Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q3 2016 Earnings Presentation
34 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2016
Slide 1: 2016 Q3 Earnings Presentation
1 2016 Q3 Earnings Presentation
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: Key Highlights
Key Highlights 3 − Operational performance improvement sustained in Energy in all businesses − Store network and inventory clean up complete in Retail: Positioned for quick ramp up of operational profitability. − We have maintained high profitability in Cement business − In Industrials, tobacco busi
Slide 4: Net Sales
Net Sales 4 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2015 Q3 2016 % Change 9M 2015 9M 2016 % Change TOTAL 11.988 12.714 6% 35.174 39.600 13% BANK 4.751 5.512 16% 13.649 16.388 20% NON-BANK 7.237 7.201 0% 21.525 23.212 8% ENERGY 2.923 3.065 5% 8.603 9.265 8% CEMENT 662 647 -2%
Slide 5: EBITDA (Excluding Non Operational Items)
EBITDA (Excluding Non Operational Items) 5 TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2015 Q3 2016 % Change 9M 2015 9M 2016 % Change TOTAL 1.910 2.670 40% 5.804 7.762 34% BANK 991 1.693 71% 3.064 4.743 55% NON-BANK 919 978 6% 2.740 3.020 10% ENERGY 319 524 64% 1.220 1.628 33% CE
Slide 6: Net income (Excluding Non Operational Items)
Net income (Excluding Non Operational Items) 6 MILLION TL Q3 2015 Q3 2016 % Change 9M 2015 9M 2016 % Change CONSOLIDATED NET INCOME* 475 677 43% 1.456 2.006 38% BANK 303 531 75% 937 1.488 59% NON-BANK 172 146 -15% 519 519 0% ENERGY -60 -13 79% 9 89 865% ENERGY-Adjusted for comparison** -65 -14 78% 3
Slide 7: Segment Assessment - Energy
Segment Assessment - Energy 7 Current Assessment Factors to Watch Distribution − Continued investments in the grid − Expansion of Regulated Asset Base − Low electricity prices increasing operational profitability in the unregulated segment − Unregulated volume growth − Large industrials switching to
Slide 8: Enerjisa Corporate Structure
Enerjisa Corporate Structure 8 Enerjisa Consolidated – JV Enerjisa Enerjisa Electricity Carries acquisition loans of Generation and Distribution distribution regions Trading Company Company (EEDAŞ) Carries capex loans Retail Distribution only Business Business Başkent Distribution Company Ayedaş Dis
Slide 9: Energy Segment
Energy Segment 9 BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2015 Q3 2016 % Change SALES 2.923 3.065 5% EBITDA* 319 524 64% NET INCOME* -119 -26 79% NET INCOME** - Adjusted for comparison -131 -29 78% EBITDA* MARGIN 10,9% 17,1% MILLION TL 9M 2015 9M 2016 % Change SALES 8.603 9.265 8% E
Slide 10: Energy – Enerjisa Electricity Distribution Company (EEDAŞ)
Energy – Enerjisa Electricity Distribution Company (EEDAŞ) 10 MILLION TL Q3'15 Q3'16 % Change 9M'15 9M'16 % Change Net sales 2.559 2.438 -5% 7.787 7.487 -4% Gross margin (%)** 15,8% 25,1% 9,3pp 15,3% 23,6% 8,3pp Operational Expenses** -239 -264 -11% -584 -741 -27% Other income/(expense) 5 5 5% 13 5
Slide 11: Energy – EEDAŞ Balance Sheet and Cash Flows
Energy – EEDAŞ Balance Sheet and Cash Flows 11 MILLION TL 2015 YE 2016 9M % Change Cash 152 157 3% Trade Receivables 1.811 1.761 -3% Financial Assets 3.021 3.694 22% Fixed Assets 5.373 5.226 -3% Other Assets* 4.092 4.143 1% • Financial assets (RAB) and TOTAL ASSETS 14.449 14.982 4% borrowings increa
Slide 12: Energy – Distribution Business
Energy – Distribution Business 12 MILLION TL Q3 2015 Q3 2016 % Change SALES 612 792 30% EBITDA* 104 281 169% EBITDA* MARGIN 17,0% 35,4% MILLION TL 9M 2015 9M 2016 % Change SALES 1.746 2.378 36% EBITDA* 390 753 93% EBITDA* MARGIN 22,4% 31,7% * Excluding non operational items Increasing Regulatory Ass
