investor relations presentation · 2019. 9. 2. · investor relations presentation - doas profile -...

Investor Relations PresentationDOAS Profile 2019

Investor Relations Presentation - DOAS Profile - 2019 | 1

Agenda

Doğuş Group

Doğuş Otomotiv

Macroeconomic Outlook

Automotive Market

Core Business Lines

Automotive Related Ancillary Business

Corporate Governance

Social Media


Doğuş Group Structure


Doğuş Group

FOUNDATION 1951

18,000+ EMPLOYEES

321 INVESTMENTS

25 COUNTRIES

7 SECTORS: Automotive, Construction, Media, Tourism and Services, Real Estate, Energy, Food & Beverage, and New Initiatives

Combined total assets under management; TRY 92 billion (2018)

S&P (B-) & Moody’s (Caa1)

Founded in 1951, Doğuş Group has taken its place among the leading conglomerates in Turkey. Adopting a global vision, Doğuş Group is active in seven core businesses: automotive, construction, media, tourism and services, real estate, energy and F&B. In addition, the Group sustains its initiatives in the areas of technology and entertainment.

Doğuş Group is aware of its responsibilities and acts in accordance with a vision that includes leading by example and contributing to economic development.

The group plays a significant role in the Turkish economy by creating numerous employment opportunities and generating high levels of business volume.

Doğuş Group’s corporate social responsibility strategy is to support economic, social and environmental development and increase the level of prosperity by creating innovative and sustainable business models in every sector and region.


Doğuş Group - Operational Map

AMERICA

1. USAd.ream partnerships

2. SAINT BARTHSD-Hotels & Resorts

AFRICA

3. LIBYADoğuş Construction Libya Branch

ASIA

4. AZERBAIJANd.ream franchise

D-Hotels & Resorts

5. CHINAd.ream partnerships

6. NORTH IRAQD-Auto LLC

7. KAZAKHSTANDoğuş Construction Kazakhstan Branch

Doğuş LLC

8. QATARDoğuş Construction LLC

Doğuş Construction Qatar Branch

d.ream partnerships

9. RUSSIADoğuş Avenue LLC

10. SAUDI ARABIADoğuş Construction Saudi Arabia Branch

11. THAILANDd.ream partnerships

12. UNITED ARAB EMIRATESDoğuş Management Services Ltd

d.ream partnerships

REIDIN Headquarters

13. INDIADoğuş Construction and Trade Inc.

EUROPE

14. TURKEY

15. BULGARIADoğuş Construction Bulgaria Branch

Doğuş Construction Representative Office

16. CROATIAD-Marin

D-Hotels & Resorts

17. GERMANYDoğuş Media Group GmbH

Euromessage Deutschland GmbH

18. GREECED-Marin Greece

D-Hotels & Resorts

19. ITALYd.ream partnerships

D-Hotels & Resorts

20. SPAINMB’92

D-Hotels & Resorts

21. SWITZERLANDD-Hotels & Resorts

Doğuş SA - Geneva

22. THE NETHERLANDSD-Marine Investment Company BV

d.ream International BV

23. UNITED KINGDOMd.ream partnerships

24. UKRAINEDoğuş Construction LLC

Doğuş Construction Representative Office

25. FRANCEMB’92


Doğuş Group Strategy

The Group has become a global player in the services sector in virtue of the followed investment route in the recent years, value of its brands and strong commitment to maintaining the highest standards of customer service. The ultimate strategy of the Group is to maximize shareholder value by sound growth on the basis of sustainable profitability and enterprise wide risk management.

On the F&B sector, the intention is to expand the unique brand umbrella both in Turkey and globally from Gulf Region to Far East, from Europe to US in line with the strategy being a global player representing Turkey and the Doğuş brand. The restaurant management company of Doğuş Group (d.ream) has been growing rapidly by expanding existing brands, developing new, innovative concepts and introducing local brands to the international arena, such as iconic brand Nusret known as Saltbae in USA. D.ream has further strengthened its position in the restaurant business by establishing strong partnerships in Turkey and abroad such as Paraguas, Coya and Zuma. D.ream currently operates in 11 countries with 58 brands and more than 160 outlets and its continuous growth keeps its pace mainly by organic ways.

Doğuş Tourism Group had a rapid expansion in the recent years with a number of new investments both in Turkey and abroad.

D-Hotels and Resorts owns, manages and partners in 14 hotels, 4 countries within Turkey, in Croatia, Italy and Greece. Owned and managed D-Hotels & Resorts are: Aldrovandi Villa Borghese, Argos in Cappadocia, D-Resort Ayvalık Murat Reis, D Maris Bay, D-Resort Göcek, D-Resort Sibenik and Villa Dubrovnik. Partnership and management contract hotels are: Eden Rock St Barths, Four Seasons Astir Palace, Grand Hyatt Istanbul, Hyatt House Gebze, Maça Kızı, Soho House Istanbul and Villa Maça Kızı. The renovations of Park Weggis in Luzern are ongoing. Properties of D-Hotels and Resorts are operated in accordance with the shared vision and values, and each hotel renders their services at the highest level of quality and service standards. As a true pioneer in the hospitality industry with its excellence approach, D-Hotels and Resorts aims to enhance its local and international brand recognition.


Doğuş Group Strategy

On the new initiatives; Galataport, is one of the most important projects of the Group, is a city Project with a master plan Cruise Terminal and development of a Luxury Hotel together with equity partner Peninsula Hotels Group, A+ offices and outdoor retail areas. Galataport is planned to be operational in 2020.

On the other hand, D-Marin Marinas Group, serving with 14 marinas with 8773 berthing capacity, 2 refit & maintenance shipyards in Turkey, Croatia, Greece, Spain, France, UAE and Montenegro, with +680 employees. The aim is to increase the marina capacity in order to evaluate the available demand in the regions where the Group has marina investments or management agreements, and be able to offer superior services to larger masses.

Doğuş Retail Group, which has several luxury brands such as Armani, Gucci, Loro Piana under its umbrella extended its portfolio in the recent years by adding new global brands “Kiko” and “Under Armour”.

