Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Investor Day (May 2018)
31 slides from Haci Omer Sabanci Holding A.s's investor day presentation, May 2018
Slide 1: Sabancı Holding Capital Markets Day
Sabancı Holding Capital Markets Day
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: Speaking today
3 Introduction Speaking today Mehmet Göçmen Barış Oran Board Member and CEO Chief Financial Officer Appointed as the CEO of Sabancı Holding in March 2017 Appointed as the CFO of Sabancı Holding in 2016 Joined the Sabancı Group in 2003 Joined the Sabancı Group in 2006 Since joining the Group, Mr Göçm
Slide 4: Sabancı, Turkey's leading group
4 Introduction Sabancı, Turkey’s leading group • 90+ years of creating market leaders in large and growing business areas, evolving through dynamic portfolio management and leveraging our industrial heritage and the experience of our JV partners • Strong financial track record of real growth and r
Slide 5: In continuous evolution
5 Introduction In continuous evolution 1940s – 1960s 1970s-2000s 2000-2010s Present and future Early Growth Phase - Proliferation of Global “New Generation’s Refocus Portfolio Initial Diversification Partnerships-Conglomeration Sabancı” JVs formed with JVs formed with, Aviva Bridgestone and and Agea
Slide 6: Creating market leaders in large and growing business areas
6 Introduction Creating market leaders in large and growing business areas Our companies are market leaders in critical areas within their respective sectors • Banking - the best bank in Turkey in 2017 (Euromoney) • Cement - the leading Turkish cement supplier with strategic positioning in the marke
Slide 7: Consistently delivering over time
7 Introduction Consistently delivering over time Sabancı’s 2013-2017 financial performance, TL bn Double digit combined revenue growth 16% 20% Double digit combined EBITDA1 growth CAGR CAGR 14,2 65,6 10,8 53,8 47,9 7,2 8,0 44,1 6,8 36,1 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Combined EBIT
Slide 8: Improved capital allocation has led to favourable Return on Equity trend
8 Improved capital allocation and focus on performance has led Introduction to a favourable trend in Return on Equity year-on-year Return on Equity Sabancı Holding consolidated ROE 13-17 Equity Segment ROE1 2013 2014 2015 2016 2017 ∆ ppts Share2 14,5% Energy n.m. n.m. 0.4% 3.0% 4.6% +9.4% 18.7% Ceme
Slide 9: Turkey - an attractive foundation and platform for global growth
9 Introduction Turkey - an attractive foundation and platform for global growth Turkey is one of the world’s fastest growing economies Sabancı, able to efficiently leverage the Turkish opportunity Real GDP growth, y-o-y • One of the highest growth economies in the world with real GDP 16% growth cons
Slide 10: Driving "New Generation's" Sabancı
10 New Generation Driving “New Generation’s” Sabancı New Generation’s Sabancı Continue to invest to drive sustainable growth by investing into new geographies, new products, adjacent industries and in asset light areas such as digital and data analytics Capital allocation Technology and data Talent
Slide 11: Linking value creation to performance targets
11 Talent New Generation Linking value creation to performance targets Management Fostering performance Previous vs New Total Cash Model • Targets to implement ownership culture 300 Long term • Set of short term KPIs determined for each year at the end of 50 (max) budget process, the targets set at
Slide 12: Capital allocation framework
12 New Generation Capital allocation framework Capital allocation Growth (~50% of NAV) • Strategically attractive markets where Sabancı can add value • Build a sustainable competitive advantage (organically / inorganically) • New product development (R&D) Cash generators (~35% of NAV) • Strong cash
Slide 13: Implementation of new capital allocation policy
13 New Generation Implementation of new capital allocation policy Capital allocation Overview New policy for capital allocation • Revised capital allocation strategy to ensure disciplined use of capital • Dynamic portfolio management, an important pillar of the capital allocation strategy Value crea
Slide 14: More transparent dividend policy benefiting shareholders
14 More transparent dividend policy benefiting Refreshed capital allocation Capital allocation New Generation shareholders framework Dividend policy – overview Dividend policy to benefit all shareholders Before Today • Sabancı’s revised dividend policy was announced at Q4 2017 Policy Based on Distri
Slide 15: Advanced and Predictive Analytics
15 Technology and New Generation Advanced and Predictive Analytics data • Embed advanced predictive analytics across functions of Sabancı Holding in all decision making processes by the end of 2022 to Vision create competitive advantage supporting both the development of topline and bottomline Scale
Slide 16: Committed to driving value for all of our stakeholders
16 Our value add Committed to driving value for all of our stakeholders What makes Sabancı different? How Sabancı drives value • Active owner focused on long-term value creation • Focusing on long-term value creation as an active owner • Best-in-class domestic reputation, brand image and • Fostering
