Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q2 2023 Earnings Presentation
32 slides from Haci Omer Sabanci Holding A.s's earnings presentation, Aug 10, 2023
Slide 1: Q2 2023 Earnings Presentation
AUGUST 10, 2023 Q2 2023 EARNINGS PRESENTATION
Slide 2: Disclaimer
EARNINGS PRESENTATION 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, com
Slide 3: H1'23 Highlights
EARNINGS PRESENTATION H1’23 Highlights Strong Results Amid Solid Balance Sheet Improved ESG Performance Challenges & Uncertainties with Strong Liquidity Water consumption Reduction(2) Topline(1) growth 9% Net debt/EBITDA(2) 59% SDG-linked Capex & Opex(4) 0.5x EBITDA(1) growth TL 8.2 bn Consolidated
Slide 4: Combined Financials
01 /05 Combined Financials
Slide 5: Amid volatile global & local macro backdrop & ongoing inflationary pressures
COMBINED FINANCIALS Amid volatile global & local macro backdrop & ongoing inflationary pressures… Bloomberg Commodity & Energy Index (YoY Change) Wage Increase* (Minimum Wage, Gross) Bloomberg Commodity Index Bloomberg Energy Index 100% 87% 323 67% 280 40% 33% 32% 201 28% 15% 166 1% 144 140 114 -8%
Slide 6: Strong set of results with improvement in earnings quality
COMBINED FINANCIALS …strong set of results achieved with an improvement in earnings quality driven by both bank and non- bank businesses… Combined Revenue* (TL mn) Combined EBITDA* (TL mn) Consolidated Net Income* (TL mn) Non-bank Bank Non-bank Bank Non-Bank Bank 59% 42% 50% 258,563 61,895 20,391 10
Slide 7: Continuous improvement in ROE & strong operating cash generation
COMBINED FINANCIALS …coupled with a continuous improvement in ROE & exceptionally strong cash generation at operating level… Return on Equity (ROE)* Operational Cash Flow, Combined for Non-Bank* (TL bn) Bank ROE Consolidated ROE Non-Bank ROE 28.7 13.7% 13.1% 17.1% 23.9% 31.1% 26.6% 27.2% 50% 54.7% 4
Slide 8: Maintaining a healthy balance sheet
COMBINED FINANCIALS …& by maintaining a healthy balance sheet Holding Only - Net cash position (TL bn) Combined Net Financial Debt to Non-Bank EBITDA* 2.3x 2.2x 5.5 Midterm Guidance: 4.5 ≤ 2x 1.5x 1.3x 3.1 1.2x 2.6 2.5 1.7 0.5x 1.1 0.4x 2018 2019 2020 2021 2022 H1 2022 H1 2023 2018 2019 2020 2021 20
Slide 9: Combined Revenue / Solid topline growth
COMBINED FINANCIALS Combined Revenue / Solid topline growth with a contribution from Banking & Energy businesses Segments’ Contribution to Combined Revenues* (TL Mn) 45% Segment Annual 75% 6% 21% 45% 128% 94% 75% Revenue* Growth: Share in Q2’23 42% 27% 7% 6% 6% 6% 6% Combined Revenue*: *Holding divi
Slide 10: Combined EBITDA / Strong EBITDA growth driven by Banking & Energy
COMBINED FINANCIALS Combined EBITDA / Strong EBITDA growth driven by Banking & Energy segments Segment’s Contribution to Combined EBITDA* (TL Mn) 51% Segment Annual 44% 68% 21% 99% 71% 282% -5% EBITDA* Growth: Share in Q2’23 67% 20% 4% 5% 1% 3% 1% Combined EBITDA*: *Excludes non operational , non re
Slide 11: Consolidated Net Income / Banking & Energy major drivers
COMBINED FINANCIALS Consolidated Net Income / Banking & Energy businesses continue to be major drivers Segments’ Contribution to Consolidated Net Income*(TL Mn) 73% Segment Annual 55% 137% -42% 174% -79% 310% 109% Net Income* Growth: Share in Q2’23 Consolidated Net 60% 18% 2% 7% 0% 3% 10% Income: *E
Slide 12: NAV & Stock Performance
02 /05 NAV & Stock Performance
Slide 13: Improving NAV discount despite solid growth in asset value in USD
NAV & STOCK PERFORMANCE Improving NAV discount in the long-run despite solid growth in asset value in USD terms NAV* (USD mn) & NAV* Discount NAV* Bridge 43% 6,703 5,706 5,095 3,987 3,567 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 -26.6% -26.1% -28.8% -28.6% -35.1% +6pp Average NAV Discount: Last 3- Ye
Slide 14: Shifting towards more balanced portfolio
NAV & STOCK PERFORMANCE Shifting towards more balanced portfolio NAV Breakdown Current NAV Breakdown Based on EY Report Cash Cash Other** 3% Other** Digital 3% 6% 6% Digital Technologies Technologies 3% Banking & 4% Financial Banking & Financial Services Services 27% 36% Energy & Climate Technologie
Slide 15: SAHOL shares trade at a discount to historical P/E averages
NAV & STOCK PERFORMANCE Despite rerating SAHOL shares continue to trade at a material discount to its historical P/E averages Stock Relative-Performance (USD basis) Earnings Per Share vs. Price/Earnings* EPS P/E 5.1 4.9 4.0 2.2 2.1 2.0 1.5 21.5 1 1 9.5 8.1 5.9 1.9 1.9 2.3 2018 2019 2020 2021 2022 H1
Slide 16: Segment Financials
03 /05 Segment Financials
Slide 17: Energy / Strong profitability in both businesses
SEGMENT FINANCIALS Energy / Strong profitability prevailed in both businesses despite natural gas plant stoppages & lower spot prices Energy Segment Summary Financials* MILLION TL Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change Current Assessment SALES 34,725 36,683 6% 62,057 76,561 23% EBITDA** 4,653