Doğuş Group also continued to grow in media sector. The Group strengthened its position in the market by the partnership in TV8. The online TV platform of Doğuş Group “Puhu TV”, which the Group believes to be one of the pioneers of Turkish media and technology sector, was launched in the early 2017.

Strongly believing in the capacity, potential and the future of Turkey, Doğuş Group has also been active in technology-aimed New Initiatives, partnerships and acquisitions besides the operations and activities in the main business lines. The Group believes its distinctive investments specified as the “New Initiatives” will be complementary of the Group’s other sectors, broaden the scope of services and the region the Group reaches.


Doğuş OtomotivDoğuş Otomotiv aims at having a productive and profitable presence in every stage of the lifecycle of owning a vehicle.


Doğuş Otomotiv

Presence in Every Stage of the Lifecycle of Owning a Vehicle

*Representative Offices

Replacement Parts and After Sales Services

Quick Fix to all Brands

Spare Parts&Logistics

Core BusinessAutomotive

Related Ancillary Business

Retail Finance

Automotive Financing

Insurance

Factoring

Fleet

Used Vehicle Sales

DOD

Used Vehicle Sales

Other Investments

TÜVTÜRK

Import and Distribution

Yüce AutoDoğuş Otomotiv

Independent Authorized Dealers


Widest Retail & Services Network in Turkey

Widest retail and services network in Turkey with nearly 550 customer points

(*) DOAS brands, including VW, Audi, Škoda, Seat, Porsche, Scania, Thermo King, Scania Engines as of December 2018

VW Audi Škoda SEAT Porsche Scania Thermo King Scania Engines


Success Story of DOAS

Doğuş Otomotiv is the sole importer and distributor of VW Group brand vehicles in Turkey.

Market Share

2017

2006

2007

2011

2013 2015

2009


Rating (7.80 Point)

• Corporate Governance Rating

(9.05 Point) • VW and Audi

distribution agreement for Iraq

• VDF acquired MAN Finansman.

• Corporate Governance Rating (9.42 point)

• Production partnership and distributorship

agreement with Krone came to an end.

• Meiller production came to an end (though

Meiller distributorship continued)

• Corporate Governance Rating

rose to 9.51• Incorporation of Lausanne Bentley Showroom and

D-Occasion-used luxury car

sales- into D-Auto Suisse SA.

• Distributorship agreement with Meiller came to

an end

• The distributorship

agreement with VW AG was

renewed for an indefinite period

• Porsche and Bentley

showrooms of D-auto Suisse

SA in Lausanne, Switzerland were

transferred• Corporate Governance Rating rose

to 9.64

• Subsidiaries established

in Egypt were liquidated

• Corporate Governance Rating rose

to 9.63

• VDF acquires Scania Finance which performs

services in heavy commercial vehicle sector. • Corporate Governance

Rating (9.25 Point)• Maintain leadership

position in the total automotive market.


Rating (8.63 Point)

• Global Compact Agreement

• Publishing Sustainability

Report

• Doğuş Otomotiv acquired 100% of SEAT

• Bentley letter of intent• Volkswagen Marine Engines agreement

• Production agreement with Krone

• TÜVTÜRK established by the cooperation of AKFEN and TÜV SÜD

• Porsche dealership contract in Lausanne

• Lamborghini distributorship agreement

• Opening of OtoMotion• Oto-Fix Ekspres Service established

• Meiller distributorship and coproduction agreement

• Krone - Doğuş coproduction agreement

• Bugatti letter of intent• LeasePlan partnership for fleet

services

2003

1999

1997

1995

1993 1994

1996

2000

2004

2008

2010

0.5%5.8%

11.4%

18.1%

Market Share

Market Share

Market Share

Car park more than 2 mn units

• Scania distributorship agreement

• Volkswagen and Audi distributorship

agreement• Distributorship agreement with Volkswagen AG

Scania Industrial and Marine

Engines distributorship

agreement signed

• Porsche distributorship agreement

• Customs duties on vehicles imported from

the EU abolished

• Škoda distributorship agreement and

partnership with Yüce Auto• Used car operations

established

Consumer finance JV with Volkswagen Financial

Services AG

SEAT distributorship agreement and partnership with

Yüce Auto

• Krone distributorship agreement

• Assembling Operations• Merger of automotive companies under Doğuş

Otomotiv

• Initial Public Offering of Doğuş

Otomotiv• Doğuş Otomotiv

Corporate Responsibility

project: “traffic is life

2012

• Thermo King distributorship agreement

• Krone Doğuş Trailer Plant groundbreaking ceremony

• Groundbreaking ceremony of Porsche dealership in Lausanne• Opening Meiller Doğuş Tipper

Plant• Establishing Porsche Lausanne

D-Auto Suisse SA

• Doğuş Otomotiv 15th anniversary

• Opening of Porsche Lausanne

2014

2016

2018


Key Strengths of DOAS

Leader in import market in Turkey with 18.1% m/s among c.35 pure importers

One-stop shopping concept showroom, after sales services, consumer financing, and insurance service

Widespread network and customer base, widest network with nearly 550 customer points

Advanced financial risk management system and daily monitoring of FX rate.

12 well-positioned multi-brand products

Youngest fleet in the market with new launches every year, over 80 models

Optimum balance of profitability and market share

Marketing its own brands DOD, DOD City, DOD Prime and oto fix

Well-equipped and custom designed IT infrastructure (Turkuaz)

Uncompromised customer satisfaction-oriented dynamic and attentive service approach leading to high customer loyalty.

widest network

~ 550 customer points

youngest fleet

> 80models

multi-brand products

12different brands


PV

LCV

Luxury Segment

DOAS’ Position in the Market - 2018 FY

2018 VW PV reached 49,749 sales units and ranked 2nd in the passenger vehicles market. (3rd if total sales are considered tgether, as PV and LCV sales.)

2018 market share of VW was realized as 10.2%. The Golf, Passat and Passat Variant retained 1st position in their segments. SEAT achieved 10,383 sales units with a market share of 2.14%. Škoda has succeeded to reach 21,340 sales in Turkey. Škoda has gained 4.39% market share in the passenger vehicles market where the market has shrunk 32.7% in 2018.

