DOĞUŞ OTOMOTIV Ak Securities Turkey Outlook Investor Relations

Transcription

1 DOĞUŞ OTOMOTIV Ak Securities Turkey Outlook 2007 Investor Relations

2 Agenda Agenda I. I. Doğuş Group Doğuş Group II. II. Doğuş Otomotiv (DOAS) Doğuş Otomotiv (DOAS) III. III. Current Market Outlook Current Market Outlook IV. IV. Jan-Dec 2006E Results Jan-Dec 2006E Results V. V. Expectations Expectations VI. VI. New Projects New Projects 2 2

3 Doğuş Group... Established in 1951 and owned byşahenk Family One of the pillar blocks of the Turkish economy 17,000+ employees 6 mn+ customers 3 3

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5 Doğuş Otomotiv s Vision is... to provide innovative service beyond expectations Doğuş Otomotiv s Mission is... To be customer oriented at the highest level, define new horizons in existing lines, To make the best of the technology, To create difference with our creative manpower, Always raise our market value by providing efficient and profitable service throughout the automotive value chain 5 5

6 One Key Unlimited Service... Leader position in import market Revenue runs around $1,314 mn in 9M 06 Brand and model diversity 11 brands 68 model 76,902 (*) unit cars sold 7,735 (**) second hand cars sold 793,000(*) vehicles serviced 1,656 employees Now in ISE 30 (*) İncluding PV, LCV, HCV in 2006 (**) Including DOD City and DOD authorised dealers 6 6

7 Widest network across Turkey sales points, 276 service points (*) (*) Doas brands, including VW, Audi, Porsche, Scania, Seat, Krone, VW Marine, Scania Marine, DOD, Skoda 7 7

8 Success Story of DOAS... Car park over units Direct Dealership of VW LCV in Egypt Krone Production Lamborghini LOI Bentley LOI Meiller Tippers Back Office Consolidation VW Marine Engines Group s total vehicle population Doğuş Group established subsidiaries distributing VW, Audi and Porsche Market share 0.5% Scania contract signed Seat & Skoda contract signed partnership with Yūce Oto Import duties on vehicles from the EU abolished Market share 5.8% VW Consumer Finance JV Krone contract signed Established used car operations 1st dividend paid Merger of Automotive companies under DOAS Market share 12,2% 2nd dividend paid

9 In Every Part Of Automotive Value Chain... Corporate strategy is: to be sizable, close and creative... * JV with Yuce Auto 9 9

10 Current Market Outlook... Negative effect of F/X fluctuation on macroeconomic indicators Competitive and agressive local market Increasing trend in interest rates, decreasing demand in consumer loans Vehicle density by country (2003)* Estimated growth in personal vehicle density ( E)* 14% y-o-y decrease in total market (pv, lcv) in 2006 * JD Power Estimates 10 10

11 Current Market Outlook... OTHER 25% DOAS 12% Total Market (2006): PV & LCV TOYOTA 5% FIAT 12% RENAULT 14% FORD 17% HYUNDAI 9% OPEL 6% Total market : units DOAS deliveries : units Hyundai, Opel, Renault lost m/s Total Market (2005): PV & LCV OTHER 25% FIAT 11% FORD 17% Total market : units DOAS deliveries : units DOAS 11% TOYOTA 4% RENAULT 15% OPEL 7% HYUNDAI 10% Source: ADA 11 11

12 Key Strengths... Leader in import market in Turkey One-stop shop in mobility Well-positioned multi-brand products Youngest fleet in the market Widespread network and customer base Sophisticated IT infrastructure Advanced risk management systems Strong management Attractive 50% dividend policy Profitable growth strategy 12

13 Still the youngest fleet in the market... Volkswagen PV Volkswagen LCV Audi Porsche Seat Skoda Phaeton, Touareg, Touran (face lift) Crafter, Caddy Colour Concept-Highline TT Roadster, R8, A5 Coupe Cayenne V6, Cayenne Turbo, 911 Turbo Cabrio Leon Cupra, Altea XL Roomster Scout, Octavia Scout, Roomster Praktik, New Fabia 1313

14 Doğuş Otomotiv Headline Figures January-December 2006E /- (%) New car sales (pv & lcv) units hand car sales units Sales Revenue $ million * Operating Profit $ million 52 * Net Profit $ million 18 * Total Asset $ million 785 * Gross Margin % 12.0 * Net Margin % 1.0 * 4.4 (*) unaudited data 14 14

15 Doğuş Otomotiv Headline Figures January-December Breakdown of Sales (%) $ million Import & Distribution (TR) Import & Distribution (Abroad) Production Retail & After Sales Services 2006E 71 * * Shareholder Structure Ownership (%) Free Float 34,50% Doğuş Inşaat 30,29% Doğuş Holding 35,00% Katalonya 0,21% Total 100,00% (*) unaudited data before consolidation adjustments 15 15

