Investor Relations Presentation - Doğuş Otomotiv · Investor Relations Presentation - DOAS...

Investor Relations PresentationDOAS Profile 2016

Investor Relations Presentation - DOAS Profile - 2016 | 1

Agenda

Doğuş Group

Doğuş Otomotiv

Macroeconomic Outlook

Automotive Market

Core Business Lines

Automotive Related Ancillary Business

Corporate Governance

Social Media


Doğuş Group Structure

Banking & Financial Services Tourism & Services

Automotive

Construction

Real Estate

Energy

New Initiatives

MediaEntertainment

Corporate Responsibility


Doğuş OtomotivDoğuş Otomotiv aims at having a productive and profitable presence in every stage of the automotive value chain.


Doğuş Otomotiv / Value Chain 2016

Presence in Every Link of The Automotive Value Chain

*Subsidiaries**Representative Offices

Replacement Parts and After Sales Services

Quick Fix to all Brands

Spare Parts&Logistics

Core BusinessAutomotive

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


Widest Retail & Services Network in Turkey

Widest retail and services network in Turkey with more than 520 customer points

Audi VW Skoda Scania Porsche SEAT Meiller Thermo King

(*) DOAS brands, including VW, Audi, Porsche, Scania, SEAT, Skoda, Scania Marine as of December 2015


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

continues)

• 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

Success Story of DOAS

After Doğuş Otomotiv became the sole importer and distributor of VW brand vehicles in Turkey, VW brands’ market share increased from 0.5% in 1993 to 20.6% in 2015.

1994

1996

2000

2004

2008

2010

0.5%5.8%

11.4%

20.6%

Market Share

Market Share

Market Share

Market Share

Car park more than 1.5 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• Skoda 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


Key Strengths of DOAS

Leader in import market in Turkey with 20.6% m/s among c.35 pure importers

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

Widespread network and customer base, widest network with c. 520 customer points

Advanced financial risk management systems daily monitoring of the FX position

Well-positioned multi-brand products 13 different brands

Youngest fleet in the market with new launches every year, has more than 80 models

Profit oriented growth strategy profitability always kept without losing market share

Creating its own brands DOD, oto fix, DOD City, DOD Prime

Well-equipped IT infrastructure

Customer focus, close relations with customers result in high loyalty to the brands

widest network

> 520 customer points

youngest fleet

> 80models

multi-brand products

13different brands


PV

LCV

HCV

Luxury Segment

DOAS’ Position in the Market - 2015 FY

VW PV sales are ranked as 1st in passenger vehicles market. (Ranked as 1st regarding total sales of both PV and LCV sales) 2015 PV sales of VW is 107,401. 2015 market share of VW is realized as 14.8%. When compared with 2014 figures, in 2015 VW increased its sales by 27%. Golf, The Beetle, Passat and Passat Variant retained 1st position in their segments. SEAT, sold 16,911 units in 2015, achieving a record market share with highest ever sales volume. The brand is successfully continuing its goal of sustainable growth.

In 2015 Skoda reached all time high sales performance with the delivery of 22,107 units. With the successful growth performance of 52% the yearly market share of brand reached to 3.05%.

VW LCV has market share of 13.1% in 2015. VW LCV sold 31,642 units in 2015. VW LCV sales are ranked 3rd in the light commercial vehicles market. VW LCV is the sales leader in import market. (29.5%, highest market share ever). Transporter is the best selling vehicle in its segment for 5 years. Crafter has reached 6,531 unit sales and 9.1% market share (highest sale and market share) Amarok has reached 3,659 unit sales and 25.6% market share (highest sale and market share)”

Scania has reached 2,014 unit sales in 2014. Scania has reached 3,415 unit sales and 10.2% market share in 2015 (highest sale and market share ever).

Meiller has reached 407 units sales in 2015 and at the traditional “Best Commercial Vehicles and Brands” competition organized by German magazines specialized in commercial vehicles sector, Meiller won the “Best Tipper of the Year 2015” award for the 11th year in a row.

Thermo King sold 606 units in 2015 and increase its market share in the cold chain transportation sector. Thermo King was chosen the best brand for the 11th time in the “Cooler Units” category through reader votes during the “Best Brand” competition organized Lastauto Omnibus, Trans Aktuell and Fernfahrer magazines.

Bentley sold 19 units in 2015. Lamborghini sold 6 units in 2015. Porsche sold 861 units in 2015, which is the highest ever sales volume, leading to 46% increase compared to 2014. Audi sold 20,279 vehicles in 2015, highest sales ever, leading to 13.9% increase compared to 2014.


