Haci Omer Sabanci Holding A.s. · BIST:SAHOL

Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q2 2016 Earnings Presentation

35 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2016

  1. Slide 1: 2016 Q2 Earnings Presentation

    1 2016 Q2 Earnings Presentation

  2. 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

  3. Slide 3: Key Highlights

    Key Highlights 3 − Robust operational performance in Energy thanks to retail and distribution businesses − Price and volume growth and favorable costs supported profitability in Industrials, especially for Kordsa. − Some early wins in action plan in Food Retail. Inventory clean-up costs overshadow s

  4. Slide 4: Net Sales

    Net Sales 4 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2015 Q2 2016 % Change H1 2015 H1 2016 % Change TOTAL 11.389 13.279 17% 23.186 26.886 16% BANK 4.640 5.603 21% 8.898 10.876 22% NON-BANK 6.749 7.675 14% 14.288 16.010 12% ENERGY 2.641 2.931 11% 5.680 6.201 9% CEMENT 740 739 0

  5. Slide 5: EBITDA (Excluding Non Operational Items)

    EBITDA (Excluding Non Operational Items) 5 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2015 Q2 2016 % Change H1 2015 H1 2016 % Change TOTAL 1.979 2.685 36% 4.716 5.873 25% BANK 1.000 1.639 64% 2.073 3.050 47% NON-BANK 979 1.046 7% 2.643 2.823 7% ENERGY 449 550 22% 901 1.126 25% C

  6. Slide 6: Net profit (Excluding Non Operational Items)

    Net profit (Excluding Non Operational Items) 6 MILLION TL Q2 2015 Q2 2016 % Change H1 2015 H1 2016 % Change CONSOLIDATED NET INCOME* 446 675 51% 981 1.334 36% BANK 305 516 69% 634 957 51% NON-BANK 141 159 13% 347 378 9% ENERGY -23 27 N.M 69 111 61% ENERGY-Adjusted for comparison** 12 70 498% 97 145

  7. Slide 7: Segment Assessment - Energy

    Segment Assessment - Energy 7 Current Assessment Factors to Watch Distribution − Robust operational performance − Expansion of Regulated Asset Base − Low electricity prices increasing operational − Unregulated volume growth profitability in the unregulated segment − Renewable tariff effect on free m

  8. Slide 8: Energy sector – Regulatory Changes

    Energy sector – Regulatory Changes 8 Change Impact on Sector Impact on Enerjisa Allowing flexible hydropower plants in Hydro to be dispatch mechanism will lead to less volatile allowed in spot prices by trimming Feed-in-tariff impact 60 -70 MTL extra EBITDA from dispatch hydropower plants mechanism

  9. Slide 9: Energy sector in Q2

    Energy sector in Q2 9 Electricity consumption (GWh) Q2 [6.1% growth] Spot prices vs Feed-in-tariff (USD/MWh) 25.000 80 20.000 60 15.000 40 10.000 20 0 5.000 Jan'16 Feb'16 Mar'16 Apr'16 May'16 Jun'16 Apr May Jun 2015 2016 FIT (USD/MWh) Spot prices (USD/MWh) Electricity production by source in Q2 (GWh

  10. Slide 10: Energy sector in Q2 (cont’d)

    Energy sector in Q2 (cont’d) 10 FIT Unit Cost (TRY/MWh - 2016) Consumption type breakdown (TWh – 1H15/1H16) 40 140 35 120 100 30 49.0% 25 80 55.9% 60 20 40 15 44.1% 51.0% 20 10 0 5 1H 2015 1H 2016 0 Jan Feb Mar Apr May Jun Unregulated Consumption Regulated consumption Theft and Loss figures of the d

  11. Slide 11: Energy

    Energy 11 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2015 Q2 2016 % Change SALES 2.641 2.931 11% EBITDA* 449 550 22% NET INCOME* -47 55 N.M NET INCOME** - Adjusted for comparison 23 140 498% EBITDA MARGIN 17,0% 18,8% MILLION TL H1 2015 H1 2016 % Change SALES 5.680 6.201 9% EBITD

  12. Slide 12: Energy – Distribution Business

    Energy – Distribution Business 12 MILLION TL Q2 2015 Q2 2016 % Change SALES 567 789 39% EBITDA* 136 236 74% EBITDA MARGIN 24,0% 30,0% MILLION TL H1 2015 H1 2016 % Change SALES 1.134 1.585 40% EBITDA* 251 495 97% EBITDA MARGIN 22,1% 31,2% Continuous infrastructure investments and new tariff boosting

