …TO FOSTER SHAREHOLDER RETURN 37
Slide 38: 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 39: Sabancı Holding Discount to NAV & Cash
Appendix / Sabancı Holding Discount to NAV & Cash USDmn September 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 3,170 1,292 32.4% 1,144 30.8% September 2022 December 2021 December 2020 Enerjisa En
Slide 40: Investor Relations Contacts
INVESTOR RELATIONS CONTACTS ➢ Kerem TEZCAN Investor Relations Director ➢ Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager For Further ➢ Hamza SÜMER Investor Relations Specialist Details ir.sabanci.com ➢ Arda KAYMAZ Investor Relations Specialist E-mail: investor.relations@sabanci.com
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