Financial Performance

4,808597

6,603750

5,132

7137,693

873

10,889 1,109

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

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

133

93108

115

169

CapEx (mn TRY)

260

337331365

506

EBITDA (mn TRY)

1,905

2,4642,223

2,827

3,980

Total Assets (mn TRY)

142

225259 253

302

Net Profit (mn TRY)


Margins

12.4%

3.0%

5.4%

0.622.09

11.4%

3.4%

5.1%

0.732.40

13.9%

5.0%

6.4%

0.471.68

11.3%

3.3%

4.7%

0.84

2.80

10.2%

Consolidated8% max

10-11% Target

2.8%

4.6%

1.373.70

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

Net Profit Margin (%)

EBITDA Margin (%)

Net Financial Debt/Total Equity Net Financial Debt/EBITDA

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

2011 2012 2013 2014 2015

Solo 5% max

7.4%

4.6%

6.7%

4.5%

7.9%

5.3%

7.1%6.0%

4.6%

3.3%


2016 New Launches

SPECIAL MODEL Superb Laurin & Klement Octavia RS 4X4

NEW Tiguan Beetle

SPECIAL MODEL Polo Allstar Golf Allstar Scirocco Allstar Beetle Allstar

NEW A4 Avant A4 Allroad R8 A5 Coupé Q2

FACE LIFT A3 Sportback A3 Sedan A3 Cabrio

NEW Carrera 4 / 4S / Turbo Targa 718 Boxster 718 Cayman

NEW Huracan Spyder Bentayga

NEW in TR EUR 6 Distribution Vehicles 4X2 Trucks 6x2 Trucks


Doğuş Otomotiv Strategic Goals

Fan Customer

Market Share Protection

Employee Satisfaction

Productivity


Doğuş Otomotiv Strategic GoalsBE SIZABLE – BE CLOSE – BE CREATIVE

One Step Beyond Customer Satisfaction: Turning Customers into Fans!

• The Value and Care Centre (DİM)• Connectivity• Digital Experience “Audi City”

Achieving Excellence through Increase in Productivity!

• Turkuaz Software• Productivity Improvements for

The Shipment From The Dock • Sustainable Developments in

Customer Points• Reinforcement of Personnel

Infrastructure

Maintaining Leadership in the Automotive Market!

• Maintain the Acquired Market Share Levels

• Creative Service Beyond Expectations

• Customer Satisfaction Oriented Work

Fan Customer

Market Share Protection

Employee Satisfaction

Productivity

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

• BİR’İZ” (Together) Employer Brand• GO-School of Improvement

Platform• Talent Management and Equality

at Work• DRIVE- Doğuş Automotive’s

Route Human and Training


Macroeconomic Outlook


Macroeconomic Indicators

YoY Inflation (%)

11-0

9

04-

09

04-

10

12-1

0

12-1

1

12-1

2

04-

14

04-

15

08

-09

08

-10

04-

11

04-

12

04-

13

08

-14

08

-15

03-

09

09

-09

07-

10

10-1

0

07-

11

07-

12

07-

13

07-

14

10-1

1

10-1

2

10-1

3

10-1

4

12-1

5

10-1

5

07-

15

04-

10

04-

12

04-

13

04-

14

04-

15

12-0

9

08

-11

08

-12

12-1

3

08

-13

12-1

4

01-

10

01-

12

01-

13

01-

14

01-

15

06

-09

12-1

5

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 (%)

12-0

4

06

-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

12-0

5

06

-05

06

-07

06

-08

06

-09

06

-10

06

-11

06

-12

06

-13

06

-14

12-1

4

12-1

5

06

-15

2.13%

1.09%

2.70

2.20

1.70

1.20

0.70

0.20

TRY EURO US$ Consumer Confidence Index

105.0

100.0

95.0

90.0

85.0

80.0

75.0

70.0

65.0

60.0

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

12-0

9

12-1

0

12-1

1

12-1

2

12-1

3

12-1

4

06

-10

06

-11

06

-12

06

-13

06

-14

06

-15

09

-10

09

-11

09

-12

09

-13

09

-14

12-1

50

9-1

5

03-

10

03-

11

03-

12

03-

13

03-

14

03-

15

5.71%

13.67% 12.98%11.14%

8.81%

04-

11

01-

113.18

3.052.92

9.38%

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

Population & Demography

Age Demography

2015 2023

Above6012% 15%

35-5931%34%

15-3433%

30%

0-1424% 21%

Population & Demography

Population Statistics (’000)

2015 2019 20272023

78,741

81,322

84,247

86,777

Economy

140.0

120.0

100.0

80.0

60.0

40.0

20.0

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

12/0

30

6/0

412

/04

06

/05

12/0

50

6/0

612

/06

06

/07

12/0

7

12/0

8

12/0

9

12/1

0

12/1

1

12/1

2

12/1

3

12/1

4

12/1

5

06

/08

06

/09

06

/10

06

/11

06

/12

06

/13

06

/14

06

/15

25.00

20.00

15.00

10.00

5.00

0.00

7.006.005.004.003.002.001.00

0.00-1.00-2.00-3.00

Trade Deficit Export Import

Auto Industry Trade Balance (US$ bn)

