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1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

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1 SABANCI HOLDING SABANCI HOLDING ANNUAL INFORMATION ANNUAL INFORMATION SHARING MEETING SHARING MEETING 23 23 rd rd of February, 2007 of February, 2007
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Page 1: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

11

SABANCI HOLDING SABANCI HOLDING

ANNUAL INFORMATION ANNUAL INFORMATION SHARING MEETINGSHARING MEETING

2323rdrd of February, 2007 of February, 2007

Page 2: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

2222

Expectations for 2007

5.4

393

5387

11.58

9.65

1.4056

1.4270

1.8515

1.3172

-1.0

18.41

21.47

-8.0

5.0

430

5817

8.5

7.5

1.5800

1.5560

2.0699

1.30

-3.0

19.6

17.7

-7.1

Real Growth (%)

GNP (USD billion)

Per Capita GNP (USD)

PPI (%, end of year)

CPI (%, end of year)

USD/YTL end of year

USD/YTL average

EUR/YTL end of year

EUR/USD parity

Budget Deficit/GNP (%)

Bond interest – average (%)

Bond interest – end of year (%)

Current account/GNP (%)

2007(E)

2006(E)

Page 3: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

33

AgendaAgenda

• Market Opportunities

• Management Approach

• Review of 2006

• Financial Results

• Fundamental Growth Aspects

Page 4: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

4444

Sabancı Focused on Industries with High Growth Potential

IndustryIndustry SampleSampleIndicatorIndicator USAUSA

WesterWesternn

EuropeEuropeTurkeyTurkey

BankingBanking Mortgage Loans (Billion Mortgage Loans (Billion $)$) 7,5687,568 4,4464,446 RecentlyRecently

InitiatedInitiated

RetailSales in non-food retail

stores (Billion $) 1,563 1,226 46

EnergyEnergy Electricity Consumption Electricity Consumption per capita (KwH)per capita (KwH) 534534 468468 145145

CementCement Consumption

per capita (kg) 1,200 600

Source: Economist Intelligence Unit, Euromonitor

Page 5: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

55

AgendaAgenda

• Market Opportunities

• Management Approach

• Review of 2006

• Financial Results

• Fundamental Growth Aspects

Page 6: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

66

Sabancı Vision and Values

Creating sustainable advantage through differentiation

Managing a competitive strategic portfolio with sustainable growth potential to create value for all of our stakeholders

1) Responsibility and Transparency2) Creativity

3) Participating

4) Strategic Approach

Vision:

Mission:

Management Values:

Page 7: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

77

We will Optimize Growth Opportunities by Utilizing Our Groups Mutual Strengths via Management

Platforms

Innovation Ability to offer our customers with creative solutions ahead of our competitors

Strategy Planning Realization of long to medium turn strategy and business plans

Business Excellence Systematic improvement for better performance

Technology Management Become leader in customer focused technologies

Information Management Result oriented information sharing and technology management

Human Resources Strategic leadership and organizational transformation model

Business Ethics Honesty and truthfulness in all business processes and relations

Environment Exhaustive environment management

Page 8: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

88

Sabancı Companies Give High Priority to Matters Regarding Environment

ENVIRONMENT GROUP:

Holding and Companies Work Together:

Our Companies invest around €6.6 million annually for environment related issues:

16 companies, 24 members

Pre-screening: Pro-active participation in EU conformity process

Current Inventory: Identification current situation for each company

Projects: Waste recycling within the Group

Clean Production (Around €1 million spent each year for emission reduction)

Life cycle (€3.5 million yearly for waste water and hard waste management)

Selection of environment friendly technologiesRecyclingPrevention of pollutionEfficient usage of natural resources

Page 9: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

99

Our Sensitivity to Environment has been Awarded:

10 of our companies have a ISO 14001 ÇYS document:Akçansa (BÇ/Ç) TemsaBeksa Çimsa (M)Brisa PhilsaKordsa YünsaMarsa

8 of our facilities received an environment award:Akçansa MarsaBrisa Oysa (Niğde)Kordsa KarçimsaDönkasan Philsa

Page 10: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

1010

AgendaAgenda

• Market Opportunities

• Management Approach

• Review of 2006

• Financial Results

• Fundamental Growth Aspects

Page 11: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

1111

Enerjisa acquired Tufanbeyli coal reserves in May.

Enerjisa bought the right to acquire Horasan (Erzurum) coal reserves in June.

Akçansa initiated capacity expansion investment program in its Çanakkale plant in June.

Carrefoursa completed merger with Gima in August.

