40 slides from Dogan Sirketler Grubu Holding A.s's earnings presentation, May 11, 2016
Slide 1: Doğan Holding 1Q16 Financial Highlights
Doğan Holding 1Q16 Financial Highlights May 11, 2016
Slide 2: Agenda
Agenda I. Highlights 2 II. Business Segments I. Media 6 II. Energy 18 III. Retail 23 IV. Industry & Others 26 III. Financials 30 1 Doğan Holding 1Q16 Financial Results
Slide 3: Highlights of 1Q16
Industry & Highlights Media Energy Retail Others Highlights of 1Q16 Total consolidated revenues reached TL1,588mn; up by 62% yoy. The revenue increase led by energy segment’s contribution: Aytemiz acquired in March 11, 2015, started to be fully consolidated. Broadcasting segment COGS recovered by 24
Slide 4: Financial highlights of 1Q16
Industry & Highlights Media Energy Retail Others Financial highlights of 1Q16 Revenues – mn TL Income Statement Summary +68% in TL mn Column1 1Q15 1Q16 Δ 5,951 Sales 978 1,588 62% +62% Gross Profit 190 300 58% 3,543 1,588 Gross Margin 19.4% 18.9% -0.5 p.p. 978 Operating Expenses (-) 193 251 30% Othe
Slide 5: Financial highlights of 1Q16: Revenue and EBITDA Bridge
Industry & Highlights Media Energy Retail Others Financial highlights of 1Q16 Revenue Bridge – mn TL EBITDA Bridge – mn TL 93 1,588 37 1 113 789 37 3 163 267 36 276 Publishing Broadcasting Retail Energy Other Total Publishing Broadcasting Retail Energy Other Total 3% -4% 14% 271% 25% 62% 12% 14% 2%
Slide 6: Financial Structure
Industry & Highlights Media Energy Retail Others Financial Structure Consolidated Net Cash/(Debt) – in TL mn Consolidated Net Cash Position (TL mn) 1 31.Dec.15 31.Mar.16 2 2,188 1,827 Cash&Marketable Securities S/T Debt 1,456 1,307 -800 -891 L/T Debt 666 716 Financial liabilities due to call and 693
Slide 7: Media
Media
Slide 8: Media Segment - Highlights of 1Q16
Industry & Highlights Media Energy Retail Others Media Segment - Highlights of 1Q16 Revenues remained intact with the levels attained in 1Q15. Turkish ad market growth in 1Q16 was 9.9% yoy, owing to TV and internet ad revenues. Lower newsprint prices in US$ terms, and reduction in paper consumption
Slide 9: Media
Industry & Highlights Media Energy Retail Others Media Revenues – in TL mn* Summary Financials (Publishing + Broadcasting)* -1% Publishing Broadcasting in TL mn 1Q15 1Q16 D 547 543 Sales 567 557 -2% Cost of Goods Sold -453 -391 -14% 280 267 Gross Profit 114 166 45% 24% Gross Margin 20.1% 29.7% 9.6 p
Slide 10: Ad market growth in 1Q16
Industry & Highlights Media Energy Retail Others Ad market growth in 1Q16 Ad Market in Turkey* Quarterly Ad Market in TL mn and y/y Growth Ad Market growth Ad Market 1Q16 FY15 TL mn Share yoy D TL mn yoy D 15.4% 1,834 TV 812 50% 11.7% 3,209 5.4% 1,659 1,621 1,614 1,618 Internet 420 26% 12.6% 1,197 1
Slide 11: Telecoms and finance supported total ad market in 1Q16
Industry & Highlights Media Energy Retail Others Outlook Telecoms and finance supported total ad market in 1Q16 Turkish Ad Market by top 10 Sectors in 1Q16* D in TL mn in TL mn Share D in Share D yoy Food -11 147 9% -1.6 pp -7% Telecoms 43 122 8% +2.2 pp 54% Finance 6 71 4% -0.0 pp 9% Consruction -2
Slide 12: Publishing Segment
Industry & Highlights Media Energy Retail Others Publishing Segment Revenues –TL mn* Summary Financials* +3% in TL mn 1Q15 1Q16 D Advertising 276 Sales 283 286 1% 268 Circulation & Printing Cost of Goods Sold -187 -188 1% 76 93 Other Gross Profit 97 99 2% 71 72 Gross Margin 34.2% 34.4% 0.3 p.p. Oper
Slide 13: Newspaper ad spend continued to decline
Industry & Highlights Media Energy Retail Others Newspaper ad spend continued to decline Turkish Newspaper Ad Market by top 10 Sectors in 1Q16* D in TL mn in TL mn Share D in Share D yoy Retail -4 22 12% -1.8 pp -15% Construction -4 18 10% -1.9 pp -18% Tourism 1 13 7% +0.6 pp 7% Automotive 1 12 6% +
Slide 14: Maintained leading position in newspaper & magazine circulation
