Haci Ömer Sabanci Holding A.S. (SAHOL) Earnings Call Transcript & Summary

Hi everyone. Thanks for joining Sabanci Holding Energy & Climate Technologies Day. Today, we are hosted by Enerjisa Üretim, our energy generation JV, also Sabanci Holdings largest non-listed assets. Our group CFO, Orhun Kostem and Energy Group Head, Kivanc Zaimler are with us today. We will start our presentation followed by a virtual tour to [indiscernible]. [Operator Instructions] Orhun Burak the floor is yours.

Thank you, Kerem. And good morning, good afternoon, everyone. Welcome to Sabanci Group's Energy & Climate Technologies' Day. We're very happy to talk about what we believe is ultimately important part of our portfolio, basically. So I will start talking about the share and importance of the energy segment in our portfolio. As you see on -- as you see on Page 6 of the presentations that are available to you, today, the energy segment already constitutes an important part of Sabanci Holdings net asset value. If you take a book value point of view, based on the book value, which we have historically been reporting, it accounts for about 21% of our net asset value. However, if you take a look at an independent valuation outcome, which was recently shared with the public as well. We see that Energy & Climate Technologies piece has already come to about 35% of our NAV. And hence, has probably become the largest contributor to Sabanci Group's net asset value. And as Kerem was mentioning today, we are hosted by Enerjisa Üretim, currently our largest non-listed nonpublic assets, which obviously contributes quite significantly to this net asset value contribution. It's not only the net asset value as I'm sure you must be following, and as you see on next page, Page 7. The EBITDA contribution is also quite significant. If you look at the nonfinancial services EBITDA of the group. The Energy & Climate Technologies account for about 63% of the EBITDA. If you look back over the years, we are happy to report that this share has been roughly about 50% levels and has now grown to over 60% levels and has been increasing on a year-on-year basis. And with a net debt-to-EBITDA of 1.2x, our business unit is well capable of funding its own growth with a very healthy balance sheet. A further testament to that, if you go to Page 8, the operational cash flow of the segment has been quite strong. It's growing on a year-on-year very wopping 650%. But if you look at the CAGR growth, it also has been quite significant, which also actually results in a very strong dividend payments to Sabanci Holdings. So our energy group is now a very important dividend contributor. As you see, the growth over the recent years has been quite significant. Whereas if you look at the breakdown, our Energy business now constitutes about 34% of our dividend inflows, of course, a very important share following the bank. Now going forward, as you see, I'm pretty sure you must be quite familiar to what we show on Page 9 of our presentation. And of the areas that Sabanci Group would like to continue investing to transition its portfolio to do a new economy. One major area is Energy and Climate Technologies including renewable generation capacity to electrification et cetera, with a lot of new areas, which we feel would -- should be an important part of our portfolio, a value-added part of our portfolio going forward. So with that, Today, we're hosting Kivanc Zaimler, President of the Energy Group of Sabanci Holding, and welcome Kivanc. I will leave the floor to you.

