Investor Relations Presentation - Doğuş OtomotivInvestor Relations Presentation - Q1 2016 | 5...

Investor Relations Presentation - Q1 2016 | 1

Investor Relations PresentationQ1 2016 ResultsUpdated: July 2016


Agenda

Doğuş Otomotiv / Value Chain 2016

Macroeconomic Outlook

Automotive Market

Financial Performance


Doğuş Otomotiv / Value Chain 2016

Presence in Every Link of Automotive Value Chain

*Subsidiaries**Representative Offices

Replacement Parts and After Sales

Services

Quick Fix to all Brands

Spare Parts&Logistics

Core Business Automotive Related Ancillary Business

Retail

Doğuş OtomotivIndependent Authorized

Dealers

Finance

Automotive Financing

Insurance

Insurance

Used Vehicle Sales

DOD

Used Vehicle Sales

Other Investments

TÜVTÜRK

Import and Distribution

Yüce Auto


Macroeconomic Outlook


Macroeconomic Indicators

YoY Inflation (%)

06-1

0

10-0

9

10-1

0

06-1

1

06-1

2

06-1

3

10-1

4

10-1

5

02-1

0

02-1

1

10-1

1

10-1

2

10-1

3

02-1

5

06-1

6

02-1

6

09-0

9

03-1

0

03-1

106

-11

03-1

2

03-1

3

03-1

4

03-1

5

06-1

2

06-1

3

06-1

4

06-1

5

06-1

603

-16

12-1

2

12-1

3

12-1

4

12-1

5

06-1

0

02-1

2

02-1

3

06-1

4

02-1

4

06-1

5

09-1

0

09-1

2

09-1

3

09-1

4

09-1

5

12-0

9

20.00

15.00

10.00

5.00

0.00

-5.00

Annual CPI Annual PPI Nominal Exchange Rates

3.40

3.10

2.80

2.50

2.20

1.90

1.60

1.30

1.00

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

Auto Loan Rates (%)

06-0

5

12-0

6

06-0

7

06-0

8

06-0

9

06-1

0

06-1

1

06-1

2

06-1

3

06-1

4

06-0

6

12-0

5

12-0

7

12-0

8

12-0

9

12-1

0

12-1

1

12-1

2

12-1

3

12-1

4

06-1

5

06-1

6

12-1

5

2.70

2.20

1.70

1.20

0.70

0.20

TRY EURO US$ Consumer Confidence Index

180,000160,000140,000120,000100,00080,00060,00040,00020,0000

Consumer Confidence Index Retail Sales Total LV

05-1

0

05-1

1

05-1

2

05-1

3

05-1

4

05-1

5

12-1

0

12-1

1

12-1

2

12-1

3

12-1

4

12-1

5

03-1

1

03-1

2

03-1

3

03-1

4

03-1

5

06-1

603

-16

09-1

0

09-1

1

09-1

2

09-1

3

09-1

4

09-1

5

3.213.052.88

12-1

109

-11

12-1

0

13.67% 12.98%11.14%

7.64%

3.41%

2.13%

1.09%

105.0100.095.090.085.080.075.070.065.060.055.0

1.44%

1.15%


Young population and fiscal reforms push the country towards stable and sustainable growth.

Population is increasing on an average 1.5% each year.

64% of population will be between the age group 15 to 59 years.

Share of people in the age group between 35 to 59 will increase by 3%.

Note: All figures are rounded; the base years is 2009. Source: IMF, TurkStat, Frost Sullivan

Age Demography

2014 2023

Above6012% 15%

35-5931%34%

15-3433%

30%

0-1424% 21%

Population & Demography

Population Statistics (’000)

2014 2018 20282023

77,696

80,551

84,247

87,349

12/0

206

/03

12/0

306

/04

12/0

406

/05

12/0

506

/06

12/0

6

12/0

7

12/0

8

12/0

9

12/1

0

12/1

1

12/1

2

12/1

3

12/1

4

06/0

7

06/0

8

06/0

9

06/1

0

06/1

1

06/1

2

06/1

3

06/1

4

25.00

20.00

15.00

10.00

5.00

0.00

7.006.005.004.003.002.001.000.00

-1.00-2.00-3.00

Trade Deficit Export Import

Auto Industry Trade Balance (US$ bn)Economy

140.0

120.0

100.0

80.0

60.0

40.0

20.0

0.0

12.010.08.06.04.02.00.0-2.0-4.0-6.0-8.0

GD

P - (

Billi

on T

urki

sh L

ira)