VW LCV market share has been realized as 12.7% in 2018. VW LCV sold 17,085 units in 2018. VW LCV is the sales leader with 25.3% market share in the import market. VW LCV sales are ranked 3rd place in the total market. Transporter has been the best selling vehicle in its segment for 9 consecutive years.

HCV Scania completed 2018 with a record 10% share in the entire market and 18% share in the tractor unit market, with its “Your business is our priority” approach.

Scania Engines has maintained its position among the top 10 in the classification made by Scania CV worlwide. Thermo King has introduced electrical new-generation B-series units to users as of the second half of 2018.

Audi sold 13,295 vehicles in 2018. Audi Turkey, which made digitalization the focus of its business processes, was cited by Audi AG as benchmark to other countries

Porsche sold 565 units in 2018. 911 and 718 models completed the year as the leaders in their segments. Porsche’s highest selling model was Macan which sold 341 units. While Cayenne closed the year with 80 cars sold, Panamera reached a sales figure of 45 units. The 718 Boxster/Cayman models increased its market share in its segment to 42% with the sale of 71 units.

Bentley sold 10 units in 2018. In 2018, Convertible version of the new Continental GT, the best grand tourer manufactured to date was launched globally.

Lamborghini sold 3 units in 2018. In 2018, The World’s first Super SUV Urus was launched in Turkey.


Financial Performance

7,693873

11,925 1,15310,889 1,109

13,220 1,301

10,688

1,301

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

Sales Revenue (TRY mn) Gross Profit (TRY mn)

115

208

169

315

179

CapEx (TRY mn)

365

492496556

610

EBITDA (TRY mn)

2,827

4,852

3,980

5,1674,799

Total Assets (TRY mn)

253238

302

184

134

Net Profit (TRY mn)


Margins

3.3%

4.7%

0.84

2.802.0%

4.1%

2.405.43

2.8%

4.6%

1.373.70

1.4%

4.2%

2.165.16

8% max

Avg 11-12% Target

1.3%

5.7%

1.793.84

Gross Profit Margin (%) OpEx/Sales (%)

Net Profit Margin (%)

EBITDA Margin (%)

Net Financial Debt/Total Equity Net Financial Debt/EBITDA

7.1%6.3%

7.2%

6.1%

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

2014 2015 2016 2017 2018

9.7%10.2%9.8%

11.3%12.2%

6.1%


2019 New Launches

FACELIFT Superb

NEW New Models:

Bentley New GTC New Bentley Flying Spur

Lamborghini / Huracan Evo

NEW T-Roc Crafter Transporter

FACELIFT Passat FL

NEW LNG Series

NEW T-560R model new TK unit

Solar Panel 24V

NEW Q3

NEW Cayenne Coupe 911 Cayman GT4 Taycan


Doğuş Otomotiv Strategic Goals

One Step Beyond Customer Satisfaction: Turning Customers into Fans!

• The Value and Care Centre (DİM)

• Connectivity and accessibility in customer communications

• Virtual Showroom Concept - “Audi City”

Maintaining Presence in the Automotive Market!

• Optimum balance of profitability and market share

• “Creative Service Beyond Expectations” vision

• Principle of Customer Satisfaction - Focused Work

• Fully focusing on domestic operations

The First Condition of Creating a Happy Customer is Happy Employees!

• BİR’İZ (Together) Employer Brand

• GO- Development School Platform

• “Talent Management” and “Equality at Work”

• DRIVE- Doğuş Automotive’s Route Human and Training Project to enhance human resources within the network.

• GONK Seminars

• “Young Women’s Development Project in Partnership with TEV”

Achieving Operational Excellence through Increased Efficiency!

• “Turkuaz” internet-based and mobile device compatible software

• Continuous improvement for a more productive ecosystem

• New technologies in supporting Personnel Infrastructure

• Lean Management practices and processes

BE SIZABLE – BE CLOSE – BE CREATIVE


Doğuş Otomotiv Road Map for Digital Vision Solutions expected to generate ~100M TRY/year

cash after 8 years

~30M TRY investmentin the first 3 years

Self funding after 1.5 year

Impact of all 44 solutions

Digitizedoperations

Omni-channel integration

Vehicle digital twin

Digitized dealer of the future

Eight cornerstones to drive

Dogus Otomotiv’s digital vision

Backendautomation

and acceleration

Transparency & steering

Analytics empowered

E2E planning

Personalization

~100M TRYcash per

year

~75M TRYgrowth

related

~25M TRYefficiency

related

Digital Transformation Strategy of DOAS


Macroeconomic Outlook


Macroeconomic Indicators

YoY Inflation (%)

12-1

4

04-

16

04-

17

04-

14

04-

15

08

-16

08

-17

10-1

4

10-1

5

10-1

6

01-

14

01-

15

01-

16

01-

17

04-

18

07-

18

10-1

8

04-

19

01-

19

01-

18

10-1

7

07-

14

07-

15

07-

16

07-

17

08

-14

12-1

5

08

-15

12-1

6

04-

14

04-

15

04-

16

04-

17

12-1

7

04-

18

08

-18

04-

19

12-1

8

50.0045.0040.0035.0030.0025.0020.00 15.00 10.00 5.00 0.00

-5.00

Annual CPI Annual PPI Nominal Exchange Rates

8.007.507.006.506.005.505.004.504.003.503.002.502.001.501.00

US$/TRY EUR/TRY Basket (0.5US$+0.5EUR)

Auto Loan Rates (%)

3.20

2.70

2.20

1.70

1.20

0.70

0.20

TRY Consumer Confidence Index

80.0

75.0

70.0

65.0

60.0

55.0

180,000

160,000

140,000

120,000

100,000

80,000

60,000

40,000

20,000

0

Consumer Confidence Index Retail Sales Total LV

07-

14

07-

15

07-

16

01-

15

01-

16

01-

17

04-

14

04-

15

04-

16

07-

17

10-1

7

01-

18

04-

18

10-1

8

04-

19

01-

19

07-

18

04-

17

10-1

4

10-1

5

10-1

6

30.12%

46.15%

1.78%

6.67

5.96

3.09%

04-

09

10-1

0

10-1

1

10-1

2

10-1

3

10-1

4

10-1

5

10-0

9

04-

10

04-

11

04-

12

04-

13

04-

14

04-

15

04-

16

10-1

6

10-1

7

04-

18

10-1

8

04-

19

04-

17

6.31

19.50%8.79%

25.24%


Young population is a main driver in Turkey.