Thank you, Orhun. Good afternoon or good morning to everyone, depending on your time zone. Orhun has explained Sabanci Holding primary goals. And when we reflect this goes to our Energy & Climate Technologies business unit, we see similar priorities. We target to be the -- we target to be in the energy world of the future by using the competencies that we have developed in Turkey so far, with a focus on sustainability and by using new energy technologies in the global innovation ecosystem. In other words, we will expand our focus on the traditional energy work to disruptive areas. And to achieve this target, we also rely on our capable human capital who are at the heart of our energy business. Today, all countries and organizations in the world are talking about energy trilemma. What does trilemma mean? It means that it's impossible to maximize all the 3 criterias at the same time. The first one, we need to ensure the security of supply in the energy. Secondly, at the same time, you asked the following question, will you be able to keep the cost of energy at affordable levels for consumers? And while doing all this, you'll be able to 0 out your carbon footprint. In summary, energy will be available, affordable and clean. That's why it's called to be impossible triangle. And to solve this equation, dozens of solutions are being discussed and the common ideas include more renewables -- renewables -- more renewables in everywhere. Secondly, transformation of transmission and distribution lines and of course, efficiency and efficiency at every stage of the value chain. Apart from these 3 solutions, storage systems, hydrogen, e-mobility, smart grids, et cetera, are on the table but can all this make the impossible possible. The lesson we learned from this picture enables us to determine our priorities on the right side. You must further expand our green asset base, more renewables, more sustainability. Secondly, we must bring new solutions along with renewables for ourselves and for our customers, cheaper, more secure and more environmental investments. And thirdly, on the last edge of the triangle, you must look for disruptive technologies that can transform the market and fill existing gaps. To write the story, let us first look at the existing companies in our portfolio. As a reminder, let me first explain the shareholder structures of these companies in the portfolio. On the left-hand side, Energy, in electricity distribution and retail, 40% Sabanci Holding, 40% E.ON and 20% Free Float. On the right upper side and as written, Britainish generation in Turkish, our generation and traded company, which is owned by 50% Sabanci Holding and 50% by E.ON. And lastly, on the bottom, Sabanci Climate Technologies is the youngest company in our Energy business unit. For the time being, operating and focusing only in the United States and 100% of by Sabanci Holding without their partnership. Again, as a reminder, I would like to share the activity areas and some indicators about our subsidiaries. Enerjisa Enerji is Turkey's leading electricity distribution and retail company and reached the highest share in the regulated asset base, which means highest network investments are realized. Energi Enerjisa provides regulated electric distribution and supply services to 22 million people with around 11 million customers and around 20 million available connections. And operating in big metropolis cities like Istanbul and Ankara in fact, having great operations in [indiscernible] and large network and supplies around 40 terawatt hours of electricity but also driving an e-charging infrastructure and all the systems around it. And the company operates in a supportive regulatory environment with an investment return of 12.3% real. The company has also the strongest balance sheet in the sector and pay sustainable dividend since 2018. And as Uretim has 24 power plants in 2 tier working with 5 different technologies: hydroelectric, wind, solar, natural gas and lignite. The 3.7 gigawatt installed capacity, which is nearly 50% of it renewable, generates almost 15 terawatt electric generation annually and which will be increasing significantly. And the company is the leader of energy trading in all metrics. 28.5 terawatt hours annual electric rate last year, which is actually an important figure in asset-light revenue and net income generation. The company has also developed and also commercialize the leading energy and digital service capabilities. That's why we have a SEMCON visit in our program today. And Enerjisa Üretim has differentiated itself from the rest of the market with its portfolio and operational capabilities. And by its nature, it's a hard currency, meaning the U.S. dollar-driven business and Enerjisa Üretim has also the strongest balance sheet in the sector and they pay sustainable dividend linked to U.S. dollar. And lastly, at the bottom, the Sabanci Climate Technologies and the parent company of Sabanci Renewables and Sabanci Climate Ventures organizations in the United States. Currently, we have 500 megawatts solar capacity in the United States with 2 power plants. Our plans for quick growth are well prepared and the corporate venture capital arm is successfully started to deploy on strategic investments in energy adjacencies. Now I would like to explain the road maps of each of these 3 subsidiaries. Let me start with Enerjisa Enerji, distribution and retail. The strategy is to grow and lead the market in a financially secure regulated business area, maximize the grid investment for a safe and preferable return on capital. Secondly, optimize retail operations to increase efficiency and catch opportunities when the premarket allows it. And lastly, grow in customer solutions to address the problem of energy trilemma by leading energy transformation of Türkiye by providing affordable renewal energy efficiency solutions, by helping customers in their journey to decarbonization and also by having the wireless and fastest electrical vehicle charging network. And most importantly, the company has the financial strength and balance sheet ability to make these investments by itself. The company does not require any capital from shareholders for its growth plans. While achieving this growth, the company plans to pay regular dividends. Since Enerjisa Enerji is a public listed company, many of you already know, both the company and its business model. And I do not want to repeat the metrics related to their size, as I mentioned before. And I can say that the company is the leader in the market by all metrics, focuses on sustainability, and it is the last link in the value chain that touch the customer. And we can say that almost 95% of the earnings crop from regulated activities. And the biggest part of this comes from distribution network investments. The regulatory body supports distribution companies to realize the network investments in line with the needs of the country. For this reason, the regulator supports the industry with an attractive WAC of 12.3% real. And since Enerjisa Enerji operates in growing cities such as Istanbul and Ankara, the need for investments never ends. While doing this, the company is doing this to renew and improve the network that's approximately 40 years old. In the retail side of the business, a majority of the 40 terawatt hour electricity sales for regulated customers with the national tariff. Again, for related customers, net profit margin is