Good morning, good afternoon, depending on your time zone. Welcome to our Q4 2021 earnings webcast. This is Kerem from Sabancı Holding Investor Relations. Today, we also have our CEO, Cenk Alper, and CFO, Orhun Köstem, here with us today. Let me now hand over to our CEO, Cenk Alper, for introduction. Sir.
Good morning, good afternoon, ladies and gentlemen. We have an exceptionally strong year, both in terms of financial performance and executing on our strategic goals. We have achieved very strong results in terms of every financial and non-financial metrics in a very volatile environment. The last 48 hours is adding another volatility to the whole world economy. Past two years, once again, proved us the importance of having a diversified portfolio to weather challenges. Orhun will go through the details of our results later on, but let me talk about what we have done related to our strategic goals in 2021. As part of a global strategic decision, our partner, Aviva, decided to exit from multiple countries, including Turkey, from insurance business. We have successfully managed this process and teamed up with our non-life partner, Ageas, in life business as well.
This move not only provided us an opportunity to consolidate both businesses at Sabancı Holding level, but also paves the way for us to consider new opportunities in digital insurance and health technology ecosystems globally. In June, we have completed the Buñol acquisition, which is one of the major strategic directions of the group to be closer to our customers geographically and become a global player in the white cement sector, a step forward to become a sustainable building materials player. We continue to keep our focus on expanding sustainable building materials by optimizing our gray cement network. To reach that purpose, we announced the sale of some of our cement and cement grinding plants in central Anatolia. Competition Board approvals is still pending for this transaction. We have initiated our long-awaited share buyback program to further enhance the value for our stakeholders.
We are successfully running it, the program, since our first transaction back in mid-November last year. To prepare our portfolio to electrify and connect new mobility ecosystem, we have acquired a local IoT player, Arvento, through our tire business subsidiary, Brisa, and increased our stake in e-charging infrastructure through our electricity distribution and retail company, Enerjisa Enerji. On the other hand, we are proud to say that TEMSA successfully completed first electrical bus sales to several European countries, and U.S. version of this electrical bus is being tested in Silicon Valley nowadays. As part of our dynamic portfolio management strategy, we have completed the divestiture of the entire stake in Philsa with a successful use of financial instruments to eliminate the market volatility related to this transaction.
All in all, we have touched almost every major strategic vertical throughout 2021, and these solid accomplishments strengthens our track records. Surely, this strong execution in 2021 raises the expectations for the future. We are confident that we will continue to deliver on our strategic targets. Coming to our strategy, let me talk about our strategic targets that we are focusing on this year and onwards. This was first published to you with our March capital markets day in 2019. In energy, investment in new climate and energy technologies is a major goal. We have already taken steps to expand our renewable fleet and targeting to become a leading player in green energy transition. 65 MW of investments will be completed in 2022.
We will be the first green hydrogen producer of Turkey, which was made public last week. Related to industrials, our intention to grow further in composites is still in place despite the weak aerospace industry in COVID pandemic. Product and market diversification efforts in 2021 has strengthened the business fundamentals in long run. We continue to invest in tire reinforcement, mobility solutions, and electric vehicle value chains. We are targeting to have an exposure in bio and recycled chemicals and sustainable building materials. As I mentioned before, regional and product diversification, including health in insurance businesses, is an important target for us within the financial services vertical. Of course, digitalization keeps being the major focus for us in financial services to further improve customer experience and efficiency, both in banking and in insurance businesses.
Aksigorta Next, developed together with Sabancı DX, is a new generation insurance platform designed to improve user experience. As we have been stressing in the past couple of years, our appetite and dedication for digital investments remains high. We are specifically focusing on building a digital ecosystem in artificial intelligence, advanced data analytics and marketing, and cybersecurity. To underline, wider use of digital is vital for us to improve the efficiency of our existing businesses, and our target is to reap the benefits of this mega trend to accelerate and sustain Sabancı Group's growth. ESG was a very critical element in 2021. On this slide, let me explain to you our reporting in ESG.