Population is expected to grow above 10%.

Over 50% of the population will be between the age group of 15 to 59 years by 2060.

Median age is expected to increase by 9% by 2060.

Note: All figures are rounded. Source: TurkStat

Population & DemographyPopulation & Demography

Economy

1.8

1.6

1.4

1.2

1.0

0.8

0.6

0.4

0.2

0.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

-2.0

-4.0

-6.0

-8.0

GD

P -

(B

illio

n T

urk

ish

Lir

a)

GD

P Y

oY

Ch

ang

e (

%)

Real GDP GDP YoY Growth

01/

03

01/

04

01/

05

01/

06

01/

07

01/

08

01/

09

01/

11

01/

13

01/

15

01/

17

01/

19

01/

10

01/

12

01/

14

01/

16

01/

18

30.00

25.00

20.00

15.00

10.00

5.00

0.00

-5.00

Trade Deficit Export Import

Auto Industry Trade Balance (US$ bn)

98990001 0203040506070809 10 1716151412 1311

Age Demography

2018 2023

Above6013% 15%

35-59 33%

15-3431% 30%

0-1423% 23%

Population Statistics (’000)

2018 2023 20602040

81,86786,907

100,331107,095

32%


Automotive Market


LV Wholesale Market (thousand) DOAS LV Wholesale (thousand) DOAS Market Share %

496

553

761

871

779

957 994

972

852

762

153183

104

211202152

12410986

5053

15.9%

17.9%

20.1%19.1%

17.3%

21.2%20.8%

10.6%9.0%

11.3%

12.6%

2008 2009 2010 2011 2012 2013 2014 2017 201820162015

1,000

900

800

700

600

500

400

300

200

100

0

25%

20%

15%

10%

5%

0%

Turkish Light Vehicle Wholesale Performance - Market vs. DOAS

600

Source: Automotive Distributors Association, DOAS performance includes Škoda sales.


WHOLESALES (unit) 2018 2017 Change 2016 2015 2014

VW 61,563 119,384 -48% 137,143 140,088 108,325

VW PV 45,388 91,343 -50% 104,410 106,677 85,134VW LCV 16,175 28,041 -42% 32,733 33,411 23,191

AUDI 12,969 21,172 -39% 22,105 21,100 17,070PORSCHE 481 700 -31% 881 877 601BENTLEY 10 16 -38% 9 19 21LAMBORGHINI 3 7 -57% 7 6 2SEAT 8,640 17,002 -49% 20,976 17,212 12,540ŠKODA 20,425 24,714 -17% 30,004 22,435 14,397PC TOTAL 87,916 154,954 -43% 178,392 168,326 129,765LCV TOTAL 16,175 28,041 -42% 32,733 33,411 23,191LV TOTAL 104,091 182,995 -43% 211,125 201,737 152,956SCANIA 1,177 1,697 -31% 2,050 3,291 2,014GRAND TOTAL 105,268 184,692 -43% 213,185 205,593 155,995MARKET SIZE*PV 469,882 722,168 -35% 765,467 726,477 582,117LCV 130,104 234,654 -45% 228,446 245,027 179,919HCV 11,754 18,554 -37% 18,343 33,652 31,061TOTAL 611,740 975,376 -37% 1,012,256 1,005,156 793,097

DOAS Market SharePV 18.7% 21.5% 23.3% 23.2% 22.3%LCV 12.4% 11.9% 14.3% 13.6% 12.9%HCV 10.0% 9.1% 11.2% 9.8% 6.5%TOTAL 17.2% 18.9% 21.1% 20.5% 19.7%

DOAS Wholesales Performance

Source: Automotive Distributors Association


Turkish Automotive Industry

150%

100%

50%

0%

-50%

-100%

Sales Production Change in Auto Sales (left axis) Change in GDP (right axis)

Car 54% Small truck 16% Motorcycle 14% Tractor 8% Truck 4% Minibus 2% Bus 1%

199

619

97

1,800

1,600

1,400

1,200

1,000

800

600

400

200

0

199

8

200

2

200

6

200

0

200

4

200

8

2010

199

9

200

3

200

7

200

1

200

5

200

9

2014

2018

2017

2016

2015

2012

2011

Production vs Sales GDP vs Auto Sales Breakdown of Vehicles*

66%

50%

29%

49%

70%

11%

PC LCV

Import Diesel A/T

Auto Industry Segmentation*

96%

23%

3% 1%14%

27%

PC LCV

Auto Engine Segmentation*

Source: General Directorate of Public Security

Total Number of Road Motor Vehicles: 22 mn units

2013

* As of December 2018

below 1600 cc between 1600 cc- 2000 cc

above - 2000 cc20

1820

1720

1620

15

15%

10%

5%

0%

-5%

-10%

200

2

200

6

200

0

200

4

200

8

2010

200

3

200

7

200

1

200

5

200

9

2014

2013

2012

2011

Turkey Romania UK Germany Greece

Vehicle Ownership Per Capita**Parc Density / 1000 Inhabitants

596

334

205

597 579

** ACEA Report Vehicles in use Europe 2018


Turkish Automotive Industry

10.95

7.577.11

9.8310.1611.19

6.58

5.06

Greece TurkeyUK BulgariaItaly Germany China USA

Oil Prices (Liter, TRY) (20.05.19)

Average Vehicle Age in Turkey

7

6

5

4

3

2

1

0

Oil Prices in Turkey (TRY) (2005-2019)

13.412.913.112.613.411.0

13.1

23.2

15.9

MinibusMotor Vehicles

PC Bus Small Truck

Motorcycle TractorTruck

01.

01.

05

01.

01.

06

01.

01.

07

01.

01.

08

01.

01.

09

01.

01.

10

01.

01.

11

01.

01.

12

01.

01.

13

01.

01.

14

01.

01.

15

01.

01.

16

01.

01.

17

01.

01.

18

01.

01.