well guaranteed. On the other side, we have a fast-growing customer solution business, which also has the potential for growth. Customer solutions for Enerjisa Enerji with this high-growth potential covers, distributed generation from renewables, energy efficiency projects, decarbonization solutions, storage investments and e-mobility e-charging solutions. In this context, we provide energy performance contract model for the customers where the initial CapEx is provided by NIS Energy. And the latest changes in the regulation allow us to build a large-scale solar power plants in the field for customers rather than only rooftops. This really increased the scale of the business. We have also received a pre license of 205-megawatt solar power plant with storage under our own name, which again can be used to offer customers long-term energy deals, such as power purchase agreements, PPAs. indiscernible], our mobility, e-mobility charging station brand has the highest market share in Türkiye when it comes to fast and DC charging station, a company 100% hold by ENARSA, so far, operating in 6 cities with total 668 total charging stations and 512 of which are fast DC charges, and the target by the end of the year is to reach 1,000 station in every city, in 81 city of the country. The strategy of Enerjisa Üretim is such sustained growth in all areas, mainly in renewables and its adjacencies. Developing Türkiye's largest renewable portfolio as well as the future proof portfolio and expand the portfolio through trading businesses in Europe, in power, in gas and carbon trading and expand the commercialization of its digital capabilities and hydrogen is again a strategic target that we are exploring as of now. And we want to keep providing the U.S. dollar-based dividend to our shareholders and the company, which is financial strength and thanks to their balance sheet ability is able to make these investments by itself without any contribution from its shareholders. And the company can also increase its committed dividend in U.S. dollar terms as it has for the last 3 years. Let's talk about the generation capacity. The main target is to increase the existing 3,700 megawatts in full capacity to over 5,000 megawatts until 2026. And we have a very solid growth plan regarding this. At that time, the portfolio will be transported to almost 60% green power. This 1,000 megawatt YEKA projects in 4 locations in the western part of Türkiye is our biggest step. This is Turkiye's prime location when it comes to wind. With U.S. dollar guaranteed fixed price for 15 years, which is any PPA. And these power plants will be commissioned between the last quarter of this year end of 2025. As you see on the lower right side, we have also other growth options in renewables through capacity increases in the existing power plants. And further M&A activities, M&A of licenses as well as operational power plants, which will create the synergy with the existing portfolio in this western part of Turkey, as well as storage units coupled with renewable energy plants also in the growth plan of [indiscernible]. Enerjisa Uretim is always looking for new business areas to explore and grow with its legal position. Existing energy commodity trade competencies provided us global expansion of trade services. And more than 10 terawatt hour annual capacity in Europe was reached in a short amount of time with limited risk capital budget, but high return. Synchro, the energy digital services company is another opportunity to use existing local competencies and turn them into global products. We'll introduce you Synchro and give more detailed information after our presentation with our management team. And green hydrogen is not at target, but an existing product for Enerjisa Üretim since we have already initiated a pilot project. We are one of the founding members of 2 tiers, first green hydrogen valley project that we have applied to Horizon Europe's hydrogen valley called in 2022 as the consortium leader. Our project was approved in the first quarter of this year, and we were awarded EUR 18 million of funding. And another activity around storage with combined renewal generation plant is also a potential area for Enerjisa Üretim, just like Enerjisa Enerji and also has applied and received a total capacity for 500-megawatt wind and storage project in 3 locations. So far, I have explained the 2 joint market leader companies in Turkey. In summary, we have developed certain competencies in both companies that I will try to give some examples. We are well positioned at both the beginning and the end of the value chain, and our generation capacity consists of 5 different technologies in line with the country's generation mix while effectively mitigating this. And on our downstream business, the regulated and guaranteed earnings allow predictable revenue and income. Both companies have manageable debt ratios, much below the sector averages and none of them leave open positions, neither in FX nor in electricity. And Enerjisa Üretim operates all its assets with European benchmark available to ratios. And Enerjisa Enerji is an exemplary and reference company in the regulatory authorities shaping of the market. And Enerjisa Üretim maximizes the economic value created by monitoring and optimizing the portfolio closely. So predictive maintenance approach and the digitalization projects are developed so the breakdowns are decreased significantly. And Enerjisa Enerji with its lean and agile organization focused on digital customer journeys, they have automated systems even more sophisticated than the European distribution companies. Both companies have 2 tiers best and most admired workplace, not the gender equality, not the diversity, not the inclusion, but our biggest risk is the brain drain evolves. We developed an energy-focused MBA program with Sabanci University Executive Development unit. And we have many fresh graduate and management training programs as well as professional development opportunities for its near 13,000 workers. In conclusion, we relied on those competencies, so we had the courage to expand abroad. I like to explain the main game plan on this chart. The vertical axis on the left shows the markets, below this Türkiye, above is the growth. And the horizontal axis shows our competencies, we target to add new ones to our existing competencies by moving to the right and to include them on the left. And both of our companies in Turkey played this game very successfully. At Enerjisa Üretim, we also started to expand a growth with commodity trading and digital services. And the Sabanci renewals you see on the top left is the best example of -- we have been able to carry our generation competencies abroad currently in the U.S. And in the upper right corner, we have the venture business that we started in the U.S.A. This upper part, Sabanci Climate Technologies, if you look at total, it's a new chapter in Sabanci Holding story in energy market. It is the perfect platform to apply what we have launched in Türkiye, in a big market and discover new ideas that can turn into global competencies for the whole group. The new technologies and solutions on the way to commercialization could be transferred and utilized to increase the value of existing energy companies as well as initiate the opportunity to start a new business in our region, in Turkey or even in the [indiscernible] region. In our global expansion, story