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SABANCI HOLDING October 200 6

SABANCI HOLDING October 200 6. Agenda. Introduction to Sabancı Holding Key Competitive Advantages Strategy for Growth Summary Review of Businesses Consolidated Financial Performance Share Price Performance Key Investment Messages. 1. A Leading Turkish Enterprise.

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SABANCI HOLDING October 200 6

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  1. SABANCI HOLDING October 2006

  2. Agenda • Introduction to Sabancı Holding • Key Competitive Advantages • Strategy for Growth • Summary Review of Businesses • Consolidated Financial Performance • Share Price Performance • Key Investment Messages 1

  3. A Leading Turkish Enterprise • More than 30 main companies • (14 listed, 8 JVs) • Consolidated Financials (2005) • Revenues - $10.6 Billion • Total Assets - $46.0 Billion • Shareholders’ Equity - $ 5.1 Billion • As of Sep 22,2006, 14 listed • companies represent ~17% of ISE • Market Cap, while Sabancı Holding • represents ~5% • CORE BUSINESSES • Financial Services • Automotive, Tire & Tire • Reinforcement Materials • Food & Retailing • Cement • Energy 2

  4. Overview – Organizational Initiatives • Redefined organization and management roles. • Rationalized the number of SBU’s, reducing them from 8 to 6. • Modified corporate governance to empower and bring more • autonomy to SBU presidents. • Reviewed and approved 3-year strategic plans of each business unit. • Defined the potential in Energy after a thorough review of this business • with outside advisors; established Energy SBU. • Conducted a participative search conference to identify Sabancı • Holding’s 2015+ • Vision • Mission Statement • New Management Approach 3

  5. Overview – Business Highlights - 2006 • Relocated Kordsa International HQ to Istanbul with new name Kordsa • Global, and subsequently announced merger of Kordsa A.Ş. into Kordsa • Global; expected to be completed in Q4, 2006. • Finalized Carrefoursa and GIMA merger by the end of August, 2006; listing • Carrefoursa on the ISE. • In Q3 2006, Akçansa started a new capacity expansion program to double the • clinker capacity at its Çanakkale plant to 3.7 million tons (total company to • 5.7 million), with expected investment of $135 M; expected to be operational • at the end of 2007. • In October 2005, Çimsa acquired Eskişehir plant and Lalahan grinding • facility (182,000 tons) for $175.5 M and recently announced a capacity • expansion program to increase its clinker capacity by 905,000 tons to 1.4 • mil. tons (total company to 3.1 mil. tons) with expected investment of $75M. 4

  6. Overview – Business Highlights - 2006 • On October 2, 2006, Advansa finalized the sale of its PTA and PET • businesses to La Seda De Barcelona, Spain for €320 M. • In May 2006, Enerjisa acquired the licence and rights for Tufanbeyli coal • reserves for $78 M and announced the investment for an elecricity generation • plant with capacity of min 450 MW; expected to start by the end of Q1,2007. • In June 2006, Enerjisa obtained an option to acquire the rights for Horasan • (Erzurum) coal reserve. The capacity of the reserve is expected to be 450 – • 600 MW and the investment will be determined after the feasibility. • In August 2006, Enerjisa acquired Ser Enerji, owning two sites and their • licences with potential of 215 MW elecricity generation capacity. • In March 2006, Holding’s purchase of its 189 founder shares for a total • value of approx. $200 M was finalized. 5

  7. Vision and Mission Statement • Vision: • “Creating sustainable advantage through differentiation” • Mission Statement: • “Managing a competitive strategic portfolio with sustainable • growth potential to create value for all of our stakeholders” 6

  8. Management Approach RESPONSIBILITY AND TRANSPARENCY CREATIVITY 2 1 STRATEGIC APPROACH PARTICIPATION 4 3 • Responsibility and Transparency: Upholding our core values of modesty, respect and proximity to people, being social responsible and managing according to the principles of Corporate Governance. • Creativity: Creating lasting advantages such as brand, technology, design, network and IP. • Participation: Generating a management approach that promotes participation and collective thinking in decision making process. • Strategic Approach: Managing the present with excellence and to shape our future to ensure long term advantage. 7

