; Mr. Zafer Kurtul s presentation - Sabanci Holding
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Mr. Zafer Kurtul s presentation - Sabanci Holding


  • pg 1
Annual Results Sharing

                         24 February 2012

• Economic Outlook

• Sabancı Holding Review
World economy ended 2011 with concerns
for high public debt levels
   Major headlines of the past year:
     o   Public debt and bank reserve requirements problems in Europe,
     o   Liquidity measures of ECB
     o   Fiscal union attempts of the European Union member states
     o   Earthquake/tsunami disaster in Japan,
     o   Socio-Political tension in MENA region,

   Turkish economy was mildly effected by the slowed down growth and
    increasingly unstable environment.

   Central Bank’s fiscal discipline and monetary policies, increase in domestic
    and international credit lines and vibrant domestic demand led to high

   Inflation increased at the last quarter of 2011, monetary policies were altered

   TL devaluation was reversed as a result of the restored global risk appetite
    due to corrective measures EU took at the beginning of 2012
   Global economy slowed down in 2011;
   further slowing down is a risk for 2012

                          World                       Developed Economies                 Developing Economies
                   GDP, real growth,%                    GDP, real growth,%                  GDP, real growth,%

        6.0                                    6.0                                  8.0
                         5.2                                                                      7.3

                                  3.8          4.0                                  6.0                           5.4
        4.0                              3.5                  3.2

                                               2.0                  1.6             4.0
        2.0                                                                                 2.6

                                               0.0                                  2.0

                                               -2.0                                 0.0
                                                        09    10     11t      12t
                 09       10      11t    12t
      -2.0                                     -4.0    -3.4                                 09    10     11t      12t

Source: IMF ( World Economic Outlook )
2012 Macro Outlook: Global

   Growth momentum might slow down in developing economies

   Euro zone will be stagnant. USA is doing better

   Tighter budget discipline is a must in Europe, otherwise public debt is

   Loose monetary policies will be applied in developed economies

   Liquidity measures delayed debt crisis in Euro zone; fiscal discipline is crucial

   Credit notes of developing countries and banks might further be brought

   Markets may realize periodic gains due to increased liquidity, trend will be
    determined by the growth expectations

   Demand will put upward pressure on commodity prices

   Tension in the Middle East will prevent oil prices from dropping
2012 Macro Outlook: Turkey
Unfortunately 8% growth is not sustainable

   Domestic demand will not be as strong as the past two years

   Exports will be adversely affected by the lowered demand in the first half

   Credit growth will be slow

   Stringent fiscal policies will continue. We foresee the continuation of
    successful budget management

   The current deficit will shrink due to lower domestic demand

   We expect TL to remain stable under a 4% growth projection, diminishing
    current account deficit and liquidity availability assumptions
       2012 Expectations - Turkey

                                         2011    2012t

           Real Growth,%                  8,7     4,0

           CPI,% year end                10,45    7,0

           USD/YTL, year end             1,889   1,80

           EUR/USD parity                1,294   1,325

           Budget Deficit /GNP,%         (1,4)   (2,0)

           Bond Interest, year end,%     11,1     9,5

           Current Acc. Balance /GNP,%   (9,9)   (8,5)

Source: Sabancı Holding

• Economic Outlook

• Sabancı Holding Review
 2011 has been a year of growth, profitability
 and investment for Sabancı Holding

    Consolidated net sales 22.9 billion TL (+17% vs. 2010)

    Consolidated operational profit (EBITDA) 4.3 billion TL

    Non-bank EBITDA 1.1 billion TL (+70% vs. 2010)

    1.45 billion USD investments - 29% higher than last year

    Shareholders’ equity 14.1 billion TL

    12 listed companies in ISE - 12% of the market
    Net Asset Value 13.0 Billion USD

Figures represent our 2011 year end expectations
(1) February 2012
Source : Sabancı Holding, ISE
Major Developments in 2011 - I

            Operationalized Hacınınoğlu, Menge hydro and Çanakkale wind power

  Energy    Installed capacity reached 1,653MW, portfolio capacity is over 5,000 MW

