Haci Ömer Sabanci : 2022 Q3 Earnings Presentation

Q3 2022

EARNINGS PRESENTATION

November 4, 2022

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.

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Q3 2022 Highlights

Resilient growth and high-quality earnings despite accelerating cost inflation

Strong balance sheet maintained ahead of upcoming investment cycle

Strategic transformation momentum continues at full speed

Consolidated ROE* tripled, reaching 59% in Q3

Net Debt/EBITDA fell below 1.0x

Operational cash flow almost doubled, exceeding FY21

Renewable Capacity expansion in Turkey

Initiating the footprint in the US Energy Market

Investments in Disruptive Climate Technologies in the US

*Excludes non-operational and non-recurringone-off items

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Continuing to deliver on our strategic initiatives

Dynamic Portfolio Management

Turkey's 1st Green Hydrogen:	Capacity Increase in CAC:
Production and use of green	Çimsa's investment at USD45mn,
hydrogen at Enerjisa Üretim's	for capacity increase in CAC
Bandırma facility

Digital Investment:

Acquisition of 100% of SEM**, a digital marketing company

Kordsa Capacity Investments:

Kordsa Turkey: USD12mn in cord & fiber Kordsa USA: USD20mn in cord

Transfer of TTKOM shares	Capacity Increase in HMLS	Network Optimization
in Building Materials Business
owned by LYY*:	Polyester Yarn:	Climate Tech & Renewable Energy Investments
Sale of some cement plants &
Completion of 55% of TTKOM	Kordsa's investment at USD9.8mn,	cement grinding facilities for	in the USA:
shares transfer from LYY* to	for capacity increase	EUR110mn	Safar Partner VC investments (Strategic Partnership)
Turkey Wealth Fund	in HMLS Polyester Yarn		& Solar Plant Investment (272 MW)

Jan'22

Feb'22

Mar'22

Apr'22

May'22

Jun'22

July '22

Aug'22

Sep'22

Oct'22

Sale of Philsa & PMSA Shares:

Sale of Sabancı Holding's entire

Acquisition of Arvento:

88.89% of Arvento by Brisa to

transform into a mobility

solutions business

Digital Investment:

Acquisition of 51% of Radiflow, an OT security company

Turkey's National

DC ChargerTender:

Eşarj to establish 495 DC

stations in 53 cities at amount of TL300mn

Renewable Energy Investment

in Turkey:

Enerjisa Üretim's 1,000 MW Wind Plant

shares in Philsa & PMSA

Solar Power Plants at Çimsa & Brisa:	Acquisition of Microtex:
Acquisition of 60% of Microtex by
Solar power plant investments in
Kordsa Inc. to expand in
Çimsa's Afyon Cement Factory and
composites in the automotive and
Brisa's Aksaray Factory
motorsport in Europe

Investment covering the YEKA-2 tenders

with the collaboration of Enercon

*Akbank had 35.6% shares in LYY Telekomünikasyon A.Ş. ** Refers to SEM and its subsidiary Liberdatum together

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Faster topline growth with improvement in earnings quality…

			Combined Revenue*
			(TL mn)
			275,363
		Non-bank	+175%
		Bank**

97,693

100,053

36,164 177,670

63,888

9M 2021

9M 2022

Revenue growth management &

inflation

Combined EBITDA*

(TL mn)

	Non-bank**	74,674	+259%
	Bank

52,140

20,823

10,492

22.534

10,331

9M 2021

9M 2022

Effective cost management amid

rising inflationary pressures

Consolidated Net Income*

(TL mn)

		Non-bank**		+321%
		Bank
			23,435

15,582

5,563

2,999 7.853

2.563

9M 2021

9M 2022

Deleveraging &

strong cash position

*Excludes Holding dividend income ** Bank revenue = Interest income + commission	*Excludes non-operational and non-recurring one off items
income + capital markets gains/losses + net derivative gains/losses	**Excludes IFRS16 impact in retail

*Excludes non-operational and non-recurring one off items

**Excludes IFRS16 impact in retail

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