Slide 13: Energy – Retail Business
Energy – Retail Business 13 MILLION TL Q3 2015 Q3 2016 % Change SALES 2.626 2.403 -8% EBITDA* 28 88 212% EBITDA* MARGIN 1,1% 3,7% MILLION TL 9M 2015 9M 2016 % Change SALES 7.955 7.329 -8% EBITDA* 199 241 21% EBITDA* MARGIN 2,5% 3,3% * Excluding non operational items Robust performance in EBITDA on t
Slide 14: Regulatory Changes in Generation
Regulatory Changes in Generation 14 Recent Changes Impact on Sector Impact on Enerjisa Improvement in spark spreads for natural gas 15-20 MTL positive EBITDA 10% natural gas price cut fired generators impact for Enerjisa in 2017 Previous Changes Hydropower plants in FIT to be 48 MTL already booked i
Slide 15: Generation Sector Drivers in Q3
Generation Sector Drivers in Q3 15 Electricity consumption (GWh) Q3 [2.9% growth] Electricity production by source in Q3 Q3’15: 70,385 GWh Q3’16: 72,392 GWh Natural Gas Hydro Coal Lignite Geothermal+wind Other Jul Aug Sep 0 10 20 30 2015 2016 Q3'15 Q3'16 Spot prices vs Feed-in-tariff (USD/MWh) Gener
Slide 16: Generation – Tufanbeyli Lignite Plant
Generation – Tufanbeyli Lignite Plant 16 First two units are operational since August 10, 2016 and the last unit since September 15, 2016 As of September 2016, 73% of electricity generated sold to TETAŞ with a price of 185TL/MWh In Q4, more than 150 MTL liquidated damages will be collected from cont
Slide 17: Energy – Generation Business P&L
Energy – Generation Business P&L 17 MILLION TL Q3'15 Q3'16 % Change 9M'15 9M'16 % Change Net sales 915 925 1% 2.376 2.735 15% Gross margin (%) 18% 22% 4,2pp 29% 26% -2,7pp EBITDA* 149 163 9% 636 637 0% EBITDA* margin (%) 16% 18% 1,3pp 27% 23% -3,5pp Depreciation -59 -87 -47% -172 -206 -19% Interest
Slide 18: Energy – Generation Business Balance Sheet and Cash Flows
Energy – Generation Business Balance Sheet and Cash Flows 18 MILLION TL 2015 YE 2016 9M % Change Cash 96 48 -50% Trade Receivables 474 415 -13% Fixed Assets 10.765 11.040 3% Other Assets* 1.330 1.238 -7% TOTAL ASSETS 12.667 12.741 1% Bank Borrowings 6.622 6.701 1% Trade Payables 591 686 16% Other Li
Slide 19: Segment Assessment - Cement
Segment Assessment - Cement 19 Current Assessment Factors to Watch − Strong base effect continues to suppress growth in local market − Petrocoke and coal prices − Challenges continue in export markets − Speed up in nuclear power plant constructions Cement − Sabancı cement plants are located in high
Slide 20: Cement
Cement 20 BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2015 Q3 2016 % Change SALES 662 647 -2% EBITDA* 211 215 2% NET INCOME* 138 138 0% EBITDA* MARGIN 31,9% 33,3% MILLION TL 9M 2015 9M 2016 % Change SALES 1.936 1.969 2% EBITDA* 601 599 0% NET INCOME* 392 383 -2% EBITDA* MARGIN 31,1% 30
Slide 21: Segment Assessment - Retail
Segment Assessment - Retail 21 Current Assessment Factors to Watch − Consumer sentiment outlook − LfL growth in the sector − Most critical items on the agenda of both food and − Results of management action technology retail completed Retail during Q3: plan in food retail on operational profitabilit
Slide 22: Retail
Retail 22 BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2015 Q3 2016 % Change SALES 1.925 1.844 -4% EBITDA* 58 -15 -126% NET INCOME* -29 -100 -243% EBITDA* MARGIN 3,0% -0,8% MILLION TL 9M 2015 9M 2016 % Change SALES 4.953 5.655 14% EBITDA* 116 -34 -129% EBITDA** - Adjusted for comparison
Slide 23: Carrefoursa