            2,358 MW of renewable resource capacity in our portfolio

            In accordance with our commitment to develop local resources we kicked
            off the construction of 8 terminals in coal, hydro and wind power

            Signed a 700 million Euro financing package for our second phase

            Completed the rebranding of Başkent Elektrik Dağıtım A.Ş. to Enerjisa

            serving over 6.6 million people in 7 cities

            Established the Enerjisa Enerji A.Ş. umbrella company in line with our
            vertical integration and optimization strategy that owns our electricity
            generation, trade and distribution companies

            Energy Group increased its 2011 sales by 28%, its EBITDA by 152% as a

            result of new plants coming on line and increased efficiencies
      Major Developments in 2011 - II

                      Highest retail and financial strength grading for a bank in Turkey

                      Global Banking & Finance Review: Best Bank in Turkey – 2011
                      Brand Finance: Ranked as “Turkey’s Most Valuable Bank Brand” at
                      “World’s Most Valuable 500 Bank Brands- 2012”
                         o Akbank brand value: $1,582,000,000

                         o Ranking 96th on the top 500 international list

(1): Brand Finance
Major Developments in 2011 - III

              3rd largest group in organized food retailing with CarrefourSA and DiaSA.

              Teknosa revenues reached 1.7 billion TL with 269 stores and 128 K m2
  Retail &
 Insurance    sales area
  Services    Leader with 13% share in general consumer electronics market and with 43%
              market share amongst technology markets

              Teknosa reinforced its leadership in 2011 by acquiring Best Buy operations
              in Turkey

              Retail: Revenues increased by 17% and EBITDA by 70% in 2011.

              Aksigorta signed equal partnership agreement with the European

              prominent insurance company Ageas on February 2011.

              Insurance Services: Revenues up by 21%, EBITDA by 25%.
Major Developments in 2011 - IV

            Revenues increased 12% and EBITDA increased 24%.

            We consider local/international expansion alternatives that will help us

  Cement     achieve our regional leadership objective and create additional value and
             synergy for our Group.

            Çimsa bought, 51% shares of Afyon Çimento Sanayi Türk A.Ş. for 25
             million Euro (57.5 m TL)

            We allocate considerable resources to our sustainability projects. Sabancı

             Cement Group targets to invest USD 200 million over the next 5 years.
             We spent USD 72 M in 2011.

            Akçansa published the first Sustainability report (GRI approved B level)

            In line with energy efficiency and sustainable growth directives, Akçansa

             brought on line Turkey’s first Waste Heat Power Generation plant in Sept.
             2011 in Çanakkale facilities. The facility will save 105 million kWh annually,
             30% of the total energy consumption of the Çanakkale Plant and also
             reduce carbon emissions by 60,000 tons.

            Çimsa is preparing to bring Mersin project on line which has similar targets.
Major Developments in 2011 - V

                Achieved high capacity utilization rates in all Group Companies. Price – raw material

                 cost margins were managed successfully. Product portfolios were improved as a part of
                 customer oriented growth initiatives.
                Industrials Group revenues increased by 35%, EBITDA improved by 62%.

                Kordsa Global sales reached USD 1 billion. Turkish facilities broke record efficiency levels.

                3 recent product commercialization from İzmit R&D center

                Brisa expanded its service portfolio with the acquisition of Bandag, tire coating company.

                First time implementation of online tire change and servicing in Turkey with


                Increased export sales and profitability by 40% and 100%, consecutively, with Lassa

                Sasa, completed the sales of Advansa BV. Surpassed self profitability record by managing

                 raw material costs effectively, and high capacity utilization.

                Temsa, launched new small coach MD9 in Europe. Company sales exceeded 1.25 B TL

                Yünsa increased profitability to record levels. R&D center is operational and higher
                 segment products introduced to the portfolio

                Olmuksa increased sales and geographic penetration with the integration of DS

                 Smith company
2012 strategies

                   Profitable Growth

    To focus on   To increase
                                         To make
      target       efficiency                         To effectively
    customers     and achieve                         manage risks
    and markets   cost control


                   Human Resources
Our Group will have over 60,000 employees
in 2012
   We created close to 3,000 new jobs in 2011