focused on Europe and United States wanted to perform in a developed market. Our target was to lead energy and climate transition by bridging the gap between emerging and developed markets within our homework in both regions, studied the possibilities extensively. The U.S. market stood up as out of more attractive and easier to take the first step. While Sabanci renewables is focusing on onshore wind, utilities, scale solar and battery storages. On the other hand, Sabanci Climate ventures investments on early-stage Energy & Climate Solutions, predominantly in the United States, and Europe as a peripheral location, which allows early market penetration of start-ups in emerging markets. United States came to the floor with the attraction of being world's second largest renewable energy market and the largest corporate venture ecosystem. Around 100 gigawatts of renewable capacity was installed in the United States for the last 3 years. And an extended and enhanced renewable energy incentives, such as the inflation Reduction Act, which increased the return potential. And United States is the most developed and least regulated power market and long stable base revenue streams in U.S. dollar terms. For innovation investments, North America set an annual record in capital commitments and captures 2/3 of the funds closed in last year, around USD 170 million. And more than 50% of the global [indiscernible] emerged in the United States. We'll more focus on our renewable capacity in the United States. In a record short time, we have developed quite a pipeline of 500 megawatts. And 1,000 megawatt target is underway with more room to grow. We have the project pipeline with which we can achieve this growth targets. We have an agile empowered team. We do not manage the business remotely, however, our experts and local teams in the related areas. We are running a strategy that we can define as an underdog. We target to work with the best business partners, and we don't want to make mistakes at the first projects. Our risk perception is very high. That's why we go with credible counter partners. We are very stingy with costs and study every detail extensively. The first project, Cutlass II is a 272-megawatt Solar project in Texas, which we have acquired its license in the last quarter of last year. The field work is underway with a global EPC company Bechtel. It is expected to be completed and operational before mid next year. And the revenue model is secured with the PPA, along to project financing from commercial banks, we are about to sign the tax equity agreement very soon. Accordingly, we will have injected approximately around 30% of equity. I can say that we are progressing very quickly and without mistakes, that were too good so far within the American standards. The value of the project has already increased and we are receiving attractive offers for this project in this growing U.S. renewable markets. Oriana, that's the project we acquired with a license of 232 megawatts solar plus 60 megawatts of storage. Again, in Texas, it is a similar project to our previous project. But this time, it's located in a different trading zone of Texas. We have signed the EPC for the solar power plant effected again with minimum risk in the installation policy. The revenue model will be secured again with the PPA and the expecting commission will be the second quarter of 2025. And we are keeping the battery storage is an option for now. If we see the right condition, we will definitely build it. As I said before, our goal is to build a capacity quickly, at least up to minimum 1,000 megawatts. And we look at and evaluate different opportunities we will encounter throughout this journey. I mentioned our focus in searching for disruptive technologies. We will invest in start-ups that will create the new energy value chain. The funds mandate is to enable Sabanci portfolio to have exposure to future disruption in Energy & Climate Technologies and create a bridge to external innovation ecosystems and explore new business model concepts. I can say that we have done our homework on this issue and are well prepared. We have an experienced team in California and Boston. We are not looking for any crazy adventures. Also, we do not do it because it is trending out. What is the value proposition that we offer to start-ups, acceleration, piloting and commercialization partner in an emerging market in Türkiye and give them the access to multiple generation technologies in 5 different technologies and over 10 million user base in the electricity value chain. And relationship building and expertise gaining opportunity from leaders of Türkiye from the largest private utility player of Turkey. When we look at the investments so far, we have reached around USD 15 million for 1 fund so-called [indiscernible] and 3 start-ups as direct investments. We started our journey with Safar partners, which is a fund. Their effort is investing in technology companies developed at the leading universities of the world, such as MIT, Harvard and Rochester. Then we have invested during the series pay of Commonwealth fusion systems coming out of MIT, plasma science and fusion centers. The company has the potential to enable clean nuclear energy production in the future to remove the limits on energy. Another one is [indiscernible] where we have invested during the Series A phase, which is again out of MIT and the company is planning to provide access to deep geothermal energy resources economically, it is a revolutionary drilling technology. This is especially important for Türkiye because Türkiye is the #1 country in Europe to the geothermal potential. And the third one is [indiscernible] which is again a Series A investment, has developed a compliance tracking and insight software to manage and improve ESG footprint in various sectors. And Sabanci Holding, we became the customers -- the customer of the software in Türkiye. So we work together with them, both as a customer and to provide them digital services in Turkey. So we have more investments to come in climate ventures, thanks to our dedicated and capability. Some final words for closing. And just to wrap up. I mean, Sabanci Holdings energy and climate technology strategies addressing energy trilemma with the right approach. That's why we have introduced to triples -- these 3 angles at the beginning: build green asset base, develop and offer new energy solutions and explore receptive technologies. This strategic plan will also allow us to grow as a group with a clear vision and direction. We want to keep growing in Türkiye because growing into Türkiye means both growth in renewables and growth on new energy solutions as well as a baseline for disruptive technology adaptation. Our sustainable business model in Türkiye will be the fuel for the fast growth and whole business unit strategy going forward. And secondly, you want to expand our renewable asset base. This is also mostly end to end with our growth in Türkiye. But as I shared, our renewable energy portfolio is now global and USA investments took off quickly and reach 500-megawatt capacity already in a very short time. And finally, we want to explore new energy and climate technologies. This includes some of our already existing companies, including hydrogen, digital energy solutions, but we also consider the disruptive technologies with our corporate venture capital strategy. Thank you. [Presentation]

