2025 Q4 Earnings Release

Sabancı Holding

Q4 2025 Financial Results Earnings Release

Sabancı Holding announced its consolidated financial results for 2025, closing the year with accelerated Q4 earnings momentum. This performance was driven by a sharp increase in banking contribution, supported by gradual monetary easing, alongside continued operational progress across non-bank businesses.

Improved execution and disciplined cost management supported non-bank EBITDA margin, which was up 87 bps year-on-year to 12.4% in 2025 from 11.5% in 2024, with cost reductions contributing TL 10 billion to EBITDA over the full year. Holding's diversified portfolio continued to provide balance in Q4. Banking benefited from robust fee income momentum, a recovering net interest margin, and disciplined cost control. In energy, alongside electricity distribution's strong operational profitability, new wind capacity additions to the electricity generation portfolio were also supportive. In material technologies, solid performance in cement and composite businesses offset softer trends in tire & tire-reinforcement related operations. Financial services sustained margin strength, while digital businesses increased their contribution through growing cloud and managed services. Retail operations maintained operational discipline through optimization and efficiency measures in a challenging environment.

While inflation accounting effects continued to affect period-to-period comparability, earnings momentum was sustained both in Q4 and across the full year. Consolidated net income reached TL 4.6 billion in Q4 and TL 3.8 billion for full-year 2025. Excluding the TL 2.5 billion net negative impact from the suspension of inflation accounting in statutory accounts, including asset revaluations, consolidated net income would have amounted to TL 7.2 billion in Q4, compared to a TL 4.8 billion loss in the same period last year, and TL 6.3 billion for full-year 2025, versus a TL 20.3 billion loss in 2024. While banking remained the primary driver of year-on-year earnings improvement in 2025, non-bank businesses also contributed meaningfully, highlighting the benefits of a diversified earnings base. Consequently, consolidated ROE returned to positive territory at 1.0% from -5.1% level of last year, increasing

~620 bps year on year.

Non-bank operating cash flow, reached TL 89.3 billion in 2025 compared to TL 77.2 billion in 2024, continued to be supported by strong EBITDA, providing strategic flexibility in capital allocation. This flexibility resulted in a solid combined non-bank capex-to-sales ratio of 12.3%, while disciplined cash flow management maintained with 1.6x combined non-bank net debt/EBITDA, well below the Group's 2.0x policy. Holding-only net cash stood at TL 8.5 billion, decreasing from TL 12.4 billion, mainly due to investment and capital contribution related outflows.

Sabancı Holding Board of Directors proposes to distribute TL 2.97 billion gross dividends (TL1.41 DPS), to be submitted to the General Assembly's approval, which, if approved, will represent 24 years of uninterrupted dividend distribution.

Looking beyond early 2026, Sabancı Holding's resilience, built over recent years, remains a key strategic strength amid Türkiye's evolving macroeconomic landscape alongside ongoing global uncertainties.

Sabancı Holding CEO Kıvanç Zaimler said:

We closed 2025 with a strong year-on-year earnings recovery, marked by a clear momentum in Q4. While the magnitude of the bottom-line swing was largely supported by increased banking contribution in Q4 and across the full year, non-bank businesses also delivered a structural improvement, reflecting disciplined cost management, portfolio balance and consistent execution across segments.

In Energy and Climate Technologies, Sabancı's global electricity generation capacity exceeded 5GW in 2025, with further expansion plans in the pipeline. In Türkiye, Enerjisa Üretim added 750 MW of wind capacity to its project pipeline through the YEKA-2024 tender and reached 4.5 GW of installed capacity with the gradual commissioning of YEKA-2 projects. Wind capacity now surpassed 1 GW, marking the first time a company in Türkiye has reached this threshold. Over the past 2.5 years, ~USD 1.5 billion in financing was secured from leading local and global financial institutions, reflecting confidence in Türkiye's clean energy potential and covering nearly 90% of YEKA-2 investment costs, with maturities extending until 2034. Internationally, Sabancı Renewables expanded its U.S. portfolio to 790 MW, including 286 MW of new acquisitions. In 2025, the investments initiated in 2022 started translating into tangible results, with Cutlass II fully operational and Oriana commissioned, collectively making an important contribution to our bottom-line. The newly added capacities, backed by secured PPAs, provide future revenue visibility and strengthen the platform's long-term value proposition. On the other hand, in electricity distribution, new regulatory framework for the 2026-2030 period improved cash flow visibility further.

