Sabancı Holding has a dynamic and strategic portfolio management approach that prioritizes the performance culture.
Hacı Ömer Sabancı Holding A.Ş., one of Turkey’s leading conglomerates, is the parent company and manages Sabancı Group’s companies with a strategic portfolio approach. Turkey’s most rapidly growing sectors – including banking, insurance, energy, cement, retail and industrials – are the main business areas of Sabancı Group. Sabancı Group companies are market leaders in their respective sectors.
Sabancı Holding’s executive activities are carried out by the Executive Committee, consisting of the CEO, CFO, Strategic Business Unit Presidents and the President of Human Resources Group. The Executive Committee reports to the Board of Directors.
Sabancı Holding is responsible for:
- Coordinating and supporting the financing, strategy, business development and human resources functions in accordance with corporate governance principles,
- Fostering career development of the Group’s senior and mid-level executives,
- Determining the Group’s strategies,
- Deploying a performance culture across the Group,
- Creating shareholder value through intra-Group synergies.
Sabancı Holding prioritizes a performance culture. With the aim of creating value for all stakeholders, a short-term and long-term management incentive system is applied across the organization.
- On an annual basis, performance evaluation entails a number of performance criteria including revenue, operating income, net income, change in market capitalization compared to peers for the listed companies and also the market share, cash flow management, working capital efficiency and employee engagement are among other KPIs.
- Long-term incentive compensation is determined based on Sabancı Holding stock’s total shareholder return (TSR) and discount to net asset value (NAV).
In addition to the Audit, Corporate Governance and Early Risk Identification Committees which report to Sabancı Holding Board of Directors, the Portfolio Management Committee was established on March 30, 2017 to ensure a more balanced, dynamic portfolio management and capital allocation perspective. The Committee consists of Board Chairman Güler Sabancı; Vice Chairman Erol Sabancı, Board Members Suzan Sabancı Dinçer, Sevil Sabancı Sabancı, Serra Sabancı and CEO Mehmet Göçmen. The Committee convened five times in 2018 and submitted its assessments to the Board of Directors.
Sabancı Holding assesses business development projects both financially and strategically, and prioritizes projects where there is high value creation, real growth potential and current competencies within the Group that can be utilized effectively.
Sabancı Group companies currently operate in 13 countries and market their products in regions across Europe, the Middle East, Asia, North Africa, North and South America. Sabancı Group – thanks to its solid reputation, positive brand image, strong joint ventures, extensive experience and know-how about the Turkish market – has fostered its core businesses over the years. These enterprises collectively have also contributed significantly to the development of Turkey’s economy.
Sabancı Holding’s multinational business partners include prominent global companies such as Ageas, Aviva, Bridgestone, Carrefour, E.ON, Heidelberg Cement, Marubeni and Philip Morris.
In 2018, Sabancı Group posted combined sales revenue of TL 88 billion and consolidated net profit of TL 3.8 billion.
Sabancı Holding’s own shares, as well as the shares of its 12 subsidiaries, are listed on Borsa Istanbul (BIST). The number of listed subsidiaries rose from 11 in 2017 to 12 this reporting year with the public offering of Enerjisa Enerji A.Ş., which began in early 2017 and ended in February 2018, where Sabancı Holding and E.ON sold an equal amount of shares. The Enerjisa Enerji initial public offering, oversubscribed by 4.8 times, set a record as Turkey’s largest private sector IPO ever in Turkish Lira terms.
The Sabancı Family is collectively Sabancı Holding’s majority shareholder with 53.9% ownership of the share capital. 42.8% of Sabancı Holding’s shares are publicly traded.