Since we changed our group purpose to reunite Turkey and the world for a sustainable life with leading enterprises in 2020, we have consulted more than 1,000 different stakeholder representatives, including our investors committee, and identified our material issues. In other words, the themes that we will focus on. Considering material issues for the whole group, we built our sustainability roadmap in 2021 with 80 groupwide actions in agreement with SBU presidents and CEOs of all group companies. Almost half of these actions, 80 actions, are being implemented already. We also agreed on the governance model for ESG initiatives and key performance indicators that will be monitored at the board level. Sabancı Holding is the first company in Turkey that set up a sustainability committee at board level. Our sustainability roadmap focuses on three main pillars.
The first pillar is acting on climate emergency. We have been the first conglomerate in Turkey to set up a groupwide net zero emission and zero waste targets by 2050 at the latest. The second pillar is maximizing our positive impact on people and society. This is in our DNA for the last 90 years. The third are fostering sustainable business models, especially being a player in digital and circular economy, leading energy and mobility transition. Thanks to all efforts in 2021, I am happy to say that we have completed almost half of these 80 actions and have undergone a major transformation.
For instance, through embedding ESG in our capital allocation decisions, integrating ESG metrics such as diversity and climate indicators in our CEO and top management performance criteria, creating a taxonomy for Sabancı Group's sustainable products and services, setting a target to increase the share of SDG-related R&D innovation activities to 70% from the current level of 44%, improving our sustainable finance framework. For instance, in our energy business, 100% of current investment plans worth 565 MW are renewable energy. The current 44% of renewables in total installed capacity will exceed 50% threshold in the coming 3-4 years. We will further accelerate our efforts to investigate new energy technologies such as green hydrogen. As an indication of this, Enerjisa Üretim joined forces with four other entities to open up Turkey's first green hydrogen production plant.
On the other hand, our industry group generates 28% of their revenues from SDG-linked products while making up only 1% of our total scope one and scope two emissions. Alternative fuel consumption in our building materials has increased two and a half times in the last 4 years, way over Turkish industry average. Just this week, we have opened up a new investment in Afyon Çimento for alternative fuel consumption. In this group, we have 36 transition products making up 15% of their revenues by focusing on smart plant systems, data analytics, energy efficiency, and increasing the use of waste as an alternative fuel and raw material source. In banking, Akbank announced that they will provide 200 billion TL of sustainable loan financing to our country by 2030.
This is a first for a bank to announce how much finance it will provide to green economy. All these developments enabled us to make great progress in ESG ratings. Sabancı Holding's sustainability rating in the MSCI index increased by two notches in the last nine months. We expect another letter rating increase soon. We are very proud to be the first and the only conglomerate from Turkey included in the 2022 Bloomberg Gender-Equality Index with the high ratio of women in management positions, application of equal pay for equal work, and our practices that facilitate women's participation and retention in business life. The ratio of women in our BOD is 44%, while the ratio of female managers are 38%, higher than the average of 22% in Turkey and 37% in Europe.
We also became the first and the only company from Turkey in the Forbes World Top Female-Friendly Companies list. Sabancı Holding's CDP climate change scores increased by two notches and awarded a B, as well as taking its place in the management level category by maintaining B score in CDP Water Program. Brisa, Kordsa, and Çimsa are among the global and local CDP leaders. Now, let me pass the word to Orhun. He will detail and comment on the stellar financial performance in 2021.
Thank you, Cenk. Good morning, good afternoon, everyone, once again. On one hand, obviously, I'm sure we are equally concerned about what is taking place in the north of the Black Sea at the moment. On the other hand, we are quite excited to share with you an excellent set of results for 2021 and the last quarter of 2021. First of all, let me say that we're looking at a very healthy growth. Our combined revenues have grown strongly. Our combined EBITDA and consolidated net income has grown even stronger than our top line. Obviously, led to some, you know, margin expansion in the period. This is in line with our midterm guidance that we have announced earlier.