Industry & Highlights Media Energy Retail Others Maintained leading position in newspaper & magazine circulation Average daily newspaper circulation in Turkey was Total magazine sales in Turkey was 2.9 mn in 4.0 mn in 1Q16, down by 13.7% yoy. 1Q16, down by 22.7%. Newspaper Circulation in 1Q16 (000 c
Slide 15: Broadcasting
Industry & Highlights Media Energy Retail Others Broadcasting Revenues – TL mn* Summary Financials* -4% in TL mn 1Q15 1Q16 D 280 267 Advertising Sales 284 271 -5% 44 36 Subscription Cost of Goods Sold -267 -204 -24% Other 112 102 Gross Profit 17 67 286% Gross Margin 6.1% 24.8% 18.6 p.p. Operating Ex
Slide 16: Telecoms increased their TV ad spending in 1Q16
Industry & Highlights Media Energy Retail Others Telecoms increased their TV ad spending in 1Q16 Turkish TV Ad Market by top 10 Sectors in 1Q16* D in TL mn in TL mn Share D in Share D yoy Food -10 130 16% -3.2 pp -7% Telecoms 36 90 11% +3.6 pp 65% Cosmetics -6 53 7% -1.6 pp -10% Finance 6 46 6% +0.2
Slide 17: TV Broadcasting: Kanal D #1 in Total Day
Industry & Highlights Media Energy Retail Others TV Broadcasting: Kanal D #1 in Total Day1 Kanal D’s Audience share in Total Day & Prime Time/AB Group (%) Total Day Prime Time Kanal D #1 in 1Q16 in Total Day/AB Group1 10.1 9.5 9.6 9.0 CNN Türk ranked #1 News Channel in Total Day/AB Rank #1 #3 #1 #5
Slide 18: D-Smart #2 in Digital Pay TV business
Industry & Highlights Media Energy Retail Others D-Smart # 2 in Digital Pay TV business With the launch of new HD Channels, D-Smart now D-Smart subscribers - 000 has 81 HD channels and this is the highest TV Internet number of HD channels available on any Pay TV service in the territory -11% -11%
Slide 19: Energy
Energy
Slide 20: Energy Segment - Highlights of 1Q16
Energy Segment - Highlights of 1Q16 Highlights Media Energy Retail Industry & Others Revenues reached TL795 mn in 1Q16, led by both Aytemiz and D Tes operations. Aytemiz’ contribution in total revenues was TL 609 mn in 1Q16 vs. 100 mn in 1Q15 only 20 days since its acquisition in March 11, 2015. Win
Slide 21: Hydro electricity generation in Turkey was up by 23% in 1Q16
Hydro electricity generation in Turkey was up by 23% in 1Q16 Turkish Gross Electricity Generation By Primary Energy Sources (GWh) 65,976 1,193 63,189 3,242 -1,647 1Q15 THERMAL HYDRO GEOTHERMAL+WIND 1Q16 Source: TEİAŞ +4% 65,976 63,189 -4% 45,367 43,720 1Q15 1Q16 +23% 17,423 14,180 +33% 3,641 4,834 T
Slide 22: Aytemiz - Doğan Partnership
Industry & Highlights Media Energy Retail Others Aytemiz - Doğan Partnership Doğan Enerji acquired 50% stake in Aytemiz and Aytemiz started to be fully Shareholder Structure consolidated as of March 11, 2015. Doğan Holding Aytemiz Family 459 petroleum distribution stations as of March 31, 2016,
Slide 23: Energy
Industry & Highlights Media Energy Retail Others Energy Consolidated Energy Segment Revenues – mn TL* Summary Financials* +271% in TL mn 1Q15 1Q16 D 789 Electricity gen. & tra. Sales 218 795 265% Petroleum prod. dist. Gross Profit 19 67 262% 609 Gross Margin 8.5% 8.4% -0.1 p.p. Operating Expenses (-
Slide 24: Retail
Retail
Slide 25: Retail
Industry & Highlights Media Energy Retail Others Retail D&R - Number of Stores D&R - Sales sqm +5% 150 60,114 D&R had 150 stores as of 145 57,181 March 2016. dr.com.tr & idefix.com’s monthly UV was 6.5 mn as of 1Q16. Retail segment revenues increased by 14% to TL163 1Q15 1Q16 1Q15 1Q16 mn in 1
Slide 26: Retail
Industry & Highlights Media Energy Retail Others Retail Consolidated Retail Segment Revenues – mn TL Summary Financials* +14% in TL mn 1Q15 1Q16 D 163 Sales 144 163 14% 144 Gross Profit 51 60 18% Gross Margin 35.3% 36.8% 1.5 p.p. Operating Expenses (-) -47 -60 27% Other Operating Inc./(Exp.), net 0
Slide 27: Industry & Others
Industry & Others
Slide 28: Industry & Others