98 99 00 01 02 03 04 05 06 07 08 09 10 151412 1311


Automotive Market


Development world car market vs. Volkswagen Group Passenger Car Deliveries(1) (Growth y-o-y in deliveries to customers, January to December 2015 vs. 2014)

North America

Western Europe

Central & Eastern Europe

World Car Market: 2.6% VW Group: -1.8%

South America

Rest of the World

Asia Pacific

Car Market VW Group

5,720 6,1926,272 6,310

7,278

8,361 9,3459,728

10,1379,931

2009 20102006 20112007 20122008 2013 2014 2015

VW Group Deliveries to Customers (thousand) 2006-2015

Volkswagen Group Global

2.6%

-3.0%

-7.7%

7.6% 4.0%6.1%

4.3%

9.0%

5.1%

(1) Figures excl. Volkswagen Commercial Vehicles, Scania and MAN. The Saveiro model,

previously Volkswagen Commercial Vehicles, is reported in the Volkswagen Passenger Cars

brand retrospectively as of December 2015.

Source: Volkswagen Group: Financial sustainability on core strengths Presentation, December 2015.

-23.3%-21.2%

-29.0%


Global Passenger Vehicle Market Growth Forecast 2016 (mn units)

21.3

33.3

13.4

3.8

2.8

4.7

19.6

30.4

12.1

5.2

3.6

4.7

20.8

31.6

13.2

4.2

2.8

4.7

2014

2014

2014

2014

2014

2014

2015

2015

2015

2015

2015

2015

2016 F

2016 F

2016 F

2016 F

2016 F

2016 F

North America(mn units)

Asia Pacific(mn units)

Western Europe(mn units)

South America(mn units)

Central & Eastern Europe(mn units)

Rest of the World(mn units)

Change 2%

Change 5%

Change 2%

Change -10%

Change 0%

Change 0%



Volkswagen Group - Well on track to achieve targets under Strategy 2018

8.26.0 5.8

1.2

84%

8.4

7.1

11.9

7.83

6.93

13.28.7

6.3

90%

(on a scale 1 to 101) (%)

(mn units)

(Employee opinion survey)

2007 2007 2008 2009

20072007/08

2010 2010 2011 2012

2010

2013 2013

201320131 Own calculation based on key industry studies on customer satisfaction with dealers, after sales and new vehicles.2 Including China. 3 Group profit before tax margin excluding the nonrecurring effect from the remeasurement of the Porsche put/call options from remeasurement at the contribution date of the shares already held. Source: Volkswagen Group: Financial sustainability on core strengths Presentation, December 2015.

Volkswagen Group Customer Satisfaction

Leading in customer

satisfaction and quality

Volumes > 10 million units

p.a.2

Top employer

Volkswagen Group profit before tax

margin > 8%

Group profit before tax margin

Group deliveries to customer“I am happy to work at the Volkswagen Group”

6,2

7,2

9,7


Volkswagen Group Future Tracks - Paving the way to the future

Strategy for the beyond 2018

Volkswagen Group 2018 Strategy

Leading in customer

satisfaction and quality

Volumes > 10 million units

p.a.

Top employer

Volkswagen Group profit before tax

margin > 8%

E-mobility

Revenues

Trade barriers

Economic development

Currencies Regulations

Cost

Connectivity Business models

Product cycles

Automated driving

Future trends

Economic uncertainty

Profitability



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

619592

496

553

761

871

972

762779

852

152

202

153124109

8650536975

12.1%12.6%

15.9%

17.9%

20.8%20.1%

11.6%

10.6%9.0%

11.3%

2006 2007 2008 2009 2010 2011 2012 2013 20152014

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


WHOLESALES (unit) 2015 2014 Change 2013 2012 2011

VW 140,088 112,958 24% 112,958 92,900 82,989 VW PV 106,677 85,134 25% 88,890 66,993 55,764 VW LCV 33,411 23,191 44% 24,068 25,907 27,225AUDI 21,100 17,070 24% 15,025 14,514 12,121 PORSCHE 877 601 46% 542 510 466 BENTLEY 19 21 -10% 21 18 11 LAMBORGHINI 6 2 200% 4 3 6 SEAT 17,212 12,540 37% 11,334 5,730 6,115 SKODA 22,435 14,397 56% 12,362 10,404 7,571 PC TOTAL 168,326 128,178 31% 128,178 98,172 82,054 LCV TOTAL 33,411 24,068 39% 24,068 25,907 27,225 LV TOTAL 201,737 152,246 33% 152,246 124,079 109,279 SCANIA 3,291 2,014 63% 1,672 1,701 2,929 KRONE 158 716 -78% 752 474 817 MEILLER 407 309 32% 386 382 572 GRAND TOTAL 205,593 155,056 33% 155,056 126,636 113,597 MARKET SIZE* PV 726,477 582,117 25% 663,728 556,584 598,706LCV 245,027 179,919 36% 187,840 222,434 271,812HCV 33,652 31,061 8% 28,111 30,525 37,276 TOTAL 1,005,156 879,679 14% 879,679 809,543 907,794 DOAS Market Share PV 23.2% 19.3% 19.3% 17.6% 13.7%LCV 13.6% 12.8% 12.8% 11.6% 10.0%HCV 9.8% 5.9% 5.9% 5.6% 7.9%TOTAL 20.5% 17.6% 17.6% 15.6% 12.5%

