Sabanc Holding Investor Presentation 2 Disclaimer The information - PowerPoint PPT Presentation

Sabancı Holding Investor Presentation

2 Disclaimer The information and opinions contained in this document have been compiled by Hacı Ömer Sabancı Holding A.Ş. (“Holding”) from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. No undue reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. This document contains forward-looking statements by using such words as "may", "will", "expect", "believe", "plan" and other similar terminology that reflect the Holding management’s current views, expectations, assumptions and forecasts with respect to certain future events. As the actual performance of the companies may be affected by risks and uncertainties, all opinions, information and estimates contained in this document constitute the Holding’s current judgement and are subject to change, update, amend, supplement or otherwise alter without notice. Although it is believed that the information and analysis are correct and expectations reflected in this document are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Holding does not undertake any obligation, and disclaims any duty to update or revise any forward looking statements, whether as a result of new information or future events. Neither this document nor the information contained within can construe any investment advice, invitation or an offer to buy or sell Holding and/or Its group companies’ shares. Holding cannot guarantee that the securities described in this document constitute a suitable investment for all investors and nothing shall be taken as an inducement to any person to invest in or otherwise deal with any shares of Holding and its group companies. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. You must not distribute the information in this document to, or cause it to be used by, any person or entity in a place where its distribution or use would be unlawful. Neither Holding, its board of directors, directors, managers, nor any of Its employees shall have any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.

3 Speaking today Introduction Mehmet Göçmen Barış Oran Board Member and CEO Chief Financial Officer Appointed as the CEO of Sabancı Holding in March 2017 Appointed as the CFO of Sabancı Holding in 2016 Joined the Sabancı Group in 2003 Joined the Sabancı Group in 2006 Since joining the Group, Mr Göçmen has held various positions, including Head of Prior to joining Sabancı Holding he held several positions at Sara Lee Corp and E&Y in the Human Resources, Cement SBU President and Energy SBU President US and was the CFO of Kordsa Global University degree in Industrial Engineering Graduated from Bogazici University, Department of Business Administration and holds an MBA from the University of Georgia Master’s degree in Industrial Engineering and Operational Research

4 Sabancı , , Turkey’s leading group Introduction  • 90+ years of creating market leaders in large and growing business areas, evolving through dynamic portfolio management and leveraging our industrial heritage and the experience of our JV partners •  Strong financial track record of real growth and returns •  Robust balance sheet, cash generation and distribution “New Generation’s” Sabancı •  Greater focus on strategic portfolio management and capital allocation •  Further development of a performance-led culture that attracts and retains top talent and supports management to deliver results in a multi business environment via collaboration  • Investing more in technology and data to create a competitive advantage Committed to delivering value to all of our stakeholders

5 In In co continuous ev evolution Introduction 1940s – 1960s 1970s-2000s 2000-2010s Present and future Early Growth Phase - Proliferation of Global “New Generation’s Refocus Portfolio Partnerships-Conglomeration Sabancı” Initial Diversification JVs formed with JVs formed with, Aviva and Ageas Bridgestone and Dupont Verbund partnership in Hacı Ömer energy Hacı Ömer Sabancı Takeover of First capital Sabancı starts Holding Established Global Carrefoursa investment in Enerjisa Enerji cotton established Partnerships: management Energy Distribution IPO trading Danonesa, assets Holding HQ Kordsa Toyotasa,Kraftsa, Akbank E.ON moves to SPO Philip Morrissa, and partnership in established İstanbul Carrefoursa energy 1920s 1940s 1950s 1960s 1970s 1980s 1990s 2000s-2017 2018 and beyond Teknosa Aksigorta Akbank Avivasa established established Teknosa Obtained IPO IPO IPO stakes in two Sasa / Kordsa 68-74: Temsa, Olmuksa, edible oil plants Key acquisition-buy Kordsa, Yunsa and Lassa Sabancı back of Dupont established Holding IPO Organic growth Exit from Polymer shares Expanded Production, Food into textiles JVs formed Enerjisa Production with Bossa Expanded into established Exit from Automotive, Acquisitions Cement Production Cotton, Cardboard Divestments Buy & Hold Acquisitions & Divestitures IPOs

6 Creating market le leaders in in la large and gro rowing business areas Introduction Our companies are market leaders in critical areas within their respective sectors • Banking - the best bank in Turkey in 2017 (Euromoney) • Cement - the leading Turkish cement supplier with strategic positioning in the market, and a prominent global white cement player • Energy – the industry pioneer in upstream / downstream electricity markets; leadership in rapidly growing segments • Industrials – innovative culture that implements and leads Industry 4.0 in Turkey • Insurance - the leading player in pensions Track record of real growth (above inflation+GDP growth of Turkey) 2 Diversified portfolio Combined EBITDA* 1 2017 Other Insurance 8% 14bn TL Banking 3% B2C 20% CAGR 45% 12bn TL Cement ~40% 5% 10bn TL Retail 8bn TL NAV 6% B2B / B2C 6bn TL TL 36bn NAV 4bn TL Energy 2bn TL B2B 16% - ~60% 2013 2014 2015 2016 2017 Industrials 17% 1. Total EBITDA before consolidation adjustments. Excludes one-offs 2. 2013-2017 Ave. Inflation: 9%

7 Consistently deliv ivering over ti time Introduction Sabancı’s 2013-2017 financial performance, TL bn 16% 20% Double digit combined revenue growth Double digit combined EBITDA 1 growth CAGR CAGR 14,2 65,6 53,8 10,8 47,9 44,1 8,0 36,1 7,2 6,8 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Combined EBITDA margin 1 (%) Strong net cash position (MTL) 22% 1,7 20% 19% 16% 17% 1,1 0,6 (0,2) (0,3) 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 32% 19% Increase in DPS by 3x (TL, to be paid in the following year) Doubling of EPS (TL) CAGR CAGR 1,71 0,30 1,30 1,10 0,20 1,02 0,85 0,15 0,10 0,10 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Track record of high growth (above inflation + GDP growth of Turkey) 2 1. Combined EBITDA. Excludes one-offs 2. 2013-2017 Ave. Inflation: 9%

8 Im Improved ca capital allo llocation and fo focus on performance has le led Introduction to to a fav favourable tr trend in in Return on Equity yea ear-on on-year Return on Equity Sabancı Holding consolidated ROE 13-17 Equity Segment ROE 1 2013 2014 2015 2016 2017 Share 2 ∆ ppts 14,5% Energy n.m. n.m. 0.4% 3.0% 4.6% +9.4% 18.7% 12,7% Cement 14.8% 20.0% 22.8% 21.0% 14.6% -0.2% 3.8% 11,2% 10,6% 10,1% Industrials 20.6% 25.7% 25.9% 30.4% 25.4% +4.8% 6.9% Insurance 24.4% 20.6% 17.2% 26.0% 27.8% 1.6% +3.4% Retail -0.1% -0.3% n.m. n.m. n.m. n.m. 0.1% Banking 14.0% 14.1% 12.1% 16.0% 16.2% +2.2% 59.8% Consolidated ROE 11.2% 10.6% 10.1% 12.7% 14.5% +3.4% 2013 2014 2015 2016 2017 1. Excludes one-offs, bank results are BRSA based 2. Equity share attributable to Other segment = 9%