Slide 17: An effective corporate and governance structure
17 An effective corporate and governance structure, tailored to drive Our value add value creation Shareholder base Corporate structure and division of responsibilities • Evolved from a family owned group to a corporation with an effective governance structure, accelerated by our JV partners • Saban
Slide 18: Sabancı, driving value as a strategic investor
18 Enerjisa example Sabancı, driving value as a strategic investor 2009 2013 2016 Baskent distribution Partnership with EON New February 2018 region acquisition Regulatory Enerjisa Enerji IPO Ayedas and Toroslar Period valued at 1.9 bn USD distribution region acquisitions (Downstream) 2006 2017 Ener
Slide 19: Turnaround in Energy between 2014 and 2017
19 Enerjisa example Turnaround in Energy between 2014 and 2017 2014 2017 Decision to defer Separation of generation downstream investment Operational initiatives and upstream Upstream Downstream • Capacity target reduced from 7.5 GW to 3.5 GW • Implementation of existing operational excellency to th
Slide 20: Robust Holding Company and Group balance sheet
20 Performance Robust Holding Company and Group balance sheet Combined net financial debt / EBITDA1 Commentary 5,2x 4,6x • Effective management of Sabancı’s balance sheet linked 4,0x to capital allocation approach 3,7x 3,1x • Strong de-leveraging profile for the group • Lean Holding Company costs (c
Slide 21: Portfolio performance: Energy and Cement
21 Performance Portfolio performance Business unit financial performance, TL bn1 Combined Revenue Combined EBITDA & EBITDA margin Dividends paid to Sabancı Holding (TL m) 142 16,5 21% 20% 12,6 Energy 11,0 11,8 13% 6,7 10% 3,5 8% 2,5 1,5 0,7 0,8 - - - - - 2013 2014 2015 2016 2017 2013 2014 2015 2016
Slide 22: Portfolio performance: Industrials and Insurance
22 Performance Portfolio performance Business unit financial performance, TL bn1 Combined Revenue Combined EBITDA & EBITDA margin Dividends paid to Sabancı Holding (TL m)2 6,6 346 298 315 Industrials 5,2 20% 288 275 4,8 5,1 8,4 18% 19% 8,4 4,6 17% 243 6,3 16% 6,3 4,6 4,5 4,5 4,6 4,5 4,5 1,1 1,0 1,0
Slide 23: Portfolio performance: Retail and Banking
23 Performance Portfolio performance Business unit financial performance, TL bn1 Combined Revenue Combined EBITDA & EBITDA margin 8,0 3% 7,6 3% 7,1 3% 6,1 5,6 8,4 8,4 Retail 6,3 6,3 4,6 4,5 4,5 4,6 4,5 4,5 2% 0,2 0,2 0,2 1% 0,1 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 0,1 2013 2014 2015 201
Slide 24: 2017 performance delivered
24 Performance 2017 performance delivered Sabancı’s 2017 financial performance against guidance Commentary Energy Industrials Combined1 • Majority of Sabancı’s growth targets set for 2017 were exceeded with sizeable outperformance 41% 15% 15% • Combined non-bank revenues for 15% 26% 30% 2017 increas
Slide 25: Q1 2018 - Beating expectations
25 Performance Q1 2018 - Beating expectations Combined Net Sales2 Combined EBITDA1 Consolidated Net Income TLm TLm TLm 18.719 +33% 3.704 +25% 894 +24% 2.972 722 14.102 7.962 +29% +18% 2.257 691 +16% Bank 1.906 Bank 596 Bank 6.159 10.757 +35% +36% 1.447 Non-bank 7.943 Non-bank 202 +60% 1.066 Non-bank
Slide 26: Increasing dividend payments from portfolio companies
26 Performance Increasing dividend payments from portfolio companies Sabancı Holding dividends paid and received (MTL) TLm Segment 2013 2014 2015 2016 2017 2018 Outflows / 32% 32% 25% 41% 46% 50% Inflows Akbank Banking 232 190 232 245 367 652 Akçansa Cement 44 57 90 102 94 51 1.212 Aksigorta Insuran
Slide 27: Sabancı, Turkey's leading group
27 Wrap-up Sabancı, Turkey’s leading group • 90+ years of creating market leaders in large and growing business areas, evolving through dynamic portfolio management and leveraging our industrial heritage and the experience of our JV partners • Strong financial track record of real growth and retur
Slide 28: Appendix
Sabancı Holding Appendix
Slide 29: Overview of corporate structure
29 Appendix Overview of corporate structure Banking / Energy Retail Cement Industrial Other Insurance Enerjisa Enerji Carrefoursa Çimsa Cement1 Akbank Kordsa Philsa SAHOL: 40.0% SAHOL: 50.6% SAHOL: 49.4% SAHOL: 48.9% SAHOL: 71.1% SAHOL: 25.0% E.ON: 40.0% Carrefour: 46.0% Akçansa Çimento: 9.0% Free f
Slide 30: Sabancı Holding Earnings Reporting - Combined and Consolidated Numbers
30 Sabancı Holding Earnings Reporting - Combined and Appendix Consolidated Numbers Combined Net Sales EBITDA Net income Subsidiaries (1) line by line line by line line by line Joint Ventures (2) line by line line by line line by line Associates (3) Not included Proportion of ownership interest * Net
Slide 31: Investor relations key contacts
31 Appendix Investor relations key contacts investor.relations@sabanci.com Levent Bayar Finance Manager Investor Relations lbayar@sabanci.com +90 212 385 8149 Şermin Mutlu Finance Director Investor Relations smutlu@sabanci.com +90 212 385 81 50
Hacı Ömer Sabancı Holding A.Ş. — Investor Day (May 2018) on 6ix