I'd also like to underline the fact that our performance have accelerated in the last quarter of the year, especially coming from the bank. Nevertheless, I'm sure you must have noted that our non-bank business in general performed remarkably as well. Our bottom line has increased, and that's on one hand, equal, you know, driven by our operational performance. On the other hand, obviously, we've enjoyed some one-off gains in the period, due to our treasury positions from mark to market, basically. Now, again, if you look at our combined revenues, we've seen rebounding from 2020, very strong local and global demand that assisted us in delivering a very strong set of top-line growth. Our EBITDA, on one hand, benefited this pass-through of this top-line growth.
On the other hand, obviously, we have reached remarkable operational efficiencies. Through higher capacity utilization, we were able to deliver a 61% combined EBITDA growth. This is important given the fact that through the period, as we have discussed earlier, we've seen some of the raw material prices have been increasing quite high as well. Again, our net income has grown, and consolidated net income has grown by about 95%, so almost doubled in 2021. Obviously, it's driven by this good operational performance. At the same time, as you're going to see in the remaining parts of this presentation, that we have been deleveraging and therefore, obviously, looking at relatively lower financial expenses in this period. Now, I'm going to move forward with discussing the rest of the financials now.
On the next page, if you look at our non-bank business side, specifically, our operational cash flow was up by 15% to 12.4 billion TL. Obviously the strong cash flow generation helped us maintaining a very healthy debt profile. Our net debt to EBITDA at the end of 2021 stood at 1.2 times. That compares to 1.5 times if you look at the end of 2020 or even compared to the end of nine months of 2021, which was at 1.4 times. Now, please also underline the fact that this does not include the proceeds that we have received from the divestment of our tobacco business, which was completed at the start of 2020.
All these actually liquidity figures, net debt figures do not include those numbers, except for mark-to-market gains that we have accounted for in our P&L due to our risk management instruments. Now, if you look at our liquidity on the non-bank side, excluding the financial services, it stands at about TRY 13.7 billion. On the insurance side of our business, we know that the total funds were at about TRY 5.4 billion. This in return, as you see on the next page, got us to a record high non-bank return on equity of 23.9%. In the last quarter, I'm sure you must have noted with the performance of Akbank, the bank, return on equity have also grown very remarkably.
Therefore, we have also reached the highest ever return on equity on Sabancı Holding level on a consolidated basis. Our holding-only net cash position more than doubled in 2021 compared to 2020, and it was at TRY 2.5 billion. This does not include the proceeds that we have announced to be about TRY 2.7 billion coming from the divestment of our tobacco business which was in early 2022. At the end of the year, I'm sure you must have noted in the appendix of this presentation that the FX portion of our cash was at 90%. Moving onwards and looking closer to the last quarter of the year, the combined revenues in the last quarter of 2021 grew by about 77%.
I'm happy to note that both in the banking side and the non-bank side of our business have accelerated their top line growth. The non-bank revenue, for example, grew by 83%, where the banking side is in excess of 60%. In any case, growing much faster than what we have achieved in the previous quarter. On the non-bank side, this growth is attributable to our energy business. We obviously enjoyed having a complementary portfolio of energy businesses, a correct market positioning, and therefore an important contributor to the revenue growth. On the industrial side, as we have discussed throughout 2021, with the increased mobility, we've seen a better volume performance, a better market share performance, and of course, as these businesses generate relatively higher FX revenues, a favorable FX impact at the end of 2021.
Our building materials business also was a strong contributor to our top line due to higher volumes and better sales mix. Coming to EBITDA, on the last quarter of the year, our EBITDA has grown in excess of 2 times, in the periods. Obviously, the impact of our bank here is much underlined, and the bank generated some 60% of the combined EBITDA in the period. On the non-bank side, obviously, the regulated asset-based growth as well as the higher spreads contributed to strong EBITDA. As you will remember throughout 2021, we've also discussed that even though the hydrology was lower, this was more than offset by our portfolio of generation.