GD

P Yo

Y Ch

ange

(%)

98 99 00 01 02 03 04 05 06 07 08 09 10 1412 1311

Real GDP GDP YoY Growth


Automotive Market


Development world car market vs. Volkswagen Group Car Deliveries to Customers(1) (Growth y-o-y in deliveries to customers, January to April 2016 vs. 2015)

4.6%

-0.2%

7.9%

3.3%4.2%

-4.6%

-18.7%

-25.4%

3.0%

0.3%

4.7%3.1%

North America Western Europe Central & Eastern Europe South America Rest of the World Asia Pacific

Car Market VW Group

(1) Figures excl. Volkswagen Commercial Vehicles, Scania and MAN. Source: VW Group 2016 Presentation.


(1) Incl. all brands of Volkswagen Group (Passenger Cars and Commercial Vehicles); +0.3% excl. Volkswagen Commercial Vehicles, Scania and MAN. (2) MAN incl. MAN Latin America Trucks and Buses GVW>5t.

Volkswagen Group

Jan-April 2015 Jan-April 2016 Change

DELIVERIES TO CUSTOMERS BY BRANDS(‘000 units)

VOLKSWAGEN GROUP

0.6%(1)

-2.0%

AUDI

4.9%

591 620

4.7%

SKODA

357 374

0.1%

SEAT

138 139

6.8%

PORSCHE

73 78

VW LCV

4.7%

148 155

MAN (2)

4.9%

30 32

SCANIA

5.6%

24 25

Passenger Vehicles Commercial Vehicles

VW PV

1,975 1,936

3,341 3,362

Source: VW Group 2016 Presentation.


Volkswagen Group

FINANCIAL AND SALES PERFORMANCE(EUR mn)

1Q2014 1Q2015 1Q2016 Change

Deliveries to Customers(‘000 units)

2,443

2,4882,508

Sales Revenue(EUR mn)

47,831

52,735

50,964

Operating Profit Margin(%)

6.0 6.36.7

Operating Profit(EUR mn)

2,8553,328 3,440

Profit Before Tax Margin(%)

7.07.5

6.3

Profit Before Tax(EUR mn)

3,357

3,968

3,203

10.0%

17%

18%

2%

-3%3%

-19%

1%

Source: VW Group 1Q2016 Annual Report.


DOAS Wholesales Performance - 2015

12M2014 12M2015 Change

DOAS TOTAL 155,995 205,593 32%

VW PV 85,134 106,677 25%

VW LCV 23,191 33,411 44%

AUDI 17,070 21,100 24%

SKODA 14,397 22,435 56%

SEAT 12,540 17,212 37%

SCANIA 2,014 3,291 63%

KRONE 716 158 -78%

PORSCHE 601 877 46%

MEILLER 309 407 32%

BENTLEY 21 19 -10%

LAMBORGHINI 2 6 200%

12M2014 12M2015 Change

DOAS TOTA

L

SKODA

VW LCV

SCANIA

MEILLE

R

VW PVSEA

T

PORSCHEAUDI

KRONE*

BENTL

EY

LAMBORGHIN

I

32%

25%

44%

24% 56% 37%63% -78% 46% 32% -10% 200%

*The sales agreement of Krone Doğuş Treyler Sanayi ve Ticaret A.Ş., which was signed between Our company, Dogus Group representing 49% of its total capital, and Fahrzeugwerk Bernard Krone GmbH on 29.01.2015, was finalized on 08.04.2015, after all permissions were received.