  9. Management Platforms SA15+ (STRATEGIC PLANNING) SA15+ involves work carried out in a participatory manner to provide a roadmap to identify where the Sabancı Group will be in the next ten years and beyond to ensure sustainable profitable growth. SABE (SABANCI BUSINESS EXCELLENCE) SABE is a continuous and systematic improvement approach for better performance. The purpose of SABE is to make sure business excellence becomes a lifestyle throughout the Group and to create sustainable competetive advantage GROWTH AND VALUE CREATION THROUGH INNOVATION The Sabancı Group has taken on the initiative of promoting innovations in all of its businesses and to ensure that innovation is part of the organization culture and management approach. INFORMATION TECHNOLOGY SATEK, Sabancı Holding Technology, Materials and Intellectual Property Committee, is establihed to evidently increase the activities on Research & Development, achieving Technological Superiority as well as preservation and development of Intellectual Property Rights within the Sabancı Group. HUMAN RESOURCES & ORGANIZATIONAL TRANSFORMATION Human Resources and organizational transformation begins with the identification of critical ‘systems and processes’ necessary to accomplish the objectives of the Sabancı Group. Once the critical ‘systems and processes’ are defined, ‘people profile’, ‘culture’ and ‘organizational structure’ are also examined to ensure that they support these systems. 8

  10. Target Business Portfolio NAV(*) Target Breakdown Financial Services Other Food & Retailing Cement Auto.Tire &Tire Reinf. Energy (*) Net Asset Value breakdown estimate projected in line with each business unit’s 3-year business plan. 9

  11. Organization Structure An actively managed portfolio of businesses • SA Vision • SA Strategies • Execution • Coordination / • Synergy Creation • SBU Strategy • Execution • Operation Sabancı Holding Board Chairman CEO Strategic Business Units Operating Companies 10

  12. Active Conglomerate Creating Synergy • Strategy • Finance • Human Resources A C T I V E Three Main Functions • Tax Management • Legal Services • Government Relations • Risk Management • Internal Auditing • Operational Excellence Management • International Trade (based in London, UK) Support Services Provided Centrally S Y N E R G Y 11

  13. Agenda • Introduction to Sabancı Holding • Key Competitive Advantages • Strategy for Growth • Summary Review of Businesses • Consolidated Financial Performance • Share Price Performance • Key Investment Messages 12

  14. Well Positioned Globally for Growth Service Oriented Manufacturing Oriented 52% of the World Population Live in Developing Asia Turkey & : A Bridge Between East and West 13

  15. Ability to Attract and Successfully Manage JV’s with Foreign Blue-Chip Partners 14

  16. Leading Market Shares in Key Sectors Domestic Market Shares Criteria Market Position Sector Company Banking Nylon&T.Cord Steel Cord Cement Cement Tires Retailing 2 1 1 1 1 1 2 Akbank Kordsa Glb. Beksa Akçansa Çimsa Brisa Carrefoursa(*) Total Loans Nylon 66 - Europe Domestic Sales Marmara Region Mediterrenean Domestic Sales Net Sales 14% 42% 42% 29% 27% 31% 15% (*) Net Sales as % of the organized retail market. Includes Diasa 15

  17. Agenda • Introduction to Sabancı Holding • Key Competitive Advantages • Strategy for Growth • Summary Review of Businesses • Consolidated Financial Performance • Share Price Performance • Key Investment Messages 16

  18. Strategy for Growth – Existing Businesses • Retailing • Organic growth in Carrefoursa and Teknosa through • aggressive new store openings • Evaluate regional growth opportunities for Teknosa • Food • Leverage Marsa’s existing distribution network • Focus on fast-growing and profitable food categories • Cement • Increase existing capacity with new investments • Evaluate further local acquisition targets and regional / • global strategic opportunities 17

  19. Strategy for Growth – Existing Businesses • Nylon & Polyester Tire Cord • Evaluate acquisition / alliance opportunities in Asia • Tires • Finalize local capacity expansion of 60% by 2007 in Brisa. • Automotive • Evaluate organic growth /acquisition opportunities in heavy trucks • Evaluate organic growth opportunities in coach& midicoach • business in Greater Europe • Chemicals • Finalize divestiture of PTA & PET Resin businesses • Reposition / restructure remaining assets • Textiles • Evaluate potential strategic alliance/ divestiture opportunities 18

