Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — FY2014 Earnings Presentation
39 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2015
Slide 1: 2014 Annual Earnings Release
1 2014 Annual 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 - 2015 Expectations
2014 - 2015 Expectations 3 2013 2014(E) 2015(E) GDP Growth, (%) 4.1 2.8 3.5 Increase in CPI(%) 7.4 8.0 6.5-7.0 CA Deficit/GDP, (%) 8.0 5.7 5.0 Moderate growth expectations sustained in 2015 despite global challenges
Slide 4: 2014 - Recent Developments
2014 - Recent Developments 4 Insurance • Avivasa IPO completed. • Hydrology normalized so far in 2015, negative effects remain for Q4 Energy 2014. • FX exposure decreased significiantly in H2 2014. • New production line in Kordsa Indonesia operational. Industrials • Ground breaking for Kordsa Compos
Slide 5: Net Sales
Net Sales 5 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q4 2013 Q4 2014 % Change 2013 2014 % Change TOTAL 9.933 11.074 11% 36.092 44.218 23% BANK 3.651 4.298 18% 14.615 16.946 16% NON-BANK 6.282 6.776 8% 21.477 27.271 27% INDUSTRIALS 1.190 1.257 6% 4.568 4.904 7% INDUSTRIALS-Adjuste
Slide 6: EBITDA (Excluding Non Operational Items)
EBITDA (Excluding Non Operational Items) 6 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q4 2013 Q4 2014 % Change 2013 2014 % Change TOTAL 1.558 1.895 22% 7.470 7.819 5% BANK 977 1.285 32% 4.629 4.464 -4% NON-BANK 581 610 5% 2.841 3.355 18% INDUSTRIALS 165 214 30% 727 886 22% INDUSTRI
Slide 7: Results Snapshot
Results Snapshot 7 7.470 7.819 2.841 3.355 COMBINED 1.558 1.895 o Strong growth delivered EBITDA* 581 610 4.629 4.464 (MILLION TL) 977 1.285 Q4 2013 Q4 2014 2013 2014 Bank Non Bank 2.121 o Key drivers of bottom 1.859 1.920 201 line 312 521 402 538 538 • Recovery in banking CONSOLIDATED 3 122 1.457 1
Slide 8: Non-bank Results - Q4 2014
Non-bank Results- Q4 2014 8 MILLION TL Q4 2013 Q4 2014 % Change 2013 2014 % Change CONSOLIDATED NET INCOME* 3 122 N.M 402 538 34% INDUSTRIALS 81 103 28% 324 418 29% INDUSTRIALS-Adjusted for comparison** 81 104 28% 324 419 29% RETAIL 10 4 -65% 0 -2 -414% INSURANCE 15 22 48% 68 62 -9% ENERGY -149 -83
Slide 9: Industrials
Industrials 9 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2013 Q4 2014 % Change Q4 2013 Q4 2014 % Change SALES 1.190 1.257 6% 795 776 -2% EBITDA* 165 214 30% 122 156 28% NET INCOME* 101 161 60% 81 103 28% EBITDA MARGIN 13,9% 17,0% MILLION T
Slide 10: Industrials – Adjusted for Impacts of Sasa and Temsa Transactions
Industrials –Adjusted for Impacts of Sasa and Temsa Transactions 10 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2013 Q4 2014 % Change Q4 2013 Q4 2014 % Change SALES 1.451 1.647 13% 1.057 1.166 10% EBITDA* 174 235 35% 131 177 35% NET INCOME*
Slide 11: Kordsa Global
Kordsa Global 11 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 2013 2014 % Change 2013 2014 % Change SALES 1.533 1.702 11% 1.533 1.702 11% EBITDA* 128 190 48% 128 190 48% NET INCOME* 39 83 115% 28 60 114% EBITDA MARGIN 8,4% 11,2% Lean manufactur
Slide 12: Kordsa - Exploring Growth Opportunities
Kordsa - Exploring Growth Opportunities 12 New PE yarn and tire cord fabric plant in Indonesia operational by January 2015. Investment in Indonesia 18 kton annual capacity increase 6% contribution to market share in Asia Pacific «Composites Technologies Excellence Center» groundbreaking cere
Slide 13: Brisa
Brisa 13 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 2013 2014 % Change 2013 2014 % Change SALES 1.489 1.693 14% - - N.M EBITDA 263 344 31% 63 81 29% NET INCOME 144 186 29% 63 81 29% EBITDA MARGIN 17,7% 20,3% Successful marketing and sales cha
Slide 14: Yünsa