DOAS Wholesales Performance

(*) Source: Automotive Distributors Association


Turkish Automotive Industry

2015

150%

100%

50%

0%

-50%

-100%

12%

10%

8%

6%

4%

2%

0%

-2%

-4%

-6%

-8%

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

Car 53% Small truck 16% Motorcycle 15% Tractor 8% Truck 4% Minibus 2% Bus 1%

199

619

97

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

2015

2012

2011

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

Production vs Sales GDP vs Auto Sales Breakdown of Vehicles*

74%

44%

62%

100%

52%

3%

PC LCV

Import Diesel A/T

Auto Industry Segmentation*

Turkey Romania UK Germany Greece

Vehicle Ownership Total Car Parc / 100 Household Parc Density / 1000 Inhabitants

64

185

66

291

126

590

118

587

118

55595%

55%

4%10%

35%

PC LCV

Auto Engine Segmentation*

Source: General Directorate of Public Security

Total Number of Road Motor Vehicles: 20 mn units

2013

972

1,359

* As of December 2015

below 1600 cc between 1600 cc- 2000 cc

above - 2000 cc


Turkish Automotive Industry0

8-0

2

03-

09

01-

11

06

-09

09

-12

11-0

4

01-

03

10-0

9

01-

14

SCT Rates in Turkey (%)(Passenger Cars)

150

100

50

0

<1600 cc 1600-2000 cc >2000 cc

4.61

13

3.43

4.074.174.29

10

4.47

121212

2.67

15

1.73

23

12

Greece

Motor Vehicles

Turkey

BusPC Minibus

UK

Small Truck

BulgariaItaly Germany

Truck

China USA

TractorMotorcycle

Oil Prices (TRY) (31.12.15)

Average Vehicle Age in Turkey (2015)

01.

01.

06

01.

01.

07

01.

05.

06

01.

05.

07

01.

09

.06

01.

09

.07

01.

01.

08

01.

01.

09

01.

01.

10

01.

01.

11

01.

01.

12

01.

01.

13

01.

01.

14

01.

05.

08

01.

05.

09

01.

05.

10

01.

05.

11

01.

05.

12

01.

05.

13

01.

05.

14

01.

09

.08

01.

09

.09

01.

09

.10

01.

09

.11

01.

09

.12

01.

09

.13

01.

09

.14

01.

01.

150

1.0

5.15

01.

09

.15

01.

01.

16

6

5

4

3

2

1

0

Oil Prices in Turkey (TRY) (2006-2015)

145

50

7584 80 84 84

130 130

46

5260 54 60 60

80 8090

45

27

30 3718 27

37 37 40


Main Stipulating Factors to Automotive Demand

Right/True Brand Positioning in

Market and Demand

Developing Economy (Stable Interest Rates&FX Prices)

Increasing Growth and GDP per Capita

Increasing Number of Credit Facilities

Trust in Public Institutions

Accelerating Urbanization

Demographic Structure and Young Population

Rising Life Standards

Positive Sentiments for Future

Automotive ownership becomes necessity

Low vehicle density

Stable Tax Regime and Low Oil Prices

Low Cost of Ownership

Stable Political Environment


Core Business Lines


Import and Distribution

Volkswagen passenger cars retained its consistent growth trend and success by increasing its market share to 14.8% with 107,401 sales. These results positioned the Volkswagen passenger cars in the first rank of the passenger vehicle market for the first time. Volkswagen passenger vehicle has been chosen as «Lovemark» brand of 2015 once again this year by the independent Research company “Ipsos”.

Scania has reached 3,415 unit sales and 10.2% market share in 2015 (highest sale and market share ever).

SEAT increased its sales by 33% in 2015 and continued its trend to grow above market. With successful product and communication strategies, a structured network of Authorized Dealers and an aggressive sales and fleet policy, SEAT increased its sales to 16,911 units and reached 2.3% market share in passenger vehicle market. Thus, SEAT vehicle park increased by 22% compared to previous year. SEAT Turkey won the 3rd place in Service Advisor Category of Top Service People Competition, in which best service advisors of each country compete.

