2Q 2017 ANALYST BRIEFING PRESENTATION Kerem Talih 18 August 2017 - - PowerPoint PPT Presentation

Kerem Talih 18 August 2017

2Q 2017 ANALYST BRIEFING PRESENTATION

2Q 2017 DOAS DEVELOPMENTS (YoY)

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2Q 2017 DOGUS OTOMOTIV MAIN SEGMENT SALES PERFORMANCE Retail

RETAIL MARKET DOAŞ PERFORMANCE 3

COMPETITON (Retail)

VW ranked 2nd in cumulative passenger vehicle market with 12,0% market share. Skoda has 3,01% market share. Seat has 2,59% market share. Audi has 2,80% market share, holding its 2nd position with 28,9% market share in the premium segment. VW commercial vehicles has 12,7% market share in the light commercial vehicle market. DOAS completed 6M2017 with 18,7% market share.

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2015 2016 JUN2016 JUN2017 2016 / JUN2017 JUN2017 / JUN2016 ∆ ∆ RENAULT 19,2 19,7 20,9 21,6 1,9 0,7 DOGUS OTOMOTİV 23,1 23,0 22,4 20,5

• 2,5
• 1,9

TOFAS 7,1 7,3 7,2 9,1 1,8 1,8 HYUNDAI 6,9 6,5 6,7 7,4 0,8 0,7 OPEL 6,5 7,3 7,1 6,1

• 1,2
• 1,0

FORD 6,5 5,5 6,3 6,1 0,6

• 0,2

TOYOTA 6,6 6,2 5,8 5,1

• 1,1
• 0,7

HONDA 2,2 2,7 2,3 4,2 1,5 1,8 OTHER 21,9 21,8 21,3 20,0

• 1,8
• 1,3

FORD 29,5 30,1 29,7 29,9

• 0,2

0,2 TOFAŞ 25,6 23,7 23,3 23,2

• 0,5
• 0,1

DOGUS OTOMOTİV 13,1 14,5 15,5 12,7

• 1,8
• 2,9

RENAULT 9,6 9,0 8,6 9,7 0,6 1,1 CITROEN 4,9 3,7 3,5 4,9 1,2 1,5 PEUGEOT 4,8 4,5 4,6 4,2

• 0,3
• 0,4

MERCEDES-BENZ 3,5 3,6 3,9 4,0 0,5 0,1 TOYOTA 1,2 2,5 2,1 2,2

• 0,3

0,1 OTHER 7,9 8,5 8,8 9,3 0,8 0,5 RENAULT 16,8 17,2 18,1 18,7 1,5 0,7 DOGUS OTOMOTİV 20,6 21,0 20,8 18,7

• 2,4
• 2,2

TOFAŞ 11,8 11,1 10,9 12,4 1,4 1,5 FORD 12,3 11,1 11,6 11,7 0,6 0,1 HYUNDAI 5,4 5,3 5,4 6,0 0,7 0,6 OPEL 4,9 5,6 5,5 4,7

• 1,0
• 0,8

TOYOTA 5,3 5,4 4,9 4,4

• 1,0
• 0,5

PEUGEOT 3,6 3,6 3,5 4,2 0,5 0,6 OTHER 19,6 19,6 19,3 19,2

• 0,4
• 0,1

RETAIL MARKET PASSENGER VEHICLE % LIGHT COMMERCIAL VEHICLE % LIGHT VEHICLE %

2Q 2017 PASSENGER VEHICLE MARKET (%) Retail

• Passenger vehicle market contracted

by 10% yoy.

• DOAS’ market share in the passenger

vehicle market was realized as 20,5%.

• VW passenger vehicles has the

highest sales portion in Doğuş Otomotiv and herein below mentioned models have the highest contribution in VW sales units in its segment: Polo A0/HB 14,9% (rank 3) Golf A/HB 27,4% (rank 1) Passat B/NB 38,4% (rank 1)

• Seat’s overall contribution is marked

with its following leading model: Leon A/HB 16,5% (rank 2)

• Premium Segment:

Audi: A3 SB&Sedan A 54,9% (rank 1) A4 B 34,0% (rank 2) A6 C 14,1% (rank 3) Porsche: 911 Carrera D C&C 33,3% (rank 1) Panamera D NB 5,1% (rank 4) 718 Boxster/Cayman B 45,0% (rank 1)

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2Q 2017 LIGHT COMMERCIAL VEHICLE MARKET (%) Retail

• Light commercial vehicle market

contracted by 5% yoy.

