Haci Omer Sabanci Holding A.s. · BIST:SAHOL
Haci Omer Sabanci Holding A.s — Hacı Ömer Sabancı Holding A.Ş. — Q1 2018 Earnings Presentation
20 slides from Haci Omer Sabanci Holding A.s's earnings presentation, 2018
Slide 1: Sabancı Holding Q1 2018 Earnings Presentation
Sabancı Holding Q1 2018 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: Beating the Expectations
3 SABANCI Beating the Expectations Combined Net Sales MILLION TL Q1 2017 Q1 2018 % Change TOTAL* 14.102 18.719 33% Strong Demand BANK 6.159 7.962 29% Pricing Power NON-BANK* 7.943 10.757 35% Combined EBITDA* MILLION TL Q1 2017 Q1 2018 % Change High Asset Utilization TOTAL* 2.972 3.704 25% BANK 1.906
Slide 4: Revenues
4 Revenues Energy, Industrials and Insurance Drives Q1 Non-bank Revenue Growth TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q1 2017 Q1 2018 % Change TOTAL* 14.102 18.719 33% Energy top line driven by positive regulatory BANK 6.159 7.962 29% changes that boosted Downstream revenues NO
Slide 5: EBITDA
5 EBITDA Supportive regulation and strong pricing drives Q1 Non-Bank EBITDA TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q1 2017 Q1 2018 % Change Energy operational profitability was largely TOTAL* 2.972 3.704 25% driven by supportive regulatory changes and BANK 1.906 2.257 service q
Slide 6: Consolidated Net Income
6 Consolidated Net Income Non-bank Bottom-line Growth Driven by Energy and Financial Income in Q1 MILLION TL Q1 2017 Q1 2018 % Change CONSOLIDATED NET INCOME* 722 894 24% Strong operational profitability growth in Downstream has driven Q1 bottom line BANK 596 691 16% for Energy NON-BANK 126 202 61%
Slide 7: Energy
7 Energy Increase in Profitability on the Back of Upstream and Downstream TOTAL BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q1 2017 Q1 2018 % Change SALES 3.482 5.158 48% EBITDA* 615 895 45% NET INCOME* -54 99 283% EBITDA* MARGIN 17,7% 17,4% Current Assessment Factors to Watch Distributio
Slide 8: 3% Growth in Electricity Demand in Q1
8 Generation Sector 3% Growth in Electricity Demand in Q1 Electricity consumption (GWh) Q1 [3% growth] Electricity production by source in Q1 (TWh) Q1 2017: 70.6 TWh Q1 2018: 73.9 TWh 28.000 Natural Gas 27.000 26.211 26.000 25.453 Hydro 25.000 24.554 Coal 24.002 24.000 23.226 Lignite 23.000 22.457 2
Slide 9: Higher Utilization Supported by Capacity Payment
9 Enerjisa Üretim Santralleri A.Ş. Higher Utilization Supported by Capacity Payment MILLION TL Q1 2017 Q1 2018 % Change Sales ( TWh) Net sales 907 1.087 20% 5,3 5,4 EBITDA* 202 283 40% EBITDA* margin (%) 22% 26% 3,8pp Depreciation -102 -108 -7% Financial Income/(expense) -270 -291 -8% Net income* -1
Slide 10: Positive Free Cash Flow Generation and Deleveraging Continues
10 Enerjisa Üretim Santralleri A.Ş. Positive Free Cash Flow Generation and Deleveraging Continues Generation & Trading Debt (MEUR Equivalent) 2.200 Free Cash Flow Generation 1.900 1.500 1.600 1.300 1.000 1.000 2015 YE 2016 YE 2017 YE Mar'2018 500 0 2014 2015 2016 2017 Mar'2017 Mar'2018 Net Debt (MEU
Slide 11: Cement
11 Cement Demand Increase and Price Improvement Has Driven Q1 EBITDA BEFORE CONSOLIDATION Current Assessment ADJUSTMENTS (COMBINED) MILLION TL Q1 2017 Q1 2018 % Change SALES 547 748 37% Q1 showed demand increase thanks to good weather conditions. Domestic consumption as of EBITDA* 96 161 67% Febru
Slide 12: Retail Improving Customer Retention
12 Retail Improving Customer Retention BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q1 2017 Q1 2018 % Change SALES 1.736 1.957 13% EBITDA* 43 8 -81% NET INCOME* -51 -117 -130% EBITDA* MARGIN 2,5% 0,4% *Excludes non-operational one off items. Current Assessment Factors to Watch − Double dig
Slide 13: Insurance Motor Products Lead the Growth in Q1
13 Insurance Motor Products Lead the Growth in Q1 BEFORE CONSOLIDATION Current Assessment ADJUSTMENTS (COMBINED) − 51% growth in non-life insurance premiums, driven by MILLION TL Q1 2017 Q1 2018 % Change both MTPL** (~5x) and MOD** (+29%) − Combined ratio remained flat, boosting technical income SAL
Slide 14: Industrials New Capacity Successfully Online
14 Industrials New Capacity Succesfully Online BEFORE CONSOLIDATION ADJUSTMENTS (COMBINED) MILLION TL Q1 2017 Q1 2018 % Change SALES 1.416 1.761 24% EBITDA* 254 291 15% NET INCOME* 147 124 -16% *Excludes non-operational one off items. EBITDA* MARGIN 17,9% 16,5% Current Assessment Factors to Watch −V
Slide 15: FX Position Long FX Position Limits Risks and Creates Financial Income
15 FX Position Long FX Position Limits Risks and Creates Financial Income MILLION EURO CONSOLIDATED NET FX POSITION (excl. Bank) Dec 31, 2017 Mar 31, 2018 ENERGY -240 -198 INDUSTRIALS 1 -2 CEMENT 4 -2 RETAIL 0 3 INSURANCE 7 8 HOLDING & OTHER 327 232 TOTAL CONSOLIDATED FX POSITION AFFECTING PL 99 40
Slide 16: Strong Dividend Growth
16 2018 Strong Dividend Growth Sabancı Holding Dividend Payments 700 19,0% 17,6% 600 17,0% 15,3% 612 15,0% 500 13,7% 13,0% 11,8% 400 11,0% 10,9% 408 11,0% 9,8% 300 306 9,0% 200 7,0% 204 204 204 204 100 5,0% 2012 2013 2014 2015 2016 2017 2018 Dividend Paid (MTL) Dividend Payout Ratio (on IFRS net inc
Slide 17: Key Developments In Q1
17 2018 Key Developments In Q1 Solid operational and financial performance continues in our B2B businesses New capital allocation framework has been disclosed and dividend payments increased Management changes to ensure best performance and improve strategic focus
Slide 18: 2018 Guidance Maintained
18 2018 Guidance Maintained 2018 Growth Guidance SABANCI HOLDING SALES 15-20% COMBINED NON-BANK * EBITDA 15-20% * Excludes one off items.
Slide 19: Q&A
Q&A
Slide 20: Non-Operational and Non-Recurring Items
20 2018 Non-Operational and Non-Recurring Items Non-Operational and Non-Recurring Items Q1 2017 Q1 2018 NET INCOME EXCLUDING NON OPERATIONAL & NON RECURRING ITEMS 722 894 Gain on sales of Enerjisa Enerji shares (IPO proceeds) 0 123 Carrefoursa gain on asset sale;litigation resolution;impairment 13 3
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