Meiller has reached 407 units sales in 2015 and at the traditional “Best Commercial Vehicles and Brands” competition organized by German magazines specialized in commercial vehicles sector, Meiller won the “Best Tipper of the Year 2015” award for the 11th year in a row.

Porsche Turkey has increased its sales by 46% compared to 2014, as a result of stronger Authorized Dealer network and Service Organization, growing choice of models, increasing Customer Satisfaction and its marketing activities

Thermo King sold 606 units in 2015 and increase its market share in the cold chain transportation sector. Thermo King was chosen the best brand for the 11th time in the “Cooler Units” category through reader votes during the “Best Brand” competition organized Lastauto Omnibus, Trans Aktuell and Fernfahrer magazines.

Audi increased its sales to 20,279 units in 2015 with growing model range and expanding dealer network. Thus, vehicle park has increased by 18.4%, leading to a 18% increase in after sales turnover. Through Audi’s “customer delight” motto, customer loyalty is 75%, still a benchmark level in Europe.

Bentley sold 19 units and Lamborghini sold 6 units in 2015. Doğuş Otomotiv broadest brand range and service network in the Turkish automotive industry, and Bentley and Lamborghini, its top luxury brands, offer “creative service beyond expectations in line with the company’s vision.”

The total sales of the land, industrial and marine engines of Scania Engines have increased by 7% to 251 units. (highest sale ever)

“In 2015, VW Commercial Vehicles has managed to maintain its steady growth and increased its sales to 31,642 units. VW Commercial Vehicles has become market leader in the imported commercial vehicle sales while maintaining its third place in the overall market.”

Skoda brand, with the new launches of New Superb and Fabia models, strengthening its position in fleet market succeed to increase the deliveries to 22,107 units with 52% growth rate ended with a 3.05% market share in 2015. The transition and expansion of the dealer network into new corporate identity and design standards was completed 70% and it is aimed to be fully completed in 2016.


Retail > DOĞUŞ OTO

Doğuş Oto represents seven brands (VW Passenger Cars, VW Commercial Cars, Audi, Porsche, SEAT, Skoda, and DOD), for which it sells new and second-hand vehicles, spare parts, and accessories at a total of 33 Authorized Dealers and 30 service points in Istanbul, Ankara, and Bursa; it also offers its customers insurance, financing, and after-sales support services.

Doğuş Oto operates on a total area of 229,000 square meters with 1,547 employees.

Doğuş Oto sold 59,933 new vehicles, marking a new record. Its share in the retail sales of Doğuş Otomotiv was 32.4% in 2015.

In 2015, the total number of customers served rose to 240,201

represents

7 brands one-stop shopping concept

operating on

229,000 sqm total area

Share of

32.4% DOAS sales in 2015


Porsche Sales in Lausanne

In 2007, Porsche AG granted Doğuş Otomotiv the marketing, sales and after-sales retail operations of the Porsche brand in Lausanne, Switzerland.

Switzerland’s one of the largest Porsche outlet.

D-Auto Suisse Sa sold 361 new vehicles in 2015.

Total investment is CHF 23.6 mn.

A subsidiary of Doğuş Otomotiv, D-Auto Suisse SA is located in Lausanne, Switzerland, where its service area of 5,000 square meters and its 39 employees offer Turkish hospitality and the company’s experience to its customers since September 2009.

2015

361 deliveries

total investment

CHF 23.6 million

Switzerland’s one of the largestPorsche outlet

Porsche AG Schweiz DASSA DASSA MS (%)

9.9%

2,111

3,822

2,871

1,530

152 159 184 183 3382758.8%

9.4%

8.7%8.9%

9.6%

2010 2011 2012 2013 20152014

Auto Industry Segmentation

Retail > D-AUTO SUISSE SA

1,9551,801


Retail > D-AUTO LLC

Expansion into new geographies

A company has been founded in July 2013 in Erbil under the name of D’Auto Limited Liability Company (100% shares of D-Auto is owned by Doğuş Otomotiv Servis ve Ticaret A.Ş.) for the sole and exclusive importation, distribution, sales and after-sales services of VW and Audi passenger vehicles in Iraq (initial capital was 150 mn Iraq Dinar (US$ 125,000)). A place has been rented for 20 years.

In December 2015, the Iraq Distribution agreement was signed with Volkswagen Commercial Vehicles, and another one was added to the represented brands.

D-Auto LLC provides the best quality service to its customers, combined with its knowledge and experience, in an area of 7,500 m2 with its 22 employees.

D-Auto LLC sold 37 vehicles and gave service to 2,338 vehicles in 2015.

Once the political and economic situation is stabilized in the region, the planned project investment and dealer network structuring will be resumed.

Initial capital

150 mn IQD investment

Sales&After Sales Services on

7,500 m2 area

sales & service units

37 & 2,338 in 2015


Retail > Skoda

New Corporate Identity and Standards

Yüce Auto started the distributorship of Skoda brand vehicles in 1989.