DOAS Wholesales Performance - June 2016

06M2015 06M2016 Change

DOAS TOTAL 100,224 97,846 -2%

VW PV 54,553 47,910 -12%

VW LCV 14,343 15,946 11%

AUDI 9,219 9,572 4%

SKODA 11,543 13,847 20%

SEAT 8,298 8,953 8%

SCANIA 1,555 1,234 -21%

KRONE 142 2 -99%

PORSCHE 288 370 28%

MEILLER 268 7 -97%

BENTLEY 9 2 -78%

LAMBORGHINI 6 3 -50%

06M2015 06M2016 Change

DOAS TOTA

L

SKODA

VW LCV

SCANIA

MEILLE

R

VW PVSEA

T

PORSCHEAUDI

KRONE*

BENTL

EY

LAMBORGHIN

I

-2%

-12%

11%

4% 20% 8%-21% -99% 28% -97% -78% -50%

*The sales agreement of Krone Doğuş Treyler Sanayi ve Ticaret A.Ş., which was signed between Our company, Dogus Group representing 49% of its total capital, and Fahrzeugwerk Bernard Krone GmbH on 29.01.2015, was finalized on 08.04.2015, after all permissions were received.


Wholesale Market Monthly Sales

DOAS Monthly Sales

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

33,674

36,953

64,348 88,785 85,574

93,765 90,75096,172 96,479

84,313 93,342

90,85683,025

68,580 67,93656,425 63,963 63,088 63,494 59,563

71,401 71,98288,100

142,245

89,044134,289

49,45639,316

32,020

-5% 4%

8,935

15,541

15,760

15,811

20,141 20,827 20,323

18,103

19,486

18,24317,468

11,80513,943

11,87310,724

15,859 16,062

15,766

19,843

20,94822,051

19,262

14,573

13,71912,966 13,498

10,3787,826 9,088

-8% 3%

2014 2015 2016 Change ( 16/15)

2014 2015 2016 Change

6,911

( 16/15)

62,761


Market Review - Wholesale - 2015

MARKET DOAS

December 2014 December 2015 Change

Total Market PC Premium LCV HCV*

154,970

17,69423,191

33,411

2,014 3,291

22,002

168,326

129,765

205,028

32%

24% 44%

63%

30%

DOAS TotalPC Premium LCV HCV*

793,097

582,117

726,477

75,756

179,919

245,027

31,061 33,652

94,829

1,005,156

27%

25%

25%

36%

8%

*Excluding Krone and Meiller

December 2014 December 2015 Change


Market Review - Wholesale - June 2016

MARKET DOAS

Jun 2015 Jun 2016 Change

Total Market PC Premium LCV HCV*

99,814

9,52214,343 15,946

1,555 1,234

9,947

80,65783,916

97,837

-2%

4%11%

-21%

-4%

DOAS TotalPC Premium LCV HCV

463,470

336,876349,993

40,786

108,767 103,782

17,827 9,543

42,635

463,318

0%

4%

5%

-5%

-46 %

Jun 2015 Jun 2016 Change

*Excluding Krone and Meiller


Market Share - Retail - 2015

RETAIL MARKET 2013 YEAR END

2014 YEAR END

YTD DEC. 14

YTD DEC. 15

14/15 CHANGE

YTD DECEMBER 2014/2015 CHANGE

PASSENGER VEHICLE %DOAS 19.3 22.2 22.2 23.1 0.9 0.9RENAULT 18.9 20.1 20.1 19.2 -0.9 -0.9TOFAS 7.8 6.9 7.2 7.1 0.3 -0.1HYUNDAI 7.2 7.65 7.7 6.9 -0.7 -0.7TOYOTA 5.4 5.8 5.8 6.6 0.8 0.8FORD 8.8 6.4 6.4 6.5 0.2 0.2OPEL 8.4 6.7 6.7 6.5 -0.2 -0.2BMW 3.1 4.5 4.5 4.3 -0.2 -0.2OTHER 21.1 19.9 19.5 19.8 -0.1 0.3