A CapEx outperformance and a higher operational performance, especially in our natural gas plants, has driven this EBITDA performance. Our industrial side as well, strong top-line growth was passed through to the EBITDA performance and also amplified by a well-managed cost base. I'm sure you must have seen that the building materials contribution on EBITDA was not that strong. That is, again, as discussed, owing to the fact that, especially the fuel cost, has been gradually increasing since the second quarter of 2021 for that side of our business. Moving on to the net income. Obviously the net income growth was very strong at 260%, both on the bank and non-bank side.
There is a, on a consolidated basis, there is almost an even contribution between our bank and our non-bank business. On the non-bank side, the growth of net income was 366%, obviously. This again, on one hand, was driven by strong performance on the energy business, obviously, on the back of a healthy balance sheet. On the industrial side also a strong operational performance and the continuous deleveraging of some of our businesses, on this side. Some other contributors were our financial services business towards the end of the year. We have enjoyed on our bottom line positive FX gains in this period. Now, I will pass on to Kerem, who is going to walk you through the details by each sector. Kerem?
Thank you. Let's start with energy. In Q4, energy segment delivered strong performance and reached 96% year-on-year growth in EBITDA, despite lower liberalized profits and continuous weakness in hydro energy. Enerjisa Enerji recorded strong EBITDA in distribution segments. EBITDA increased by 147% in Q4, thanks to higher financial income based on increase, increasing regulated asset base and higher July inflation and mid-term inflation assumptions. Moreover, CapEx outperformance was strong due to increasing CapEx investments and contract structure with the fixed terms set in the beginning of 2021, providing opportunity to benefit from the increase in commodity prices. As of year end, regulated asset base growth reached 20% year-on-year, in line with the increase in CapEx, as we have guided in previous quarters, and higher inflation despite higher CapEx reimbursements.
In the retail side of our energy business, lower liberalized gross profits due to lower margin with the effect of dramatically increasing electricity procurement costs, partially offset by higher liberalized sales volume and higher regulated gross profits due to higher procurement costs and inflation. Moreover, high gross profit contribution from new solar projects in customer solutions segments and decline in doubtful provisions with improvement in customer payment behavior supported EBITDA growth in Q4. Despite higher financing expenses driven by higher averaged loan financing costs, the company's net income increased by 171% year-on-year, thanks to positive contribution of strong operating performance. Looking at the generation business, electricity demand was 6%. It was up by 6% year-on-year in Q4, driven mainly by strong industrial growth and lower than average temperatures.
Average spot electricity prices increased by a massive 177% in Q4 due to lower hydro generation due to prevailing weakness in water flow, higher electricity demands, offline capacity, and increasing natural gas prices. Enerjisa Üretim's revenue increased by 143% year-on-year, mainly driven by much higher spot electricity prices as well as Turkish lira and higher energy trading volume. Generation volume reached 3.15 terawatts, which is the optimum level of production to reach highest profitability level as far as spot spreads are concerned. EBITDA growth reached 77% year-on-year as natural gas and mid-merit profitability continued to drive higher spot spread and dark spreads in the generation business in Q4. Moreover, higher spot electricity prices and our team's ability on commodity trade provided us to capture market opportunities despite lower hydro generation due to extreme drought conditions.
Net income almost quadruples due to EBITDA contribution and increasing investment tax incentive with higher future income projection based on higher future spot price and macro assumptions. Let's move on to industrials. Segments combined revenues increased by 74% driven by volume growth, thanks to not only strong demand, but also higher market share in both businesses. Specific tire business, we managed to grow in replacement markets as well as increasing our sales in export markets. The profitability in both businesses is driven by volume growth and their wide geographical footprint that offset global supply chain bottlenecks. In addition to strong volume growth, negative impact of higher raw material prices offset by well-managed hedging strategy and channel diversity in tire business. Coming down to the bottom line, net profit grew by 131%, thanks to operational profits faster.