In 1998 50% partnership with Doğuş Otomotiv started.

With current product portfolio including Superb, Octavia, Rapid, Rapid Spaceback, Yeti and Fabia, Skoda brand is covering in 85% of total passenger car market.

Skoda is represented with 39 Dealers and 40 Service Points. Current car park is exceeding 150,000 vehicles.

Until the end of first half of 2016 it’s aimed to complete the transition of the dealer network to the new Corporate Identity and Design standards.

2015 Sales

22,107 units

2015 Market Share

3.05%

Sales Growth

491%2010-2015


Replacement Parts and After Sales Services > Parts & Logistics

Parts and Logistics employs state-of-the art technology combined with the best modern practices of synergism, creating an unmatched service for the global brands represented by Doğuş Otomotiv.

Parts and Logistics has undertaken a new leap regarding its facilities by doubling its installed capacity in 2013 in order to improve quality of its service and to ensure sustainability of the business volume for the next decade. Spare parts stock warehousing and distribution is gathered speed and error rate is minimized by automation system which was created in 2014.

Parts and Logistics has implemented a new “shipment from the dock” project as part of its pioneering vision in vehicle logistics and has started importing and stocking to the port, carrying out vehicle distribution from the port to the dealers with multiple transportation companies, which has resulted in significant improvements in client delivery times.

Spare parts availability has reached a 99% level. Almost 50% common part usage brings synergy in spare parts and logistics.

99%availability in Spare Parts

installed capacity

doubled in 2013

shipment from the dock

new project


Used Vehicle Sales > DOD

Used vehicles market is a non regulated market in Turkey.

Used vehicle sales are expected to grow exponentially in the coming years due to a more organized structure related to consumer awareness and much more advantageous taxing options compared to new vehicles.

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

DOD provides services in Turkey with 60 customer points.

23,125 units sold in 2015. (21,120 units sold in 2014).

2009 2010 2014 2015201320122011

10,74712,557

20,206 21,12023,125

16,95415,659

DOD SALES PERFORMANCE

servicing through

60customer points in Turkey

sales - 2015

23,125 vehicles

Corporate and Pioneer brand of used car market.


Automotive Related Ancillary Business


Production > Meiller

Tipper Production with Meiller

Doğuş Otomotiv has become the main exclusive importer and distributor of Meiller brand in Turkey in February 2007.

As per the Letter of Intent (LoI) signed in October 2007, Doğuş Otomotiv and Meiller formed a joint venture (JV) company.

The JV is manufacturing Meiller brand tippers and semi-trailer tippers in Turkey.

In the newly established JV company Doğuş Otomotiv holds 49% stake, while the remaining 51% is owned by Meiller.

Meiller sold 407 units in 2015 (2014: 309 units)

* Production of Meiller Doğuş Damper Factory operating in Sakarya has been halted on 19 November 2015. The final decision regarding the production center will be clarified in the forthcoming period. We have completely fulfilled our obligations to our employees as part of our corporate values, laws and the principles for respecting the rights of employees. Following the halt of production, Doğuş Otomotiv will continue as the distributor of the Meiller brand.

capacity

3,000 units/year

407 units sold in 2015

investment

EUR 10 mn for the plant


portfolio

2011: 68,206 units (10% yoy increase)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)*

Finance > VDF

VDF acquires Scania and MAN Finance

The JV company 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.

The entire loan transaction is finalized by the VDF representative located at authorized dealers. To get quick response, loan applications are transferred to VDF through internet. VDF offers other advantages in addition to single-point loan services such as quick results, competitive interest rates, and minimum formalities.

The takeover of Scania’s and MAN’s financial service operations by VDF marks an important step in expanding the product range. VDF started to finance Scania heavy vehicles as of December 2014 and MAN heavy vehicles as of December 2015 after the completion of the mergers.

In 2015, New Credit Contracts realized as 78,111 units with a total amount of TRY 4,345 mn increasing the total portfolio to 146,046 units.

new contracts

2011: 41,562 units (53% yoy increase)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)*

credits given

2011: TRY 1,500 mn (82% yoy increase) 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)*

* Incl. Scania Finance


Finance > VDF INSURANCE

Finance > VDF FACTORING

number of policies

tripled in 4 years

number of VDF Insurance branches is

19

transaction volume

TRY 10.3 bn in 2015

VDF Insurance, as an agent for 11 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 brand and number of its branches is 19 in 2015.

VDF Insurance increased the number of its contracts by 23% in 2015, reaching a total of 314,757.

Active since May 2010, VDF Factoring Services offers factoring and financing services to 115 Authorized Dealers of Doğuş Otomotiv. In 2015, VDF Factoring reached a transaction volume of TRY 10.3 billion and a total asset value of TRY 284 million. Committed to the principle of continuous and stable growth, VDF Factoring aims to increase its business volume further in 2016.