So we have changed our place. We came to a very digital room. We will make an interview with the CEO of Enerjisa Uretim, Ihsan Bayçö, welcome Ihsan. Or actually, we thank you very much for welcoming you in this wonderful office. But before we start, I would like to remind the participants to type in your questions. So after this short tour in this room, maybe in another room, that we keep it as a secret, as of now. And we will take all of your questions. And please type in any questions so myself and Orhun will be able to answer. So as I said, we are together with Ihsan Bayçö, who has been the CEO of Enerjisa Uretim for almost 3 years, right? And we are in this nicely new age, new technology office in Istanbul. And again, thanks for welcoming us. And this is an office, which is called Senkron, that you are very much proud of it that I have also mentioned in my presentation. Can you little bit tell us about what is Enerjisa Uretim is doing? What are the strengths? And what is this room is for? And what can you share with our investors?

Actually, first of all, it is definitely our pleasure to host you today. Together with our family and also virtually they are hosting the Sabanci Holding Investors. So it is our pleasure to host you today and also to have the chance to show some of our capabilities and also the things that we are proud of as well. Let me first a couple of take -- allow me to take a couple of your minutes to define some of the differentiating aspects of Enerjisa Uretim, which make it as a great company. First of all, we are definitely proud of our feature and scale proof portfolio. That's one of the differentiating element of Enerjisa Uretim. We have a diversified portfolio consisting of 5 different technologies and we are able to generate almost 5% of consumption of Turkey. The second element is our full dedication to excellence. That story had started at the very beginning of Enerjisa Uretim, and for each and every technology, we love to delve into the details in terms of excellence. The third element is our strong financial performance. In many terms, consolidated balance [ sheet ], the cash flow capability sheet, the dividend capability of the organization. We are proud having a strong financial performance. The fourth item is the exciting renewable growth prospects of the company. Right now, we are paving the road to have another 1 gigawatt operational wind fleet in our portfolio. We are working day and night to start reaching commercial operation dates starting with this December as the first power plant of that 1 gigawatt fleet and aiming to complete all of them in 2024 and '25. But at the same time, we are not fed with it. we are developing additional projects in our portfolio to put our signature in the renewable transition of Turkey and also Europe. The fifth element, which is differentiating us from...