Moreover, both segment companies increased their net debt to EBITDA, thanks to strong operational performance and effective working capital management. This is especially in the tire business. Tire business turned into a net cash position at the end of 2021, supported by a major improvement in the cash cycle, while tire reinforcement business came back to even better levels compared to pre-pandemic. Our tire business, as we have mentioned in the report, grew faster than the market owing to its wide solution network and product availability. Our tire reinforcement business has benefited from its extensive local and global footprints, and in turn succeeded in growing faster than the market in Q4. Note that the improvement in the segment's operational performance sustained a very challenging environment. Moving on to building materials.
Segment displayed an impressive revenue growth of 123% year-on-year in the quarter, sustained by demands in both domestic and export markets, and increasing support of the. However, despite fuel mix optimization, better energy margin and operational efficiency leading to an improving operating sales ratio, escalated fuel, energy, raw material and freight costs eliminated the positive impact of strong top line performance on operational profitability, which actually resulted in a 33% year-on-year contraction in the Q4. Supported by lower financing expenses driven by higher FX gains, the bottom line contraction remained at 30% year-on-year. Despite the weakness in the net income in the last quarter, full year EBITDA grew by 29% and net income more than doubled thanks to solid performance in the first nine months of the year.
Our alternative fuel usage improved sharply to 20% versus 12% last year, and our efforts to improve the fuel usage prevails with ongoing investments in alternative fuel, which is expected to become operational in Q1 2022. On retail segments, combined revenues increased by 27% year-on-year, thanks to the improvements in the basket size, both in electronics as well as food retail, bringing top line growth to 27% in 2021, well above the average inflation of 20%. Meanwhile, e-commerce sales growth remained robust by increasing five-folds compared to pre-pandemic periods in Q4 2019, and share in total revenues almost triples, reaching 11% of total sales revenue in Q4 2021. Solid top line growth and relatively limited impacts from elevated operating expenses translated into double-digit growth in operating profitability as IFRS adjusted EBITDA increased by 27% in Q4.
Adverse impact of high financial expenses continued to affect the bottom line growth of the segment in Q4, driven mainly by full retail. On the financial services segment, top line growth remained solid at 50% in Q4, led by strong performance in all major life and non-life businesses. In the life business, technical income increased by 51%, driven by both growth in life protection volumes and pension assets under management. In the non-life business, technical income grew by 84% year-on-year, although underwriting results were adversely affected by the hike in motor claims costs with TI evaluation and higher inflation, along with unexpected rate of minimum wage increase. As a result, combined ratio deteriorated and became 127% in the quarter, compared to 98% a year ago.
Increased financial income on higher effects and interest rates combined with solid technical income resulted in an impressive higher than 30% year-on-year bottom line growth in the segments in. Turning to banking, despite the challenging environment along higher global inflation as well as the negative impact of ongoing pandemic, Akbank's positioning enables the bank to leverage its strength while carrying priorities for improving profitability. Akbank achieved all-time high net income, delivering almost 100% year-on-year growth. ROE came in at 17.9%, well ahead of full year ROE guidance, while Q4 only ROE was very robust at 26.2%. Robust TL loan growth, strategic securities positioning as well as across the board stronger than guided fee income growth were supportive factors for the solid core operating performance.
Its net cost of credit evolution has fared much better than the guidance, thanks to strong risk discipline through the cycle. For 2022, Akbank's focus will continue to remain healthy profitable growth and customer acquisition, while sustainability remains at the heart of the strategy. I now would like to hand over to our CFO to talk about our midterm guidance.
Thank you, Kerem. You must have seen our midterm guidance before. Obviously, in the short run, there are a lot of uncertainties around us. We are very excited looking ahead to the short term. We're quite excited about the transformation of our portfolio and the potential that it brings. You've seen our revenue and EBITDA growth expectations. These are unchanged. You must have noted, just to reiterate again, that we would be increasing our CapEx efforts looking forward from about a 5% in five years of 2021 to more than double as our midterm target as we move into increase the share of FX revenues in our overall combined revenue. We would like to maintain a healthy balance sheet with our net debt to EBITDA to remain less than 2x.