Carrefoursa 23 Number of Carrefoursa Stores BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2015 Q3 2016 % Change 751 34 679 SALES 1.111 1.153 4% 33 EBITDA* 34 -5 -115% 717 646 NET INCOME* -29 -72 -148% EBITDA* MARGIN 3,1% -0,4% 9M 2015 9M 2016 MILLION TL 9M 2015 9M 2016 % Change SALES 2.7
Slide 24: Carrefoursa – Progress of Action Plan
Carrefoursa – Progress of Action Plan 24 Maintaining earlier wins • Reduced stockouts: Achieved 100% availability in top 100 SKUs • Right sizing costs: Sales per FTE has considerably continues to improve compared to January 2016, unit energy costs per sqm reduced In progress • Pricing actions: Plann
Slide 25: Segment Assessment - Insurance
Segment Assessment - Insurance 25 Current Assessment Factors to Watch − MTPL product outlook with the − Technical profit remained new vendor regulator website positive excluding MTPL claims − Participant growth with auto Insurance − Pension business continues to achieve high growth in enrollment pre
Slide 26: Insurance
Insurance 26 BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2015 Q3 2016 % Change SALES 416 480 15% EBITDA 69 48 -31% NET INCOME 54 43 -21% MILLION TL 9M 2015 9M 2016 % Change SALES 1.429 1.598 12% EBITDA* 127 148 17% NET INCOME* 124 133 7% EBITDA drop in Q3 attributable to MTPL claims an
Slide 27: Segment Assessment - Industrials
Segment Assessment - Industrials 27 Current Assessment Factors to Watch − Limited volume growth in local − Volume growth in replacement tire market market in tires − Pace of growth in export Industrials − Strong demand in export markets markets − Volume growth in tobacco − Turkish Lira and other EM
Slide 28: Industrials
Industrials 28 BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q3 2015 Q3 2016 % Change SALES 1.273 1.141 -10% EBITDA* 266 219 -18% NET INCOME* 155 129 -17% EBITDA* MARGIN 20,9% 19,2% MILLION TL 9M 2015 9M 2016 % Change SALES 3.666 3.803 4% EBITDA* 697 717 3% NET INCOME* 410 461 12% EBITDA* M
Slide 29: Kordsa Global
Kordsa Global 29 STANDALONE FINANCIALS MILLION TL Q3 2015 Q3 2016 % Change SALES 457 443 -3% EBITDA 72 61 -15% NET INCOME* 27 26 -4% EBITDA MARGIN 15,7% 13,7% MILLION TL 9M 2015 9M 2016 % Change SALES 1.285 1.403 9% EBITDA 172 215 25% NET INCOME* 71 138 95% EBITDA MARGIN 13,4% 15,3% On track operati
Slide 30: Philsa
Philsa 30 % Turkey Key Market Data Nine Months Year-to-Date MILLION TL Q3 2015 Q3 2016 Change Change SALES 4.610 5.747 25% 2016 2015 % / p.p. Total Turkey Cigarette Market (billion units) 79,4 75,0 6,0% NET INCOME 50 94 89% PMSA Sales Quantity (billion units) 37,6 35,4 6,0% % MILLION TL 9M 2015 9M 2
Slide 31: FX Position
FX Position 31 MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2015 SEP 30, 2016 OCT 31, 2016 ENERGY* -124 -544 -248 INDUSTRIALS 2 -39 CEMENT -1 16 RETAIL -4 0 HOLDING 115 180 INSURANCE & OTHER 13 1 TOTAL CONSOLIDATED FX POSITION AFFECTING PL 1 -386 -86 *Capitalized borrowings of E
Slide 32: 2016 Guidance
2016 GUIDANCE 32 2016 2016 Previous Current Growth Growth Guidance Guidance SABANCI HOLDING SALES 10-15% 5-10% COMBINED NON-BANK * EBITDA 20-30% 20-30% SALES 10-20% 5-10% INDUSTRIALS* EBITDA 5-10% 0-5% SALES 5-10% 5-10% ENERGY* EBITDA 45-55% 55-60% Increasing operational profitability guidance in en
Slide 33: Q&A
Q&A OQBANcI
Slide 34: Non-Operational and Non-Recurring Items
Non-Operational and Non-Recurring Items 34 Q3 2015 Q3 2016 9M 2015 9M 2016 NET INCOME EXCLUDING NON OPERATIONAL & NON 475 677 1.456 2.006 RECURRING ITEMS Gain on sales of Sasa shares 0 0 108 0 Gain on sales of Akbank visa shares 0 0 0 66 Fine from Ministry of Customs and Trade 0 -35 0 -35 Enerjisa g
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