104,664

205,941

136,043

256,554314,757

2012 20132011 2014 2015

Number of Insurance Contracts

29%13%38% 14%37%

11%

44%41% 16%16%

2012 20122013 20132011 20112015 20152014 2014

Insurance PenetrationExtended WarrantyMotor Insurance

4,13944

390693

1,100

5,213 5,979

8,800

2012 2013 2014 2015

Development of Assignments DOAS Yüce


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 mn.

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

Operation fees were collected from the suboperators 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 bn revenues in 20 years with US$ 2.5 bn EBITDA.

At the end of 8th year, nearly 46.9 mn vehicles have been inspected, 16.6 mn vehicles were re-inspected, 12.4 mn vehicles underwent exhaust gas emission measurements and enabled over 16.2 mn unsafe cars to return safely back into traffic once again.

In 2015, periodic inspections of 8.1 mn vehicles were completed and 2.8 mn vehicles underwent exhaust gas emission measurements.

TÜVTÜRK has opened the TÜVTÜRK Academyin order to further increase its service quality andto train its personnel in areas such as inspectionquality, service standards, customer satisfaction,effective customer experience, and flawlessoperation. The TÜVTÜRK Academy will offer 740 days of training to 1,800 people annually.

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.

Affiliate

46% Doğuş Otomotiv

Established

2011

ISO & ITILCertified


DOAS: First GRI reporter in automotive sector in Turkey

Approach to Sustainability Strategy

and Vision

FIRST GRI REPORTER IN OUR SECTOR

IN TURKEY

Corporate Responsibility (CR) at Doğuş Otomotiv

As of May 2010, we signed UN Global Compact.

Our 6th Corporate Responsibility Report is published as the first “GRI G4 Comprehensive Report” in the automotive sector.

Economic ImpactValue Chain

Multiple Brand ManagementSupply Chain

Business ContinuityQuality & Process

ManagementLean ApplicationsRisk Management

Information TechnologiesSales & After Sales Services

Authorized Sales & After Sales

Social ImpactProducts & Services

EmployeesEmployee Health &Safety

CustomersCustomer Health &Safety

Traffic is LifeHuman Rights

Community Engagement

Environmental ImpactClimate Change

Environmentally Friendly Technologies & Products

Energy EfficiencyWater Consumption

Waste & Scrap Management


Traffic is Life!

Since 2004, all projects aimed at increasing traffic safety awareness throughout society have been carried out as part of the “Traffic is Life!” corporate responsibility platform.

“Traffic is Life” has organized trainings about Traffic Safety for Doğuş Group employees. Within this scope, 8,966 hours traffic safety trainings was provided to the employees.

“Traffic is Life!” platform has reached 15,572 university students. The project was chosen as a model application by United Nations.

In order to evaluate the Traffic is Life! platform and exchange views on its development, we organized a Traffic is Life! workshops with the participation of authorized people from each department within the Company in 2013 and 2015.

Traffic is Life which left behind 10th year experience, gives special importance to communication studies. Doğuş Otomotiv was awarded by ADA Gladiator ‘Best Radio’ prize with Traffic Is Life‘s radio PSA. Traffic is Life Platform also has reached approximately 1000 person through traffic safety simulation with 3d oculus glass.

increasing

traffic safety awareness since 2004

“Traffic is Life!” platform has reached

15,572university students.

Doğuş Otomotiv was awarded by ADA Gladiator

‘Best Radio’ prize with Traffic Is Life‘s radio PSA


Sustainability Performance

Economic

Doğuş Otomotiv invested in a new center, called “The Value and Care Center”, in Kavacık, Istanbul in 2014 where such activities as listening to customer complaints and requests, coordinating roadside assistance and organizing customer satisfaction surveys are conducted.

The number of employees, whose suggestions contributed to improvement projects, increased by 9% over 2013.

With 80 projects implemented in 2014, we expect to achieve TL 1 million savings for our Company, or TL 3.5 Million, including the whole Authorized Dealer network.

In 2014, a supplier satisfaction survey was conducted for the first time, showing a satisfaction rate of 4.61 out of 5, applied to 57 suppliers.

In addition to Lean Leadership Trainings, 63 employees working in Logistics Warehouse received Lean Basic Training in 2014. 13 of these employees completed Lean Application Skills Development Program, receiving detailed training on lean subjects

Environmental Compared with the previous years our water consumption decreased by 30% in 2014.

1,815,162 kg of waste engine oil was collected from our Authorized Dealers and After-sales Service Centers in 2014. A portion of waste engine oil was sent to regeneration facilities to obtain base oil, and another portion to cement and lime factories. With the using of these portions as additional fuel instead of conventional fuels (coal, petroleum coke, etc.), we have prevented an extra 3,353 tons of CO2 emissions. This equals 152,400 trees or 380 hectares of forest.