So far, you had told what I have already told. A little story what makes you different?

The main differentiating element of Enerjisa Uretim, which we are seeing as a showcase of it as well is the digital capability of the organization. The digitalization road map and also the digital dexterity of the organization itself. Right now, we are in Senkron. This is one of the remote operating control centers of Turkey and it is the only remote operating control center of Turkey. Most probably many investors have heard or visited similar operating facilities, but this one is creating a differentiation in terms of usage of artificial intelligence advanced data analytics and also the day-to-day digital management of all our power plants. This room itself is not only serving to the digital -- to the generation fleet of Enerjisa Uretim, but also serving to the third party. So you have a different brand? Can we see the brand somewhere?

We do see our logo over there. Go on. And also from our team on their T-shirt, you will see a brand of Senkron.

And this is also the name of a separate legal entity. Definitely, we were knowing the needs of such a facility in Turkey -- Turkey also in Europe. We recently established another entity, a separate entity to serve other as well and also in Amsterdam this Senkron company is able to serve to the third parties, both for remote operation and also for performance and condition monitoring of their power plants.

Any commercial services to optimize the commercial earnings or increase their commercial earnings as well?

This is a showcase of not only the existing capabilities that I did describe, there is definitely a passive knowledge here. The team that you are seeing are able to operate, control and perform the condition performance monitoring for 5 different technologies. But at the same time, the team is skilled for the power dynamics related metrics as well. What you see on this...

The team looks very young. How many people are you here in the headquarter or in total? And what is the average age of those young team. They look young...

It's one of the best points of Enerjisa Uretim as well. The headquarter for the time being is selling a people off in the north of 300. The average age is 34. So I was never in need of making a ton of speech to us for organization to embrace digitalization. Digitalization is the DNA of the company itself. And what you see, the people that you see around had the experience to spend time in the power plants of Enerjisa Uretim have the knowledge -- T-shaped knowledge of a given technology. And when they were dedicated to work in Senkron they had been trained risk skilled and upskilled for other technologies as well. At the same time, we at Senkron have achieved to convert them to the company people. But at the same time, not only the technical information, they have been trained for the power dynamics as well. So these guys are able to handle the day ahead operations, if it will be necessary in terms of commercial-related activities as well. It is helping them to go hands in hands with commercial mindset and also digital mindset and at the same time, have a continuous development for our capabilities.