  20. New Business Strategy – Energy – Road Map • Electricity • Electricity distribution privatizations (expected in late 2006) • Increase existing generation capacity of 370 MW (2% of Turkey’s production) to • 10% levels in the long term • Portfolio diversification with hydro and coal-based generation • Target 10-15% of sales from trading activity • Natural Gas • Natural gas distribution privatizations (expected 2008 onwards) • Trade and wholesale business entry (2007-2012 frame) Trade Wholesale / Retail Energy Service Mgmt Distribution Transmission Generation Trade Wholesale Generation Storage Distribution Transmission 19

  21. New Business Strategy – Electricity Generation • Coal–based Generation • In May 2006, Enerjisa acquired the licence and rights for Tufanbeyli coal • reserves for $78 M and announced the investment of an electricity generation • plant with capacity of minimum 450 MW; expected to start by the end of • Q1, 2007. • In June 2006, Enerjisa obtained an option to acquire the rights for Horasan • (Erzurum) coal reserve. The capacity of the reserve is expected to be 450 – 600 • MW and the investment will be determined after the feasibility. • Hydro Generation • In August 2006, Enerjisa acquired Ser Enerji, owning two sites and their licences • with potential of 215 MW elecricity generation capacity. 20

  22. Food Retailing CARREFOUR With Gima acquisition, Carrefoursa becomes the leader in the Turkish organized retail market. 1 Large Supermarket format under Carrefoursa umbrella. 2 Discount store chain 60% owned by Dia (Carrefour subsidiary) and 40% owned by Sabancı Holding. 3 Net leasable area of 30,000 m2 is excluded from Gima’s net selling area 4 Discount store chain integrated into Diasa. 21

  23. Food Retailing CARREFOUR • 2006Revenue Budget €1.2 billion Target No. of Supermarkets* Target No. of Hypermarkets 24 122 107 19 95 14 88 12 11 11 7 5 (*) Including 81 Gima supermarkets 22

  24. Food Retailing DIA • 2006 Revenue Budget €250 million Target No. of Stores 737 572 440* 313 239 182 (*) Including 45 Endi stores 23

  25. Non-food Retailing • The only electronics retailing chain in Turkey with a full and widest range of consumer electronics categories • Distributorship of Mitsubishi, Sharp & Midea A/Cs; Sharp cash registers; Radioshack products, Beretta Combination Boilers. • Strong brand portfolio with international brands including Nokia, Sony, Siemens, Apple, HP, Toshiba, Panasonic, LG, Samsung, Dell, Sharp etc. • Plans to grow in the region, as well as maximizing national coverage • 2005 Revenues $362M • 2009 Target Revenue $1 Billion Total Selling Space 000 m2 Number of Stores 300 95 75 250 200 54 151 32 96 22 57 41 12.1 30 9.2 5.2 24

  26. Retailing Distributor Group • July 2006: 129 stores in 37 cities • Over 500 authorized dealers and services Main Product Groups: Main Product Groups: Electronics • TV • Dijital Camera • Viewcams • Audio Systems Telecom • Mobile Phones • Cordless Phones IT Products • PC, Notebook • IT hardware & software • Printers Combination Boiler Air Conditioners Cash Registers Refrigerators Non-food Retailing Teknosa’s growth plans are based on the electronics retailingCurrently ~90% of the sales come from retailing business 25

  27. Non-food Retailing Electronics Retail Market (US$ B) & Teknosa Share (%, right axis) 26

  28. Target: Sustainable competitive advantage Non-food Retailing ’s Main Goal: Sustainable Competitive Advantage Focus on categories where it is competitive (CE, IT, TC) Differentiate: • Wide product range • Store atmosphere • Knowledgeable, presentable sales consultants • Fast service • After sales • Unique merchandise and campaigns Fast growth: • With its own stores • Be the first to acquire the best locations Identify the customers and provide best solutions for them (CRM) Invest in Teknosa brand Focus on Human Resources • Be the school of this business • Retain qualified staff • Teknosa Academy Evaluate regional growth possibilities Develop internet and alternative sales channels Operational excellence Develop BigBox and alternative formats 27

