Release Date: August 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Haci Omer Sabanci Holding AS (IST:SAHOL, Financial) has successfully executed its strategic initiatives, including the acquisition of Bulutistan, enhancing its portfolio with a market-leading business in cloud technologies.
- The company has made significant progress in sustainability, reducing emissions by 20% and water consumption by 24% compared to 2021, and utilizing 100% renewable energy at Sabanci Holding.
- Enerjisa Ãretim increased its wind farm capacity by more than 20 megawatts, with plans to reach approximately 5 gigawatts of installed capacity by 2026, focusing on renewable energy.
- The acquisition of Mannok by Cimsa represents a milestone in material technologies, aligning with the company's strategy to increase FX share in combined revenues.
- Akbank, a major asset of the group, has shown strong customer growth, adding 800,000 new customers and maintaining a robust capital adequacy ratio of 60%.
Negative Points
- The macroeconomic environment, including high inflation and interest rates, has negatively impacted the company's financial performance, with a reported loss of TRY7.6 billion.
- The energy segment faced challenges with lower spot electricity prices and reduced natural gas generation, impacting profitability.
- The mobility solutions segment experienced a 47% decline in EBITDA due to lower top-line growth and negative sales mix effects.
- Material technologies segment saw a 12% drop in top-line growth due to pricing competition and lack of pricing flexibility in domestic and export markets.
- High financial expenses and inflationary pressures have negatively affected net income across various segments, including financial services and digital.
Q & A Highlights
Q: Considering the weakening profitability in the first half of 2024 and insufficient foreign investor interest, do you see any risk for the delay of Enerjisa Üretim's IPO?
A: We are not working with a fixed date for the IPO. We aim to ensure the best timing for a strong valuation, involving both Turkish and foreign investors. We are preparing to be ready when market conditions are optimal.
Q: What is the expected generation volume for Enerjisa Üretim's $500 million EBITDA target, and will non-bank portfolios pay dividends based on inflation-adjusted numbers in 2025?
A: We expect electricity prices to rise, improving performance in the second half. Non-bank portfolios will continue to pay dividends based on inflation-adjusted figures, similar to previous periods.
Q: Will there be any changes in the company's reporting under material and mobility solutions?
A: Currently, Kordsa, Akcansa, and Cimsa remain under this group. The acquisition of Mannok exemplifies synergies between these companies, enhancing competencies in various product areas.
Q: With higher holdco cash and deep discounts, will you revisit buybacks?
A: Our buyback program is mostly complete, but we will consider it as a tool if feasible. Our focus is on using cash for growth through organic and inorganic opportunities.
Q: Could you confirm your EBITDA guidance for Enerjisa Üretim, which implies a significant jump in profitability in the second half of 2024?
A: We expect total EBITDA to exceed $500 million this year, with asset-based EBITDA close to $500 million. Trading profits will contribute, albeit at a reduced level compared to last year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
