Dear Stakeholders,

It is a privilege to address you for the first time as CEO of Sabancı Holding as our Group enters a new chapter in a rapidly evolving global environment. I assumed this role in June, at a time when global markets were adjusting to tighter financial conditions, geopolitical uncertainty, and structural transformation across industries. In Türkiye, the normalization process, inflation dynamics, and regulatory measures continued to shape financial conditions and investment decisions. For diversified groups operating across both regulated and competitive businesses, 2025 required constant calibration between resilience and momentum.

In a year shaped by overlapping dynamics rather than a single shock and in a new world defined by volatility, fragmentation and rapid structural change; performance was driven not only by the ability to respond quickly, but also by the strength of the operating model. For us, that model rests on three principles: speed in decision-making, discipline in capital allocation, and consistency in execution with a continued focus on keeping all three aligned across the portfolio. This alignment does not only create resilience; it builds strategic strength, the capacity to absorb shocks while advancing long-term value creation.

 

2025 PERFORMANCE: RESILIENCE IN ACTION

Tight financial conditions, elevated funding costs, and inflation-related pressures shaped operating assumptions through most of the year. We focused on protecting financial strength, preserving balancesheet resilience, and maintaining a structurally robust portfolio under stress. Cost discipline, prudent liquidity management and portfolio balance allowed us to navigate volatility while maintaining operational continuity. Monetary conditions eased toward yearend, strengthening the banking contribution, while portfolio diversification supported a meaningful improvement in bottom line performance. Stronger EBITDA margins in Energy and Financial Services provided a clear tailwind to full year combined EBITDA growth of 8%. Consolidated revenues remained almost flat year over year while performance remained resilient, with a visible positive swing in consolidated net income in the final quarter, bringing full year figure to TL 3.8 billion. Inflation accounting continued to affect reported figures, reinforcing the importance of focusing on underlying performance, cash generation, and recurring value creation.

At the Holding level, liquidity remained strong at TL 8.5 billion in net cash, while non-bank leverage (Net Financial Debt to Non-Bank EBITDA) stood at 1.6x, remaining well below our policy threshold. Non-bank combined capital expenditures totaled USD 1.9 billion, with non-bank combined CapEx to sales of 12.3%, reflecting continued investment in priority platforms while preserving financial flexibility. In parallel, FX share in revenues reached 20%, further strengthening portfolio resilience.

 

PORTFOLIO PERFORMANCE ACROSS STRATEGIC BUSINESS LINES

In Banking and Financial Services, we unified Group leadership to strengthen collaboration between Akbank and our insurance businesses, supporting a more integrated approach to customer financial needs. Akbank sustained asset quality and digital leadership while pursuing selective, quality-focused loan growth. In insurance, we reinforced profitability‑driven underwriting discipline, scaled Medisa as a core health platform, and deepened integration with Akbank.

Together, these initiatives enhance productivity, improve portfolio steering, and strengthen the resilience and long‑term value creation capacity of our banking and financial services platform.

In Energy and Climate Technologies, we scaled capacity while preserving return discipline and cashflow visibility. In Türkiye, we expanded total electricity generation capacity to 4.5 GW, progressing toward our 2028 target exceeding 6 GW, with renewables at the core. We also exceeded 1 GW of wind capacity and secured 750 MW through the YEKA 2024 tender, while enhancing long-term visibility through contracted revenues across our diversified generation portfolio. In the U.S., we advanced our renewable platform, reaching 504 MW of operating capacity with a further 286 MW under development. For our electricity distribution business, the newly defined 2026–2030 regulatory period in Türkiye provides a predictable return framework that supports long-term grid modernization investments. Temsa’s bus operations had a strong year, supported by proactive planning and differentiated positioning with a focus on scaling low-carbon mobility platforms.

Supported by green and multilateral funding, the segment is managed as an integrated growth platform, balancing scale, resilience, and capital efficiency across cycles.

In Material Technologies, we continued to strengthen resilience and international scale. At Çimsa, new U.S. grinding capacity and the integration of Mannok supported hard-currency earnings and profitability while Akçansa leveraged its existing capacity and geographic positioning to flexibly manage its domestic and export volumes amid changing market conditions. At Kordsa, despite extraordinary challenges, portfolio optimization and strict financial discipline were maintained, with higher contribution from composite business. We also realigned Brisa under Material Technologies to sharpen its strategic focus with increased premium sales mix and sustained market leadership.

Across the portfolio, disciplined capital allocation and selective international exposure enhanced resilience and return potential through volatile cycles.

In Digital Technologies, demand for resilient, compliant, and scalable digital infrastructure continued to rise. Through SabancıDx and Bulutistan, we strengthened our integrated offering across cloud solutions and managed services. SabancıDx served over 5,000 customers while Bulutistan had over 1,000 enterprise customers and a broad partner ecosystem across the UK, Germany, Uzbekistan, and Azerbaijan. A clearer strategic focus on next-generation digital infrastructure, particularly data centers and scalable cloud platforms, reinforced the segment’s role as an asset-light, recurring-revenue growth engine within the portfolio. As data, AI and secure infrastructure become foundational to competitiveness, our digital platforms position Sabancı at the center of the next wave of value creation.

