The mission of Borusan Holding is to create a portfolio which yields the maximum value for the shareholder, while taking a pioneer role in exercising strategic leadership and control, managing relations with shareholders and other social stakeholders, ensuring efficient utilization of resources, building corporate identity and culture, constructing effective communication channels and adopting management in “The Borusan Way”.

To accomplish this mission, Borusan Holding is positioned within the Group as a “Strategic Holding” that calls for a balanced concentration on the two roles that exist within Borusan Holding: The investor role and the enabler role. The investor role refers to active portfolio management so as to maximize value to the shareholder, whereas the enabler role is responsible for supporting the success of the Group’s companies. Both roles have different responsibilities and assignments in each of the Borusan Group’s long term strategic priorities.

The Borusan Group has determined four strategic priorities for the formulation of its long term strategy. These are called strategic themes and help focus the Borusan Group on reaching the strategic destination and include a stream of linked objectives. They provide focus and guidance to the Group companies to ensure alignment throughout the Group.

Three of these strategic themes are deployed across the group and each group company is responsible for integrating these themes with their strategy. The group companies’ and the Holding’s responsibilities for each of these themes are as follows:

Profitable Growth
The Borusan Group targets an increase in both sales revenue and profitability measured by PBT and ROIC contributing to company value maximization. The Group companies, being the executers of strategy, are responsible for delivering this value. Value maximization has two main dimensions, namely, growth above the sector and profitability. For maintaining growth, the Group companies are actively choosing between growth options like organic and inorganic growth opportunities.

Profitability will be sustained by focusing on the right product mix and segmentation and by increasing the share of high value added services and products across the Group. Effective cost and asset management are important issues to deliver the targeted profitability.

Within this respect, the Holding is responsible for setting the overall strategic direction and bold targets and supports the Group companies with guidelines and methodologies. Monitoring business results and performance evaluation of the companies are under the responsibility of the Holding. The Holding is also responsible for ensuring the efficient utilization of resources by creating group synergy and economies of scale and enterprise risk management.

Strategic Market Positioning
Creating an impact on market dynamics and growing above the market is Borusan’s ultimate aim. The Borusan Group has strong brands and sustaining this powerful brand image is among the priorities of the Group. Leadership position defined as being “1st or 2nd” in the sector and targeted segments should be set/maintained through the planning period. International growth and investments are important issues for strategic market positioning to diversify risk and expand the geographical coverage of the business.

The Holding takes responsibility for the overall “Borusan” brand, as well as reputation management. As a key strength of the Borusan Group, excelling in partnership management by building long-term and healthy relations with partners is another important responsibility of the Holding.

Business Excellence
“Business Excellence” is a broader intent embracing the Borusan DNA and Borusan’s unique way of doing business, which can be described as “The Borusan Way”. All intangible and tangible assets (human capital, IT capital, organizational capital and financial resources) are included to ensure that the right competencies, tools and processes are in place to accomplish the challenging vision of the Borusan Group. Developing leadership skills, lean organization and process management through Six Sigma deployment and making strategy execution a core competency are key aspects within this strategic theme.

The Holding functions are responsible for setting a group-wide management and performance Framework and guidelines to ensure the best-in-class governance. The tasks include monitoring financial discipline and the improvement of cost-to-serve in all companies. Value creating initiatives and the best practices sharing platforms across the Group are supported by the Holding. In this regard, tools like the Borusan Academy are leveraged towards this end.

Active Portfolio Management
The only strategic theme that is kept at the Holding level and is not deployed to Group companies is Active Portfolio Management.

Borusan Holding’s focus is on investing in new attractive sectors and divesting businesses where value creation opportunities seem to diminish in the long run. This requires a systemic approach for actively managing the Group portfolio. In this sense, active portfolio management covers not only diversification, as well as control and effective management of portfolio risk, but also continuously monitoring the performance of the portfolio for scale and value creation and “big picture” financial management, which emphasizes effective allocation and prioritization of the Group’s financial resources for investments.

The investor role in the Holding is predominantly deployed in active portfolio management, whereas the enabler role is emphasized in profitable growth, business excellence and strategic market positioning through setting Group-wide guidelines to ensure the Group companies’ success and best-in-class governance.

Borusan Holding will continue to implement its roles within the Group’s strategic themes to ensure the Group-wide realization of its 2010 targets.