Haci Ömer Sabanci : Sabancı Holding Sustainability Day Presentation / October 27

ESG DAY

27 October 2023

0102

Sustainability Performance,

Roadmap & Targets

03

Portfolio

Transformation

Towards Sustainable Q&A

New Economy

ESG DAY PRESENTATION

Disclaimer

The information and opinions contained in this document have been compiled by Hacı Ömer Sabancı Holding A.Ş. ("Holding") from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. No undue reliance may be placed for any purposes whatsoever on the information contained in this presentation or on its completeness, accuracy or fairness. This document contains forward-looking statements by using such words as "may", "will", "expect", "believe", "plan" and other similar terminology that reflect the Holding management's current views, expectations, assumptions and forecasts with respect to certain future events. As the actual performance of the companies may be affected by risks and uncertainties, all opinions, information and estimates contained in this document constitute the Holding's current judgement and are subject to change, update, amend, supplement or otherwise alter without notice. Although it is believed that the information and analysis are correct and expectations reflected in this document are reasonable, they may be affected by a variety of variables and changes in underlying assumptions that could cause actual results to differ materially. Holding does not undertake any obligation, and disclaims any duty to update or revise any forward looking statements, whether as a result of new information or future events. Neither this document nor the information contained within can construe any investment advice, invitation or an offer to buy or sell Holding and/or Its group companies' shares. Holding cannot guarantee that the securities described in this document constitute a suitable investment for all investors and nothing shall be taken as an inducement to any person to invest in or otherwise deal with any shares of Holding and its group companies. The information contained in this document is published for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. You must not distribute the information in this document to, or cause it to be used by, any person or entity in a place where its distribution or use would be unlawful. Neither Holding, its board of directors, directors, managers, nor any of Its employees shall have any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.

01

/03

Portfolio

Transformation

PORTFOLIO TRANSFORMATION

Our growth platforms are geared towards many of the SDGs, fulfilling our 'Higher Purpose'…

Energy and Climate

Advanced Materials

Digital

enabling decarbonization of physical and

digital economy, powering the additional demand without CO2 and negative impacts on nature

becoming the next net-zero frontier to transform energy, mobility and built environment, decoupling growth and material use

fostering innovation, efficiency and access to information, contributing to the faster and more effective achievement of the SDGs

PORTFOLIO TRANSFORMATION

…enabling us to capitalize on the growing demand on a sustainable economy…

Energy and Climate

Advanced Materials

Digital

$6.5tn

low CO2 replacing high CO2 assets

75%

focusing three key areas

2.5x

faster growth in digital than physical world

annual spending on low-CO2 assets and enabling structure until 2050 in NZ scenario, replacing the spending on high emitting sectors*

of total spending worth 6.5 tn $ on pyhsical assets to transform mobility, power, buildings*

faster growth over the previous ten years than the GDP of the physical world **

7.5%

of GDP spent on NZ transformation

$648bn

supported by "go" policies from US and EU

>50%

of nominal GDP digitally transformed

of GDP spent on NZ rising from 6.8% of GDP today to 9% of GDP between 2026 and 2030 before falling*

commitment only from EU GDIP and US IRA as part of new industrial strategies

digitally transformed enterprises accounts more than half of the nominal GDP in 2023***

*Under the NGFS Net Zero (NZ) 2050 scenario, source: McKinsey, The economic transformation: What would change in the net-zero transition January 25, 2022 | Article

**The World Bank estimates that the digital economy contributes to more than 15% of global gross domestic product (GDP), and in the past decade it has been growing at two and a half times faster than physical world GDP.

***Source: Statista, 2022

EU GDIP: EU's Green Deal Industrial Plan. US IRA: US Inflation Reduction Act.

PORTFOLIO TRANSFORMATION

…and we are acting through capital allocation criteria targeting high-growth global mega trends

in sustainability

Doubling CAPEX* to accelerate growth…

…with >75%* of the CAPEX spent

for new economy in 2022-23

…in line with mega trends and our 2050 net zero goal

Digital Tech

>2x

~14.0%

Core

2%

Advanced

Materials Tech

10%

7.3%

10.3%

6.6%

23%

New Economy

77%

Energy & Climate Tech

88%

2020

2021

2022 Mid-term Guidance

*Non-bank, as a percentage of revenue

* Non-bank

02

/03

Sustainability

Performance

NATURE

A lower carbon, more sustainable portfolio

GHG emissions (Scope 1+2, Mt)

GHG emissions (Scope 3, Mt)

Renewable Electricity Usage*

CO2-free electricity production**

TL 200 bn Sustainable Finance Pledge***

SDG innovation

USD 5 bn SDG-related investment Pledge

	From planning…		To action and transformation…
2020	2021	2022	2030	2050
10.10	11.20	9.95	6.49	Net Zero
11.21	11.59	10.29	6.72	Net Zero
-	-	27%	≥80%
42%	43.7%	45.5%	78.5%	100%
8.2%	13.5%	30%	100%
44%	51%	53%	≥70%
-	-	10%	100%

Sabancı Holding's GHG emissions have been calculated by using the equity share approach in accordance with the Greenhouse Gas Protocol. Accordingly, Sabancı Holding accounts for GHG emissions from operations according to its share of equity in the operation. *Assumptions based on analysis conducted in 2022

**Installed capacity

***Committed by Akbank, in addition to their sustainable investment funds commitment reaching TL 15 billion until 2030.

NATURE

15 key initiatives will take us to our 2030 ambition on decarbonization

List of Decarbonization Initiatives

GHG Emissions Trend

Renewable electricity usage / generation

Fleet EV transformation

Grid decarbonization

Theft & Loss reduction

SF6 recovery

Switching away from CO2 intensive fuels

Alternative Cooling gas

Raw Material Substitution

Alternative

Fuels

Clinker Substitution

Electrification of Kiln/Boiler

Blending of

Renewable Natural

Gas (RNG)

Heat pumps

Bio Diesel blend

Product/Network Optimization

tCO2e equiv.	Scope 1+2	Scope 3
11,300,000
10,300,000
9,300,000
8,300,000
7,300,000
6,300,000
2020 2021 2022	2025	2030

Scope 1+2 Target

Start of decarbonisation program