Yünsa 14 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL 2013 2014 % Change 2013 2014 % Change SALES 270 319 18% 270 319 18% EBITDA 34 42 24% 34 42 24% NET INCOME* 16 18 14% 9 10 14% EBITDA MARGIN 12,6% 13,3% Increasing profitability supported by
Slide 15: Temsa
Temsa 15 TEMSA BUS CONTRIBUTION TO SABANCI HOLDING STAND ALONE FINANCIALS CONSOLIDATED FINANCIALS MILLION TL 2013 2014 % Change 2013 2014 % Change SALES 544 670 23% 544 670 23% EBITDA* 60 73 22% 60 73 22% NET INCOME* 6 68 1104% 3 33 1104% EBITDA MARGIN 11,0% 10,8% TEMSA CONSTRUCTION EQUIPMENT MILLIO
Slide 16: Retail
Retail 16 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2013 Q4 2014 % Change Q4 2013 Q4 2014 % Change SALES 1.545 1.681 9% 1.544 1.680 9% EBITDA* 52 62 19% 52 62 18% NET INCOME* 17 8 -51% 10 4 -65% EBITDA MARGIN 3,3% 3,7% MILLION TL 2013 201
Slide 17: Carrefoursa
Carrefoursa 17 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2013 Q4 2014 % Change Q4 2013 Q4 2014 % Change SALES 723 829 15% 723 829 15% EBITDA* 39 43 10% 39 43 10% NET INCOME* 6 15 166% 3 8 166% EBITDA MARGIN 5,4% 5,2% MILLION TL 2013 2014
Slide 18: Key Developments in Carrefoursa
Key Developments in Carrefoursa 18 Acquisitions Number of stores by format • 26 stores acquired from Ismar supermarkets. YE, 2014 # 27 • The acquired stores are mainly located in Istanbul, Eskisehir, Kutahya, Mardin and Bursa. 22 • 6 stores acquired from Genyapı supermarkets 108 Real Estate 176 • Th
Slide 19: Progress towards targets/priorities presented in 2014 Q1
Progress towards targets/priorities presented in 2014 Q1 19 Targets & Priorities Actions Taken 5bn TL revenue and 5% EBITDA margin in 2016. Keeping the target of 5bn TL revenue Back to Basics: Simplify Our Way of New store formats Doing Business,Faster and Customer Focused Approach Glocalization
Slide 20: Insurance
Insurance 20 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2013 Q4 2014 % Change Q4 2013 Q4 2014 % Change SALES 437 423 -3% - - N.M EBITDA* 46 62 35% 15 23 58% NET INCOME* 38 55 45% 15 22 48% EBITDA MARGIN 10,5% 14,6% MILLION TL 2013 2014 % C
Slide 21: Avivasa
Avivasa 21 CONTRIBUTION TO CONSOLIDATED STAND ALONE FINANCIALS FINANCIALS MILLION TL Q4 2013 Q4 2014 % Change Q4 2013 Q4 2014 % Change SALES 55 63 16% - - N.M EBITDA* 5 19 282% 4 8 129% NET INCOME* 7 22 205% 4 8 129% MILLION TL 2013 2014 % Change 2013 2014 % Change SALES 233 258 11% - - N.M EBITDA*
Slide 22: Avivasa - Key Metrics in Pension
Avivasa - Key Metrics in Pension 22 Assets Under Management (MTL) 42% 24% 7.130 4.049 5.019 2012 2013 2014 Net Contributions (MTL) 36% 30% 40% 94% 402 1.111 859 261 612 134 2012 2013 2014 Q4 2012 Q4 2013 Q4 2014 Rapidly Growing Contributions
Slide 23: Aksigorta
Aksigorta 23 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2013 Q4 2014 % Change Q4 2013 Q4 2014 % Change SALES 382 360 -6% - - N.M EBITDA* 41 42 4% 11 12 7% NET INCOME* 30 32 7% 11 12 7% MILLION TL 2013 2014 % Change 2013 2014 % Change SALES
Slide 24: Aksigorta
Aksigorta 24 Increase in Claim reserves in Q4 due to: •Increase in litigated claims as a result of higher frequency of bodily injuries. •High Court ruling increasing the scope of MTPL to include the families of faulty drivers. • 103 MTL additional IBNR provisions related to previous years in order t
Slide 25: Energy
Energy 25 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2013 Q4 2014 % Change Q4 2013 Q4 2014 % Change SALES 2.521 2.773 10% - - N.M EBITDA* 188 146 -22% -119 -31 74% NET INCOME* -237 -63 74% -119 -31 74% EBITDA MARGIN 7,4% 5,3% MILLION TL 20
Slide 26: Energy – Generation Business
Energy – Generation Business 26 INCLUDES GENERATED ENERGY SALES ONLY MILLION TL Q4 2013 Q4 2014 % Change SALES 404 406 1% EBITDA 112 42 -63% EBITDA MARGIN 27,8% 10,3% MILLION TL 2013 2014 % Change SALES 1.540 1.772 15% EBITDA 323 352 9% EBITDA MARGIN 21,0% 19,8% NG price hike and low renewable gener
