Investor Relations Presentation - DOAS Profile 2017 - Doğuş Otomotiv
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Investor Relations Presentation DOAS Profile 2017
Agenda
Doğuş Group
Doğuş Otomotiv
Macroeconomic
Outlook
Automotive Market
Core Business Lines
Automotive Related
Ancillary Business
Corporate Governance
Social Media
Investor Relations Presentation - DOAS Profile - 2017 | 1
Doğuş Group Structure
Investor Relations Presentation - DOAS Profile - 2017 | 2
Doğuş Otomotiv
Doğuş Otomotiv aims at having a productive
and profitable presence in every stage of the
automotive value chain.
Investor Relations Presentation - DOAS Profile - 2017 | 3
Doğuş Otomotiv / Value Chain 2016
Presence in Every Link of The Automotive Value Chain
Automotive
Core Business Related Ancillary
Business
Import and Replacement Used Vehicle Other
Retail Parts and After Finance
Distribution Sales Investments
Sales Services
Spare Parts&Logistics
Quick Fix to all
Brands Automotive
Financing TÜVTÜRK
Yüce Auto
DOD
Doğuş Otomotiv Insurance
Independent Used Vehicle Sales
Authorized Dealers
Insurance
*Representative Offices
Investor Relations Presentation - DOAS Profile - 2017 | 4
Widest Retail & Services Network in Turkey
Widest retail and services network in Turkey with more than 510 customer points
(*)
DOAS brands, including VW, Audi, Skoda, Seat, Porsche, VW Audi Skoda SEAT Porsche
Scania, Thermo King, Scania Engines as of December 2016
Scania Thermo King Scania Engines
Investor Relations Presentation - DOAS Profile - 2017 | 5
Success Story of DOAS Car park more
Market Share
than 1.7 mn units
21.0%
2015
After Doğuş Otomotiv became the sole importer and distributor • Doğuş Otomotiv 15th
2013
2016
anniversary
of VW Group brand vehicles in Turkey, VW brands’ market share • Opening of Porsche
Lausanne
2011
2014
increased from 0.5% in 1993 to 21.0% in 2016. 2012
2010
Market Share
Consumer finance JV
with Volkswagen Financial
• Scania distributorship
• Porsche distributorship Services AG 11.4% 2009
agreement
agreement • Customs duties on
• Volkswagen and vehicles imported from
Audi distributorship the EU abolished
agreement • Krone distributorship
• Distributorship agreement Corporate • Corporate
agreement with • Skoda distributorship • Assembling Operations 2008 Governance Governance Rating
Volkswagen AG agreement and • Merger of automotive Rating rose to 9.51
partnership with Yüce Auto
2007
companies under Doğuş (8.63 Point) • Incorporation of
• Used car operations Otomotiv Lausanne Bentley
established • Global Compact Showroom and
Scania Industrial Agreement
and Marine D-Occasion-
• Publishing used luxury car
Engines Sustainability
distributorship SEAT sales- into D-Auto
2006 Report Suisse SA.
agreement distributorship 2003
signed agreement and 2004 • Distributorship
Corporate agreement with
partnership with
• Thermo King distributorship Governance Meiller came to
Yüce Auto
1999 agreement Rating an end
• Krone Doğuş Trailer Plant (7.80 Point)
2000 groundbreaking ceremony
• Groundbreaking ceremony of
Porsche dealership in Lausanne
• Opening Meiller Doğuş Tipper
1997 Plant
• Establishing Porsche Lausanne • Corporate
1995 D-Auto Suisse SA Governance Rating
1996 (9.05 Point)
• VW and Audi • VDF acquired MAN
1993 1994 • TÜVTÜRK established by the distribution Finansman.
cooperation of AKFEN and TÜV SÜD agreement for Iraq • Corporate Governance
• Porsche dealership contract in Rating (9.42 point)
• Doğuş Otomotiv Lausanne • Production
acquired 100% of SEAT • Lamborghini distributorship partnership and
• Bentley letter of intent agreement • VDF acquires Scania distributorship
• Initial Public • Volkswagen Marine Finance which performs
Offering of Doğuş • Opening of OtoMotion agreement with
Engines agreement • Oto-Fix Ekspres Service established services in heavy Krone came to an
Market Share Otomotiv • Production agreement commercial vehicle sector.
• Doğuş Otomotiv • Meiller distributorship and end.
with Krone coproduction agreement • Corporate Governance • Meiller production
Market Share 5.8% Corporate
Responsibility • Krone - Doğuş coproduction
agreement
Rating (9.25 Point)
• Maintain leadership
came to an end
(though Meiller
project: “traffic is life
0.5% • Bugatti letter of intent
• LeasePlan partnership for fleet
position in the total
automotive market.
distributorship
continued)
services
Investor Relations Presentation - DOAS Profile - 2017 | 6
Key Strengths of DOAS
Leader in import market in Turkey with 21.0% m/s among c.35 pure
importers widest network
One-stop shopping concept showroom, after sales services, consumer
financing, insurance > 510
Widespread network and customer base, widest network with more
customer points
than 510 customer points
Advanced financial risk management system and daily monitoring of youngest fleet
FX rate.
12 well-positioned multi-brand products ~ 80
Youngest fleet in the market with new launches every year, almost 80 models
models
Optimum balance of profitability and market share
multi-brand products
Marketing its own brands DOD, DOD City, DOD Prime and oto fix
Well-equipped and custom designed IT infrastructure (Turkuaz) 12
Uncompromised customer satisfaction-oriented dynamic and
different brands
attentive service approach leading to high customer loyalty.
Investor Relations Presentation - DOAS Profile - 2017 | 7
DOAS’ Position in the Market - 2016 FY
2016 VW PV reached 101,763 sales units and ranked 2nd in the passenger vehicles market. (1st if total sales are
considered together, as PV and LCV sales)
2016 market share of VW was realized as 13.4%.