LIGHT COMMERCIAL VEHICLE %FORD 26.4 27.5 27.5 29.5 2.0 2.0TOFAŞ 25.1 27.5 27.5 25.6 -1.9 -1.9DOAS 12.6 13.3 13.3 13.1 -0.3 -0.3RENAULT 10.1 8.5 8.5 9.6 1.1 1.1CITROEN 5.5 4.5 4.5 4.9 0.4 0.4PEUGEOT 5.8 3.9 3.9 4.8 0.9 0.9MERCEDES-BENZ 5.5 4.5 4.5 3.5 -1.0 -1.0MITSUBISHI 2.0 2.4 2.4 1.9 -0.6 -0.6OTHER 7.0 8.0 8.0 7.3 -0.7 -0.7

LIGHT VEHICLE %DOAS 17.8 20.1 20.1 20.6 0.5 0.5RENAULT 17.0 17.4 17.4 16.8 -0.6 -0.6FORD 12.7 11.3 11.3 12.3 0.9 0.9TOFAŞ 11.5 11.7 12.0 11.8 0.0 -0.2HYUNDAI 5.8 6.1 6.1 5.4 -0.7 -0.7TOYOTA 4.5 4.7 4.7 5.3 0.6 0.6OPEL 6.6 5.1 5.1 4.9 -0.3 -0.3MERCEDES-BENZ 3.6 4.1 4.1 4.0 0.0 0.0OTHER 20.5 19.6 19.3 19.2 -0.4 -0.2

RENAULT TOFASDOAS HYUNDAI TOYOTA

PV TOP 5 DECEMBER 15

FORD DOASTOFAS RENAULT CITROEN

LCV TOP 5 DECEMBER 15

LV TOP 5 DECEMBER 15

DOAS FORDRENAULT TOFAS HYUNDAI

23.1%

7.1%

19.2%

6.9% 6.6%

29.5%

13.1%

25.6%

9.6%4.9%

20.6%

12.3%

16.8%

11.8%

5.4%


Market Share - Retail - June 2016

RETAIL MARKET 2014 YEAR END

2015 YEAR END

YTD JUN 15

YTD JUN 16

15/16 CHANGE

YTD JUN 2015/2016 CHANGE

PASSENGER VEHICLE %DOAS 22.2 23.1 24.2 22.4 -0.7 -1.8RENAULT 20.1 19.2 18.0 20.9 1.7 2.9TOFAS 6.9 7.1 7.4 7.2 0.1 -0.2OPEL 6.7 6.5 6.2 7.1 0.6 0.9HYUNDAI 7.7 6.9 7.2 6.7 -0.2 -0.5FORD 6.4 6.5 7.0 6.3 -0.2 -0.7TOYOTA 5.8 6.6 6.8 5.8 -0.8 -1.0MERCEDES-BENZ 3.9 4.2 3.6 4.3 0.1 0.7OTHER 19.9 19.8 19.7 19.4 -0.5 -0.3

LIGHT COMMERCIAL VEHICLE %FORD 27.5 29.5 28.7 29.7 0.2 1.0TOFAŞ 27.5 25.6 25.3 23.3 -2.3 -2.0DOAS 13.3 13.1 13.3 15.5 2.5 2.3RENAULT 8.5 9.6 8.4 8.6 -1.0 0.2PEUGEOT 3.9 4.8 4.8 4.6 -0.2 -0.2MERCEDES-BENZ 4.5 3.5 3.6 3.9 0.5 0.3CITROEN 4.5 4.9 6.2 3.5 -1.4 -2.8MITSUBISHI 2.4 1.9 2.0 2.0 0.1 0.0OTHER 8.0 7.3 7.7 8.9 1.6 1.3

LIGHT VEHICLE %DOAS 20.1 20.6 21.6 20.8 0.3 -0.7RENAULT 17.4 16.8 15.7 18.1 1.3 2.4FORD 11.3 12.3 12.2 11.6 -0.6 -0.6TOFAŞ 12.0 11.8 11.7 10.9 -0.9 -0.8OPEL 5.1 4.9 4.7 5.5 0.6 0.8HYUNDAI 6.1 5.4 5.6 5.4 0.0 -0.3TOYOTA 4.7 5.3 5.4 4.9 -0.3 -0.5MERCEDES-BENZ 4.1 4.0 3.6 4.2 0.2 0.6OTHER 19.6 19.2 19.5 18.6 -0.5 -0.9

