Slide 1: Energy SBU Investor Presentation
JULY, 2023 ENERGY SBU INVESTOR PRESENTATION
Slide 2: Global Overview: Making the impossible Energy Trilemma possible through Disruption
GLOBAL OVERVIEW Making the impossible “Energy Trilemma” possible through “Disruption” ENERGY Renewables Transmission & Deep Drilling & DER Distribution & Geothermal SECURITY IoT & Artificial Digitalization Sensors Intelligence Peer-to-Peer Electrification CCUS Trading Energy H2 Hydrogen Efficiency S
Slide 3: Strategic Direction from Traditional to Disruptive
ENERGY SBU Strategic Direction from “Traditional” to “Disruptive” We are committed to We aim to benefit & staying at the center of the develop our strong human technologies that will capital and competencies shape the future energy to expand our operations world. abroad. We position ourselves in Sus
Slide 4: Expansion to new adjacencies & abroad by leveraging the pioneer position in Türkiye
4 ENERGY SBU Expansion to new adjacencies & abroad by leveraging the pioneer position in Türkiye Growth & High Investment Turnaround Capital Recycling Expansion to New Adjacencies & Abroad 2006-2013 2013-2017 2017 -2022 2022 Onwards 2013 2022 Partnership with E.ON 2021 October 2022 2006 Acquisition
Slide 5: Diversified energy portfolio throughout the value chain
ENERGY SBU Diversified energy portfolio throughout the value chain Distribution & Retail Generation & Trade 14 6 3.7 GW Cities metropoles 23 5 Installed Capacity (4.7 GW Power Plants Technologies installed capacity in 2026) 22 mn 10.6 mn 14.6 TWh 28.5 TWh 45.5% Population Customers Renewables (57% G
Slide 6: Strong fundamentals for continued growth in Türkiye
SECTOR OVERVIEW Strong fundamentals for continued growth in Türkiye 80 Electricity per Capita Consumption Increase in Distribution Investments** Room for Improvement to Reach European Countries Level US (in Current Prices, Bn TL) CAGR 70 28% 60 Enerjisa Other DSOs GDP per capita (USDk, 2021) NL 50 D
Slide 7: Liberalized market mechanism in Türkiye
SECTOR OVERVIEW Liberalized market mechanism in Türkiye Change of Licensed Electricity Generation as Public-Private by Years* (%) Spot Electricity Prices (TL/MWh, LHS) vs Natural Gas Prices(TL/sm3)** 5000 25 Spot Prices (TL/MWh) BOTAŞ Tariff (TL/sm3) 100 81.9 85.1 4000 20 78.9 83.1 84.2 85.0 80.5 84
Slide 8: Exceptionally strong performance driven by stronger returns in Türkiye
ENERGY SBU Exceptionally strong performance driven by stronger returns in Türkiye Combined Revenue & EBITDA (Bn TL) Combined Net Income* (Bn TL) Revenue EBITDA* EBITDA* Margin 35% 23% 23% 22% 18% 25% 16% 11.0 14% 12% 15% 140.5 4.3 5% 3.0 3.1 31.1 47.8 39.9 2.4 2.0 23.6 5.3 26.0 6.0 6.8 8.7 19.5 27.3
Slide 9: Solid balance sheet structure & strong financial performance
GENERATION & TRADING: ENERJİSA ÜRETİM Solid balance sheet structure & strong financial performance Key Financials Free Cash Flow Generation (Mn TL) Revenue(Bn TL) EBITDA*(Bn TL) Net Income(Bn TL) 25% 25% 4,012 27% 37% 30% 20% 15% 2,938 2,488 2,596 56.1 2,229 1,223 1,226 16.4 9.8 11.2 9.3 8.5 6.5 2.5
Slide 10: Initiating a major expansion project in the renewable energy market in Türkiye
GENERATION & TRADING: ENERJİSA ÜRETİM Initiating a major expansion project in the renewable energy market in Türkiye Installed Generation Capacity Mix* 1000 MW YEKA-2 Wind Power Plant Investment (USD 1.2 bn) ÇANAKKALE Currently 2026 250 MW BALIKESİR Natural Gas 250 MW Renewables 34% 45% 43% AYDIN 3.