19

Motor VehiclesAverage

SCT Rates in Turkey (%)(Passenger Cars)

<1600 cc 1600-2000 cc >2000 cc

08-02 03-09 01-1106-09 09-1211-0401-03 10-09 11-16 09-1801-14

160

120

80

40

0

160 160

100 100(*)

145

5075

84 80 84 84

130 130

46

5260 54 60 60

80 8090

45 4530(**)

27

30 3718 27

37 37 40

(*) 100% for sale price of <TRY 170K. The rate is 110% for sale price of >TRY 170K. (**) 30% for sale price of <TRY 70K. The rates are 35% and 60% for sale prices of btw TRY 70K-120K and >TRY 120K, respectively.


Core Business Lines


Import and Distribution

Thanks to the successful product and communication strategies followed in 2018, Volkswagen Passenger Cars maintained its position, ranking second in the PC market with 10.2% market share.

VW was voted the most loved car brand of the year for the 6th consecutive year in the survey conducted by MediaCat Ipsos. It received the Silver Apple with its “Rear View Campaign” and the Bronze Apple with its “Night Vision System” ads. The “Return Campaign” was also awarded with the Felis Award. VW PC won the Gold Stevie award in the “Best Management of Instagram” category.

Having maintained its rising uptrend by increasing its market share by 28.5% in 2018, ŠKODA Turkey placed its new SUV model Karoq on the market and launched its renewed Fabia during the year.

On its way to celebrate its 100th year in 2019, Bentley has further consolidated its competitive position with the launch of the New Continental GT model in Turkey in 2018. Lamborghini has taken the brand recognition in the upper luxury segment to much higher levels with Urus, the world’s first super SUV that was placed on the market in the last quarter of the year.

In 2018, Bentley sold 10 in total and Lamborghini sold 3 units of vehicles.

Scania Engines has maintained its position among the top 10 in the classification made by Scania CV worlwide.

Scania Engines increased its market share to higher levels in the generator engine segment also in 2018 and maintained its steady rise in this area.

With its low emission values and high-tech products as well as its newly developed gas-fuelled engine model, Scania Engines has increased the service quality that it offers its customers in every field also in 2018.

Porsche celebrated its 70th year. In 2018, the highest-selling model of Porsche was Macan with 341 units sold and the 911 model has become the leader in the premium sports cars segment again this year.

SEAT had a market share of 2.14% by selling 10,383 units of passenger cars in 2018. With its Interactive Graffiti Giantboard that SEAT prepared for Arona, SEAT Turkey won the Best Outdoor of the Year award given by the jury at the 2018 Gladiators ceremony that organized by Automotive Distributors Association.

Thanks to the contribution of the communication activities, SEAT’s brand awareness rose to 29.5% in 2018.

Thermo King has introduced electrical new-generation B-series units to users as of the second half of 2018. This range of products energized by the battery of the vehicle creates difference with their low energy consumption and their light weight.

The bluebox equipment, enables users to connect to their units and to respond to any situation on a real time basis thanks to its bluetooth technology. The bluetooth system enabling simultaneous transportation of products requiring different temperatures within the same frame a standard feature also in its Spectrum models, Thermo King continued to be most important assurance in sensitive pharmaceuticals and food transportation.

Silent engine technology, which is indispensable for urban transportation, is offered with the Thermo King Whisper range.

With its “Your business is our priority” motto, Scania had another achievement by completing the year 2018 with a 10% share in the entire market and 18% share in the tractor unit market.

Presenting its customers on the roads of Turkey its new generation vehicles it started manufacturing as a result of 10 years of research and development, 2 billion Euros worth investments, and over 10 million kilometers of test driving; Scania continued to provide comfort and driving experience exceeding standards. Having reached 202,000 users in its Facebook account in 2018, Scania also continued to maintain its presence on the Instagram, LinkedIn and Google Plus platforms. Demonstrating its customer satisfaction focus with one of the sector’s pioneering applications “Scania’m Sapasağlam”, Scania successfully commissioned “Scania’m Cepte” app in 2018 with 7,000 downloads.

Having successfully raised its market share to 12.7% in 2018, VW CV maintained its third ranking in the total market and its leadership in imported commercial vehicle sales.

The New Amarok Canyon sportive model of Volkswagen Amarok that was the owner of the 2018 International Pick-up Award was launched in the 1st quarter of 2018 and the New Amarok Aventura 258 PS model was placed on the market in the 2nd half of the year. The sales of the completely renewed last generation of Crafter vehicles were started in the beginning of the 2nd quarter of the year.

Volkswagen CV received an award in the “Commercial Automotive” category of A.L.F.A Awards and evaluating the brands with best customer experience management. VW CV Turkey became the World Winner in the STLI (Service Technik Leistung Indizen) evaluation with its success in after-sales services.

Audi Turkey, which made digitalization the focus of its business processes, was cited by Audi AG as benchmark to other countries. 2018 has been a year full with new launches for Audi brand, which was started to be imported to Turkey by Doğuş Otomotiv in 1994, and four new models, i.e. A8, A7, A6 and Q8, have been launched. 13,295 units of cars were sold in 2018. With its 72% customer loyalty rate that is exemplary in Europe, a 21.2% increase has been achieved in its aftersales services turnover in 2018.


Retail > DOĞUŞ OTO

Doğuş Oto represents seven brands (VW Passenger Cars, VW Commercial Cars, Audi, Porsche, SEAT, Škoda, and DOD), for which it sells new and second-hand vehicles, spare parts, and accessories at a total of 37 Authorized Dealers and 33 Service points in Istanbul, Ankara, Bursa and Kocaeli; it also offers its customers insurance, financing, and after-sales support services.

Doğuş Oto operates on a total area of 278,480 square meters with 1,435 employees.

Doğuş Oto sold 40,341 new vehicles and its share in the retail sales volume of Doğuş Otomotiv was 35.6% in 2018.

With a total of 300,509 service entries, 2018 was a year when the financial targets were exceeded.

Doğuş Oto Gebze started to operate on an area of 12,500 square meters in 2018 in order to provide Volkswagen Passenger Cars and Volkswagen Commercial Vehicles Authorized Dealer and aftersales services.