PV Polo, Beetle, Golf, Passat and Passat Variant retained 1st position in their segments.
SEAT sold 20,637 units in 2016, achieving a record market share with highest ever sales volume. The brand is
successfully continuing its goal of sustainable growth.
Skoda succeeded to improve its all time sales performance in 2016 with 28,876 sales in total. Skoda had 3.81% market
share with 30.6% volume growth where the overall market grew just by 4.3% in 2016.
VW LCV reached an all time high market share of 14.5% in 2016.
VW LCV sold its highest ever units of 32,772 in 2016.
LCV LCV is the sales leader with 30.4% market share in the import market (all time high market share).
VW LCV sales are ranked 3rd in the light commercial vehicles market.
Transporter has been the best selling vehicle in its segment for 7 consecutive years.
Transporter has reached 13,393 unit sales and 48.2% market share in its segment. (All time high sales figure)
Scania increased its market share to 11.2% in 2016 through solutions suited for all kinds of projects and customer-
focused activities, recording its best results to date.
HCV Scania Engines enjoyed significant growth in 2016, now ranking 4th in the global Scania CV business, and also
increased its marine engine sales in the Turkish market by 260%.
Thermo King, longtime market leader in the diesel chiller unit industry, has maintained its leading position with the
sales results achieved in 2016.
Luxury Bentley sold 14 units in 2016 (included domestic and foreign sales units).
Lamborghini sold 7 units in 2016.
Segment
Porsche sold 827 units in 2016.
Audi sold 22,005 vehicles in 2016, highest sales ever, leading to 8.5% increase compared to 2015.
Investor Relations Presentation - DOAS Profile - 2017 | 8
Financial Performance
Sales Revenue (TRY mn) Gross Profit (TRY mn) EBITDA (TRY mn)
11,925 1,109 1,153 496 492
10,889
873 365
7,693 750 331 337
713
6,603
5,132
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Net Profit (TRY mn) CapEx (TRY mn) Total Assets (TRY mn)
302 208 4,852
259 253 3,980
238 169
225
115 2,827
108 2,464
93 2,223
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Investor Relations Presentation - DOAS Profile - 2017 | 9Margins
Gross Profit Margin (%) OpEx/Sales (%) EBITDA Margin (%)
13.9% 7.9% 8% max 6.4%
7.1%
6.7%
6.1% 6.1% 5.1%
11.4% 11.3% 4.7% 4.6%
4.1%
10.2%
9.7%
Avg 10%
Target
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Net Profit Margin (%) Net Financial Debt/EBITDA Net Financial Debt/Total Equity
5.0% 5.43 2.40
3.70
3.4% 2.80
3.3% 2.40
2.8% 1.37
1.68
2.0%
0.84
0.73
0.47
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Investor Relations Presentation - DOAS Profile - 2017 | 102017 New Launches
NEW NEW NEW NEW NEW NEW NEW
Arteon Q5 Cayenne Huracan Ibiza Kodiaq New R-Series
Golf A5 SB Panamera ST Performante Arona FACE LIFT New S-Series
A8 FACE LIFT Bentayga Diesel FACE LIFT Octavia
911 GTS Leon Rapid
911 GT3 Rapid Spaceback
Investor Relations Presentation - DOAS Profile - 2017 | 11Doğuş Otomotiv Strategic Goals
BE SIZABLE – BE CLOSE – BE CREATIVE
One Step Beyond Customer Satisfaction: Turning Achieving Operational Excellence through
Customers into Fans! Increase in Productivity!
• The Value and Care Centre (DİM) • “Turkuaz” internet-based and mobile device
• Connectivity and accessibility in customer compatible software
communications • Continuous improvement for a more productive
• Virtual Showroom Concept - “Audi City” ecosystem
• New technologies in supporting Personnel
Infrastructure
• Lean Management practices and processes
Maintaining Presence in the Automotive Market! The First Condition of Creating a Happy Customer is
• Optimum balance of profitability and market share Happy Employees!
• “Creative Service Beyond Expectations” vision • BİR’İZ (Together) Employer Brand
• Principle of Customer Satisfaction - Focused Work • 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.
Investor Relations Presentation - DOAS Profile - 2017 | 12Macroeconomic Outlook
Investor Relations Presentation - DOAS Profile - 2017 | 13Macroeconomic Indicators
YoY Inflation (%) Annual CPI Annual PPI Nominal Exchange Rates US$/TRY EUR/TRY
Basket (0.5US$+0.5EUR)
3.71
20.00 3.70
3.40
3.10
15.00 13.67% 12.98%
2.80 3.62
11.14% 3.52
9.94% 2.50
10.00
2.20
1.90
5.00
8.53%
1.60
1.30
0.00 1.00
12-10
03-11
06-11
09-11
11-11
03-12
06-12
09-12
12-12
03-13
06-13
09-13
12-13
03-14
06-14
09-14
12-14
03-15
06-15
09-15
12-15
03-16
06-16
09-16
12-16
04-10
08-10
12-10
04-11
08-11
12-11
04-12
08-12
12-12
04-13
08-13
12-13
04-14
08-14
12-14
04-15
08-15
12-15
04-16
08-16
12-16
-5.00
Auto Loan Rates (%) TRY EURO US$ Consumer Confidence Index Consumer Confidence Index
Retail Sales Total LV
2.70 105.0 180,000
100.0 160,000
2.20 2.13% 95.0 140,000
90.0 120,000
1.70 85.0
1.44% 100,000
80.0
1.20 1.09% 80,000
75.0
1.15% 70.0 60,000
0.70 65.0 40,000
60.0 20,000
0.20 55.0 0
03-10
06-10
09-10
12-10
03-11
06-11
09-11
12-11
03-12
06-12
09-12
12-12
03-13
06-13
09-13
12-13
03-14
06-14
09-14
12-14
03-15
06-15
09-15
12-15
03-16
06-16
09-16
12-16
12-05
06-06
12-06
06-07
12-07
06-08
12-08
06-09
12-09
06-10
12-10
06-11
12-11
06-12
12-12
06-13
12-13
06-14
12-14
06-15
12-15
06-16
12-16
Investor Relations Presentation - DOAS Profile - 2017 | 14Population & Demography
Population Statistics (’000) Age Demography Young population and fiscal
91,393 reforms push the country
88,428 13% Above
79,815
84,247 60 15% towards stable and sustainable
growth.