With the recuperation of the batteries, 60% of the lead and 10% of the plastic is recycled and 20% of the acidic water is neutralized. We achieved 270,000 kWh energy savings by recovering batteries, thereby avoided 260 tons of CO2 emissions.

Approximately 13,048 trees were saved by the recycling of packaging waste in 2014.

Though Economic and Safe Driving Techniques (EVET) trainings provided by Volkswagen Commercial Vehicles Brand in every province of Turkey, the amount of savings per month is TL 770,000 or TL 9,250,000 annually.

Social and Ethics As of 2014 year in Doğuş Otomotiv;

• Percentage of Female Employees: 22.5% • Code of Ethics Training : 377 people, 188.5

man/hours (Including human rights topics) • Percentage of Female Employees Promoted:

34%. A Total of 8,966 Hours Traffic Safety Education for 2,011 Employees;

• Traffic Education for 8,000 primary school students,

• 644 man/hours Mobbing Training, • 377 People and 188.5 man/hours Code of

Ethics Training were conducted in 2014. For Product and Service Responsibility;

• 366 Authorized Dealer and After-sales Service Center audits were performed,

• Customer Satisfaction Score in sales: 109.93 / 120 and After-sales Service: 101.59

/120 were performed. • With Kalitek Quality Control Project, 139,429

hours were saved. • 377 employees including 70 blue-collars

received one-to-one Code of Ethics training, while 12 Authorized Dealers and After-sales Service Centers were briefed about the Code of Ethics as part of our corporate responsibility consultancy.

In line with its mission to create Fan Customers, Doğuş Otomotiv has merged its dialog service (care management), road assistance and call center operations (CRM and reservations) in The Value and Care Center with a new quality approach to increase customer satisfaction in sales and after-sales services.


Social Media


Social Media

SEAT

292,450 Followers Most liked content (347.2K) Ranked 3rd among all SEAT countries on FB

12.6K Followers

17.1K Followers

Ranked 1st among all SEAT countries on Instagram

206,015 Google+ followers ŠKODA

390,764 followers Ranked 3rd among all ŠKODA countries on

Facebook. (followers) 12th engagement rate among all ŠKODA countries on

Facebook.

6,489 followers Ranked 3rd among all ŠKODA countries on Twitter.

552 subscriptions

13,518 followers

Google+: 220 followers

Audi

967,779 Facebook Followers Highest Engagement rate among its competitors Second place among its competitors w/1,591,270

mn interactions 5th largest number of fans among other Audi

countries

242,665 Twitter Followers Largest follower base among auto brands in Turkey 2nd most retweets in 2014 Ranked 3rd among all (30+) Audi countries

1,904 Youtube subscriptions

72,700 Instagram Followers

210,922 Google+ Followers

101 pins, 12 boards

8,489 Linkedin Followers

First Automotive brand to actively use Linkedin in Turkey

Volkswagen LCV

1.0 mn+ likes Ranked 1st among LCV in Europe 7/24 Customer Service on Facebook

7/24 Customer Service on Twitter More than 8.0 Mio views

More than 5Mio views for Transporter TV Commercial

215k+ Google+ followers Largest Amarok Fan Page

13k Followers

Porsche

32K+ Followers The approximate number of posts in a month: 20 The approximate number of likes in a month: 48K + The approximate number of shares in a month: 60 + The number of likes in total within a year : 800K + The number of followers in 2015 : 75K + The number of video share in 2015: 10 The number of video views in 2015: 299,396

Number of followers in total: 4,536 The numbers of shares within a week: 4 Increase in the number of followers in a week: 60

All data is as of March 2016

Volkswagen Turkey

3.6 mn+ Followers The largest local followers in Turkey 180,906 new followers in 2015 7,316,097 user interaction 381,321,026 reach The largest Volkswagen brand page Response Rate: 56%

7/24 customer service 7/24 customer services on Twitter with @

vwdiyalog24

25.2 mn+ views 5,428 new subscriber in 2015. Total Subscriber: 12,280 Total view: More than 10 years 314 days

159k+ Followers 27k+ user content with #Volkswagenim The largest brand account in automotive The 2nd biggest Volkswagen account globally 1m+ like, 21k+ comment

2nd Largest Brand Page in Automotive The 2nd largest brand page in automotive sector.

(268K+ followers)

Largest Brand Profile in Automotive 47k+ followers


Investor Relations Contacts

Halide Müge Yücel

Investor Relations Assistant Manager+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]

Bahar Efeoğlu Ağar

Investor Relations Specialist+90 262 676 90 [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 - Doğuş Otomotiv · Investor Relations Presentation - DOAS...

Documents

Transcript of Investor Relations Presentation - Doğuş Otomotiv · Investor Relations Presentation - DOAS...