But I mean, the digital transformation has been also part of this cultural transformation, which is a result of automated transformation of the performance of the company, because you have been in the company at this from energy -- in the Enerjisa Uretim for how long?

This is my 15th year in the Enerjisa Uretim.

So what has changed in the last 4, 5 years. So...

One of the item that really changed, I was assigned in January 2020 as the CEO of the organization. And back then, we introduced an internal motto. We just had Enerjisa Uretim is an idea in digital company, which happens to generate powers and trade it. This mindset has helped us to push by all means for all digitalization-related elements. So this is like electronics and medical science. Time to time, you can easily claim that medical science is advancing and pushing that electronic guys to introduce a need tool to let the medical science guy to be able to elaborate additional items. And time to time, the electron is advancing and pushing the medical science teams through pursue need details, pursue need developments. This is what is happening in Enerjisa Uretim organization as well. Digitalization is not the responsibility of a certain department. Digitalization is in the DNA of the company. And digitalization is pushing by all the means, the way that we think, the way that we believe to deliver. So we are always preparing ourselves for the future and pushing, pursuing for a brighter, greener and digital feature.

And I also gave the example about the availability because this has resulted in the operational performance of the power plant as well as the results in the trading. But how the financial transformation has been achieved? Because in Turkey, the companies, I'm also an old person in the industry. Little similar like you, and the company was -- the overall sector was heavily that U.S. dollar investments, Turkish lira earnings loss side. So what has changed? I mean financially?

Definitely generation investments are CapEx saving investments. So it is not a surprise to end up with that heavy position in the market itself. But the capability of Enerjisa Uretim is to manage different FX terms, different management of the cash flow as well. For instance, the Enerjisa Uretim's KPI in EBITDA terms are in dollars. The cash flow targets that we are running is in euro terms. The net income target is in TL, but our dividend commitment for our shareholders are in dollar terms. But at same time the -- and at the same time, the market itself is mainly driven by the Turkish lira metrics, which are directly or indirectly connected to the FX-related elements. So it is in our nature and it's our passive knowledge to manage different sets of requirements at any time. And our capabilities have been tested by external forces for different elements as well, say it [indiscernible] curtailment, say it macroeconomic problems, say it's wetter or dryer experiences of Turkey. And we were able to respond to that with the established capabilities. All I could say easily is all is a passive knowledge of Enerjisa Uretim. And at the same time, Enerjisa Uretim has achieved to manage them in a digital management.

Then let me talk about vision. Can you also tell us what are these screens for? I mean, I see maybe 100 -- more than 100 screens, small, large size why? -- How can we translate those to our investors to the audience? Can you little bit just show us, where you give us some examples?

Right now, 24 operational power plants of Enerjisa Uretim, which is close to 4 gigawatt installed capacity is being managed from here. The logo itself Senkron is a top deal of this room as well. And each and every corner is dedicated to certain activities. The 2 corners that we are seeing for the time being are dedicated to our hydro assets. And the team members are also focusing on the hydro-related elements. At any given second commentary, 70,000 signals is flowing into [ here ]. And the team, with the use of advanced data analytics and also artificial intelligence and also AI learnings, is not running after each and every 70,000 signals. The case and scenario-based approach is helping us to filter the profit signals that the operators need to show their attention. And while you are here, most probably you did notice that there are barely minimum touch to the mouse to make any operation. Because everything is being run under signals as well. If there is a commitment to the grid operator to ramp up, then the artificial intelligence is ramping up our power plant, and the operator is just observing that we are properly ramping up and observe is just -- the operator is just showing attention to the necessary signal that is filtered and analyzed out of that our scenario-based analysis. The corner that you see in front of you, is the dedicated corner for solar asset and wind asset management for each and every panels in the field for solar assets and also for each and every turbine, wind turbine that you see on the right hand screen. We are analyzing the wind. We are analyzing its efficiency curve, and we are in touch with the OEM to pursue additional performance from that specific wind turbine itself. We are able to compare them in between as well. So this is one of the differentiating element. Many of the times, the asset operators are -- do rely only the OEM and OEM's performance review. The thing that we are doing is a real case comparison of assets and then pursue for additional benefits, revenues or performance for Enerjisa Uretim.