32%
35-59 34%
Population is increasing on an
32%
average 1.4% each year since
15-34 2007.
30%
24% 64% of population will be
0-14 21%
between the age group of 15 to
2016 2023 2030 2037 2016 2023 59 years by 2023.
Economy Auto Industry Trade Balance (US$ bn)
Share of people in the age
Trade Deficit Export Import
Real GDP GDP YoY Growth group between 35 to 59 will
1.8 12.0
GDP - (Billion Turkish Lira)
1.6 10.0
25.00 7.00 increase by 2% from 2016 to
GDP YoY Change (%)
6.00
1.4 8.0 20.00 5.00
2023.
6.0 4.00
1.2
4.0 15.00 3.00
1.0
2.0 2.00
0.8 10.00 1.00
0.0
0.6 0.00
-2.0
5.00 -1.00
0.4 -4.0
-2.00
0.2 -6.0 0.00 -3.00
0.0 -8.0 Note: All figures are rounded.
12/04
06/05
12/05
06/06
12/06
06/07
12/07
06/08
12/08
06/09
12/09
06/10
12/10
06/11
12/11
06/12
12/12
06/13
12/13
06/14
12/14
06/15
12/15
06/16
12/16
98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 Source: TurkStat
Investor Relations Presentation - DOAS Profile - 2017 | 15Automotive Market
Investor Relations Presentation - DOAS Profile - 2017 | 16Volkswagen Group Global
Development world car market vs. Volkswagen Group Passenger Car Deliveries(1) VW Group Deliveries to Customers
(Growth y-o-y in deliveries to customers, January to December 2016 vs. 2015) (thousand) 2007-2016
Car Market VW Group
10,137 9,931 10,313
9,728
9,345
8,361
North Western Central & South Rest of Asia
America Europe Eastern Europe America the World Pacific 7,278
6,192 6,272 6,310
11.9%
9.8%
5.8% 5.8% 5.4%
3.5%
1.8% 2.1%
0.6%
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
-2.3%
-11.5%
-26.0%
Source: Volkswagen Group: Financial (1) Figures excl. Volkswagen Commercial
sustainability on core strengths Presentation, Vehicles, Scania and MAN.
December 2016.
Investor Relations Presentation - DOAS Profile - 2017 | 17Global Passenger Vehicle Market Growth Forecast 2017
North America (1) Western Europe Eastern Europe
(mn units) (mn units) (mn units)
21.2 14.0 14.0 2.7 2.8
21.0 13.2 2.6
20.8
Change 1% Change 0% Change 8%
2015 2016 2017 F 2015 2016 2017 F 2015 2016 2017 F
Asia Pacific South America Rest of the World
(mn units) (mn units) (mn units)
33.9 34.8 4.3 4.7 4.7
4.6
31.9 3.8
3.7
Change 3% Change 3% Change 2%
2015 2016 2017 F 2015 2016 2017 F 2015 2016 2017 F
Source: IHS Economics as of November 2016 (1)
Passenger Vehicles and Light Commercial Vehicles
Investor Relations Presentation - DOAS Profile - 2017 | 18Volkswagen Group - Strategy 2025 - Initiatives at a Glance
Transform core business Build mobility solutions business
*Grow Profitably Develop and Expand Atractive and Profitable Smart
*Develop Strategic Capabilities Mobility Offering
*Enhance Entrepreneurial Spirit
Secure funding Strengthen innovation power
*Improve Operational Excellence Drive Digital Transformation
*Optimize Business Portfolio
Source: Volkswagen Together 2025 Strategy (November 2016)
Investor Relations Presentation - DOAS Profile - 2017 | 19Turkish Light Vehicle Wholesale Performance - Market vs. DOAS
LV Wholesale Market (thousand) DOAS LV Wholesale (thousand) DOAS Market Share %
1,000
994 25%
972
900
871 852
800 21.2%
779 20%
761 762 20.8%
20.1%
700
17.9%
619
600 592 15%
553 15.9%
500 496
12.6%
12.1%
400 11.6% 11.3% 10%
10.6%
9.0%
300
202 211
200 5%
152 153
109 124
75 69 86
100 53 50
0 0%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Investor Relations Presentation - DOAS Profile - 2017 | 20DOAS Wholesales Performance
WHOLESALES (unit) 2016 2015 Change 2014 2013 2012
VW 137.143 140.088 -2% 108.325 112.958 92.900
VW PV 104.410 106.677 -2% 85.134 88.890 66.993
VW LCV 32.733 33.411 -2% 23.191 24.068 25.907
AUDI 22.105 21.100 5% 17.070 15.025 14.514
PORSCHE 881 877 0% 601 542 510
BENTLEY 9 19 -53% 21 21 18
LAMBORGHINI 7 6 17% 2 4 3
SEAT 20.976 17.212 22% 12.540 11.334 5.730
SKODA 30.004 22.435 34% 14.397 12.362 10.404
PC TOTAL 178.392 168.326 6% 129.765 128.178 98.172
LCV TOTAL 32.733 33.411 -2% 23.191 24.068 25.907
LV TOTAL 211.125 201.737 5% 152.956 152.246 124.079
SCANIA 2.050 3.291 -38% 2.014 1.672 1.701
KRONE 2 158 -99% 716 752 474
MEILLER 8 407 -98% 309 386 382
GRAND TOTAL 213.185 205.593 4% 155.995 155.056 126.636
MARKET SIZE*
PV 765.467 726.477 5% 582.117 663.728 556.584
LCV 228.446 245.027 -7% 179.919 187.840 222.434
HCV 18.343 33.652 -45% 31.061 28.111 30.525
TOTAL 1.012.256 1.005.156 1% 793.097 879.679 809.543
DOAS Market Share
PV 23,3% 23,2% 22,3% 19,3% 17,6%
LCV 14,3% 13,6% 12,9% 12,8% 11,6%
HCV 11,2% 9,8% 6,5% 5,9% 5,6%
TOTAL 21,1% 20,5% 19,7% 17,6% 15,6%
Source: Automotive Distributors Association
Investor Relations Presentation - DOAS Profile - 2017 | 21Turkish Automotive Industry
Production vs Sales GDP vs Auto Sales Breakdown of Vehicles*
Sales Production Change in Auto Sales (left axis)
Change in GDP (right axis) Total Number of
1,500 150% 15% Road Motor Vehicles:
1,400
21 mn units
100% 10%
1,200
Car 54%
1,000 50% 5% Small truck 16%
800 Motorcycle 14%
0% 0% Tractor 8%
600 Truck 4%
Minibus 2%
400 -50% -5% Bus 1%
200
0 -100% -10%
2004
1996
1997
1998
1999
2000
2001
2002
2003
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Source: General Directorate of Public Security
Auto Industry Segmentation* Auto Engine Segmentation* Vehicle Ownership**
PC LCV PC LCV Total Car Parc / 100 Household
Parc Density / 1000 Inhabitants
100% 96% 590 587
555
75%
62%
57%
48% 50% 291
35%
185
126 118 118
15% 66
64
5% 3% 1%
Import Diesel A/T below 1600 cc between 1600 cc above - 2000 cc Turkey Romania UK Germany Greece
- 2000 cc
* As of December 2016 ** ACEA European Motor Vehicle Parc Report 2014
Investor Relations Presentation - DOAS Profile - 2017 | 22Turkish Automotive Industry
Oil Prices in Turkey (TRY) (2007-2016) Oil Prices (TRY) (31.12.16)
6
5.93 5.91
5 5.37 5.35 5.20
4
3.95
3.72
3
2 2.53
1
0
01.01.07
01.04.07
01.07.07
01.10.07
01.01.08
01.04.08
01.07.08
01.10.08
01.01.09
01.04.09
01.07.09
01.10.09
01.01.10
01.04.10
01.07.10
01.10.10
01.01.11
01.04.11
01.07.11
01.10.11
01.01.12
01.04.12
01.07.12
01.10.12
01.01.13
01.04.13
01.07.13
01.10.13
01.01.14
01.04.14
01.07.14
01.10.14
01.01.15
01.04.15
01.07.15
01.10.15
01.01.16
01.04.16
01.07.16
01.10.16
01.01.17
Italy Greece Germany UK Turkey Bulgaria China USA
SCT Rates in Turkey (%) 2000 cc Average Vehicle Age in Turkey
(Passenger Cars)
160
160 145
22.9
130 130
120 100-110(*)
84 84 84 90
80 80 80 15.0
80 75 12.9
12.2 12.4 12.2 12.4
50 60 54 60 60
52 45 45-60(**) 10.1
37 37 37 40 Motor
40 46 30 27 Vehicles
18 Average
27
0
08-02 01-03 11-04 03-09 06-09 10-09 01-11 09-12 01-14 11-16
(*)
100% for sale price of TL100K.
(**)
45% for sale price of TL70K, respectively.
Investor Relations Presentation - DOAS Profile - 2017 | 23Core Business Lines
Investor Relations Presentation - DOAS Profile - 2017 | 24Import and Distribution
Passenger Vehicle sales of VW was 101,763 and market share was realized As a result of its stronger Authorized Dealer network and Service
as 13.4% in 2016. Volkswagen Passenger Car was awarded the first prize in Organization, growing choice of models, increasing Customer Satisfaction
the “TV application of the year” category at the ADA Sales and and its organised marketing activities, Porsche Turkey sold 827 units in
Communication Awards. Also, the brand won the silver award for the 2016.
Lovemark television campaign at the Effie and Crystal Apple Awards in the
automotive category; ranked first place in the Turkish Customers’ Voice
Despite the decreasing market in 2016, VW Commercial Vehicles has
Research in the automotive category; Golden Spider and Gold Stevie
managed to maintain its steady growth and reached all time high figures
awards in the automotive category for its renewed website, and Gold
in sales and market share. VW Commercial Vehicles has become market
Stevie for the management of its Instagram and Facebook accounts.
leader in the imported commercial vehicle sales while maintaining its third
place in the overall market.
Audi increased its sales to 22,005 units in 2016 with growing model range
and recent additions in our dealer network. Thus, vehicle park has Scania increased its market share to 11.2% in 2016 through solutions suited
increased by 17%, leading to a 14% increase in after sales revenue. With for all kinds of projects and customer-focused activities, recording its best
digitalization at the heart of its business processes, Audi Turkey was given results to date. Through the SESS (Scania Integrated Driving Systems)
as an example by Audi AG to other markets for its benchmark projects, project, Scania vehicle owners were offered a smart fleet management
such as Smart Pen Project, Self Reception Technology. system, together with training and coaching services customized to their
line of business in 2016. Scania vehicle owners are invited to the SESS
Room at Dogus Otomotiv’s Sekerpınar facilities or the SESS Laboratories
at any of our 5 Authorized Dealers to receive information on ensuring
SEAT increased its sales by 22% in 2016 and continued its trend to grow highest operational productivity and fuel efficiency. This project is
above market. With successful product and communication strategies, a considered exemplary in the entire Scania organization worldwide, and is
structured network of Authorized Dealers and an aggressive sales and offered to other markets as well. In the annually conducted global
fleet policy, SEAT increased its sales to 20,637 units and reached 2.73% warranty inspection among all Scania distributors, Scania Turkey won title
market share in passenger vehicle market. SEAT S.A. rewarded SEAT of 2016 Warranty Champion with the lowest error rates.