16 Doğuş Otomotiv Headline Figures Mcap: apprx 400mn$ 3m avr daily volume: 3.3mn$ Closing Price (TRY) 52 wk High (TRY) (27Apr06) 52 wk Low (TRY) (27Jun06) ,0 8,0 7,0 6,0 DOGUS OTOMOTIV ( ) 60,0 50,0 40,0 % Price Change 1 Month Ago % Price Change 3 Months Ago % Price Change 6 Months Ago % Price Change 1 Year Ago US$ 5,0 4,0 3,0 2,0 1,0 30,0 20,0 10,0 0,0 0, PE Div Yld Volume (USD) (rhs) DOAS Relative to ISE Stock DIVIDEND POLICY: According to the Company s Articles of Association, a minimum 50% of distributable profit will be distributed until the year 2009 as dividends to shareholders

17 Expectations 17

18 Tough Competition in January-December 2007E 2006E 2005 Total Market (pv, lcv, hcv) DOAS New Car Sales DOAS Marketshare 12% 12% 11.5% DOAS 2. hand car sales Doğuş Auto Mısr Revenue ($ million) Gross Margin 12.3% 12.0% 14.4% Operating Profit Margin 2.0% 3.0% 6.3% Net Margin 1.3% 1.0% 4.4% Average TL/$ Rate

19 New Projects 19

20 New Projects... I. Increase the number of sales and service points Block Exemption Regulation (BER) Rules are effective as of January 1st, 2007 Effects in EU*: # of authorised repairers falled by 18% 17% of the independent repairers become contractual partner of manufacturer stand-alone ind. repairers become part of new large repairer groups service-repair prices increased, while care maintenance-repair expenditures falled dealer groups & large dealerships have increased both in # and in average size Effects in TR: quality improvement due to competition in service: customer satisfaction DOAS: Sales: Quantitative Selective System Service: Qualitative Selective System * Source: Final Report to ECDG Competition by London Economics, June

21 New Projects... II. Motor Vehicle Inspection Business TÜVTÜRK equal share participation of DOAS, Akfen Holding and TÜV SÜD 20 year license to build & operate MVIS in Turkey for 2 regions: Northern & Southern Turkey with 613.5mn USD (10% discount for paying in cash: 552mn USD) The license gives the right to build & operate MVIS overall Turkey for 20 years The operator will establish minimum 189 Fixed and 89 Mobile Inspection Stations overall Turkey There exist 12 mn vehicles in Turkey in 2006 (40 million in Germany) Number of inspected cars is 62% of total required vehicles, showing that 3.6 mn cars have been inspected in 2005 The car park growth 7% in Turkey within the last 10 years Income will be shared with government (for the first 3 years 30% of income, from the 3rd year up to 10 years 40% of income, between 10 and 20 years 50% of income) Station operations include periodic inspection, exhaust emission, other technical tests and additional businesses like product sales, insurance etc TuvTürk has an intention to utilize the business to subcontractors on region basis (details are not certain yet) 21 21

22 New Projects... III. Provide integrated service center for used cars Dod City Largest integrated indoor used car center in Europe Over 2 million YTL investment M2 350 used cars showroom capacity Service sections for 101 point expertise Auction hall for 250 attendees Car care services Used car consumer credit Legislation and paperwork follow up service Open 7 days a week Car accessories and spare part services with CMS Shop # of authorised DOD dealers in TR:

23 New Projects... IV. All brands under one roof: 3 Main Activities: Car Display Interactive Area Service Area Total Area: sqm Total Car Display Area: sqm (VW, Audi, Seat, Skoda, Porsche, Bentley, Lamborghini) Total Public Interactive Area: sqm (incl: Kids Club, Conference room, Meeting Rooms, Car Delivery Areas, Exhibit Areas, Cafe&Lounge, Merchandise shop) Service Area: sqm (incl: 120 of workbays) Located in central city Istanbul s largest service area An experimental marketing concept designed to engage visitors on a variety of emotional & intellectual levels An interactive, dynamic, innovative & exciting place designed for all 23 23

24 THANK YOU DOAS Investor Relations Phone: Fax:

25 DOAS protects its marketshare with its strong product portfolio MODEL 1Q 06 2Q 06 3Q 06 4Q 06 % Chg 2006 % Chng from last year 1Q 05 2Q 05 3Q 05 4Q 05 % Chg 2005 VOLKSWAGEN % % % VW PV % % % VW LCV % % % AUDI % % % PORSCHE % % % 153 SEAT % % % SKODA % % % Total % % % Market Size PV % % % LCV % % % Total % % % Market Shares Passenger Car 12,2% 10,2% 13,1% 11,6% -12% 11,5% -1% 8,3% 11,2% 11,6% 13,7% 18% 11,6% LCV 13,2% 10,7% 11,2% 10,8% -4% 13,1% 13% 8,3% 12,1% 10,5% 13,9% 33% 11,6% Total 13,1% 11,8% 13,0% 11,3% -14% 12,2% 3% 9,9% 10,8% 12,2% 13,2% 9% 11,8% Source: ADA * Dogus Otomotiv 25 25

26 DISCLAIMER: Dogus Otomotiv Servis ve Ticaret A.S. (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