Slide 18: Bank / Strong momentum in customer acquisition
SEGMENT FINANCIALS Bank / Strong momentum in customer acquisition & agile asset-liability management Bank Summary Financials Current Assessment MILLION TL Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change SALES 32,081 56,174 75% 55,144 103,750 88% EBITDA 18,215 26,223 44% 29,096 40,504 39% Added 1.3 mn
Slide 19: Financial Services / Robust growth in top-line & profitability
SEGMENT FINANCIALS Financial Services / Robust growth in top-line & profitability Financial Services Summary Financials* MILLION TL Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change Current Assessment SALES 3,930 7,617 94% 7,088 14,317 102% EBITDA** 280 1,072 282% 392 1,451 270% Strong top line growth i
Slide 20: Building Materials / Strong operating performance
SEGMENT FINANCIALS Building Materials/ Strong operating performance and effective financial management Building Materials Summary Financials* MILLION TL Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change Current Assessment SALES 5,348 7,780 45% 8,838 14,428 63% Sales mix optimization EBITDA** 995 1,977 9
Slide 21: Industrials / Weakness in tire reinforcement offset by tire demand
SEGMENT FINANCIALS Industrials / Weakness in tire reinforcement business driven by global recessionary environment offset by strong demand in tire business Industrials Summary Financials* Current Assessment MILLION TL Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change SALES 7,876 9,506 21% 14,751 19,362
Slide 22: Digital / Strong demand in electronics retail
SEGMENT FINANCIALS Digital / Strong demand in electronics retail led to solid top-line growth Digital Summary Financials* Current Assessment MILLION TL Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change SALES 3,607 8,240 128% 6,849 15,268 123% Strong topline growth outpacing the market EBITDA** 319 546 7
Slide 23: Retail / Solid top-line growth exceeding inflation
SEGMENT FINANCIALS Retail / Solid top-line growth exceeding inflation Retail Summary Financials* MILLION TL Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change Current Assessment SALES 4,282 8,002 87% 7,484 14,578 95% Strong basket size growth EBITDA** 293 469 60% 498 770 54% EBITDA** MARGIN 6.8% 5.9% 6.7
Slide 24: Guidance
04 /05 Guidance
Slide 25: Mid-Term Guidance Maintained
EARNINGS PRESENTATION Mid-Term Guidance Maintained Growth Capital Return Sustainability Mid-term targets* CPI + 8% 30%+ Dividend 5%-20% 42% Reduction in policy Revenue growth FX revenue as % of of net income Scope 1 & 2 emissions combined revenue (2) by 2030 Up to 5% of paid-in capital: Share 102mn
Slide 26: H1'23 Highlights
EARNINGS PRESENTATION H1’23 Highlights Strong set of results achieved with an improvement in Resilient non-bank ROE with a solid contribution from earnings quality amid volatile global & local macro backdrop Energy business Strong balance sheet with 0.5x Cash flow generation increased by 8x Achieved
Slide 27: Appendix
05 /05 Appendix
Slide 28: Dividend Performance
APPENDIX Dividend Performance TLmn 2018 2019 2020 2021 2022 2023 Akbank 652 - - 255 494 3,666 Akçansa 51 61 18 42 36 99 Aksigorta 40 73 73 110 - - Agesa 19 40 64 64 - 60 Brisa - - 12 107 270 479 Carrefoursa - - - - - - Çimsa 33 - - - 109 218 Kordsa 48 48 35 - 114 41 Teknosa - - - - - - Yünsa - 3 - -
Slide 29: Financials in detail
APPENDIX Financials in detail Combined Revenue* Combined EBITDA* Consolidated Net Income* MILLION TL Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change Q2 2022 Q2 2023 Change H1 2022 H1 2023 Change TOTAL 92,215 134,115 45% 162,867 258,563 59% 26,039 39,433 51
Slide 30: Sabancı Holding Current NAV & Cash Breakdown
APPENDIX Sabancı Holding Current NAV & Cash Breakdown USDmn June 2023 December 2022 NAV Discount Value to Sabancı Value to Sabancı Companies Direct Stake Valuation Method Mcap % of NAV % of NAV Holding Holding Akbank 41% Market value 4,068 1,658 32.5% 2,216 33.1% June 2023 December 2022 December 202
Slide 31: Sabancı Holding NAV After EY Valuation Report
APPENDIX Sabancı Holding NAV After EY Valuation Report USDmn June 2023 Companies Direct Stake Valuation Method Mcap Value to Sabancı Holding % of NAV Akbank 41% Market value 4,068 1,658 24.5% Enerjisa Enerji 40% Market value 1,601 640 9.5% Aksigorta 36% Market value 223 80 1.2% Agesa 40% Market valu
Slide 32: For Further Details ir.sabanci.com
Kerem TEZCAN Investor Relations Director Meet SirA, Sabancı Holding's digital Şule GENÇTÜRK KARDIÇALIOĞLU Investor Relations Manager investor relations assistant ! Hamza SÜMER Turkey’s First Investor Relations Investor Relations Specialist Dedicated Assistant ! Arda KAYMAZ Investor Relations Special
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