In Sabancı Group companies most of which are leaders in their respective sectors, a high performance culture and ecosystem collaborations are embraced and value-add is achieved for all stakeholders by observing the principles of sustainability.
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 approach. Sabancı Group’s main business areas are banking, financial services, energy, industrials, building materials and retail. Sabancı Group companies are market leaders in most of 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 and the Group President of Human Resources and Sustainability. 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 ecosystem collaborations.
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 adopted 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).
The Audit, Corporate Governance and Early Detection of Risk Committees report to Sabancı Holding Board of Directors. The Portfolio Management Committee was terminated in 2020 in order to empower the decision-making mechanism of the senior management. Certain duties of the Committee in question were transferred to the Corporate Governance and Early Detection of Risk Committees.
Sabancı Holding assesses business development projects both financially and strategically and prioritizes projects where there is high-value creation, real growth potential, projects in which current competencies within the Group can be utilized effectively as well as sustainable investment projects.
The Sabancı Leadership Development Programs garnered Sabancı Holding awards in the categories of “Leadership Development Achievement,” “Most Innovative Leadership Program” and “Leadership Training” at the Stevie Awards competition. Sabancı Holding also received a Gold award in the “Best Progress in Leadership Development” and “Best Learning Program Supporting Transformation in Business Strategies” categories at the Brandon Hall Group Excellence Awards.
Sabancı Group companies operate in 14 countries as of year-end 2020 and supply 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 contributed significantly to the development of Turkey’s economy.
Sabancı Holding’s multinational business partners include prominent global companies such as Ageas, Aviva, Bridgestone, Carrefoursa, E.ON, Heidelberg Cement, Marubeni, Skoda and Philip Morris.
In 2020, Sabancı Group posted combined net sales of TL 104 billion and consolidated net income of TL 4.8 billion.
Sabancı Holding’s own shares, as well as the shares of its 11 subsidiaries, are listed on Borsa Istanbul (BIST) and constitute 6.1% of the total market capitalization of the Turkish equity market.
The Sabancı Family is collectively Sabancı Holding’s majority shareholder. As of year-end 2020, 48.5% of Sabancı Holding’s shares are publicly traded.
SABANCI HOLDING INVESTMENT CRITERIA
Potential for geographic/sector-specific value creation ROIC>WACC + 1-3%
- Growth potential > Real GDP growth
- Emerging stage of life-cycle
- Transferability of current competencies
- Sustainable investment
ROIC: Return on Invested Capital
WACC: Weighted Average Cost of Capital
SABANCI HOLDING PERFORMANCE CRITERIA
Revenue, Operational Profitability, Net Income, Comparative Change in Market Capitalization, Market Share, Cash Flow, Working Capital, Employee Satisfaction, et. al.
SAHOL Total Shareholder Return, SAHOL Net Asset Value Discount
(*) Including Enerjisa, Akbank, Teknosa and Carrefoursa customers, excluding intra-group common customers.