  29. Food • Gıdasa,afully-owned Sabancı Holding subsidiary, was established in 2002 to leverage Sabancı’s experience in the food business and financial strengthas well as Marsa’s existing strong distribution network to become aleading packaged food company. • “Offering indispensable tastes” • A multi-business umbrella food company • Fully-owned and controlled by Sabancı Holding • Active in sizable, fast growing, and profitable categories of the food sector Vision 28

  30. Food MARSA PIYALE BEVERAGE FARM PRODUCTS Vegetable oils: • Margarine • Edible oil • Industrial Pasta Confectionary Dessert Flour Culinary Products Water • Bottled water • HOD • Flavored mineral water Tea • Black tea • Herbal / Fruit tea Fruit juice Poultry Since December 2002 Since 1946 Since September 2004 Since September 2004 Leading brands: 29

  31. REGION II REGION I Germany Interkordsa GmbH (Mühlhausen) America Interkordsa USA (Whiteville, North Carolina) Kordsa USA (Laurel Hill, North Carolina) Kordsa USA (Chattanooga) Iran Kian Kordsa (Malayar) Turkey Kordsa (İzmit) Egypt Nile-Kordsa Co. (Cairo) REGION III Argentina KORDSA Argentina (Buenos Aires) Brasil KORDSA Brasil (Salvador de Bahia) Nylon & Tire Cord KORD GLOBAL Total Revenues- 2006 Budget $766M 30

  32. 89% 60% 51% 80% Nylon & Tire Cord Current Ownership Structure KORD GLOBAL 100 % Kordsa Global A.Ş. Free Float 11% REGION II REGION I REGION III 100% KORDSA(*) (TURKEY) 100% CHATTANOOGA (USA) 100% KORDSA ARGENTINA KORDSA USA 100% 100% NILEKORDSA (EGYPT) INTERKORDSA (GERMANY) KIAN KORDSA (Iran) INTERKORDSA USA KORDSA BRASIL 31 (*) Market value as of August 21, 2006 is $403 M.

  33. Nylon & Tire Cord KORD GLOBAL Capacities 32

  34. Nylon & Tire Cord KORD GLOBAL 2005 Market Situation (HDI Nylon only- $ Millions) North America 280 Europe/MEA 525 KORDSA GLB 222 KORDSA GLB 192 Asia 1,460 South America 205 KORDSA GLB 90 KORDSA GLB 25 33

  35. Nylon & Tire Cord KORD GLOBAL 2005 Market Situation ( Polyester -$ Millions) North America 560 Europe/MEA 320 KORDSA GLB 0 KORDSA GLB 86 Asia 510 South America 135 KORDSA GLB 0 KORDSA GLB 46 34

  36. Automotive TEM • Coach & Midicoach - Production • 8 new models developed with TEMSA brand in the last four years • $130 Million exports in 2005 • Light Trucks – Assembly & Distribution • 22 years of collaboration with Mitsubishi/Fuso (distributorship & licensed production) • Market leader in locally assembled light trucks • Construction Equipment & Forklift - Distribution • 23 years of collaboration with Komatsu (distributorship) • Market leader in forklift and major player in construction equipment • Growth Path • Evaluate organic growth / acquisition opportunities in heavy trucks • Evaluate organic growth opportunities in coach & midicoach business in • Greater Europe Target Market Share 10% in the European bus & coach market • Revenue Target $1 Billion in 2008 35

  37. Selected Unlisted Participations 2005 (*) Revenues Dec.31,2005 BookValue(*) Sabancı Holding’s Direct Ownership Company Sector Advansa Kordsa Global *** Diasa*** Teknosa Temsa Toyotasa Enerjisa Gıdasa Philsa Beksa Fibers & Chemicals Nylon &Tire Cord Retailing Retailing Automotive Automotive Dist. Energy Food Tobacco Steel Cord **419 ****393 **35 36 108 61 317 63 332 **65 **906 766 **250 362 594 501 220 300 778 **89 92.8% 100.0% 40.0% 51.2% 46.0% 65.0% 79.6% 100.0% 25.0% 50.0% * Million $ ** Million € *** 2006 Budget Revenues **** As of July 31, 2006. 36