Turkey as “Highest Growth Rate Importer over the last years” second time
in a row. SEAT Turkey won Absolute Winner Award in Service and the 2nd
place in Service Advisor Category of Top SEAT People Competition, in Scania Engines increased its market share with the sale of 231 engines in
which best SEAT advisors, technicians and managers of each country Turkey in 2016, ranking in the top four among Scania’s export markets.
compete. Scania Engines increased power generation engine sales through
collaborative projects with leading power generator companies in Turkey,
improving its position in the market and confirming its success in this field.
Skoda having strengthened its rising success in the market in 2016, is
targeting to continously grow further. By adopting a new corporate Thermo King, longtime market leader in the diesel chiller unit industry, has
identity to its 38 Authorized Dealers nationwide and the new launches in maintained its leading position with the sales results achieved in 2016.
2017 with its new models Kodiaq, Octavia, Rapid and Rapid SB, Skoda is Offering options on units in response to customer needs, and specialized
aiming to further intensify its position in the market. cooling and heating solutions for different projects, Thermo King sets the
standards in transportation for Turkey’s leading cold chain and
pharmaceutical transporters by ensuring quality and reliability until the
products are delivered to the end user. Thermo King is ranked among the
Bentley sold 14 units and Lamborghini sold 7 units in 2016. In 2016, the top five distributors that recorded maximum GDP (Good Distribution
Bentley brand maintained its sustainable success, while the Lamborghini Practice) qualified and validated trailer sales in Europe in 2016. For the first
brand solidified its place as a competitor with the Huracan model. time in April 2016, the company began to issue ATP certification for
refrigerated trailers in Turkey.
Investor Relations Presentation - DOAS Profile - 2017 | 25Retail > DOĞUŞ OTO
Doğuş Oto represents seven brands (VW
Passenger Cars, VW Commercial Cars, Audi, represents
Porsche, SEAT, Skoda, and DOD), for which
7 brands
it sells new and second-hand vehicles,
spare parts, and accessories at a total of 34
Authorized Dealers and 31 Service points in
Istanbul, Ankara, and Bursa; it also offers its
customers insurance, financing, and after-
one-stop shopping
sales support services.
Doğuş Oto operates on a total area of 265,000
concept
square meters with 1,805 employees.
Doğuş Oto sold 62,394 new vehicles, marking
a new record. Its share in the retail sales
volume of Doğuş Otomotiv was 30.2% in 2016. operating on
In 2016, the total number of customers served
265,000 sqm
rose to 251,595
In 2016, Doğuş Oto Kartal moved to its new
location.
In Maslak, the Audi showroom and service
area were renewed and sales of the Skoda total area
brand began.
In Esenyurt and Etimesgut regions,
Volkswagen showroom and service areas were
completely standardized in accordance with
the global brand concept.
Further in Etimesgut, VW showroom began
implementations of the digital showroom
Share of
30.2%
concept.
In addition to these, Audi City became
operational in Istinye Park. In Audi City, our
customers can see virtual versions of all Audi
models in individual dimensions and get DOAS sales in 2016
information about the Audi world in every
detail.
Investor Relations Presentation - DOAS Profile - 2017 | 26Retail > D-AUTO SUISSE SA
Porsche and Bentley sales in Canton de
Vaud 307
In 2007, Porsche AG granted Doğuş new car and
Otomotiv the marketing, sales and
aftersales retail operations of the
Porsche brand.
124
used car deliveries in 2016
A subsidary of Doğuş Otomotiv, D-Auto
Suisse SA is located in Lausanne,
Switzerland, where its service area of total investment
11,300 m2 and its 48 employees offer
Turkish hospitality and the company’s
experience to its customers since CHF 24.7
September 2009 with Porsche and since
November 2016 with Bentley brands.
million
Operating in Canton de Vaud as official Auto Industry Segmentation
Porsche and Bentley Dealer.
Porsche AG Schweiz DASSA DASSA MS (%)
Total investment is CHF 24.7 million.
3,822 3,970
D-Auto Suisse SA sold 307 new vehicles
and 124 used vehicles in 2016.
2,871
2,111
1,955
9.6%
8.7% 8.9%
9.4%
8.0%
184 183 275 338 320
2012 2013 2014 2015 2016
Investor Relations Presentation - DOAS Profile - 2017 | 27Retail > D-AUTO LLC
Expansion into new geographies
A company has been founded in July
Initial capital
150 mn IQD
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 investment
exclusive importation, distribution, sales
and after-sales services of VW and Audi
passenger vehicles in Iraq (initial capital
was 150 million Iraq Dinar (US$ 125,000)).
A place has been rented for 20 years.
In December 2015, the Iraq Distribution
Sales&After Sales
agreement was signed with Volkswagen Services on
Commercial Vehicles, adding another
one to the represented brands.
D-Auto LLC provides the best quality
7,500 m2
service to its customers, combined with area
its knowledge and experience, in an area
of 7,500 m2 with its 17 employees.