I mean, overall, where will you put this capability of Enerjisa Uretim, maybe in the European or in the global skills. How many companies have such approach. I don't mean only the infrastructure, but also overall approach and management?

At the time of development of this facility, we were benchmarking with the European peers as well at any time that we were performing a benchmark, we were having the aim to pay a visit to their facility. But when we start to compare the capabilities, they ended up visiting our facility. So this one is having the advantage of definitely the team, as you had seen, the team is young and dedicated to digitalization, and they have inhabitant digital dexterity. But at the same time, we use the most recent technology as well. So this is helping us to be much ahead compared to the other similar rooms that had been established many years earlier.

But what about cyber risks?

That's one of the critical elements as well. Let me address one item for this room, and then we can address the cybersecurity related element result. This room itself is able to serve to Enerjisa Uretim fleet. But it's not limited to that without adding any additional screen or cable or any infrastructure element, we can serve up until 200-gigawatt, 10 gigawatt or 100 power plants. That's one of the benefits of this room. But definitely, in terms of power supply, secure, reliable and sustainable supply is the most important element. So cybersecurity is one of the critical elements as well. Many cybersecurity companies do exist in the world, but majority of them are having the concentration and focus to address the IT cybersecurity related elements. There are limited number of companies for the time being, showing interest to the OT cybersecurity related elements. We have the tacit knowledge, how to run power plants and how to analyze the signals. That's why we established for our own need, but at the same time, for the needs of the market as well and OT cybersecurity focused operating centers, only...

Now we have our platform just for the audience. Thank you for the Senkron room. I love the office. I think we cannot show all the places, but this is really an office where most youngster wish to work. I mean, we can really attract people. And I wish I would be also young again, has started as a new engineer here, because there's a three floor office that you don't see, but this agile sitting plan, there's a nice cafeteria, hobby rooms and there are many attractions and amenities, in the facility.

The both operating centers, the one that we had visited and the one we are just about to visit are working around the clock. So they are 24/7 operational. And in our facility, we asked our architecture team to design an office like a living space. It's a mixture of living space and office, which is helping us to work with a high motivation and without looking our clock as well. The team is not running with the conventional way of running any business. This is the cyber pack.

I cannot enter here.

Normally, I'm not allowed to enter as well. My card does not work here. I ask our team to change the screen for cybersecurity-related reasons. What you will be seeing in the screens for the timing will be the placeholder screen, so [indiscernible] screen.

Okay. Hello, everyone.

This is a similar room to -- this is a similar room that we have visited for the remote operation. And also their performance and condition monitoring. What you do see on the screen, is again a placeholder. Normally, we are this screen we follow the real-time effects that are happening in the world with the differentiation of the signals as well. It could be access violation, it could be injection, it could be exploitation. We analyze what's happening in the world. Accordingly, we can isolate ourselves from a specific country as well or we can isolate a specific asset from a specific country as well. Say there is a geopolitical issue that had been raised today. And we know that we need to isolate ourselves from countries, because of that reason and high cyber attack inflow and outflow is taking place. Where you can easily isolate either the entire fleet or a specific selected fleet from that dangerous world, let me say.

Any technology partnership because I'm raising this question because I have been for 3 years, the Chairman of Sabanci [indiscernible], which is the digital arm of the company until the a digital [ SPU ] has been established. And that time, we have made a partnership and acquisition and Israeli OT secret company, which is Radiflow.

Yes. Radiflow is also our partner. We are partnering with them to increase our strength in the OT cybersecurity. OT cybersecurity is the blue ocean part in the cybersecurity business that we could say. The cybersecurity is a growing area. For both IT and OT, but OT cybersecurity is the less touched area. So it's kind of a blue ocean for us. We are definitely need to address our 24 power plants, but at the same time, the established capability could serve to other third parties as well. Radiflow is helping us to strengthen our muscles to address the OT cybersecurity related elements. But at the same time, we are serving to the third parties together as well, either at the same time in the name of Radiflow. Or in the name of Senkron Digital Services as [ cyber pact ].