   We project to create an additional 3,000 new jobs in 2012

   Retail, financial services, industrials and energy will recruit the most

   40% of our workforce is white collar, 55% of which have university or post
    graduate degrees

   Women make up 34% of workforce. The ratio is 55% in financial services

   66% of white collar women have university or post graduate degrees

   Average of 30 hours of training per person annually for HR development in our

   162 senior managers have been subject to Sabancı Leadership Team (SALT)
    trainings to better prepare them for their future roles in the Group
“Sabancı” brand adds strength to our Companies
Perception created by joint SA branding

                          Trust            One of us
       Robust

                                                  Continuity
   Known

                                                 Time saving
 Invest to
                        Strong
                                                Quality

    Proven                         Sincere
     Leading Sabancı Holding Companies
     reach out to a wide customer base

                                          • 269 stores in 72 cities                                            • 6.6 million
                                                                                                                 customers in
       • 8 million + retail               • Service network covering               • 532 tire sales points
                                                                                                                 Başkent region
         customers                          %93 of Turkey                          • Bridgestone and Lassa
                                                                                                               • Most recognized
       • 926 branches,                    • 85 million visitors                      sold tires to over 600K
                                                                                                                 private energy
         3,695 ATM/ BTM                                                              customers
                                          • A sale every 2 seconds                                               company with
       • Internet, mobile ve                                                       • First ever tire             55% brand
         telephone banking                • First choice for                         company to provide          awareness rate
                                            technology product                       road assistance to its
       • TNS Piar - Miriad                  shopping                                 consumers
         Banking Sector
         Survey Results -                 • 450K Facebook, 16K                     • Lastik.com.tr - first
         2011: Akbank “First                Twitter followers                        and only web site to
         Remembered                                                                  provide online tire       • 2.2 million policies
         Bank”                                                                       services
                                                                                                               • 22,000 claims per
                                                                                   • Bridgestone- highest        month on average
                                                                                                               • 1,511 Agencies; 899
                                           • Over 350 thousand                       improvement amongst
                                                                                                                 Bank Branches
                                             private pension                         tire brands
                                                                                                               • “Top of mind” and
                                             insurance holders                     • Lassa perceived as
                                                                                                                 “Most prestigious
       • 1,358 stores,                                                               most sincere brand in
                                           • ~3,600 new                                                          Company” in the
         601m2 sales area                                                            its category
                                             participants every                                                  insurance sector
       • ~200 million                        month
                                           • 264 thousand
                                             interaction at Call                      • 286,500 HiltonSA
                                             Center per month                           guests

Source: Independent Reseach Companies: Brand Equity, TNS 2010, Synovate 4Q11, IPSOS 2011, TNS PR Miriad
 20% increase projected in consolidated sales

    Sabancı Group Companies– Consolidated Net Sales (Billion TL)



                        18.6       %5

                       2009             2010         2011         2012B

Source: Sabancı Holding, Finance
  Sabancı Holding shareholder’s equity is
  expected to exceed 15 billion TL

     Sabancı Group Companies– Shareholder’s Equity (Billion TL)



                                                       13.1             %8

                         10.9             ,

                       2009                           2010                   2011         2012B

Numbers belong to Sabancı Holding ‘s parent and they are consolidated
Source: Sabancı Holding, Finance
  We pursue investing in projects
  that help Turkey grow

    Sabancı Group Companies– Investments (Billion USD)

                                                                                 $1.33 billion
       1.08        %4        1.13                                                      68%

                                                                                                    Bank &
                                                                        Cement                     Insurance
                                                                          6%                          7%
                                                               Retail                 Industrial
                                                                5%                      14%

       2009                2010           2011         2012B

Source: Sabancı Holding, Finance
More Sabancı Group companies will be
taken public in the coming years...

  Expected Initial Public Offerings




  We aim to grow our net asset value
  to USD 25 billion in the next 5 years

    Sabancı Holding Net Asset Value Growth - Billion USD





                            2006                                    2011                                     2016
Note : Notes: Market cap value was taken for public companies in order to calculate net asset value. Net asset values in Sabanci
Holding analyst reports was taken for non-public companies.

Source: Sabancı Holding – Finance
Thank you

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