Slide 11: Exploring next generation capabilities in power generation & trading
GENERATION & TRADING: ENERJİSA ÜRETİM Exploring next generation capabilities in power generation & trading ASSET LIGHT GROWTH GREEN HYDROGEN Trading Globally Reached more than 100 international trader/broker counterparties from 30 countries Developing and trading 3rd parties' carbon and green power
Slide 12: Strong position in distribution & retail and an inflation-linked business with real return
DISTRIBUTION & RETAIL: ENERJİSA ENERJİ Strong position in distribution & retail and an inflation-linked business with real return Supportive and Transparent Regulatory Framework Competitive Advantages Operational Earnings (Q1 2023) Türkiye’s leading electricity distribution and retail company – econ
Slide 13: Heavily concentrated on network investments but also an important efficiency game
DISTRIBUTION & RETAIL: ENERJİSA ENERJİ Heavily concentrated on network investments but also an important efficiency game Distribution Operational Earnings* Strong Historical Growth and Breakdown (Q1 2023) Untapped Potential CAGR YoY Regulated Asset Base (TL bn) 30% 79% Others 29.4 1% 19.9 16.4 Effic
Slide 14: Acting as a solution partner with technological competencies
DISTRIBUTION & RETAIL: ENERJİSA ENERJİ Acting as a solution partner with technological competencies by leveraging extensive customer network Energy Bills Customer Share Enerjisa Share Prior to EPC During EPC After EPC Distributed Generation / Solar Energy Efficiency & Decarbonization E-mobility / E-
Slide 15: Transforming the energy business to pursue opportunities in disruption & expansion abroad
ENERGY SBU Transforming the energy business to pursue opportunities in “disruption & expansion abroad” Sabancı Climate Technologies Sabancı Sabancı Climate Renewables Ventures New Markets Generation & New technologies and solutions on their way to Existing Trading commercialization could be transfer
Slide 16: Leveraging core capabilities & expand the business to create higher value for stakeholders
ENERGY & CLIMATE TECH: SABANCI CLIMATE TECHNOLOGIES Leveraging core capabilities & expand the business to create higher value for stakeholders We lead energy and climate transition by bridging the gap between emerging and developed markets SABANCI CLIMATE TECHNOLOGIES Create sustainable base return
Slide 17: Expanding Energy SBU investments beyond Türkiye
ENERGY & CLIMATE TECH: SABANCI CLIMATE TECHNOLOGIES Expanding Energy SBU investments beyond Türkiye Sabancı Climate Technologies, wholly owned subsidiary of Sabancı Holding, will undertake renewable energy power plant investments and strategic investments in various venture capital funds and start-u
Slide 18: Initiating the first solar project with prospects for future growth
ENERGY & CLIMATE TECH: SABANCI CLIMATE TECHNOLOGIES Following extensive study and analysis, initiating the first solar project with prospects for future growth Market potential for proxy businesses in 272 MW Region close to Houston - high demand Texas West Solar Power Shovel-ready project with low e
Slide 19: Creating an extended innovation ecosystem via fund & start-up investments
ENERGY & CLIMATE TECH: SABANCI CLIMATE TECHNOLOGIES Creating an extended innovation ecosystem & enabling early access to disruptive technologies via fund & start-up investments Invested in a venture fund with a portfolio Coming out of MIT's Plasma Science and Coming out of MIT and reached a valuatio
Slide 20: Contributing to Türkiye's green energy transition while managing ESG risks
SUSTAINABILITY While contributing to Türkiye’s green energy transition, we stay committed to sound management of ESG risks and investing in communities that we operate in Key Player in Energy Largest contributor to Commitment to 100% Shaping the New Helping Customers to Security electrification Low
Slide 21: Disclaimer
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 correctne
Slide 22: For Further Details ir.sabanci.com
INVESTOR RELATIONS CONTACTS Kerem TEZCAN Investor Relations Director Şule GENÇTÜRK KARDIÇALIOĞLU Meet SirA, Sabancı Holding's digital Investor Relations Manager investor relations assistant ! Hamza SÜMER Turkey’s First Investor Relations Investor Relations Specialist Dedicated Assistant ! Arda KAYMA