  13. Slide 13: Energy – Retail Business

    Energy – Retail Business 13 MILLION TL Q2 2015 Q2 2016 % Change SALES 2.457 2.303 -6% EBITDA* 46 76 64% EBITDA MARGIN 1,9% 3,3% MILLION TL H1 2015 H1 2016 % Change SALES 5.330 4.926 -8% EBITDA* 171 153 -10% EBITDA MARGIN 3,2% 3,1% Improved EBITDA Margin driven by profitability of unregulated segment

  14. Slide 14: Energy – Generation Business

    Energy – Generation Business 14 MILLION TL Q2 2015 Q2 2016 % Change SALES 771 833 8% EBITDA 296 237 -20% EBITDA MARGIN 38,3% 28,5% MILLION TL H1 2015 H1 2016 % Change SALES 1.462 1.810 24% EBITDA* 487 474 -3% EBITDA MARGIN 33,3% 26,2% * Excluding non operational items Strong base effect of hedging c

  15. Slide 15: Enerjisa Leverage

    Enerjisa Leverage 15 Enerjisa Loans* Original Currency Total TL Million TL EUR Equivalent Generation 700 1.861 6.663 Distribution 5.858 80 6.114 Total 6.558 1.941 12.778 Original Currency Total TL Million TL EUR Equivalent Fixed 4.069 805 6.647 Floating 1.328 1.136 4.970 PPI Indexed 1.161 - 1.161 To

  16. Slide 16: Segment Assessment - Cement

    Segment Assessment - Cement 16 Current Assessment Factors to Watch − Our sales volume 4% below − Highly competitive landscape last year due to high base to continue in Mediterranean Cement − Low freight costs, fuel costs continue to drop − Construction permits and progress of infrastructure projects

  17. Slide 17: Cement

    Cement 17 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2015 Q2 2016 % Change SALES 740 739 0% EBITDA 251 230 -8% NET INCOME 164 147 -11% EBITDA MARGIN 33,9% 31,1% MILLION TL H1 2015 H1 2016 % Change SALES 1.274 1.322 4% EBITDA 390 384 -2% NET INCOME 253 244 -4% EBITDA MARGIN 30,6%

  18. Slide 18: Segment Assessment - Retail

    Segment Assessment - Retail 18 Current Assessment Factors to Watch − Management action plan proceeding in food retail. Key focus areas: − Results of management action − store optimization, plan in food retail efficiency and organic top- Retail line growth through − Consumer sentiment outlook increas

  19. Slide 19: Retail

    Retail 19 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2015 Q2 2016 % Change SALES 1.584 1.940 22% EBITDA* 24 -22 N.M NET INCOME* -33 -106 N.M NET INCOME** - Adjusted for comparison -33 -44 N.M EBITDA MARGIN 1,5% -1,2% MILLION TL H1 2015 H1 2016 % Change SALES 3.029 3.811 26% EBIT

  20. Slide 20: Carrefoursa

    Carrefoursa 20 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2015 Q2 2016 % Change SALES 861 1.136 32% EBITDA* 14 -24 N.M EBITDA** - Adjusted for comparison 14 -10 N.M NET INCOME* -21 -85 N.M NET INCOME**- Adjusted for comparison -21 -23 N.M EBITDA MARGIN 1,7% -2,1% MILLION TL H1 2

  21. Slide 21: Carrefoursa – Progress of Action Plan

    Carrefoursa – Progress of Action Plan 21 Early wins • Reduced stockouts: Achieved 100% availability in top 100 SKUs • Right sizing costs: Sales per FTE has considerably improved compared to January 2016, unit energy costs reduced • Assortment: Pilot implementation of shelf space plans in mini and su

  22. Slide 22: Segment Assessment - Insurance

    Segment Assessment - Insurance 22 Current Assessment Factors to Watch − Strong operational performance in non life insurance: Improved combined − Consumer loan growth Insurance ratio − Focus on bancassurance − Sustained growth in pension channel in non life business despite challenging environment −

  23. Slide 23: Insurance

    Insurance 23 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2015 Q2 2016 % Change SALES 499 548 10% EBITDA* 32 56 74% NET INCOME* 42 49 18% MILLION TL H1 2015 H1 2016 % Change SALES 1.013 1.118 10% EBITDA* 58 105 81% NET INCOME* 70 90 29% Robust growth in EBITDA driven by growth in