D-Auto LLC sold 55 vehicles and gave
service to 2,127 vehicles in 2016. sales & service units
55 & 2,127
Once the political and economic
situation is stabilized in the region, the
planned project investment and dealer
network structuring will be resumed. in 2016
Investor Relations Presentation - DOAS Profile - 2017 | 28Retail > Skoda
New Corporate Identity and Design
Standards 2016 Sales
28,876
Yüce Auto started the disribution of
Skoda brand vehicles in 1989.
In 1998 50% partnership with Doğuş
Otomotiv started. units
With its current product portfolio
including Superb, Octavia, Rapid, Rapid
SB, Yeti and Fabia, Skoda brand is
covering 85.4% of total passenger car
market which will become around 88% 2016 Market Share
with the upcoming model Kodiaq in
2017.
Skoda reached 38 authorized dealers
3.81%
for sales and 37 authorized dealers for
aftersales services.
The transition of the dealer network to
the new corporate identity and design
standards were completed.
Sales Growth
749%
2009-2016
Investor Relations Presentation - DOAS Profile - 2017 | 29Replacement 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
99%
brands that Doğuş Otomotiv represents.
In 2016, Spare Parts and Logistics imported
availability
186,300 vehicles, and dispatched 211,000 in Spare Parts
vehicles to authorized dealers, ending
the year with a total revenue of TRY 837.8
million generated by the sales of spare
parts and accessories.
Spare Parts and Logistics uses advanced Revenues from Spare
computer technologies and inventory Parts and accessories are
management systems, which can be easily
TRY 837.8
adapted to various demands of customers,
to run its operations smoothly. As a result
of lean management studies based on lead
time and safety inventory levels, spare
parts availability has reached to 99%.
million
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 increased capacity 186,300
vehicles
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 imported and
to authorized dealers.
dispatched
Investor Relations Presentation - DOAS Profile - 2017 | 30Used Vehicle Sales > DOD
Used vehicles market is a non regulated
market in Turkey. sales - 2016
22,534
We expect that as in 2016, the used
car market will continue to grow in
2017. If used car market regulations are
enforced in this year, it is thought that vehicles
this will have a positive effect on the
corparate sellers ratio in the total used
car sales.
DOD is the largest corporate retailer of
Corporate
the used car business.
DOD provides services in Turkey with 59
and Pioneer
customer points.
22,534 units sold in 2016.
DOD Sales Performance
brand of used car 23,125 22,534
market. 20,206
21,120
16,954
servicing through
59
customer points in
Turkey
2012 2013 2014 2015 2016
Investor Relations Presentation - DOAS Profile - 2017 | 31Automotive Related
Ancillary Business
Investor Relations Presentation - DOAS Profile - 2017 | 32Finance > VDF
The JV company was established on
20 December 1999 to provide financing new contracts
for Doğuş Otomotiv Group Brands’
customers. The established JV company 2012: 51,177 units (23% yoy increase)
is owned by Doğuş Holding (1%), Doğuş
2013: 60,180 units (18% yoy increase)
Otomotiv (48%) and Volkswagen
2014: 58,338 units (3% yoy decrease)
Financial Services AG (51%).
2015: 78,111 units (34% yoy increase)
Offering products and services 2016: 86,433 units (11% yoy increase)
nationwide, VDF ensures ease of mind
for its customers by providing Vehicle
and Service Credits from a single point:
the Authorized Dealer. credits given
The entire loan transaction is finalized
by the VDF representative located 2012: TRY 1,906 mn (27% yoy increase)
at Authorized Dealer. To get quick 2013: TRY 2,531 mn (33% yoy increase)
response, loan applications are 2014: TRY 2,870 mn (13% yoy increase)
transferred to VDF through internet. VDF 2015: TRY 4,345 mn (51% yoy increase)
offers other advantages in addition to 2016: TRY 5,163 mn (19% yoy increase)
single-point loan services such as quick
results, competitive interest rates, and
minimum formalities.
In 2016, new credit contracts realized
portfolio
as 86,433 units with a total amount of
TRY 5,163 million increasing the total 2012: 91,257 units (34% yoy increase)
portfolio to 160,727 units. 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)
Incl. Scania and Man Finance
Investor Relations Presentation - DOAS Profile - 2017 | 33Finance > VDF INSURANCE
VDF Insurance, as an agent for 11 insurance Number of Insurance Contracts
companies, provides services & products to number of policies
its customers such as motor insurance, traffic 314,757 313,129
insurance, credit protection insurance and
extended warranty.
VDF Insurance works with the Authorized
nearly tripled 136,043
205,941
256,554
Dealers of VW Group brands in Turkey and in 5 years
number of its branches is 23 in 2016.
VDF Insurance increased the production of
its policies by %26, reaching TRY 374 million in
2012 2013 2014 2015 2016
2016.
Finance > VDF FACTORING number of VDF
Insurance Penetration
Motor Insurance Extended Warranty
Active since May 2010, VDF Factoring Services
offers factoring and financing services to 112
Insurance branches is 37% 38%
41% 44% 41.4% 14%
16% 16%
14.5%
Autorized Dealers of Doğuş Otomotiv. In 2016,
23
11%
VDF Factoring reached a transaction volume
of TRY 11.8 billion and a total asset value of
TRY 598 million. Committed to the principle of
continuous and stable growth, VDF Factoring
aims to increase its business volume further in
2017. 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Development of Assignments (TRY million)
Operational Fleet Renting > transaction volume
DOAS Yüce Other 600
VDF FLEET
TRY 11.8 bn
1,100 1,600
8,800 9,600
VDF Filo was established in March 2016 693
Fleet ERP processes and procedures were 390
built up in 2016 44 5,213
5,979
Pilot phase started in October 2016 4,139
VDF Filo is expected to reach more than 2000
contracts in 2017.
