Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Sabancı Holding — Q4 2017 Earnings Presentation
24 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2018
Slide 1: Sabancı Holding Q4 2017 Earnings Presentation
Sabancı Holding Q4 2017 Earnings Presentation
Slide 2: Disclaimer
2 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 correct
Slide 3: 2017 Strong Performance on All Fronts
3 2017 Strong Performance on All Fronts 2017 Growth 2017 Growth Status Guidance Realization SALES 10-15% 31% Exceed ENERGY* EBITDA 10-15% 41% Exceed SALES 5-15% 26% Exceed INDUSTRIALS* EBITDA 5-15% 15% Met SABANCI HOLDING SALES 5-10% 23% Exceed COMBINED NON-BANK * EBITDA 10-15% 30% Exceed * One off
Slide 4: Strong Operational Profitability in Energy and Industrials
4 Key Highlights Strong Operational Profitability in Energy and Industrials Energy segment continues to drive non-bank EBITDA with 59% y/y growth thanks to solid profitability in downstream business Industrial segment had a strong Q4 in all businesses, through increased local and export sales couple
Slide 5: Revenues
5 Revenues Energy and Industrial Segments Drives Q4 Non-bank Revenue Growth TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q4 2016 Q4 2017 % Change 2016 2017 % Change TOTAL* 14.068 18.556 32% 53.094 64.711 22% Energy top line driven by Downstream BANK 6.100 7.608 25% 22.669 27.352 21%
Slide 6: EBITDA
6 Increased Efficiencies and Stronger Domestic Demand were the key EBITDA drivers of Q4 Non-Bank EBITDA Growth TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q4 2016 Q4 2017 % Change 2016 2017 % Change TOTAL* 3.005 4.479 49% 10.768 14.201 32% Energy operational profitability was driven
Slide 7: Non-bank Bottom-line Driven by Energy in Q4
7 Consolidated Net Income Non-bank Bottom-line Driven by Energy in Q4 MILLION TL Q4 2016 Q4 2017 % Change 2016 2017 % Change CONSOLIDATED NET INCOME* 792 1.237 56% 2.800 3.615 29% Strong earnings in banking side BANK 491 788 60% 1.979 2.643 34% supported Q4 bottom line growth at the NON-BANK 301 449
Slide 8: Energy Distribution Business Hikes up the Profitability
8 Energy Distribution Business Hikes up the Profitability MILLION TL Q4 2016 Q4 2017 % Change 2016 2017 % Change SALES 3.299 4.957 50% 12.565 16.510 31% EBITDA* 836 1.326 59% 2.463 3.468 41% NET INCOME* 101 392 289% 279 443 59% EBITDA* MARGIN 25,3% 26,7% 19,6% 21,0% *Excludes non-operational one off
Slide 9: Energy Segment Figures Adjusted for Comparison
9 Energy Segment Figures Adjusted for Comparison MILLION TL Q4 2016 Q4 2017 % Change 2016 2017 % Change SALES 3.299 4.957 50% 12.565 16.510 31% EBITDA* - Adjusted for comparison 696 949 36% 2.554 2.877 13% Net Income**- Adjusted for comparison -32 95 395% 300 -24 -108% EBITDA* MARGIN - Adjusted for
Slide 10: Enerjisa Enerji: Improved Tariff and Operational Efficiencies
10 Enerjisa Enerji A.Ş. Improved Tariff and Operational Efficiencies Q4 Q4 % Distribution: MILLION TL 2016 2017 Change 2016 2017 % Change Change CPI (%) reaches 11,9% (2016: Net sales 2.184 3.753 72% 9.103 12.345 36% 8,5%) EBITDA 268 1.043 290% 1.495 2.555 71% Higher efficiency and quality gains
Slide 11: 5% Growth in Electricity Demand in Q4
11 Generation Sector 5% Growth in Electricity Demand in Q4 Electricity consumption (GWh) Q4 [5% growth] Electricity production by source in Q4 (TWh) Q4 2016: 70.6 TWh Q4 2017: 73.9 TWh 25.972 Natural Gas 25.230 Hydro 24.195 23.696 Coal 23.057 22.285 Lignite Geothermal… Other Oct Nov Dec 0 5 10 15 20
Slide 12: Enerjisa Üretim: Operational Performance Driven by Renewables and Lignite Plant
12 Enerjisa Üretim Santralleri A.Ş. Operational Performance Driven by Renewables and Lignite Plant in Q4 2017 MILLION TL Q4 2016 Q4 2017 % Change 2016 2017 % Change Sales ( TWh) Net sales 1.172 1.204 3% 4.155 4.165 0% 23,1 22,7 EBITDA* 427 282 -34% 1.058 911 -14% EBITDA* margin (%) 36% 23% -13,0pp 2