Other consumer-facing businesses operated in more challenging environments, where disciplined execution and active portfolio oversight were critical. We strengthened restructuring and performance focus across these businesses. At Teknosa, the priority was profitability, cost control, and a digital-first omnichannel model. At Carrefoursa, scale and digital capabilities supported performance amid competitive conditions.

Taken together, portfolio performance in 2025 demonstrates the strength of a model managed as a network, where different businesses contribute in different ways, yet operate within a shared framework of governance, capital discipline, and execution focus. We continue to actively evaluate portfolio alignment and capital allocation opportunities across all businesses, guided by long-term potential, strategic fit, and value creation discipline.

 

OUR DNA: CONNECTED TO EVOLVE AND LEAD

Sabancı approaches value creation through a connected system rather than isolated businesses. By cultivating platforms and ecosystems, the Group strengthens co-creation, accelerates learning, and enables capabilities to scale across the portfolio.

This network mindset is a core part of our DNA. It allows Sabancı to evolve as an integrated whole, where insights, capabilities, and advantages flow across businesses, reinforcing innovation, resilience, and competitive positioning in an increasingly interconnected global economy.

Entering 2026, this DNA is reinforced by our renewed leadership and governance model. The Executive Committee of Sabancı Holding brings portfolio-level ownership, shared accountability, and coordinated execution to the center of decision-making. By aligning strategic investment discipline with operational leadership through the new team structure, we manage the Group as a connected system, scaling platforms, reallocating capital with agility, and strengthening return-focused portfolio optimization across cycles.

 

STRATEGY 2029: SCALING WITH PURPOSE AND DISCIPLINE

Our long-term ambition is to translate ambition into measurable financial and strategic thresholds, doubling Sabancı Holding’s Net Asset Value to USD 20 billion by 2029. Strategy 2029 translates this ambition into a future-proof portfolio built for sustainable, digital, and scalable growth, underpinned by disciplined capital allocation and adaptive execution. We manage this journey with clear thresholds of WACC-adjusted returns including +120 to 150 basis points, non-bank CapEx-to-revenues of 15–20%, FX share of revenues of 30% or more, non-bank net debt-to-EBITDA at 2.0x or below.

Capital deployment focuses on adjacencies and strategic geographies, balancing acquisitions and greenfield investments to ensure scalability and resilience while preserving balance-sheet agility and shareholder returns.

 

LEADERSHIP, PEOPLE, AND SUSTAINABILITY AS ENDURING ENABLERS

Beyond the numbers, 2025 was a year that tested organizations’ ability to stay focused, act responsibly, and support their people through uncertainty. Leadership quality, talent, and sustainability integration are ever-enduring enablers of Sabancı’s performance. Responsible investment principles guide our decisionmaking, ensuring that growth is achieved with accountability and long-term perspective.

Our people remain central to execution quality. Continuous capability building, leadership development, and a performance-driven culture ensure that strategy is translated into results. Governance, transparency, and sustainability practices reinforce reliability, supporting Sabancı’s reputation as a trusted long-term partner.

 

EXTERNAL RECOGNITION AS AN OUTCOME OF EXECTION

In 2025, our consistent performance and strong governance continued to be recognized by leading external benchmarks. Sabancı Holding ranked 51st globally and 1st among Turkish companies on the Forbes–Statista World’s Best Employers list and 131st on TIME’s World’s Best Companies list, based on employee engagement, revenue performance, and sustainability transparency. Our sustainability performance was further recognized with a CDP Double A rating in Climate Change and Water Security and strong positions across leading ESG indices, including MSCI (AA), LSEG (A), and the S&P Global Sustainability Yearbook. These recognitions are outcomes of disciplined execution, transparent governance, and long-term decision-making.

The same long-term approach guides our commitment to youth empowerment and capability building. In 2025, the Sabancı Youth Mobilization expanded to 11 Technology and Impact Centers across 7 locations in Türkiye, reaching 36 thousand young people by year-end.

 

AN INTEGRATED VIEW OF VALUE CREATION

This report marks an important milestone for Sabancı. Our first Integrated Annual Report reflects how the Group is managed in practice. It reflects how financial performance, strategy, governance, sustainability, and people come together in one coherent value-creation story. It provides a transparent and holistic view of how value is created, preserved, and scaled over time.

This integrated perspective also mirrors our decisionmaking approach. It reinforces accountability, supports long-term thinking, and strengthens alignment with our stakeholders as we move into our second century. As we look ahead, we do so with confidence in our model and clarity in our direction. Built over decades through disciplined execution and consistent delivery, trust underpins how Sabancı operates.

It connects our strategic intent with real outcomes, enabling us to attract talent, access capital more efficiently, and build durable partnerships, strengthening competitiveness in an increasingly complex global economy. With a future-proof portfolio strategy, disciplined execution, and a networked operating model grounded in this trust, Sabancı is well positioned to continue creating enduring value.

I would like to thank our employees, business partners, investors, and all our stakeholders for their contribution to this shared journey. Their commitment, collaboration, and trust are integral to how Sabancı creates value today and how we will continue to do so in the years ahead.

Sincerely,

Kıvanç Zaimler
Board Member & CEO

 

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