2012 2013 2014 2015 2016
Investor Relations Presentation - DOAS Profile - 2017 | 34Other Investments > TÜVTÜRK
TÜVTÜRK – a cash cow business of DOAS,
Bridgepoint and TÜV SÜD
TÜVTÜRK consortium was granted by Turkish
rights to build & operate
20 years
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. in exchange of
Operation fees were collected from the
suboperators (Business associates (BA))
US$ 552 mn
in exchange for the prepared stations for
operations.
The BAs will share their revenues with the
government: 1st-3rd years: 30%; 4-10th years: expected revenues
40% and 11-20th years: 50%
US$ 15 bn
...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. in 20 years
At the end of 9th year, nearly 55.1 million vehicles
have been inspected, 19.3 million vehicles were
re-inspected, 15.6 million vehicles underwent
exhaust gas emission measurements and
enabled over 17.6 million unsafe cars to return
safely back into traffic once again.
In 2016, periodic inspections of 8.2 million expected ebitda
vehicles were completed and 3.2 million vehicles
underwent exhaust gas emission measurements.
TÜVTÜRK has opened the TÜVTÜRK Academy
in order to further increase its service quality and
US$ 2.5 bn
to train its personnel in areas such as inspection
quality, service standards, customer satisfaction,
in 20 years
effective customer experience, and flawless
operation. The Tüvtürk Academy will offer 770
days of training to 1,800 people annually.
Investor Relations Presentation - DOAS Profile - 2017 | 35Other Investments > Doğuş Teknoloji
Growing with new investments
Doğuş Teknoloji creates a wide scope of Affiliate
software products and services that answer
46%
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
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,
Established
2011
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
ISO & ITIL
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 Certified
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.
Investor Relations Presentation - DOAS Profile - 2017 | 36Corporate Governance
Investor Relations Presentation - DOAS Profile - 2017 | 37DOAS: First GRI reporter in automotive sector in Turkey
Corporate Sustainability (CS)
Economic Impact
Value Chain at Doğuş Otomotiv
Multiple Brand Management
Supply Chain Environmental Impact As of May 2010, we signed UN
Business Continuity Climate Change Global Compact.
Quality & Process Environmentally Friendly
Management Technologies & Products
Our 7th Corporate Sustainability
Lean Applications Energy Efficiency Report is published as the first “GRI
Risk Management Water Consumption G4 Comprehensive Report” in the
Information Technologies Waste & Scrap Management automotive sector.
Sales & After Sales Services
Authorized Sales & After For the second consecutive year,
Sales Doğuş Otomotiv has been included
Approach to in the BIST Sustainability Index,
which is composed of companies
Sustainability Strategy with highest corporate sustainability
and performances whose shares are
Vision traded in the Borsa Istanbul, for
the period from November 2016 to
Social Impact October 2017.
Products & Services
Employees
Employee Health &Safety
Customers
FIRST GRI
Customer Health &Safety REPORTER IN
Traffic is Life OUR SECTOR
Human Rights
Community Engagement IN TURKEY
Investor Relations Presentation - DOAS Profile - 2017 | 38Traffic is Life!
In order to get young people involved in the road safety
issue, and encouraging them to think about and create
for the traffic safety issue, the “Traffic is Life!” platform
increasing
traffic safety
launched a widespread interactive contest about traffic
safety as a first, and drew the attention of the public to
traffic safety. The competition, which saw great interest,
awareness
received 422 application in total, and the winner had
opportunity to shoot his scenario as a public service
announcement with famous Director Omer Faruk Sorak.
The platform also started a new project in 2016 to
raise awareness about children’s safety in traffic and
in vehicles, and launched the ‘Child Safety in Traffic’ since 2004
initiative taking into consideration that the second most
affected group from traffic accidents is the 5-14 age
group, and that the number of children hurt in accidents
in our country is increasing. In the scope of ‘Child Safety
in Traffic’ Project, Traffic is Life Platform executed a The “Traffic is Life!” was
comprehensive research in cooperation with the General
Directorate of Security, in Istanbul - Ankara - Izmir. recognized with the
3,000 respondents were interviewed, the study showed
that among the families with children in the three major
provinces of Turkey, only 23% use child seats. “2016 Social
Child Safety project advisor: Professor Üstün Dökmen’s
viral film series where he talks about children’s
psychology in traffic reached the parents via social
Awareness Award”
media, and was viewed over 1.5 million times. by CSR Europe and CCA
Collaboration is provided with Kadıköy Municipality
for local administration trainings, and content on
mother-infant safety in vehicles was integrated into the
“Pregnancy School” trainings.
The “Traffic is Life!” platform set up a booth at the
Mother Infant and Child Fair on December 13-15 at the
The “Traffic is Life!”
Istanbul Congress Center, and offered safe driving reached more than 2 mn
simulations and traffic safety trainings, reaching 8,713
parents that visited the fair. people with
The “Traffic is Life!” platform was recognized with
the “2016 Social Awareness Award” at the Business
Summit organized by CSR Europe and Corporate
“Child Safety in
Traffic Project”
Communications Association for its efforts, and also won
in the Best Ambient and Urban Contribution categories
at the prestigious Outdoor Advertising Awards.