Obviously, in terms of transformation, back to everything that Cenk Bey was saying, we expect the share of new economy in the combined revenue to almost double. Now, in terms of capital return, I'm outlining to you our capital allocation priorities in that sense. Our dividend policy has not changed, but I'm happy to also note that, since November last year, we have our share buyback program in place. I'm also happy to note that we are still looking at delivering strong return on equity performance as evidenced by our performance in 2021. Again, as noted, we have been the first conglomerate in Turkey to set a group wide net zero emission and a zero waste goal target by 2050 as we conduct our business to deliver on these targets moving forward across the board.
Now, I will hand over back to Cenk for key takeaways. Thank you, Orhun. These are very attractive set of numbers. Let me wrap up. Our robust performance in 2021 and our ability to operate in a high inflationary period, as well as managing currency volatility and balance sheet risk confirms our midterm targets that Orhun shared with you recently. We are fully confident that we will keep our strong momentum in the medium term. We are sparing a lot of time and resources to reach our 2050 targets. Parallel to our intention to double our CapEx in the next five years, additional improvement in sustainability will also be an important focus. In that respect, we will be doubling ESG related R&D investments, which will be an important inflection point to reach our long-term sustainability targets.
As I have mentioned in the beginning of the webcast, our strategic targets in energy and climate transition, sustainable mobility solutions, advanced materials, and digital will be our major focus in reaching our medium-term guidance. Thank you for participating, and thank you for your time on this Friday's afternoon to listen our results and Sabancı Holding strategic directions. Keep watching us.
Thank you, Cenk. Let's move on to Q&A. You can start your questions on the Q&A section of Zoom. Thank you. Let's wait two more minutes for messages. I think we are very clear about the messages that we have provided. We have one question from Hanzade. Can you please share your non-bank revenue growth guidance in 2022, and which sector may have shown some slowdown? Thank you very much, Hanzade Hanım.
You know, we don't necessarily give annual guidance and not at this, you know, relatively volatile period. Let me try to help you with this, question. Obviously, going forward, in terms of top-line guidance on the non-bank side, I think, we expect strong growth from, both the industrial business and the, building materials business. That is one. We obviously are still looking at, potentially, you know, good growth from our energy businesses in general. We will need to see obviously, how the, general cost environment for energy pans out, but top-line wise, that's obviously, beneficial for us.
The insurance business, on the other hand, you know, given the economic volatility, negative real interest rates and the potential increased FX scenario, could be good, on the top line growth, but may not be as strong as we would expect in, you know, other industrial or energy or, let's say, building materials, businesses. That could say, you know, we still look at strong growth. We still look at obviously growing in, real terms positively. But that could maybe for you an indication of, you know, how different parts of our business will perform. Thank you. There's another question from Shashank. Similar question, in saying. Thank you for the presentation. Given the volatile raw material pricing environment driven by recent events, how does Sabancı look at margin profile for 2022?
Again, Shashank, I mean, I won't be very specific about an annual guidance. But you're right, especially in certain parts of our business, as we discussed, for example, building materials is one of them, given the fuel cost increase. We have seen it happening in the last half of the year. I think it's quite normal to expect as we move into 2020 in the first quarter and maybe at first few months into the year, we will see that higher fuel cost environment will prevail. Normally, our expectation is that is going to normalize in the second half of the year, but that's obviously something we will need to look at. On the other hand, I think in other parts of our business, definitely, the...
As we expect the demand to be reasonably strong, on the industrial side, there should be, you know, reasonably, acceptable performance, comfortable performance in terms of margins. Energy side, again, I mean, you know, especially on the generation, this year was marked by lower hydrology, which helped us grow our, you know, profits in absolute terms. Margin-wise, as you remember, hydro, you know, delivers the higher from a mix point of view. If we think of a normal year, which we can only talk about, you know, once we see April, then obviously there is scope for, you know, better margin performance, but that's yet to be seen. That is, you know, certain parts of the business.
On the insurance side, as I said, if the effects continues to remain high, there is a likelihood that the margins may not be higher. Nevertheless, it's from Sabancı Holding point of view, it's good to be managing a portfolio of businesses which obviously responds differently to different macro conditions.
