SABANCI HOLDING ANNUAL MEETING 2007

23.02.2007

- SABANCI HOLDING CHAIRPERSON GULER SABANCI:  EMERGING MARKETS HAVE BECOME THE FINANCIERS OF WORLD ECONOMY
- SABANCI HOLDING CEO AHMET DORDUNCU:  WE EXPECT OUR CONSOLIDATED NET SALES TO REACH 17 BILLION YTL AS OF  END  2006

Sabancı Holding results for the end of 2006 have been announced by Guler Sabancı, Sabancı Holding Chairperson and Sabancı Holding CEO Ahmet Dorduncu at the Annual Meeting.

Sabancı Holding Chairperson Guler Sabancı assessed the political and economic situation in the world and in Turkey and said: “The countries we call emerging markets have now become the financiers of world economy.  The consumption in emerging markets is not equal to the value they generate, they finance developed countries with their savings.  Therefore the reserves held by the emerging markets will define the orientation of the development of world markets.”

Sabancı went on: “While all developing countries in the world show current excess, only Eastern European countries and Turkey do not follow this trend and are markets where current deficit is high, that is emerging markets with low savings.  However Turkey balances this easily with the direct investments she attracts and has to continue to attract entry of funds in the short term.  Opening up to new investments and privatization is of vital importance”.

As to Turkey’s adhesion to the European Union, Sabancı said: “The process of Turkey’s adhesion to the European Union is a voyage of democracy and civilization and has to go on in spite of being slowed down from time to time by both parties.  It is not only the duty of the governments, but also that of all the NGO’s as well as everybody’s duty not to give up, because a better democracy, a better law system and a more prosperous Turkey transcends the life of governments and is a long term objective”.

Sabancı also added that the government has now to be successful on the micro-level as it has been doing for some years on the macro level, adding that “real interest” rates which have a critical role in both fields require attention and have to be lowered to the necessary level.

Sabancı also mentioned in her speech that 2007 was an election year, adding “We do not think that 2007 will be a difficult year.  Elections are a prerequisite of democracy and we believe that Turkey is now in a position to consider these processes as a normal part of life.”

Sabancı Holding CEO Ahmet Dorduncu gave some details on the results of 2006, saying that they expect the consolidated net sales to increase by 21% to reach 17 billion YTL.  Sabancı Holding exports are expected to increase by 9% to reach 1.2 billion USD.  Dorduncu added that investments are expected to rise by 50% to reach 900 million USD.  As to employment figures, Dorduncu stressed the fact that the staff had been increased by 5% to reach a total of 46.600.  Dorduncu also gave information on the 2006 operations of the Group Companies and added information on 2007 projects concerning sectors and companies.

Click to see the text of Güler Sabancı's speech

Click to see the slides of Ahmet Dördüncü's presentation