• DOAS’s market share in light commercial

vehicle market was realized as 12,7%.

• Best selling models in its segment are:

Caddy A 15,8% (rank 2) Transporter B 41,5% (rank 1) Amarok B CDP 15,9% (rank 4) Crafter C-D 4,9% (rank 5)

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2Q 2017 DOGUS OTOMOTIV BRAND SALES PERFORMANCE Wholesale

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WHOLESALE UNITS 6M2016 6M2017 Δ VW PV 47.910 38.834

• 19%

VW LCV 15.946 11.562

• 27%

AUDI 9.572 8.410

• 12%

SKODA 13.847 8.993

• 35%

SEAT 8.953 8.087

• 10%

SCANIA 1.230 631

• 49%

PORSCHE 370 286

• 23%

BENTLEY 2 6 200% LAMBORGHINI 3 3 0% DOAS TOTAL 97.833 76.812

• 21%

LAUNCHES IN 2017

New: Cayenne, Panamera ST, Facelift: 911 GTS, 911 GT3 New: Arteon and Golf New: Q5, A5 SB and A8 New: Ibiza and Arona Facelift: Leon New: Kodiaq Facelift: Octavia, Rapid, Rapid Spaceback Huracan Performante New R-Series New S-Series Bentayga Diesel

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FINANCIAL PERFORMANCE

FINANCIAL PERFORMANCE (mn TL)

Net Sales EBITDA Net Profit CapEx Total Assets Working Capital**

**Cash and cash equivalents, trade receivables and inventory are included.

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*186,5 mn TL of CapEx is arising from the purchase of Doğuş Oto Esenyurt.

MARGINS (%)

Gross Profit Margin OpEx/Sales EBITDA Margin EBIT Margin Net Profit Margin Wholesale Market Share*

10 % Target %8 Cons. Max

*PV, LCV and HCV sales are included.

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INCOME STATEMENT

Gross profit margin was realized as 10,3% and both revenue and direct cost of revenue decreased by 3% yoy. Impacts on revenue and direct cost of revenue:

• Increase in EUR/TL rate.
• Decrease in yoy sales volume.

Sales and Marketing Expenses: 4% decrease in Advertising expenses and 14% decrease in Warranty expenses

• ffset

by slight increase of 20% in Personnel expenses. General Administrative Expenses: Expenses substantially consisted of Personnel expenses (93,420 TL). A rise of 3% due to increase in average salary. Depreciation and amortization expenses increased by 31% due to Doğuş Oto Esenyurt and Kartal buildings. Financial Costs increased by 34% due to increase in interest expense on borrowings. One-off events in 2Q 2017: Capitalized non-refundable tax of Doğuş Oto Esenyurt.

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TL’000 2Q2017 2Q2016 Δ 2Q2017/ 2Q2016 Revenue 5.215.259 5.359.824

• 3%

Direct cost of revenue

• 4.677.498
• 4.804.731
• 3%

Gross profit 537.761 555.093

• 3%

Total Operational Expenses

• 359.645
• 376.226
• 4%

EBIT 178.116 178.867 0% Income from Investing Activities 17.497 16.860 4% Income/Loss from Associates 45.454 56.368

• 19%

Financial income/costs, net

• 166.626
• 124.291

34% Profit before income tax 74.441 127.804

• 42%

Tax expense

• 4.782
• 14.635
• 67%

Profit for the year 69.659 113.169

• 38%

EQUITY ACCOUNTED INVESTEES

* The sale of Meiller’s production and administration facility has been concluded, and Meiller brand distributorship agreement with our Company has been terminated.

12 TL’000 2Q2017 2Q2016 Δ 2Q2017/ 2Q2016 Associates VDF 20.512 25.937 21% Doğuş Sigorta 908 885 3% Yüce Auto 3.322 6.461

• 49%

VDF Servis 5.875 6.712

• 12%

TÜVTÜRK N&S (Consolidated) 15.800 16.161

• 2%

Meiller-Doğuş* 47

• 514

109% Doğuş Teknoloji

• 1.010

726

• 239%

Total 45.454 56.368

• 19%

BALANCE SHEET

Inventories: Number of vehicles increased from 20.217 units on 31.12.2016 to 21.814 units on 30.06.2017. Tangible Assets: increased by 23% due to the purchase of Doğuş Oto Esenyurt. Financial Liabilities: Financial liabilities decreased by 6% due to the decline in the long term loans. Investments in Equity Accounted Investees

