HACI ÖMER SABANCI HOLDING NOVEMBER 9, 2023
Q3 2023 EARNINGS
PRESENTATION
EARNINGS PRESENTATION
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 correctness. No undue reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. This document contains forward-looking statements by using such words as "may", "will", "expect", "believe", "plan" and other similar terminology that reflect the Holding management's current views, expectations, assumptions and forecasts with respect to certain future events. As the actual performance of the companies may be affected by risks and uncertainties, all opinions, information and estimates contained in this document constitute the Holding's current judgement and are subject to change, update, amend, supplement or otherwise alter without notice. Although it is believed that the information and analysis are correct and expectations reflected in this document are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Holding does not undertake any obligation, and disclaims any duty to update or revise any forward looking statements, whether as a result of new information or future events. Neither this document nor the information contained within can construe any investment advice, invitation or an offer to buy or sell Holding and/or Its group companies' shares. Holding cannot guarantee that the securities described in this document constitute a suitable investment for all investors and nothing shall be taken as an inducement to any person to invest in or otherwise deal with any shares of Holding and its group companies. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. You must not distribute the information in this document to, or cause it to be used by, any person or entity in a place where its distribution or use would be unlawful. Neither Holding, its board of directors, directors, managers, nor any of Its employees shall have any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.
EARNINGS PRESENTATION
9M'23 Highlights
Strong profitability maintained
amid macro challenges
Top-line(1) growth
63%
EBITDA(1) growth 43%
Net income(1) growth
46%
ROE 38%
Healthy balance sheet with | Robust NAV growth |
ample liquidity | with an attractive discount |
Net debt/EBITDA(2) | NAV(3) | growth |
0.4x | 90% in USD | |
Consolidated Long FX position(2) | NAV(3) | discount |
USD232mn | 41% | |
Holding-only cash | Capex/Sales(2) | |
USD217mn | 10.3% |
ESG interim targets are in place
GHG emissions reduction by 2025:15%
GHG emissions reduction by 2030:42%
SDG-related operational spending & investment pledge by 2027: USD5bn
(1)Top-line excludes Holding dividend income. Bank revenue = Interest income + commission income + capital markets gains/losses + net derivative gains/losses. EBITDA and Net Income excludes non-operational and non-recurringone-off items.(2) Non-bank (3)Please refer to Appendix for the details of our NAV.
01
/06
Combined Financials
9M Results
COMBINED FINANCIALS
While inflationary pressures are still weighing on the Turkish economy…
Bloomberg Commodity & Energy Index (YoY Change)
Bloomberg Commodity Index | Bloomberg Energy Index | ||||||||||||
67% | 80% | ||||||||||||
33% | 32% | 28% | 34% | ||||||||||
15% | |||||||||||||
1% | |||||||||||||
-8%-11% | |||||||||||||
-12% | -13% | ||||||||||||
-39% | -29% | ||||||||||||
2018 | 2019 | 2020 | 2021 | 2022 | 9M 2022 | 9M 2023 |
Annual Turkish Consumer Price Index (YoY Change)
83% | |
64% | 62% |
Wage Increase(1) (Minimum Wage, Gross)
107% | |
364 | 375 |
34%
166 | 201 | 181 | ||
144 | ||||
114 | ||||
2018 | 2019 | 2020 | 2021 | 2022 | 9M 2022 | 9M 2023 |
Average Foreign Exchange Rates(2) Change (YoY Change)
84%
75%
36% |
35%
42%
20% | 12% | 15% | ||||
2018 | 2019 | 2020 | 2021 | 2022 | 9M 2022 | 9M 2023 |
25% 29%
15%
2018 | 2019 | 2020 | 2021 | 2022 | 9M 2022 | 9M 2023 |
- Years are indexed to 2017=100 and quarters are indexed to 2021=100.
- Basket (0.5USD+0.5EUR)
COMBINED FINANCIALS
…our well-diversified portfolio continued to support earnings quality…
Combined Revenue(1) (TL mn) | Combined EBITDA(1) (TL mn) | ||||||||
Non-bank | Bank | Non-bank | Bank | ||||||
63% | 43% |
449,717
107,825
191,071 96%
275,363
75,205
71,812 38%
97,693
52,140
258,646 46%
177,670
36,013 56%
23,064
9M 2022 | 9M 2023 | 9M 2022 | 9M 2023 |
Consolidated Net Income(1) (TL mn)
Non-bank Bank
46%
34,184
23,413 | 36% | |
21,208 | ||
15,582 | ||
12,976 | 66% | |
7,831 | ||
9M 2022 | 9M 2023 |
- Combined Revenue excludes Holding dividend income. Bank revenue = Interest income + commission income + capital markets gains/losses + net derivative gains/losses. Combined EBITDA and Consolidated Net Income excludes non-operational and non-recurringone-off items.
COMBINED FINANCIALS
…that lead to a resilient non-bank ROE performance with cash flow exceeding 2022 full year figure…
Return on Equity (ROE) (1) | Operational Cash Flow, Combined for Non-Bank(2) (TL bn) |
Bank ROE | Consolidated ROE | Non-Bank ROE | ||
116%
13.7% | 13.1% | 17.1% | 23.9% | 31.1% | 27.7% | 28.8% | 28.7 | 28.9 |
54.7%
51.5% | 50% | |||||
41.2% | ||||||
13.6% | 17.9% | 45.4% | 12.5 | 13.4 | ||
10.9% | 10.9% | 41.4% | ||||
37.8% | ||||||
10.8 | ||||||
9.5 | ||||||
22.6% | 5.6 | |||||
13.7% | 12.2% | 14.5% | ||||
2018 | 2019 | 2020 | 2021 | 2022 | 9M 2022 | 2018 | 2019 | 2020 | 2021 | 2022 | 9M 2022 | 9M 2023 |
9M 2023 |
- Excludes non-operational and non-recurringone-off items
- Excludes Financial Services, Banking and other segment.
COMBINED FINANCIALS
…resulting further deleveraging, supported by strong cash at the holding level
Holding Only - Net cash position (TL bn)
Combined Net Financial Debt to Non-Bank EBITDA (1)
2.3x
2.2x
5.9
Midterm
Guidance:
≤ 2x
4.4 | 1.5x |
1.2x
3.1
2.6 | 2.5 |
0.7x
1.7
1.1 | 0.4x | 0.4x |
2018 | 2019 | 2020 | 2021 | 2022 | 9M 2022 | 9M 2023 | 2018 | 2019 | 2020 | 2021 | 2022 | 9M 2022 | 9M 2023 |
(1) Excludes Banking, net cash position of financial services and non-operational and non-recurringone-off items in EBITDA
02
/06
Combined Financials
Q3 Results
COMBINED FINANCIALS
Combined Revenue / Strong topline growth driven by banking business
Segments' Contribution to Combined Revenues(1) (TL Mn)
70%
Segment Annual | 105% | 22% | 60% | 64% | 120% | 126% | 84% |
Revenue Growth: | |||||||
Share in Q3'23 | 46% | 26% | 5% | 7% | 5% | 6% | 5% |
Combined Revenue: | |||||||
(1) Holding dividend income is excluded.
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Disclaimer
Haci Ömer Sabanci Holding AS published this content on 14 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 November 2023 00:11:25 UTC.