Slide 13: Enerjisa Üretim Balance Sheet and Cash Flows
13 Enerjisa Üretim Santralleri A.Ş. Balance Sheet and Cash Flows MILLION TL DEC 2016 DEC 2017 % Change Free Cash Flow Generation (MTL) Cash 28 35 28% Trade Receivables 1.500 418 303 -28% Fixed Assets 10.950 10.721 -2% 1.000 Other Assets* 1.955 1.590 -19% 500 TOTAL ASSETS 13.351 12.649 -5% Bank Borro
Slide 14: Energy Key Takeaways in Q4 2017
14 Energy Key Takeaways in Q4 2017 Enerjisa Enerji – Growth and Operational Efficiency Regulated Asset Base (RAB) continue to grow on the back of accelerated investments and reaches 5.3 bn TL in 2017. Higher Capex, RAB and Inflation results in +186 MTL additional EBITDA in Q4 2017 y-o-y. Impro
Slide 15: Cement Q4 EBITDA Driven by Domestic Demand and Price Improvement
15 Demand Increase in Domestic Market and Price Improvement Has Driven Cement Q4 EBITDA 2017 Q4 FINANCIAL RESULTS Current Assessment BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) Q4 showed demand increase due to good weather MILLION TL Q4 2016 Q4 2017 % Change 2016 2017 % Change conditions and ongoi
Slide 16: Retail Improving Customer Retention, Challenging Financial Results
16 Retail Improving Customer Retention, Challenging Financial Results 2017 Q4 FINANCIAL RESULTS BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q4 2016 Q4 2017 % Change 2016 2017 % Change SALES 1.911 2.191 15% 7.566 7.952 5% EBITDA* 116 52 -55% 83 224 171% NET INCOME* -25 -72 -194% -310 -220
Slide 17: Insurance Elevated Claims Capped EBITDA Growth in Q4
17 Insurance Elevated Claims Capped EBITDA Growth in Q4 2017 Q4 FINANCIAL RESULTS Current Assessment BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) − 39% growth in elementary insurance premiums, driven by both MTPL** (+183%) and non-motor segment MILLION TL Q4 2016 Q4 2017 % Change 2016 2017 % Change (
Slide 18: Industrials Hard Currency Revenue Streams Support Growth
18 Industrials Hard Currency Revenue Streams Support Growth and Profitability 2017 Q4 FINANCIAL RESULTS BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q4 2016 Q4 2017 % Change 2016 2017 % Change SALES 1.425 1.874 32% 5.228 6.613 26% EBITDA* 258 305 19% 975 1.118 15% NET INCOME* 173 177 2% 63
Slide 19: FX Position Long FX
19 FX Position Long FX MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) M€ DEC 31, 2016 Dec 31, 2017 ENERGY -271 -240 INDUSTRIALS -25 1 CEMENT -8 4 RETAIL 3 0 INSURANCE 6 7 HOLDING & OTHER 167 327 TOTAL CONSOLIDATED FX POSITION AFFECTING PL -128 99 Holding Only Cash Position is 1.590 MTL
Slide 20: Capital Allocation Decisions: Enerjisa Enerji IPO and Enerjisa Üretim
20 Capital Allocation Decisions: 2018 Enerjisa Enerji IPO and Enerjisa Üretim Enerjisa Enerji IPO was successfully completed on February 8, becoming the largest private sector IPO in Turkey (in TL terms) The main reasons for IPO: transparency and value crystallization Sabancı Holding and EON r
Slide 21: Dividends
21 2018 Dividends Sabancı Holding Dividend Payments 700,0 19% Dividend Policy 17,6% 600,0 17% Before Now 15,3% 612 15% 500,0 13,7% Based on Based on 13% Distributable Net 400,0 11,8% Policy Distributable Net 10,9% 11,0% 408 Income, Tied to Paid- 11% Income 9,8% in Capital *) 300,0 306 09% Range 0% -
Slide 22: 2018 Guidance
22 2018 Guidance 2018 Growth Guidance SABANCI HOLDING SALES 15-20% COMBINED NON-BANK * EBITDA 15-20% * Excludes one off items. ** Sabanci Group plans to invest approximately 5 bn TL in 2018
Slide 23: Q&A
Q&A
Slide 24: Non-Operational and Non-Recurring Items
24 2017 Non-Operational and Non-Recurring Items Non-Operational and Non-Recurring Items Q4 2016 Q4 2017 2016 2017 NET INCOME EXCLUDING NON OPERATIONAL & NON RECURRING ITEMS 792 1.237 2.800 3.615 Gain on sales of Akbank visa shares 0 0 66 0 Enerjisa Üretim- asset sale 0 0 0 -114 Carrefoursa gain on a