SEAT showrooms that were renewed with a young and dynamic concept were put into service for customers at Doğuş Oto Esenyurt, Doğuş Oto Maslak and Doğuş Oto Çankaya in 2018.

represents

7 brands one-stop shopping concept

operating on

278,480 sqm total area

Share of

35.6% DOAS sales in 2018


Retail > Škoda

New Corporate Identity and Design Standards

Yüce Auto started the disribution of Škoda brand vehicles in 1989.

In 1998 50% partnership with Doğuş Otomotiv started.

Having maintained its rising uptrend by increasing its market share by 28.5% in 2018, ŠKODA Turkey placed its new SUV model Karoq on the market and launched its renewed Fabia during the year.

Attracting attention among D Segment luxury models, SuperB became the best-selling model of Škoda with a sale figure of 7,871 units of vehicles in 2018.

Karoq, the continuation of the ŠKODA brand’s SUV attack, succeeded in drawing interest in a short period of time after its launch in May and realized a sales of 1,929 units of vehicles although a full year of operation has not yet passed.

2018 Sales

21,340 units

2018 Market Share

4.4%

Market Share Growth

28.5%in 2018


Replacement Parts and After Sales Services > Parts & Logistics

Spare Parts and Logistics employs state-of-the-art technology combined with the best modern synergistic practices, creating unmatched levels of service for the global brands that Doğuş Otomotiv represents.

In 2018, Spare Parts and Logistics imported 86,194 vehicles, and dispatched 104,136 vehicles to Authorized Dealers, ending the year with a total revenue of TRY 1,306.7 million generated by the sales of spare parts and accessories.

Spare Parts and Logistics uses advanced computer technologies and inventory management systems, which can be easily adapted to various demands of customers, to run its operations smoothly. As a result, spare parts availability was maintained at 99% in 2018 like the previous year, thus significantly reducing the amount of stock held.

As the “shipment from the port” project that Spare Parts and Logistics implemented as a part of its pioneering vision in vehicle logistics continued with high capacity for vehicle storage and importation at the ports, significant improvements were achieved in client delivery times by working with more than one transportation company for vehicle deliveries from ports to authorized dealers.

99%availability in Spare Parts

Revenues from Spare Parts and accessories are

TRY 1,306.7 million

104,136 vehicles dispatched


Used Vehicle Sales > DOD

The diversity of brands and models in supply of vehicles was further increased through new agreements with fleet companies in 2018.

The Regulation on the Trade of Used Motor Land Vehicles was put into force on February 13, 2018. It is compulsory to provide the services like warranty and expertise survey, which were already offered by DOD to its customers before the said regulation took effect.

Further improvements to the infrastructure as directed by the regulation towards the other standards were started in 2018 and preparations were largely completed.

DOD is the largest corporate retailer of the used car business.

DOD provides services in Turkey with 61 customer points.

The total sales by DOD Authorized Dealers were realized as 21,767 units in 2018.

DOD.com.tr and DOD Mobile were renewed.

providing services

61customer points in Turkey

sales - 2018

21,767 vehicles

largest corporate retailer of the used car business DOD Sales Performance

21,120

22,534

23,125

22,00921,767

2015 20162014 2017 2018


Automotive Related Ancillary Business


portfolio 2012: 91,257 units (34% yoy increase) 2013: 111,783 units (22% yoy increase)2014: 121,905 units (9% yoy increase) 2015: 146,046 units (20% yoy increase)2016: 160,727 units (10% yoy increase)2017: 147,671 units ( 8% yoy decrease)2018: 129,945 units ( 12% yoy decrease)

Finance > VDF

The JV company was established on 20 December 1999 to provide financing for Doğuş Otomotiv Group Brands’ customers. The established JV company is owned by Doğuş Holding (1%), Doğuş Otomotiv (48%) and Volkswagen Financial Services AG (51%).

Offering products and services nationwide, VDF ensures ease of mind for its customers by providing Vehicle and Service Credits from a single point: the Authorized Dealer.

In 2018, vdf aimed to increase customer satisfaction and customer loyalty through sale, marketing and customer loyalty campaigns it jointly organized with the brands. According to the results of the survey it made in 2018, vdf scored much higher than the world and Europe averages in customer satisfaction assessments compared to the previous year. According to the survey, 9 out of 10 people stated that they would want to work with vdf again.

In 2018, new credit contracts realized as 54,793 units with a total amount of TRY 4,957 million increasing the total portfolio to 129,945 units.

new contracts 2012: 51,177 units (23% yoy increase) 2013: 60,180 units (18% yoy increase)2014: 58,338 units (3% yoy decrease) 2015: 78,111 units (34% yoy increase)2016: 86,433 units (11% yoy increase)2017: 67,733 units (28% yoy decrease)2018: 54,793 units (19% yoy decrease)

credits given 2012: TRY 1,906 mn (27% yoy increase) 2013: TRY 2,531 mn (33% yoy increase)2014: TRY 2,870 mn (13% yoy increase)2015: TRY 4,345 mn (51% yoy increase)2016: TRY 5,163 mn (19% yoy increase)2017: TRY 5,522 mn (7% yoy increase)2018: TRY 4,957 mn (10% yoy increase)

Incl. Scania and Man Finance


Finance > VDF INSURANCE

Operational Fleet Renting > VDF FLEET

number of policies

it will be 1,2x in 5 years

number of VDF Insurance branches is

30

transaction volume

TRY 11.4 bn in 2018

VDF Insurance, as an agent for 13 insurance companies, provides services & products to its customers such as motor insurance, traffic insurance, credit protection insurance and extended warranty.

VDF Insurance works with the Authorized Dealers of VW Group brands in Turkey. The number of its branches in 2018 is 30.

VDF Insurance increased the production of its policies to TRY 397 million in 2018.

Finance > VDF FACTORING Active since May 2010, VDF Factoring Services

offers factoring and financing services to 112 Autorized Dealers of Doğuş Otomotiv. In 2018, VDF Factoring reached a transaction volume of TRY 11.4 billion and a total asset value of TRY 1,059 million. VDF Factoring aims to increase its business volume further in 2019.

VDF Filo was established in March 2016 Fleet ERP processes and procedures were built

up Active contracts were around 6,200 in 2018. VDF Filo is expected to reach more than 8,500

contracts in 2019.