Highlights Media Energy Retail Industry & Others Industry & Others Consolidated Other Segment Revenues – mn TL Summary Financials* +25% in TL mn 1Q15 1Q16 D 93 Sales 84 102 22% 75 Gross Profit 28 23 -17% 36 16 Gross Margin 32.8% 22.3% -10.5 p.p. 9 7 39% Operating Expenses (-) -26 -26 1% 53% Other Op
Slide 29: Çelik Halat
Highlights Media Energy Retail Industry & Çelik Halat Others Çelik Halat Sales – mn TL Çelik Halat – Summary Income Statement +7% in TL mn 1Q15 1Q16 D 33 31 Sales 30.8 33.1 7% Gross Profit 4.4 3.5 -20% Gross Margin 14.3% 10.7% -3.6 p.p. Operating Expenses (-) -2.8 -3.1 12% Operating Profit* 1.6 0.4
Slide 30: Ditaş
Highlights Media Energy Retail Industry & Ditaş Others Ditaş Sales – mn TL Ditaş – Summary Income Statement -8% in TL mn 1Q15 1Q16 D 18 Sales 18.2 16.8 -8% 17 Gross Profit 4.4 3.5 -20% Gross Margin 24.4% 21.0% -3.4 p.p. Operating Expenses (-) -3.4 -3.8 13% Operating Profit* 1.1 -0.3 n.m. Net Profit
Slide 31: Financials
Financials
Slide 32: Highlights of 1Q16 – Income Statement Summary
Highlights of 1Q16 – Income Statement Summary in TL mn Column1 1Q15 1Q16 Δ Sales 978 1,588 62% Gross Profit 190 300 58% Gross Margin 19.4% 18.9% -0.5 p.p. Operating Expenses (-) 193 251 30% Other Operating Inc./(Exp.), net 128 -7 n.m. Share of Gain/(Loss) on Invest. -79 -2 -97% Accounted for by the
Slide 33: Highlights of 1Q16 – Balance Sheet
Highlights of 1Q16 – Balance Sheet in TL mn 12/31/2015 03/31/2016 Δ yoy Current Assets 3,959 3,716 -6% Non-Current Assets 3,483 3,528 1% Total Assets 7,441 7,245 -3% Current Liabilites 2,694 2,461 -9% Non-Current Liabilities 1,705 1,762 3% Non-Controlling Interests 390 393 1% SHs Equity, Parent 2,65
Slide 34: Revenue Breakdown
Revenue Breakdown TL mn 1Q15 1Q16 Δ yoy Media 547 543 -0.7% Publishing 268 276 3.1% Advertising 120 111 -7.2% Circulation & Printing 71 72 0.7% Other 76 93 21.6% Broadcasting 280 267 -4.4% Advertising 123 129 4.9% Subscription 112 102 -8.7% Other 44 36 -19.3% Retail 143 163 13.5% Energy 212 789 271.
Slide 35: Operational Results by Segments
Operational Results by Segments mn TL 1Q15 1Q16 D yoy Revenues 978 1,588 62% Publishing 283 286 1% Broadcasting 284 271 -5% Retail 144 163 14% Energy 218 795 265% Other 84 102 22% Intersegment Eliminations -35 -29 n.m. COGS 788 1,288 63% Publishing 187 188 1% Broadcasting 267 204 -24% Retail 93 103
Slide 36: Operational Results by Segments
Operational Results by Segments mn TL 1Q15 1Q16 D yoy EBIT -4 49 n.m. Publishing 17 16 -3% Broadcasting -33 16 -147% Retail 3 0 n.m. Energy 8 23 173% Other 2 -4 n.m. Intersegment Eliminations 0 -2 n.m. EBITDA 58 113 94% Publishing 36 36 0% Broadcasting -5 37 n.m. Retail 5 3 -52% Energy 15 37 148% Ot
Slide 37: Energy – JV Hydro Assets
Industry & Highlights Media Energy Retail Others Energy – JV Hydro Assets Boyabat Financial Results* Aslancık Financial Results * Installed Capacity: 513 MW Installed Capacity: 120 MW Avg. Generation: 1,5 TWh* Avg. Generation: 418 GWh* * firm+secondary , based on 40 years water data *firm+secondary
Slide 38: EBITDA Reconciliation
EBITDA Reconciliation TL mn 1Q15 1Q16 D yoy Operating Profit (EBIT) -4 49 n.m. Depreciation & Amortization (+) 73 86 17% Programme Rights Amortization (-) -19 -25 35% Net IAS Impact (+) 7 2 -65% EBITDA 58 113 94% 37 Doğan Holding 1Q16 Financial Results
Slide 39: Notice
Notice Doğan Şirketler Grubu Holding A.Ş. Investors and prospective investors in accurate. The forward-looking statements (“Doğan Holding”) has prepared this book securities of any issuer mentioned herein in this Book speak only as at the date of (the “Book”) for the sole purposeof are required to m
Slide 40: Thank You
Doğan Şirketler Grubu Holding A.Ş. Burhaniye Mah. Kısıklı Cad. No.65 34676 Üsküdar, İstanbul T: +90 216 556 9000 www.doganholding.com.tr Thank You For further information E-mail: ir@doganholding.com.tr 39 Doğan Holding 1Q16 Financial Results