Letter From The Chairman

As the “New Generation’s Sabancı,” we will continue to pioneer value-added production, lead change in all areas that digital transformation touches upon, and contribute to Turkey’s future with our technology-oriented investments.

to gain an edge in global competition, We see three opportunities ahead of Turkey: technology, digitalization and education.

Sabancı Group entered into new era of transformation in 2017 and started a new lap in the race. Our priority in this new lap continues to be creating value for Turkey and for our stakeholders, as we have been doing for more than 90 years.

Esteemed Investors, Business Partners and Valuable Employees,

Sabancı Group entered into new era of transformation in 2017 and started a new lap in the race. Our priority in this new lap continues to be creating value for Turkey and for our stakeholders, as we have been doing for more than 90 years.

As political and social tensions continued globally and regionally in 2017, promising developments were observed in the economy. The most remarkable global development was the recovery in the world economy and resumption of the growth trend. IMF revised its forecasts up for the first time in many years.

A glance at Turkey reveals that we had another year where we felt geopolitical impacts deeply both economically and socially. Nevertheless, it is gratifying that the growth in the world was also reflected in Turkey despite adversities.

The Turkish economy grew 11.1% in the third quarter compared to the same period of the previous year, the highest growth rate in last six years. This was also the fastest growth registered among the OECD countries. This figure gives hope to all of us, but reflecting it to all indicators and ensuring its sustainability should be the priority for all of us.

At this juncture, we see three opportunities ahead of Turkey to gain an edge in global competition: technology, digitalization and education. During this intertwined phase that the world is going through, all countries are trying to chart their courses in these three fundamental areas.

First and foremost, technology investments that create value are imperative. We are witnessing the fastest technological transformation in the history of mankind. Moreover, this transformation is shaping our lives “in ever shorter intervals” and “with sudden leaps.” Economic growth is also having a parallel development like technological change. Consequently, the only way to place among the strong economies of tomorrow is to develop and adopt state-of-the-art technology.

The second priority is digitalization, which is closely linked to technology. We have to gain a place for ourselves in the digital economy, which is projected to reach USD 24.6 trillion in 2020. The need to set a common vision and roadmap in this area is also apparent.

Last but not least, the world altered by technology and digitalization is also transforming education. Nobody is starting from behind in this race because the rapidly changing world brought all countries back to square one, to the starting line. This development opened a brand new window of opportunity for us.

In order not to fall behind in the education race and to distinguish ourselves as a country, our job is to employ a scientific, rational and participatory process and leverage the opportunities presented by technology for designing a new education system. This is the only path for moving Turkey forward in every field. Our goal should be to take advantage of our young demographics and raise generations that are already equipped with the requisite skills from today.

We need to focus our energy on shared goals, create the required environment, and get moving today in order to be the winner in all of these three opportunities.

As Sabancı Group, we also built the upcoming period on these indicators.

2017 has been a “year of transformation” for Sabancı Group. We started a new era in our 90-plus-year story. In this new stage, our goal is to be not just “Turkey’s Sabancı,” but also the “New Generation’s Sabancı.”

As the “New Generation’s Sabancı,” we will continue in the upcoming period to pioneer the value-added production that will ascend the Turkish economy to where it belongs in the world, lead change in every area that digital transformation touches upon, and contribute to Turkey’s future with our technology-oriented investments.

Sabancı Group’s role at this juncture is to be “exemplary” and a “pioneer.” We will assess every opportunity that will contribute to our new vision, from Industry 4.0 applications to new business lines such as composite technologies, in the upcoming period.

In the changing economic order, we will continue to increase our presence in the energy industry, one of the drivers that will shape the near future and give priority to initiatives that will create value for our Group and for Turkey in this area. Enerjisa Enerji’s IPO, with record demand as Turkey’s largest public offering, is the most important indication of our determination in this industry.

We realized many successful projects in 2017 thanks to our esteemed investors, business partners, and valuable employees. We will race to new achievements altogether in the period ahead with digital transformation in our focus.

On behalf of Sabancı Group, I would like to thank all of our employees, business partners, customers and shareholders for their contributions to our successful results in 2017.

Güler Sabancı
Chairman and Executive Member