RENAULT TOFASDOAS OPEL HYUNDAI

PV TOP 5 JUNE 16

FORD DOASTOFAS RENAULT PEUGEOT

LCV TOP 5 JUNE 16

LV TOP 5 JUNE 16

DOAS FORDRENAULT TOFAS OPEL

22.4%

7.2%

20.9%

7.1% 6.7%

29.7%

15.5%

23.3%

8.6%4.6%

20.8%

11.6%

18.1%

10.9%

5.5%


Financial Performance


Consolidated Income Statement

(TL mn, CMB) 31 Mar 16 31 Mar 15 Change (%)

Revenue 2,252 2,175 4%Gross Profit 253 267 -5%Operational Expenses -163 -124 31%

Selling and Marketing Expenses -71 -57 29%General Administrative Expenses -86 -65 32%Warranty Expenses, net -19 -10 90%Other Operating Expenses, net 13 8 77%

EBITDA 105 155 -32%EBIT 90 144 -37%

Margins 31 Mar 16 31 Mar 15 Change (%)

Gross Margin 11.2% 12.3% -9%Opex/Sales 7.2% 5.7% 26%EBITDA Margin 4.7% 7.1% -35%EBIT Margin 4.0% 6.6% -39%Net Profit Margin 2.1% 6.1% -66%


(TL '000) 31 Mar 16 Vertical Analysis 31 Mar 15 Vertical

Analysis Change (%)

Revenue 2,252,445 2,175,042 4%Direct cost of revenue -1,999,670 -89% -1,907,684 -88% 5%Gross profit 252,775 11% 267,358 12% -5%Selling, marketing and distribution expenses -71,023 -3% -56,647 -3% 25%SG&A Expenses -86,143 -4% -65,423 -3% 32%Warranty expenses -18,722 -1% -9,872 0% 90%Other operating incomes/losses, net 13,308 1% 8,087 0% 65%Results from operating activities 90,195 4% 143,503 7% -37%Income from Investing Activities - 33,190 Income Loss from Associates 20,551 12,634 63%Financial incomes/costs, net -54,248 -28,273 92%Profit before income tax 56,498 3% 161,054 7% -65%Tax expense -9,286 -28,529 -67%Profit for the year 47,212 2% 132,525 6% -64%

Consolidated Income Statement

Selling, marketing and distribution expenses

• 8% Increase in Distribution Expense

• 58% Increase in Advertisement Expenses

Direct cost of revenue• Negative impacts on gross profit margin and

direct cost of revenue are as stated below: - Increased EUR/TLvolatilityin1Q16.(Due to

competition in the market, volatility in currency was not fully reflected in our sales prices)

- FOB prices increased in some PC models. - Due to the emission problem, Doğuş

Otomotiv had suspended sales of affected Jetta models in October 2015.

General Administration Expenses

• Increase in personnel expenses by 33%

Income/Loss from Associates 31 Mar 16 Cumulative 31 Mar 15 Cumulative

VDTF 8,917 3,799Doğuş Sigorta 299 1,227SKODA (Yüce Oto) 1,973 2,986VDF Servis Holding 2,867 3,180TÜVTURK Group 7,321 3,114Meiller-Doğuş -440 -243Krone-Doğuş 0 -1,567Doğuş Technology -386 138Grand Total 20,551 12,634


Financing Costs

(TL mn, CMB) 31 Mar 2016 31 Mar 2015 (% Change)

Financing Costs -54.25 -28.27 92%Finance expenses, net -54.25 -26.32 106%

Interest expense on borrowings -53.49 -25.37 111%Commission expenses on letters of guarantee -0.75 -0.70 6%Other financial expenses -0.01 -0.25 -96%

Foreign Exchange gain/loss, net* - -1.96 -100%

CMB: Capital Market Boards of Turkey

*arising from credit loans


Consolidated Balance Sheet

(TL ’000) 31 Mar 16 31 Dec 15

ASSETS 4,219,644 3,979,903 Cash and cash equivalents 44,551 71,870 Trade receivables 911,703 1,103,939 Inventories 1,527,397 1,214,122 Tangible and intangible non-current assets 697,233 684,891 Financial Investments 533,196 511,815 Investments in equity accounted investees 260,780 239,010 Other 244,784 154,256