Right. Next question comes from Cenk. Can you please elaborate on high inflation impact on business and Sabancı as a whole? And as a follow-up, impact on individual businesses in Sabancı Holding as a whole.
I mean, it's more or less the same, Cenk. They again, you know, especially given the inflation, parts of our business in the energy distribution side under our regulated asset base is driven by you know inflation. That is on one hand. On the effect side, we discussed different impact on the raw materials for different parts of our business. Obviously, I think the key is not the macro conditions per se. Obviously, what we need to watch quite closely is how it impacts household income and the general you know purchasing power across the board, which could be relevant from you know retail businesses to what have you you know or all of the businesses.
Again, I can say that it would be good for us to be able to manage a portfolio of businesses, a diverse portfolio of businesses, which we expect to deliver, hopefully, a strong, potentially strong set of results into 2022 as well.
Okay. Next question is from Vittorio. What is the outlook for power generation, hydro, gas, lignite for 2022? Thank you.
Okay, let me take that one. Enerjisa Üretim creates its hydrology plans with a statistical approach by using the precipitation data of the past years. As always, we start with a 50% probability. We can say that 2022 started more productively in terms of hydrology than 2021, which was well below the average. We hope that it will be an efficient hydrology year in accordance with the production planning of our power plants.
Okay, thank you. The next question is from Eduardo. Could you please give us the breakdown of the value of non-listed assets in the NAV calculation, page 24, I guess.
Thank you, Eduardo. I'm assuming you're referring to page 24 in the appendix of the presentation, where we give you different listed companies and the total unlisted. As far as I'm concerned, you know, there are a number of companies in there, but the majority should be coming from Enerjisa Üretim, which is obviously the highest, you know, potentially the biggest non-listed asset for us currently. Other than that, yes, I mean, this should be the highest contributor to that number.
Now, the next questions come from Umut. Thanks for the presentation. How do you see the outlook for your energy generation business for 2022, given the increase in hydrology so far and higher electricity prices?
Well, to give you a full number, I think we have to wait April, May, so that we can see the impact of hydrology to the whole year. Of course, the higher electricity prices has a positive impact. However, the input material, gas, especially under this current war scenario, gas prices will be the determining factor.
Thank you, Cenk Bey. Another follow-up question from Cenk. Under current macro conditions, would you expect a change in the profit contribution of bank and non-bank?
Thank you, Cenk Bey. I think, again, without being too specific, obviously what you could expect to see as we've stated in our guidance as well, that in our non-bank businesses we are looking at stepping up our CapEx for the midterm as well. Going forward, I think I don't expect operating profitability to be significantly, you know, worse. That's really unlikely. Having said that, we need to factor in that we need to invest more CapEx, and that could potentially increase the financial expenses for our, you know, some of our non-bank businesses. Nevertheless, the way we look at it is, you know, we still expect strong return on invested capital for those businesses and therefore, still, you know, a very healthy return profile.
We may have another follow-up question from Hanzade Hanım. Is there any businesses left to divest in the medium term while you are doubling your CapEx in your core businesses?
Yeah. Our strategic plan is very clear and transparent to all of you. While growing our core businesses, we want to further grow or transform the portfolio towards adjacencies, and our plans are being detailed by our teams at SBUs. Of course, if we believe that any offer to any one of our businesses or a piece of our assets is adding value, we are always ready to evaluate the situation. So far we are happy with the current mix of our portfolio, and we want to further improve that to benefit from the new economy. Which for us is energy and climate transition, mobility and materials transition, and digitalization.
Thank you, Cenk Bey. I guess that's it. Thank you for participating, as Cenk Bey stated, in this Friday afternoon. As Cenk Bey stated again, keep following us.
Thank you very much.
Thank you. Thank you very much.
Have a great weekend.
Let's hope that we have a soon ceasefire in Ukraine, and then we have a peaceful world altogether.
Bye-bye.