  24. Slide 24: Avivasa

    Avivasa 24 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2015 Q2 2016 % Change SALES 70 77 9% EBITDA* 21 23 9% NET INCOME* 27 27 -3% MILLION TL H1 2015 H1 2016 % Change SALES 128 147 15% EBITDA* 46 51 10% NET INCOME* 56 54 -4% Sustained operational profitability despite significant

  25. Slide 25: Segment Assessment - Industrials

    Segment Assessment - Industrials 25 Current Assessment Factors to Watch − Sustained operational − Turkish Lira and other EM excellence and efficiency currencies − Commodity prices Industrials − Strong demand in export − Pace of growth in export markets markets’ growth − Low raw material prices − Cap

  26. Slide 26: Industrials

    Industrials 26 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q2 2015 Q2 2016 % Change SALES 1.262 1.417 12% EBITDA* 242 248 3% NET INCOME* 129 153 18% EBITDA MARGIN 19,2% 17,5% MILLION TL H1 2015 H1 2016 % Change SALES 2.392 2.662 11% EBITDA* 431 498 16% NET INCOME* 255 323 27% EBITDA

  27. Slide 27: Kordsa Global

    Kordsa Global 27 STANDALONE FINANCIALS MILLION TL Q2 2015 Q2 2016 % Change SALES 440 473 7% EBITDA 55 76 37% NET INCOME* 30 47 57% EBITDA MARGIN 12,6% 16,1% MILLION TL H1 2015 H1 2016 % Change SALES 826 960 16% EBITDA 101 154 53% NET INCOME* 44 112 156% EBITDA MARGIN 12,2% 16,0% Stellar performance

  28. Slide 28: Temsa

    Temsa 28 TEMSA BUS STAND ALONE FINANCIALS MILLION TL H1 2015 H1 2016 % Change SALES 363 502 38% EBITDA* 55 57 4% NET INCOME* 33 41 22% Sustained profitability in EBITDA MARGIN 15,0% 11,3% Temsa Bus and Temsa TEMSA CONSTRUCTION EQUIPMENT Construction STAND ALONE FINANCIALS Equipment; MILLION TL H1 20

  29. Slide 29: FX Position

    FX Position 29 MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2015 JUN 30, 2016 ENERGY* -124 -253 INDUSTRIALS 2 -23 CEMENT -1 9 RETAIL -4 1 HOLDING 115 180 INSURANCE & OTHER 13 4 TOTAL CONSOLIDATED FX POSITION AFFECTING PL 1 -82 *Capitalized borrowings of Energy segment amounting

  30. Slide 30: 2016 Guidance

    2016 GUIDANCE 30 2016 2016 Previous Current Growth Growth Guidance Guidance SABANCI HOLDING SALES 10-15% 10-15% COMBINED NON- BANK * EBITDA 20-30% 20-30% SALES 10-20% 10-20% INDUSTRIALS* EBITDA 5-10% 5-10% SALES 10-15% 5-10% ENERGY* EBITDA 40-50% 45-55% Upwards revision on Energy EBITDA guidance due

  31. Slide 31: Q&A

    Q&A OQBANcI

  32. Slide 32: Appendix

    Appendix OQBANcI

  33. Slide 33: Enerjisa Balance Sheet

    Enerjisa Balance Sheet 33 MILLION TL 2015 YE 2016 H1 % Change Cash 258 254 -1% Trade Receivables 1.987 1.985 0% Other Current Assets 1.579 1.418 -10% TOTAL CURRENT ASSETS 3.824 3.658 -4% Fixed Assets 16.140 16.208 0% Other Non Current Assets 6.865 7.368 7% TOTAL NONCURRENT ASSETS 23.005 23.577 2% TO

  34. Slide 34: Enerjisa Financing Cost Drivers

    Enerjisa Financing Cost Drivers 34 Q2 Q2 H1 H1 2015 2016 2015 2016 Operational FX Gain / Loss & Interest 7 35 40 44 Expense (Net) Fx Gain/ Loss -95 -74 -101 -131 Interest Expense -205 -217 -362 -435 (Net) Total Financial -294 -256 -423 -521 Expenses Successful FX risk management

  35. Slide 35: Non-Operational and Non-Recurring Items

    Non-Operational and Non-Recurring Items 35 Q2 2015 Q2 2016 2015 H1 2016 H1 NET INCOME EXCLUDING NON OPERATIONAL & NON 446 675 981 1.334 RECURRING ITEMS Gain on sales of Sasa shares 108 0 108 0 Gain on sales of Akbank visa shares 0 66 0 66 Enerjisa gain on asset sale 0 0 52 0 Carrefoursa gain on asse

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