  38. Agenda • Introduction to Sabancı Holding • Key Competitive Advantages • Strategy for Growth • Summary Review of Businesses • Consolidated Financial Performance • Share Price Performance • Key Investment Messages 37

  39. Business Groups Sabancı Holding Food & Retailing Energy Financial Services Auto, Tire & Tire Reinforc. Cement Chemicals (*) Textile (*) Other (*) Businesses 38 * Non-core businesses

  40. Financial Services Dec.31,2005* Book Value • Akbank 4,795 Banking Insurance • Aksigorta 1,315 Pension • Akemeklilik 34 Brokerage • Ak Securities 64 Fund Management • Ak Portfolio Management • Ak Investment Fund 12 34 * Million $ 39

  41. Akbank Strategy • Customer–driven balance sheet and income statement • Emphasis on consumer and SME segments • Emphasis on higher margin products • Significant increase in fee and commission income • Further increase in operational efficiency 40

  42. Akbank Financial Objectives • Achieving sustainable ROE of over 22% • Improving Loans/Assets ratio to 60% • Increasing the share of fees & commissions to 25% of total income • Reducing the Cost/IEA ratio below 3% 41

  43. Akbank Competitive Market Position • Turkey’s most profitable private commercial bank • First bank in Turkey with a rating higher than the sovereign • 674 branches located throughout the country • An extensive and stable funding base • A wide-ranging customer portfolio with the ability to attract new customers • A robust capital structure and high capital adequacy ratio of 17.3% • A diversified loan portfolio with a low NPL ratio of 1.6% 42

  44. Akbank First half growth has been very strong Total Assets (TRY billion) Loans (TRY billion) 13% 8% 11% Deposits (TRY billion) Net Profit (TRY million) 11% 2% 19% y-o-y 43

  45. Akbank Consumer and SME lending is now 70% of total loans Breakdown of Loans 70% 44

  46. Akbank Strong growth achieved in consumer loans Credit Card Loans Consumer Loans (TRY mn.) 35% y-t-d 5,934 5,081 4,407 2,010 • 17% growth in credit card loans y-t-d • NPL ratio in credit cards shrank to 7.9% versus 8.2% last quarter • New behavioral scoring system continues to improve screening and evaluation • Akbank’s consumer loans’ market share is 14.1% • Market share in mortgage loans is 14.1%. We are benefiting from our dealer relationships and online approval systems • Market share in car loans is 20.9% • NPL ratio in consumer loans continues to be 0.8% 45

  47. 28% y-t-d Akbank Small Business Banking is one of Akbank’s priority areas for future growth... • Emphasis on most profitable products (TL loans, demand deposits, fees and commissions) • Efficient and timely service thru dedicated Relationship Managers • Simple packaged products • Cross-sell ratio is 3.3x • NPL ratio is 2.0% Small Business Loans1 (TRY mn.) Only 3% in FX 1 Small business loans given to companies with sales turnover <USD 2 mn are granted by the retail banking unit 46

  48. 36% y-t-d 15% y-t-d Akbank Excellent cross-sell opportunities Corporate Banking (TRY mn.) Commercial Loans1 7,049 6,729 6,735 4,930 ‘04 Jun’06 ‘04 Jun’06 Mar’06 Mar’06 ‘05 ‘05 TL cash loans FX cash loans (TRY mn.) (USD mn.) • Investment and acquisition financing supports growth in corporate loans • Excellent cross-sell opportunities (4.3x) • NPL ratio is 0.1% • Commercial loans are also considered as a hook product, which paves the way for further marketing opportunities • Cross sell ratio is 4.5x • NPL ratio is 0.8% 1 Medium size companies with sales turnover btw. USD 2–30 mn are serviced through our commercial banking unit 47

  49. Akbank Asset management Mutual Funds (TRY mn.) • Currently #2 in mutual funds • The underlying factors behind this; • Superior channel management • Superior asset management performance • Effective marketing and communication Private Banking Assets (USD mn.) Volume Market share (%) • Wide range of domestic and international investment products • Top quality investment advisory service • Cross-sell ratio in private banking is 3.8x 48

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