Investor Relations, Dividend Policy and Share Buyback Program

Sabancı Holding’s investor relations philosophy depends on maintaining communication to ensure a clear, comprehensive and consistent dialogue with the investment community.

Sabancı Holding Investor Relations Department works to continuously improve its investor communication channels including the corporate Investor Relations website. After a long development process in 2022, the Investor Relations Department launched a human-like natural language processing (NLP), machine learning and artificial intelligence (AI) powered digital investor relations assistant – named SirA (Sabancı Investor Relations Assistant) – in February 2023. This innovative chatbot was developed and trained to answer frequently asked investor relations questions virtually – a first of its kind in Türkiye. SirA provides a best-in-class investor relations experience to Sabancı Holding’s investors and stakeholders visiting the Investor Relations website (https://yatirimciiliskileri.sabanci.com/en/) by understanding investor and stakeholder requests with a very high accuracy and rapidly delivering either a text- or voice-based response using the latest in advanced technology.

As part of efforts to maintain healthy communications with the entire investment community, the Investor Relations Department engaged in a wide range of activities and events in 2022. Non deal roadshows, conferences, teleconferences virtual meetings and one-on-one visits (to local institutional investors) were conducted with a total of 555 institutional investors and analysts from Türkiye and abroad. The Investor Relations Department also responded to numerous requests from both institutional and retail investors in addition to sell-side equity analysts by telephone and e mail throughout the year. In addition, four web conferences were held during the year to communicate quarterly financial results with the investment community.

In 2022, the Sabancı Holding Investor Relations Team organized its first Digital Day with the participation of the Chairman of SabancıDx, DxBV and its subsidiaries, and Sabancı Holding Group Chief Financial Officer. This first-time event was held to inform the investment community about the restructuring of Sabancı Group’s digital business, the latest acquisitions and the future outlook in the digital arena. During the year, Banking Day – another first, Energy Day, Industrials Day and Financial Services Days were held with the participation of Sabancı Holding Strategic Business Units Group Presidents and Group Chief Financial Officer to provide sector based strategies in the Group’s respective businesses. Separately, Analyst & Portfolio Managers Day was organized with the participation of Sabancı Holding Chief Executive Officer on SabancıDx campuses to provide the latest updates on Sabancı Holding’s capital allocation criteria, ongoing investments and midterm strategy. Separately, the Sabancı Holding Investor Relations Team was more focused on in-Group activities in 2022 compared to previous years.

International Rewards

Sabancı Holding’s Investor Relations team and its successfully executed program was acknowledged by investment professionals in Europe, Middle East and Africa (EMEA) and was awarded with the “Best Overall Team in Investor Relations in EMEA” among 251 companies in 29 countries and “Best Company in Investor Relations in Industrials Sector in EMEA” among 18 companies. Winning companies are determined by the votes of sell-side and buy-side global investment professionals based on Institutional Investor’s Emerging EMEA Executive Team survey, the world’s most comprehensive and prestigious research survey for independent performance validation and qualitative market intelligence.

Additionally, Sabancı Holding ranked first among BIST 30 companies in all categories – “Best CEO,” “Best CFO,” “Best IR Professional” and “Best IR Program” – at the Investor Relations Awards Ceremony, organized jointly with the Turkish IR Society (TUYID) and Institutional Investor.

Share Buyback Program

Sabancı Holding initiated a share buyback program pursuant to its Board of Directors decision dated 9 November 2021. With this program, Sabancı Holding aims to support the price performance of SAHOL shares in the equity market, and reduce the net asset value discount by bringing SAHOL shares closer to its fair value. The share buyback program aims to provide shareholders with a more attractive long-term investment opportunity. Under the program, a maximum of 102 million ordinary shares were to be repurchased, the equivalent of 5% of total shares outstanding. The Board of Directors set a total maximum fund allocation for the buyback effort at TL 1.75 billion.

Later on 19 December 2022, Sabancı Holding extended its share buyback program upon utilizing 85.4% of the initial budget, boosting the total allocated budget by TL 1.5 billion to TL 3.25 billion.

As of 31 December 2022, the net number of ordinary shares repurchased amounts to 37.1 million, or 1.82% of the total shares outstanding.

Breakdown of Shareholders Holding More Than 5% of the Capital and Voting Rights

*As of 31.12.2022

Dividend Policy

Sabancı Holding’s Dividend Policy is to distribute dividend up to 20%, but not less than 5% of the distributable profit of the year as calculated in accordance with the Turkish Commercial Code, Capital Markets Legislation and its Articles of Association, in the form of cash and/or in shares. The implementation of this policy is determined by the General Assembly in accordance with Sabancı Holding’s medium and long_term strategies as well as the domestic and global economic conditions. Dividends are distributed to the holders of all shares, regardless of their date of issuance or acquisition, equally within the legally mandated timeframes on the date determined by the Board of Directors after the approval of the General Assembly of Shareholders.