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 the Sabancı Group’s companies with a strategic portfolio approach. Turkey’s 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 is managed by the Executive Committee comprised of the CEO, CFO, Strategic Business Unit Presidents, and the Human Resources Group President, reporting to the Board of Directors.
Sabancı Holding is responsible for:
- Coordination and support of financing, strategy, business development and human resources functions in accordance with corporate governance principles,
- Career development of the Group’s senior and mid-level executives,
- Determination of the Group’s strategies,
- Deployment of performance culture across the Group,
- Shareholder value creation through intra-Group synergies.
Sabancı Holding prioritizes performance culture and with the aim of creating value for all stakeholders applies both short-term and long-term management incentive system.
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, market share, working capital, efficiency, employee engagement.
Long term incentive compensation is determined based on Sabancı Holding stock’s total shareholder return (TSR) and discount to Net Asset Value.
In addition to the Audit Committee, Corporate Governance and Risk Committees that report to the Board of Directors, a Portfolio Management Committee was established on March 30, 2017 to achieve a more balanced and dynamic portfolio management and capital allocation approach. The Committee consists of Board Chairman Güler Sabancı; Board members Suzan Sabancı Dinçer, Sevil Sabancı Sabancı, Serra Sabancı and CEO Mehmet Göçmen. The Committee convened five times in 2017 and presented its assessments and proposals 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 can be utilized effectively.
Sabancı Group companies currently operate in 13 countries and market their products in regions across Europe, Middle East, Asia, North Africa, North and South America. Sabancı Group, thanks to its reputation, brand image, strong joint ventures, extensive experience and know-how about the Turkish market, has fostered its core businesses that also become an important force contributing to the development of Turkish economy.
Sabancı Holding’s multinational business partners include prominent companies such as Ageas, Aviva, Bridgestone, Carrefour, E.ON, Heidelberg Cement, Marubeni and Philip Morris.
In 2017, the combined revenue of Sabancı Holding was TL 66 billion with consolidated net income TL 3.5 billion.
Aside from Sabancı Holding shares being listed on Borsa Istanbul (BIST), Sabancı Holding has controlling shares in 12 companies that are also listed on BIST. The number of listed companies was 11 in 2017 and rose to 12 after Enerjisa Enerji’s initial public offering (IPO), a process that began during the year and was finalized in February 2018 through equal share sales of E.ON and Sabancı Holding jointly. The Enerjisa Enerji public offering, oversubscribed by 4.8 times, broke record as Turkey’s largest private sector IPO ever in terms of Turkish liras.
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.