314,757 256,554

313,129 323,975306,771

2014 2015 2016 2017 2018

Number of Insurance Contracts

44%16%

41%16%

45%

60%

44% 14%

21%15%

2014 20142015 20152017 2018 2017 20182016 2016

Insurance PenetrationExtended WarrantyMotor Insurance

600 1,5001,500

2,0002,300

5,979

8,8009,600 10,000

7,600

2014 2015 2016 2017 2018

Development of Assignments (TRY million)

DOAS Yüce Other

1,100693


Other Investments > TÜVTÜRK

TÜVTÜRK – a cash cow business of DOAS, Bridgepoint and TÜV SÜD

TÜVTÜRK consortium was granted by Turkish Privatization Administration the right to build & operate MVISs in Turkey for 20 years in exchange of US$ 552 million.

189 fixed and 73 mobile inspection stations are fully operational as of end-1Q09, with an investment of US$ 300 million.

Operation fees were collected from the suboperators (Business associates (BA)) in exchange for the prepared stations for operations.

The BAs will share their revenues with the government: 1st-3rd years: 30%; 4-10th years: 40% and 11-20th years: 50%

...and with TÜVTÜRK consortium: 1st-10th years 7% and 11-20th years: 20%

The MVIS business is expected to generate US$ 15 billion revenues in 20 years with US$ 2.5 billion EBITDA.

At the end of the 11th year, nearly 73.5 million vehicles have been inspected and 22.6 million vehicles underwent exhaust gas emission measurements. 26.3 million vehicles were re-inspected and enabled over 25.2 million unsafe cars to return safely back into traffic once again.

In 2018, periodic inspections of 9.5 million vehicles were completed and 3.7 million vehicles underwent exhaust gas emission measurements.

According to the research entitled “Analysis of the Economic Impact of Road Safety and Periodic Vehicle Inspection Application in Turkey” conducted by CITA in 2017 under the leadership of Prof. Dr. Wolfgang G. Schulz and Sebastian Scheler; there is an average saving of 340 million US$ per year which is contributed to Turkish economy as a result of the traffic accidents avoided through TÜVTÜRK vehicle inspection system.

rights to build & operate

20 yearsin exchange of US$ 552 mn

expected revenues

US$ 15 bnin 20 years

expected ebitda

US$ 2.5 bnin 20 years


Other Investments > Doğuş Teknoloji

Growing with new investments Doğuş Teknoloji creates a wide scope of

software products and services that answer to actual demands and that reflect strong technological and operational experience and sectoral expertise.

Established in September 2011, Doğuş Teknoloji is owned 54% by Doğuş Holding and 46% by Doğuş Otomotiv.

A new building is established on neighboring premises of Doğuş Otomotiv headquarters.

The main areas of Doğuş Teknoloji’s expertise include designing software and information systems that responds to analysis of business requirements (i.e. business process automation, reporting, security, etc.), development, installation, updating, maintenance, error fixing and integration of projects into these systems, maintaining security, monitoring performance and reporting abnormalities, consultancy services, and managing all of all these processes.

Doğuş Teknoloji has “ISO/IEC 27001:2013 Information Security Management System”, “ISO 22301:2012 Business Continuity Management Systems” and “ISO/IEC 20000-1:2011 Service Management System” certifications in the scope of e-invoice application and related processes.

Doğuş Teknoloji has “ISO/IEC 27001:2013 Information Security Management System”, “ISO 22301:2012 Business Continuity Management Systems” and “ISO/IEC 20000-1:2011 Service Management System” certifications in the scope of e-invoice application and related processes.

Affiliate

46% Doğuş Otomotiv

Established

2011

ISO & ITILCertified


DOAS: First GRI reporter in automotive sector in Turkey

Approach to Sustainability

Strategyand

Vision

FIRST GRI REPORTER IN OUR SECTOR

IN TURKEY

Corporate Sustainability (CS) at Doğuş Otomotiv

The UN Global Compact was signed in May 2010.

Our 10th Corporate Sustainability Report is published as “GRI G4 Comprehensive Report”. We were the first in the automotive sector.

For the fourth consecutive year, Doğuş Otomotiv has been included in the BIST Sustainability Index, which is composed of companies with highest corporate sustainability performances whose shares are traded in the Borsa Istanbul, for the period from November 2018 to October 2019.

Economic Impact

• Risk Management• Legislative Regulations

• Financial Risks• Sustainable Supply Chain• Sustainability Awareness

• Operational Sustainability• Customer Relations

Management• Digitalization• Technologic Support

• Market Presence• New Products and Services• Product – Price Strategy• 2nd Hand Automotive Market

Social Impact

• Community Engagement• Traffic is Life! Platform

• Human Rights• Gender Equality

• Business Ethics• Governmental Institutes

Relations• Code of Ethics Implementation

Process• Employees and Work Place

Environment• Employee Loyalty• Authorized Dealers Employee

Circulation• Technical Staff Circulation• Employee Trainings• Health and Safety

Environmental Impact

• Environmental Management• Electrical Automobiles• Environmental Risk Management• Climate Change Risks


Traffic is Life!

The “Child Safety in Traffic” project, which was launched in 2016, continued to be the focal point of the Traffic is Life! platform in 2018, due to the fact that children aged 5-14 are one of the groups most affected by traffic accidents and child safety in traffic is crucial in Turkey. Aiming to raise awareness on child safety in traffic and in vehicles, several promotional, educational and supportive events were organized in many channels through the year.

One of the most notable events was the “Child Safety in Traffic” summit, which was organized in Ankara in cooperation with the Turkish Police Force during Traffic Week. At the summit, which was attended by approximately 250 people, one attendee received a child seat as a gift as the winner of a competition during the event.

Popular figures of Turkish pop music, including Oğuzhan Koç, Sinan Kaynakçı, founder and lead singer of the band Pinhani, Derya Uluğ, Gripin the band, Emre Aydın and Cem Belevi gave their voices to the four key messages of “Traffic is Life!”. These messages were broadcast on Kral FM and Kral Pop TV to raise awareness about traffic safety. As the Traffic is Life! brand ambassador, Professor Üstün Dökmen also joined radio shows. Twelve young people who recently got their driver’s licenses and answered the questions correctly were offered safe driving training. The plan is to continue the trainings in 2019.