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TL’000 30.06.2017 31.12.2016 Associates Doğuş Sigorta 34.227 35.273 VDF Servis 53.421 47.546 VDF 146.462 125.950 Yüce Auto 18.171 21.919 Doğuş Teknoloji 9.424 6.179 Joint Arrangements TÜVTÜRK N&S (Consolidated) 53.210 60.265 Meiller-Doğuş 3.021 8.854 Total 317.936 305.986

TL’000 30.06.2017 31.12.2016 Δ ASSETS 4.812.519 4.851.854

• 1%

Cash and cash equivalents 74.272 89.098

• 17%

Trade receivables 1.025.213 1.213.786

• 16%

Inventories 1.674.213 1.650.960 1% Financial Investments 553.463 550.350 1% Investments in equity accounted investees 317.936 305.986 4% Tangible and intangible non-current assets 987.056 807.191 22% Investment property 19.602 19.809

• 1%

Other 160.764 214.674

• 25%

LIABILITIES 3.625.708 3.733.141

• 3%

Financial Liabilities 2.586.714 2.758.435

• 6%

Trade payables 872.036 770.675 13% Provisions 84.427 82.832 2% Other 82.531 121.199

• 32%

EQUITY 1.186.811 1.118.713 6%

FINANCING COSTS

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Million TL 2Q2017 2Q2016 Δ 2Q2017/ 2Q2016 Financing Costs 166,626 124,291 34% Finance expenses, net 166,540 124,263 34% Interest expense on borrow ings 160,399 119,458 34% Commission expenses on letters of guarantee 3,507 1,637 114% Other financial expenses 2,634 3,168

• 17%

Foreign Exchange gain/loss, net 0,086 0,028 207%

FINANCIAL PERFORMANCE

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Million TL 30.06.2017 31.12.2016 Δ Working capital 2.774 2.954

• 6%

Net cash position

• 2.551
• 2.707

6% Receivable Turnover (day) 36 37

• 3%

Inventory Turnover (day) 65 56 17% Payable Turnover (day) 34 26 30% Million TL 30.06.2017 31.12.2016 Δ CAPEX 238 208 14% ROA 1,4% 4,9%

• 70%

ROE 5,9% 21,3%

• 72%

Major Public Material Disclosures in 2Q 2017

30 January 2017 - Purchase of Property and Equipment The property located in Esenyurt / Istanbul and leased as the Company’s automotive showroom and aftersales service was bought in accordance with the value determined by the survey and expertise report issued by Terra Estate Appraisal Company from Doğuş Holding A.Ş. for the amount of TL 186,500,000. 20 February 2017- Meiller Doğuş Damper Sanayi ve Ticaret Limited Şirketi - About Capital Reduction The legal process that the Company had initiated in order to reduce the capital of Meiller Doğuş Damper Sanayi ve Ticaret Limited Şirketi in which the Company has a 49% share, and whose activities had been suspended, from the total

• f TL 56,166,000 down to TL 234,000 by deducting TL 44,165,380.90 from retained losses and a cash reduction of TL

12,000,619.10 is ongoing. 02 March 2017 - Doğuş Bilgi İşlem ve Teknoloji Hizmetleri AŞ – About Capital Increase The paid-in-capital of our subsidiary, Doğuş Bilgi İşlem ve Teknoloji Hizmetleri A.Ş., was increased from TL 9.750.000 to TL 19.000.000 and the General Assembly decision for the transaction was registered by İstanbul Trade Registry. Our company's 46% share in Doğuş Teknoloji will remain the same after the capital increase and TL 4.255.000 amount of the increased cash capital will be covered by our company. 19 April 2017 - Meiller Doğuş Damper Sanayi Ve Ticaret Limited Şirketi - About Capital Reduction The capital reduction of Meiller Doğuş Damper Sanayi Ve Ticaret Limited Şirketi was registered by Sakarya Trade Registry. Our company’s stake in Meiller Company does not change after the capital reduction. 15 August 2017 – Meiller Doğuş Damper Sanayi Ve Ticaret Limited Şirketi-About Liquidation Process The Company has resolved to liquidate Meiller Doğuş Damper Sanayi ve Ticaret Limited Şirketi in which the Company has a 49% share, and whose activities had been suspended, and the legal process related to liquidation has been initiated.

THANK YOU – Q & A

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.