In Material Technologies, following the successful integration of Mannok acquisition with a strong EBITDA contribution of EUR 68million in 2025, Çimsa commissioned its grey cement grinding facility in the U.S., increasing its FX-based revenues and strengthening market position, which are all supportive for our mid-term targets. Amid a challenging operating environment and the flooding incident in Indonesia, Kordsa restructured its balance sheet by refinancing short-term debt into long-term financing with a 5-year maturity including 1-year grace period. In Banking & Financial Services, Akbank effectively navigated a challenging operating environment in 2025 through disciplined balance sheet management, superior fee momentum, and selective market share gains. In Digital Technologies, Bulutistan expanded across Europe and Central Asia, in line with its resilient digital infrastructure platform strategy. A unified group structure in Akbank, Agesa and Aksigorta, enabled synergies through bancassurance channels.

Starting in 2026, Sabancı Holding moved toward a portfolio-driven governance model which reflects the evolution in how we manage capital, performance and accountability across the Group. By placing portfolio-level ownership at the center of decision-making, we are strengthening strategic alignment, enhancing recurring earnings visibility, reinforcing disciplined capital allocation across all business lines and streamlining portfolio structure. The binding offer received from unrelated third party for our Akçansa's stake is an early example of this framework in action, as we evaluate every strategic alternative with rigor and in line with our long-term value creation objectives. Consistent with these objectives and capital allocation

framework, our Board has proposed a dividend of 1.41 liras per share, extending our uninterrupted track record to 24 consecutive years.

Due to recent geopolitical developments, we are closely monitoring rising tensions. While we do not observe any direct impact on our physical assets or operations at this stage, we continue to navigate this environment with the same resilience and disciplined approach that has guided Sabancı through previous periods of volatility.

I believe Sabancı Holding is now better positioned to mitigate potential risks and capture emerging opportunities, supported by improving profitability momentum, a healthy leverage profile, expanding renewable energy capacity, a stronger foreign currency revenue base, and an integrated portfolio governance model that is increasingly delivering tangible results.

Financial Highlights (Q4'25)

• The combined revenue1 reached TL 412billion, down 5% yoy, mainly due to a 10% decline in banking revenues while the revenue mix was recorded at 51% bank / 49% non-bank.

• Combined EBITDA was TL 54billion, with an EBITDA margin of 13%, significantly improved yoy. The improvement was supported by a strong operational recovery in banking operations, with bank EBITDA rising from TL 15billion to TL 30billion. Non-bank EBITDA margin declined by 46 bps year-on-year. Comparability was also affected by a high base in financial services due to inflation-accounting-related reclassification effects accumulated in Q4'24.

• Despite TL 2.5 billion net negative effect due to the suspension of inflation accounting in statutory accounts including on asset revaluation, Group posted TL 4.6 billion net income in Q4'25, with a strong turnaround from the TL 4.8 billion net loss recorded in Q4'24. Lower monetary loss from banking was also supportive of the bottom-line improvement.

• Consolidated ROE was 1.0% in 2025, compared to -5.1% at the end of 2024. Non-bank ROE was 0.5%, versus -2.3% at the end of 2024.

• Combined non-bank operational cash flow improved to TL 89.3 billion from TL 77.2 billion in line with EBITDA growth.

• Non-bank Net debt/EBITDA improved to 1.6x at year end from 1.7x at 9M, well below

  the Group's 2.0x policy threshold.

• Holding-only net cash stood at TL 8.5 billion, decreasing from TL 12.4 billion mainly

  due to capital-increase-related cash outflows.

• Non-bank Capex/Sales was at 12.3%, in line with the mid-term target range of 15%-20%.

  ‌1Revenue excludes Holding dividend income

  Strategic Highlights (Q4'25)

• Enerjisa Üretim, our electricity generation company, reached 4.5 GW total installed capacity as of February-end (4.3 GW in 2025), surpassing 1 GW in wind and advancing toward at least 6,25 GW by 2028 with over 60% renewable share target. YEKA-2 execution and secured YEKA-2024 capacity reinforce long-term growth visibility. Additionally, USD 200 million EBRD funding was obtained for wind investments and structured project financing.

• Enerjisa Üretim secured a USD 75 per MWh minimum purchase guarantee for domestic coal-generated electricity through 2029 in an agreement with Elektrik Üretim Anonim Şirketi (EÜAŞ).