Investor Relations Presentation - DOAS Profile - 2017 | 39Sustainability Performance
Economic Environmental Social and Ethics
2,297,559 kg of waste engine oil was collected Female employee ratio is recorded as 23% in
Via the employee suggestion system, Doğuş from our Authorized Dealers in 2016. A portion 2016. Ratio of newly hired women to total newly
Otomotiv and Doğuş Oto employees have of waste engine oil was sent to regeneration hired employees is 37% and ratio of promoted
entered 688 and 1,617 development suggestions facilities and the other portion to cement and female employees is 35%.
respectively. In total, 2,305 suggestions were lime factories. By the help of this, 1,901 tons
entered in 2016. Compared to 2015, this number In 2016, 188 employees took Code of Ethics
of CO2 emmission is prevented. This equals to
has increased by 44%. training for 376 man/hours. By the end of the
creating the positive impact of 86,400 trees,
year, the ratio of Doğuş Otomotiv employees
By the help of 90 projects implemented in 2016, corresponding to 216 hectares of forest.
that took the training reached up to 81%.
saving is expected to reach TRY 1,650,000, By the recuperation of the vehicle batteries,
including the Authorized Dealer network. Newly hired 127 employees have experienced
60% lead and 10% plastic were recovered and
the e-orientation training for 317.5 man/
Doğuş Otomotiv has been contributing to 20% acidic water was neutralized. 413,722 kWh
hours and grasped the details of Corporate
society with the purpose of community energy saving was achieved via the recuperation
Sustainability, Ethical Principles as such, by
development by investing TRY 14,372,417 in 2016 of vehicle batteries.
watching the Corporate Sustainability video.
as aid and donation. In 2016, 14,501 trees were saved from lumbering
20 Authorized Dealers and 3 suppliers included
Total local purchase amount of Doğuş Otomotiv by recycling 853 tons of paper-carton. With
to Corporate Sustainability Report were
Group is TRY 921.6 million. the help of recycling 279 tons of wooden
explained about details of Code of Ethics during
pallets, 1,116 trees were saved. In total for 2016,
8% of Doğuş Otomotiv’s suppliers were informatory meetings.
lumbering of 15,617 trees were prevented.
inspected considering the human rights criterias Value and Care Center (DİM) has satisfied 133,041
as well. 97% of sold cars in 2016 have BlueMotion
dialogue phone calls successfully in 2016.
Technology. Compared to 2015, there is 12%
Compared to 2015, this number has increased by
improvement.
14%.
308 Quality and Brand Standards Audits
(ISO+Scania DOS) and 66 Brand Standards
Audits only were realized for Sales and After
Sales, adding up to 374 audits in 2016.
CSS results were realized as 111.83 points on
average for Sales and 103.5 points for After Sales
out of 120 points.
Investor Relations Presentation - DOAS Profile - 2017 | 40Social Media
Investor Relations Presentation - DOAS Profile - 2017 | 41Social Media
Volkswagen Turkey Volkswagen LCV Audi
3.9 mn+ Followers
1.1 mn+ likes 1,173,891 Facebook Followers
The largest local followers in Turkey
Ranked 1st among LCV in Europe 206,242 new Faebook fan in 2016
480,617 new followers in 2016
7/24 Customer Service on Facebook 1,874,278 interaction in 2016
10,060,558 user interaction
7/24 Customer Service on Twitter 8th ranking among Audi globally
667,573,005 reach
The second largest Volkswagen brand page More than 13.0 mio views with 124 videos since Jan 16, 2012 362,698 Twitter Followers
Response Rate: 97% 13 mio View 120,033 new followers in 2016
35.6 mn+ views 4,900 Followers 31,542 total interaction in 2016
5,707 new subscriber in 2016. Whitelist Brand 1st brand among all automobile brands on total
Total Subscriber: 16,909 follower
First Brand to use Beta Products
Total view: 14,885,700 3rd biggest Audi account globally
Best Awarenes lift in its class
264K+ Followers (Automotive industry - Bumper Ad) 2,489 Youtube subscriptions
37,552 user content with #Volkswagenim
226K+ Google+ followers
The largest brand account in automotive 191,662 Instagram Followers
The 2nd biggest Volkswagen account globally
34,400 Followers 2nd biggest Audi account globally
1,010,679 like, 10,628 comment Largest Amarok Fan Page
2nd Largest Brand Page in Automotive 1st among the competitor brands on total follower
The 2nd largest brand page in automotive sector. 217,086 Google+ Followers
(275K+ followers)
Largest Brand Profile in Automotive 8,847 Linkedin Followers
57K+ followers
First Automotive brand to actively use Linkedin in Turkey
Porsche SEAT ŠKODA
The approximate number of posts in a month: 16 414,647 Followers 546,616 followers
The approximate number of likes in a month: 22K + Engagement: 215,600 Ranked 1st among all ŠKODA countries on Facebook.
The approximate number of shares in a month: 500 + Reach: 93,348,459 (followers)
The number of likes in total within a year: 266,111K + Ranked 3rd among global SEAT Facebook accounts 13,194 followers
The number of followers in 2016: 102K + 28.6K Followers Ranked 2nd among all ŠKODA countries on Twitter.
The number of video share in 2016: 3,378
Ranked 5th among global SEAT Twitter accounts 972 subscriptions
The number of video views in 2016: 1,364,600
51.7K Followers Google+: 521 followers
Number of followers in total: 38,122
Ranked 1st among all SEAT countries on Instagram
The numbers of shares within a week: 4
63,538 followers
Increase in the number of followers in a week: 649 229,866 Google+ followers
Ranked 2nd among global SEAT Google Plus accounts
722 followers
All data is as of December 2016
Investor Relations Presentation - DOAS Profile - 2017 | 42Investor Relations Contacts
Halide Müge Yücel
Investor Relations Assistant Manager
+90 262 676 90 58
muyucel@dogusotomotiv.com.tr
Bahar Efeoğlu Ağar
Investor Relations Specialist
+90 262 676 90 59
befeoglu@dogusotomotiv.com.tr Address: Şekerpınar Mah. Anadolu Cad. No: 22 ve 45,
41420 Çayırova/Kocaeli Turkey
Website: www.dogusotomotiv.com.tr
E-mail: yatirimciiliskileri@dogusotomotiv.com.tr
investorrelations@dogusotomotiv.com.tr
Investor Relations Presentation - DOAS Profile - 2017 | 43Disclaimer
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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