In social media, the Facebook Chat Bot application, applied as a social responsibility for the first time offered driver candidates the opportunity to take a test with questions from previous years’ driving test questions approved by the Ministry of Education. Over 150,000 users benefited from the application.

As of December 2018, the Facebook account of the Traffic is Life! platform has reached nearly 128,000 followers as regular content sharing continues to provide all segments of the society with informative / educational benefits.

The Traffic is Life! platform started 2018 with an award and the jingle project with Nil Karaibrahimgil was recognized as the “Social Responsibility Project of the Year” by the Automotive Distributors Association (ADA). As in 2017, the Traffic is Life! platform was again ranked among the top 10 projects in Capital magazine’s best Corporate Social Responsibility survey in 2018.

increasing

traffic safety awareness since 2004

“Social Responsibility Project of the Year” award by the Automotive Distributors Association (ADA)

The Traffic is Life! platform was again ranked among the top 10 projects in Capital magazine’s Best Corporate Social Responsibility survey in 2018.


2018 Corporate Sustainability Performances in Doğuş Otomotiv

Strategy and Management

10th Year in GRI Reporting

First Independent Assurance Report

Compliance Committee is established

Environmental Risk Models included in Risk Management

Information Security Policy is disclosed

New Materiality Workshop and Roadmap is published

Our Business and Economical Development

TRY 1,191.5 million added value to local economy

More than 40 digital transformation projects

18 suppliers’ sustainability performances included in Sustainability Report (7 last year)

20 Authorized Dealers and Services Sustainability performances included in Sustainability Report

1.36 million vehicle entries to Authorized Services in 2018

Digital Cargo System

Value Segmentation Project (CRM)

Hot Customer Project

Data Store Renovation Project

Operator Program

42% of suppliers are audited via documents.

Our People and Community Development

New Performance System

97% of Volkswagen Training Lab students had the internship opportunity in Authorized Dealers and Services

43% of new employment is women

Blue Employment Program in Doğuş Oto

Young Women Development Project with TEV

Reverse Mentorship Program

Top scorer in Istanbul Stock Exchange Enhanced Boards with Women Index

Careerist from Doğuş (Doğuştan Meslek Sahibi) Program

Traffic is Life! – Child Safety in Traffic – 11 Animation Movie watched by 8 million children – Mother and Baby Safety in Traffic

Doğuş Otomotiv Volunteers Program

Our Planet and Environmental Sustainability

Electricity saving of 524,550 kWh from recycled car batteries which is equal to one month consumption of 2,230 families.

With waste management operations 12,776 trees and 255 thousand tons of CO2 emission is prevented in 2018.

54% of packaging wastes are recycled and with only paper and carton waste recycling in 2018, 11,953 trees and with timber recycling 823 trees are saved.

18,267 m3 water is saved with sustainable packaging waste management systems

With new centralized automatic control system of PC Closing in Dead Time System, 298,000 kWh energy will be saved in 2019


Social Media


Social Media

SEAT

Global SEAT Facebook 5.6 mn followers

Engagement: 16,900

Reach: 11,400,000

42,827 followers

Ranked 4th among all SEAT Twitter accounts.

113,059 followers

Ranked 1st among all SEAT countries on Instagram

ŠKODA

738,079 followers

140,219 followers

Ranked 1st among all ŠKODA countries on Instagram

14,703 followers

3.5 mn views

Audi

1,148,493 Facebook followers

79,550,265 reach in 2019

383,120 interactions in 2019

6th ranking among Audi globally

416,686 Twitter followers

1st brand among all automobile brands on total followers

9,282 interactions in 2018

3rd largest Audi account globally

4,758 Youtube subscriptions

2,119,953 views

309,963 Instagram followers

47,279,783 reach in 2019

926,582 interactions in 2019 3rd largest Audi account globally

11,858 Linkedin followers

First Automotive brand to actively use Linkedin in Turkey

Volkswagen LCV

1.1 mn followers

Ranked 1st among LCV in Europe

7/24 Customer Service on Facebook

7/24 Customer Service on Twitter

13.4 K Subscriber, 17 mn view

Whitelist Brand

First Brand to use Beta Products

Best Awareness lift in its class (Automotive industry - Bumper Ad)

Amarok: 55.3K followers

Volkswagen Commercial Vehicle: 20.5K followers

Porsche

357,762 followers

The approximate number of posts in a month: 5

The approximate number of likes in a month: 1,400

The number of video share in 2019: 6

The number of video views in 2019: 4,014

102,449 followers

The numbers of shares within a week: 4

Increase in the number of followers in a week: 50

2,967 subscriber

Total view: 589.5 K (2019)

*All data is as of May 2019

Volkswagen

3.9 mn followers

Turkey’s 3rd largest locally followed brand page

Turkey’s 1st largest locally followed automotive brand page

2,644,057 user interaction

81,837,858 reach

The 3rd largest VW brand page

381K + followers

The largest brand account in automotive

The second largest Volkswagen Brand Page

1,292,106 likes, 16,660 comments


Investor Relations Contacts

Müge Yücel, GRCP

Head of Investor Relations+90 262 676 90 [email protected]

Address: Şekerpınar Mah. Anadolu Cad. No: 22 ve 45, 41420 Çayırova/Kocaeli TurkeyWebsite: www.dogusotomotiv.com.trE-mail: [email protected] [email protected]


Disclaimer

Doğuş Otomotiv Servis ve Ticaret A.Ş. (the “DOAS”) has prepared this presentation documents (the “Document”) consisting of documents and appendixes thereto for the sole purposes of providing information and projections and statements relating to the DOAS (the “Information”). DOAS cannot guarantee the accuracy, adequacy, or completeness of such information, and cannot be responsible for the results. The Information is subject to change without any notice. Neither the Document nor the Information can construe any investment advise, or an offer to buy or sell DOAS shares. This Document and/or the Information cannot be copied, disclosed or distributed to any person other than the person to whom the Document and/or Information delivered or sent by DOAS or who required a copy of the same from the DOAS. Any and all information contained in this document are strictly confidential.

investor relations presentation · 2019. 9. 2. · investor relations presentation - doas profile -...

Documents