Targeting $20 billion Sabancı over 5 years with the "Triple Growth Formula"

07-11-2024

Sabancı Holding announced its inflation-adjusted financial results for the third quarter of 2024. During this period, Sabancı Holding maintained a strong balance sheet, with combined revenues reaching TRY 868.3 billion in the first nine months. In the same period, the Holding's combined EBITDA amounted to TRY 101.5 billion, with an increase in the non-banking segment’s quarterly EBITDA margin. In the first nine months of the year, the Holding preserved its low debt ratio and allocated 12.6% of its non-banking revenues to non-banking investments, sustaining its investment appetite despite challenging market conditions.

"WE WILL NEARLY DOUBLE OUR CAPEX/REVENUE RATIO BY 2029"

Cenk Alper highlighted that every step taken by the Group companies during this period is part of a strategic plan, stating, “We shared this plan with foreign investors in London recently. At a conference attended by over 100 representatives from the world’s leading financial institutions, we unveiled our five-year roadmap for 2024-2029. The conference was themed ‘Sustainable, Digital, and Scalable,’ giving investors insights into our upcoming triple growth formula. Guided by this formula, in addition to our existing significant investments in banking and financial services, we aim to build a more balanced portfolio over the next five years by investing in energy and climate technologies, materials technologies, mobility solutions, and digital technologies. During this process, our Group companies will continue to preserve and expand their core businesses while also embracing the best global practices in new growth platforms.”

Alper continued by stating that, in line with this plan, they intend to double the Holding's net asset value from its current level of approximately $10 billion to $20 billion by 2029: “Additionally, we will increase our foreign currency revenue ratio from 19% in 2024 to over 30%. While achieving this, we will continue our investments both in Türkiye and abroad with determination. In this context, we aim to raise our non-banking investment expenditures (CAPEX) as a percentage of revenues from 11% to the 15-20% range. This increase is a clear indication of our commitment to accelerating our investment pace.”

“THE LARGEST OVERSEAS ACQUISITION OF SABANCI GROUP”

Cenk Alper also shared insights on recent developments within the Sabancı Group: 

“Our Materials Technologies Group, which operates across eight countries on four continents, achieved a significant milestone with Çimsa’s acquisition of Ireland-based Mannok Holdings, marking the largest overseas acquisition in Sabancı Group’s history. This acquisition will open new doors for Çimsa in the United Kingdom, in addition to Spain and the United States. Temsa, driven by its vision for the ‘electrification of mobility,’ has firmly established itself as the undisputed leader in Türkiye’s electric commercial vehicle market with a 67% market share over the past three years.”

“INCREASING OUR RENEWABLE ENERGY PRESENCE IN TÜRKİYE AND THE U.S.”

“We are resolutely expanding our renewable energy investments in both Türkiye and the U.S. In Türkiye, we plan to increase Enerjisa Üretim’s current installed capacity of 3,813 MW to over 5,000 MW by 2026, raising the share of renewables from 46% to 60%. As we move forward with these investments, we are also securing financing for these projects. Enerjisa Üretim signed a nearly $1 billion loan agreement to fund 750 MW of our YEKA-2 projects, which have a total installed capacity of 1,000 MW. Additionally, Sabancı Renewables obtained $137 million in tax equity financing from a Tax Equity Investor for the Oriana Solar project currently under construction in the U.S. With this contract, all financing for our second energy production project in the U.S. is now complete. These steps keep us on track to meet our previously announced 1,000 MW installed capacity goal in the U.S.”

“While strengthening our footprint in renewable energy, we are advancing our vision to become a key player in climate technologies through disruptive innovation in the U.S. In recent years, we have demonstrated our commitment to providing sustainable and clean solutions to global energy challenges by investing in ventures focused on fusion, deep geothermal, and hydrogen. Our latest investment in Tokamak Energy, one of the world’s most promising fusion initiatives, brings the total number of funds and corporate investments made through Sabancı Climate Ventures to 13. These ventures, with products soon to be commercialized, are set to play a significant role in Sabancı’s future vision.”

“Through organizational changes and investments made in recent years, we have underscored our commitment to digital technologies, with the latest step being our acquisition of Bulutistan. By acquiring an additional 65% stake in this local cloud service provider, we have increased our ownership to 75.5%, strengthening our presence both in Türkiye and globally. As we continue to focus on growth outside the banking sector, Akbank also contributed to our economy with a total loan support of 1.591 trillion TL, of which 1.292 trillion TL is in cash, in the first nine months of 2024.”

TECHNOLOGY AND IMPACT CENTERS SPREAD ACROSS TÜRKİYE

Emphasizing Sabancı’s commitment to making environmental sustainability a primary investment criterion in every initiative, Cenk Alper said, “Moreover, we proudly continue our mission to be a pioneer and role model in social development within Türkiye. In line with Atatürk’s words, ‘All my hope lies in the youth,’ we have laid the foundation for a new social enterprise model across the country. Through the Sabancı Youth Mobilization, launched to transform ‘brain drain into brain power,’ we opened our first Technology and Impact Centers in Izmir and Eskişehir. By the end of 2024, we aim to establish a total of eight centers.”