Slide 27: Energy – Retail Business
Energy – Retail Business 27 MILLION TL Q4 2013 Q4 2014 % Change SALES 1.832 2.207 20% EBITDA 44 -24 -154% EBITDA MARGIN 2,4% -1,1% MILLION TL 2013 2014 % Change SALES 4.205 9.205 119% EBITDA* 84 109 30% EBITDA MARGIN 2,0% 1,2% *2013 Figures do not include Ayedaş and Toroslar impact Ongoing marketing
Slide 28: Energy – Distribution Business
Energy – Distribution Business 28 MILLION TL Q4 2013 Q4 2014 % Change SALES 471 600 27% EBITDA 9 131 1430% Regulatory Asset Base EBITDA MARGIN in accordance with IFRS (MTL) 1,8% 21,9% 1.581 1.236 MILLION TL 2013 2014 % Change SALES 1.107 2.099 90% EBITDA* 157 382 144% EBITDA MARGIN 14,2% 18,2% 2013
Slide 29: Enerjisa
Enerjisa 29 Demand (TWh) Sluggish demand growth in 2014 Q4 due to milder weather conditions in the Sep-Dec period. 2013-2014 growth: 4% Average Temperatures Water Inflow - Turkey Normalizing precipitation and climate pattern in expected 2015. 2013-2014 decrease: 43%
Slide 30: ENERJİSA Financing Cost Drivers
ENERJİSA Financing Cost Drivers 30 2014FY Net Financial Expenses Generation Interest Expense 225 EEDAŞ Operational Interest Exp. 93 EEDAŞ Acquisition Loan Interest Exp. 443 FX Gain/Loss -54 Total Financial Expenses** 706 Euro rate and PPI positively impact financial expenses
Slide 31: Enerjisa Leverage
Enerjisa Leverage 31 Enerjisa Loans* Original Currency Total TL Million TL EUR Equivalent Generation 498 1.987 6.104 Distribution 5.196 89 5.448 Total 5.694 2.077 11.552 Original Currency Total TL Million TL EUR Equivalent Fixed 2.373 1.020 3.385 Floating 969 1.057 5.815 PPI Indexed 2.352 - 2.352 To
Slide 32: Enerjisa Balance Sheet
Enerjisa Balance Sheet 32 MILLION TL 2013 YE 2014 YE % Change Cash 865 209 -76% Trade Receivables 1.749 1.753 0% Other Current Assets 743 1.049 41% TOTAL CURRENT ASSETS 3.357 3.011 -10% Fixed Assets 15.109 15.620 3% Other Non Current Assets 4.921 5.645 15% TOTAL NONCURRENT ASSETS 20.030 21.265 6% TO
Slide 33: Cement
Cement 33 TOTAL BEFORE CONSOLIDATION CONTRIBUTION TO CONSOLIDATED ADJUSTMENTS (COMBINED) FINANCIALS MILLION TL Q4 2013 Q4 2014 % Change Q4 2013 Q4 2014 % Change SALES 542 602 11% 215 270 26% EBITDA* 123 135 10% 69 75 9% NET INCOME* 71 79 12% 33 36 9% EBITDA MARGIN 22,6% 22,4% MILLION TL 2013 2014 %
Slide 34: FX Position and Leverage
FX Position and Leverage 34 MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2013 DEC 31, 2014 ENERGY* -420 -346 INDUSTRIALS 41 8 CEMENT 4 2 RETAIL -5 0 HOLDING, INSURANCE & OTHER 20 22 TOTAL CONSOLIDATED FX POSITION AFFECTING PL -360 -314 *Capitalized borrowings of Energy segment a
Slide 35: Non-Operational and Non-Recurring Items
Non-Operational and Non-Recurring Items 35 Q4 2013 Q4 2014 2013 2014 NET INCOME 161 644 1.731 2.079 Akbank Turkish Competition Board Penalty 0 0 -53 0 Aksigorta gain on asset sale 0 1 26 1 Provision for impairment of the subsidiary Aksigorta Merter B.V. -3 0 -6 0 Carrefoursa Restructuring Expenses -
Slide 36: Non-Bank Combined Results
NON-BANK COMBINED RESULTS 36 MILLION TL 2013 2014 % Change SABANCI HOLDING SALES 20.734 26.506 28% COMBINED NON-BANK EBITDA 2.251 2.752 22% SALES 4.568 4.904 7% INDUSTRIALS EBITDA 727 886 22% SALES 5.558 6.143 11% RETAIL EBITDA 177 202 14% SALES 1.759 1.972 12% INSURANCE EBITDA 185 139 -25% SALES 6.
Slide 37: 2015 Guidance
2015 GUIDANCE 37 MILLION TL 2015 Target SABANCI HOLDING SALES 5 - 10% COMBINED NON-BANK EBITDA 15 - 25% SALES 5 - 15% INDUSTRIALS EBITDA 5 - 15% SALES 0 - 5% ENERGY EBITDA 20 - 30%
Slide 38: Upcoming IR Events - 2015
UPCOMING IR EVENTS - 2015 38 Sabancı at the City: April 20 - 21, 2015 Retail Day: May 13, 2015
Slide 39: Q&A
Q&A OQBANcI
Hacı Ömer Sabancı Holding A.Ş. — FY2014 Earnings Presentation on 6ix