Enerjisa acquired Ser Energy in August.

Highlights of 2006 (I)JAN

FEB

MAR

APR

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

2007

Page 12: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

1212

Akbank signed an agreement to sell 20% of its shares to Citigroup in October.

Advansa sold its PET and PTA businesses to Spanish company called La Seda De Barcelona for €320 million in October.

Teknosa acquired majority shares of Romanian retail chain Primex.

Gıdasa decided to exit out of white meat market in October.

Temsa signed required agreements to found a new production facility in Egypt in November.

Çimsa broke ground for capacity expansion investment in its Eskişehir plant in November.

Highlights of 2006 (II)JAN

FEB

MAR

APR

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

2007

Page 13: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

1313

Oysa decided to end our partnership with OYAK.

Yünsa agreed on acquiring Uptown retail chain in November.

Kordsa Global acquired a Chinese company called Qingdao Nylon Enterprise Limited in October.

Kordsa Global signed an LOI to acquire majority shares of an Indonesian company called Branta Mulia in December.

Enerjisa signed a cooperation agreement with Austrian utility company Verbund in December.

Highlights of 2006 (III)JAN

FEB

MAR

APR

MAY

JUNE

JULY

AUG

SEPT

OCT

NOV

DEC

2007

Page 14: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

1414

2.000

3.000

4.000

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PERFORMANCE OF SABANCI HOLDING STOCKPERFORMANCE OF SABANCI HOLDING STOCK

$ million, Market Cap.Jan. 2nd, 2006 – Feb. 21st, 2007

$7,706

Page 15: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

1515

50

100

150

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COMPARATIVE PERFORMANCE OF SABANCI COMPARATIVE PERFORMANCE OF SABANCI HOLDING STOCKHOLDING STOCK

(Jan. 2nd, 2006 – Feb. 21st, 2007)• SABANCI HOLDING• ISE Index

Page 16: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

1616

AgendaAgenda

• Market Opportunities

• Management Approach

• Review of 2006

• Financial Results

• Fundamental Growth Aspects

Page 17: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

1717

In 2006, Consolidated Net Revenue is expected to grow by 21%

6,3 7,1 8,610,1

5,7 6,9

8,4

9,9

2004 2005 2006LE 2007B

17

20

14

(Billion YTL)

%17

%21

%13

%21

%22

%21

%18

%18

%17

FINANCIAL

SERVICES

NON-FINANCE

2004-2007 CAGR: 19%

12

Page 18: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

1818

In 2006, Operational Income for Non-Finance Companies is expected to increase by 21%

700

850

1000

500

(Million YTL)

%40

%21

%18

2004-2007 CAGR: 26%

OTHER

ENERGY

CHEMICALS

TEXTILES

FOOD & RETAIL

CEMENT

AUTO, TIRES & TIRE REINFORC.

Page 19: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

1919

Operational Income* for Financial Companies is expected to have increased annually by 12% since 2004

1919

2004 2005 2006

2.22.0

* Bank : Income Before Tax + Amortization* Insurance: Income Before Tax – Interest Income – Dividend + Amortization

1.6

(Billion YTL)

%38

%-92004-2006 CAGR: 12%

Page 20: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

2020

In 2006, Exports are expected to reach $1.2 million

1.1001.200

1.3001.3001.400

1.700

2005 2006LE 2007B

(Million USD)

%8

%9%9

%21

%8%8

Exports: 2004-2007 CAGR: 6%Exports: 2004-2007 CAGR: 6%

Page 21: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

2121

Planned Investment for 2007 is estimated to increase by 50%

600

900

550

(Million USD)

%9

%50

2005-2007 CAGR: 28%

OTHER

ENERGY

TEXTILES

CEMENT

CHEMICALS

TIRE, AUTO & TIRE Reinf.

RETAIL

FINANCIAL SERVICES

Page 22: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

2222

Number of Personnel Continues to Increase in Line with our Growth

44.600

46.600

52.000

%5

%12

Page 23: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

2323

AgendaAgenda

• Market Opportunities

• Management Approach

• Review of 2006

• Financial Results

• Fundamental Growth Aspects

Page 24: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

2424

In 2007,

Our Energy Group along with Verbund will maintain its aggressive growth through acquisitions

Integration of our 2006 investments and acquisitions will be prioritized

Page 25: 1 SABANCI HOLDING ANNUAL INFORMATION SHARING MEETING 23 rd of February, 2007.

2525

In 2007, We will Continue to Create Value for All of

Our Stakeholders

Thank Thank YouYou


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