LIABILITIES 3,088,142 2,617,020 Financial liabilities 1,924,736 1,941,124 Trade payables 711,813 509,411 Provisions 71,033 68,920 Other 380,560 97,565

EQUITY 1,131,502 1,362,883

Inventories: • Increase in goods in transit (vehicle)

• 31 March 2016: 1.527.397K TL• 31 December 2015: 1.214.122K TL

• Number of vehicles increased from 14.426 units to 21.605 units as of 31.03.2016.

Trade Payables:Trade payables of the company increased by 40% compared to 31.12.2015. The main reason for the rise is the increase in payables to OEM due to the increase in the amount of inventory in 1Q16.

Financial liabilities:Cost of debt for the short term loans increased by 2 basis points in 1Q16 compared to 1Q15.

Investments in Equity Accounted Investees 31 Mar 16 31 Dec 15

AssociatesVDF 94,198 85,281Doğuş Sigorta 34,227 32,709Yüce Auto (SKODA) 19,271 17,298VDF Servis 35,719 32,852Doğuş Teknoloji 4,137 4,523

Joint VenturesTÜVTURK North - South (Consolidated) 67,675 60,354

Meiller-Doğuş 5,553 5,993Total 260,780 239,010

Other 31 Mar 16 31 Dec 15

Dividend paid 300,000 0VAT payable 22,686 61,501 Income tax payable 4,755 3,166 Deferred income 19,102 13,604 Payables related to employee benefits 29,816 13,894

Deferred tax liabilities 476 2,625 Other 3,725 2,775

Other 31 Mar 16 31 Dec 15

Investment property 20,119 20,222Warranty claims and price difference receivables 46,093 28,072

Prepaid Expenses short-term 84,225 15,749Advances Given 12,863 3,449Receivables due to insurance claims 12,937 9,459Deferred tax assets 14,010 5,662Advances given for property and equipment purchases 24,641 28,090

Prepaid Expenses long-term 7,814 721Deferred tax 10,729 20,403Current income tax assets 0 15,984Other 11,353 6,445

Provisions 31 Mar 16 31 Dec 15

Warranty Provisions 36,799 35,617Legal Provisions 14,335 14,173Provision for unused vacation 5,198 5,193Long-term provisions related to employee benefits 14,701 13,937


Consolidated Balance Sheet

(Balance Sheet mn,TL) 31 Mar 16 31 Dec 15 (% Change)

Total Assets 4,220 3,980 6%Total Equity 1,132 1,363 -17%Net working capital 128 236 -46%Net cash position -1,930 -1,902 1%CAPEX 37 169 -78%Receivable Turnover (day) 37 37 0%Inventory Turnover (day) 70 45 54%Payable Turnover (day) 32 19 71%Net Debt/EBITDA 4.5 3.7 21%ROA 1.1% 7.6% -85%ROE 4.2% 22.2% -81%


Stock Price History

Shareholders Structure % Share Amount (TL)

DOĞUŞ HOLDİNG AŞ. 35.21% 77,461,218DOĞUŞ ARAŞTIRMA GEL. VE MÜŞ. HİZM.A.Ş. 30.29% 66,638,086OTHER DOĞUŞ GROUP COMPANIES 0.00% 696PUBLICLY TRADED 34.50% 75,900,000TOTAL 100.00% 220,000,000

BIST 100 Relative DOAS TL 20.00

18.00

16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

0.00Jun 06

Jun 07Jun 08

Jun 09Jun 10

Jun 11Jun 12

Jun 13Jun 14

Jun 15Dec 06

Dec 07

Dec 08

Dec 09

Dec 10

Dec 11

Dec 12

Dec 13

Dec 14

Dec 15

Jun 16

1.60

1.40

1.20

1.00

0.80

0.60

0.40

0.20

0.00


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.

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