• Enerjisa Enerji, our electricity distribution & retail company, entered the 2026-2030 regulatory period with a 14.46% pre-tax WACC and maintained a 10-year capex recovery framework.

• Sabancı Holding increased the capital of Sabancı Climate Technologies by USD 50.9 million (TL 2.1 billion) in line with its international growth strategy.

• Çimsa, our global, diversified building materials company, strengthened its U.S. presence by commissioning its 600 kt grey cement grinding plant in Houston and secured a EUR 50 million EBRD loan for net-zero sustainability investments at its Mersin factory.

• To improve its balance sheet, Kordsa, our global player in the tire reinforcement and composite technologies markets, secured long-term financing of USD 200 million and EUR 50 million to shift short-term debt to a five-year term.

• For intra-group synergy, Afyon Çimento acquired Kordsa's Kratos business for USD 10 million.

• Sabancı Holding's share buyback program has concluded in line with its predefined duration. Throughout the program, disciplined execution supported market liquidity and shareholder engagement, while block sales generated proceeds for the Holding.

  Subsequent Events After the Balance Sheet

• Starting in 2026, Sabancı Holding's Executive Committee was restructured, placing portfolio-level ownership, shared accountability, and coordinated execution at the center of decision-making. The new structure aligns strategic investment discipline with operational leadership, supporting a more integrated and return-focused approach to portfolio management across cycles.

• A binding offer has been received from an unrelated third party for the purchase of our Company's shares in Akçansa with a nominal value of 76,035,136.43 TL and representing 39.72% of Akçansa's share capital, based on a total company value of 1,100,000,000 US dollars on a cash free and debt free basis. The offer shall remain valid until the execution of the final share transfer agreement. This binding offer will be evaluated by taking into account Sabancı Holding's contractual obligations and legal requirements.

• Enerjisa Enerji revised its dividend policy to a target payout of at least 60% from 80% of underlying net income to neutralize the technical accounting impact.

• Two-year collective bargaining agreements were finalized for Akçansa and Çimsa, providing a 35% wage increase in the first year and CPI + 3% in the second year. Brisa, our tire manufacturer company, the 24th Term Collective Bargaining Agreement negotiations commenced on 10 February 2026 and remain ongoing.

  Segments Highlights (Q4'25)

• Banking: Net interest income and strong fee income generation reinforced core revenues

• Financial Services: GWP growth in life continues, yet selective focus on profitable products prevailed in non-life

• Energy: Higher wind capacity drives revenue momentum, while profitability is led by distribution and climate technologies

• Material Technologies: Strong contributions from international cement operations and composites more than offset weakness in tire and tire reinforcement

• Digital & Other: Weak consumer demand weighed on results, while alternative & online channels partially offset the impact

ENERJİSA ÜRETİM (ENERGY GENERATION AND TRADING) KEY FINANCIALS

*USD equivalent of EBITDA as of Q4'25: USD83M, 2025: USD375M (based on period-end fx rates)

In Q4'25, generation revenues increased by 32% year on year, mainly driven by a nearly double wind capacity of 937 MW at the end of 2025 as YEKA 2 commissioning progressed. In February 2026, company achieved a historic milestone by surpassing 1GW total wind capacity, a first in Türkiye, strenghtening its leadership position as the top-tier renewable player in the country. EBITDA margin declined to 13% from 25%, reflecting weak hydrology, lower power prices and lower profitability on natural gas under the ongoing hard cap regime. EBITDA contribution of trading business was also lower amid illiquid markets. Consequently, Enerjisa Üretim closed 2025 with USD 375 million EBITDA (Q4: USD 83 million). The suspension of inflation accounting in statutory accounts materially weighed on the generation operations' profitability. That said, derivative income related to forward transactions of YEKA 2024 projects continued to support the bottom line, with a lower quarterly impact.

SABANCI HOLDING COMBINED SEGMENT RESULTS

1. Combined figures do not include Holding dividend income

2. Inflation accounting is applied to financial statements in accordance with TAS 29 Financial Reporting in Hyperinflationary Economies

SABANCI HOLDING CONSOLIDATED SEGMENT RESULTS

1. Consolidated figures do not include Holding dividend income

2. Inflation accounting is applied to financial statements in accordance with TAS 29 Financial Reporting in Hyperinflationary Economies

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.