Dogan Sirketler Grubu Holding A.s. · BIST:DOHOL
Dogan Sirketler Grubu Holding A.s — FY2021 Earnings Presentation
64 slides from Dogan Sirketler Grubu Holding A.s's earnings presentation, Mar 4, 2022
Slide 1: Doğan Holding FY21 Financial Results
Doğan Holding FY21 Financial Results March 4, 2022
Slide 2: Agenda
Agenda I. FY21 Highlights 2 II. Strategy 10 III. Business Segments 14 Petroleum Products Retail 15 Electricity Generation 19 Industry and Trade 25 Automotive Distribution 38 Finance and Investment 42 Internet and Entertainment 46 Real Estate Investments 49 IV. Appendix 52 1 Doğan Holding FY21 Financ
Slide 3: FY21 Highlights
FY21 HIGHLIGHTS
Slide 4: Highlights of FY21
Highlights of FY21 Revenue – mn TL EBITDA – mn TL Consolidated revenue grew by 57% y/y to TL16.9 bn in 2021 • Recovery across the board with the bounce-back from 2020 where businesses +57% +90% were disrupted by the lockdowns due to Covid-19 • Full-year consolidation of Sesa (4.4% of revenue in 20
Slide 5: Financial Highlights
Financial Highlights Income Statement Summary Balance Sheet Summary TL mn 4Q20 4Q21 Δ FY20 FY21 Δ TL mn 31/12/2020 30/12/2021 Δ yoy Sales 3,181 5,704 79% 10,770 16,921 57% Current Assets 8,178 15,514 90% Cost of Goods Sold -2,783 -4,644 67% -9,482 -14,482 53% Non-Current Assets 5,516 6,778 23% Gross
Slide 6: Financial Structure
Financial Structure Consolidated Net Cash/(Debt) – in TL mn Consolidated and Stand-alone Net Cash – in USD mn 5,065 USD mn FY20 1Q21 1H21 9M21 FY21 Consolidated Cash 726 726 770 743 728 2,633 Consolidated Net Cash 331 315 359 360 379 Consolidated Net Fx Position 379 297 366 359 374 2,432 Stand-alone
Slide 7: Share Buyback / Dividend Outflow & Inflow
Share Buyback / Dividend Outflow & Inflow Ongoing Share Buyback Program Dogan Holding Dividend Payments Dividend Inflow from Subsidiaries - Adopted in 2019; Maximum 130.8mn - Dividend Policy: ≥ 5% of share capital to - Growing stream of dividends from shares or up to TL131mn be distributed portfolio
Slide 8: Segment Structure
Segment Structure Petroleum Pro. Automotive Finance & Internet & Real Estate Electricity Gen. Industry Retail Distribution Investment Entertainment Investments Aytemiz Galata Wind Çelik Halat Doğan Trend Doruk Factoring D Gayrimenkul Ditaş Otomotiv Glokal Digital Boyabat HEPP (JV) Doruk Finance* Mil
Slide 9: Segment Performance Snapshot – FY21
Segment Performance Snaphot – FY21 Petroleum Products Automotive Internet & Real Estate Electricity Generation Industry & Trade Finance & Investment Retail Distribution Entertainment Investments Revenue 11,315 539 2,663 1,121 431 712 141 mn TL* % of 67% 3% 16% 7% 3% 4% 1% Revenue EBITDA 544 427 357
Slide 10: Revenue & EBITDA Breakdown
Revenue & EBITDA Breakdown Revenue Breakdown by Segment* (TL mn) & % ch y/y EBITDA Breakdown by Segment (TL mn) & EBITDA Margin (%) 712 16,921 162 1,718 2,663 141 357 39 1,121 431 539 83 11,315 105 427 544 Petr. Elect. Gen. Aut. Dist. Fin. & Inv. Industry Real Int. & Ent. Cons’d Petr. Elect. Gen. Au
Slide 11: Strategy
STRATEGY
Slide 12: Capital Allocation & Value Creation
Capital Allocation & Value Creation Sizeable acquisition in profitable & growing sectors Expanding existing businesses and monitoring 01. Turnaround strategies that support companies to expand their market share 02. opportunities in the following areas: Manufacturing / Financial services / Technolog
Slide 13: 2021 Targets vs. Actual
2021 Targets vs. Actual High double digit growth in revenues by the base effect of last year 2021 Target 2021 Actual Actual vs. Target High double-digit revenue growth +57% P EBITDA margin: 6-8% 10.1% Expected EBITDA margin between 6-8% P Earnings growth +103% P Dividend distribution from 2021 Earni
Slide 14: Portfolio Expansion since 2020
Portfolio Expansion since 2020 Maksipak Acquisition by Sesa: Profil Sanayi and 3S Acquisition by Ditas: - Deal completed on 22 February 2022 - Deal completed on 30 November 2021 - Size: €7.9mn paid for a 70% stake - Size: €1.9mn paid for 70% stake - Rationale: Enhance product portfolio - Rationale:
Slide 15: Business Segments: Petroleum Products Retail
BUSINESS SEGMENTS PETROLEUM PRODUCTS RETAIL
Slide 16: Petroleum Products Retail – Aytemiz
Petroleum Products Retail – Aytemiz Total petroleum products consumption increased by 5.4% yoy to 28,038,849 ton in 11M21. (2020/11: 26,605,919 ton) Total LPG consumption increased by 1.4% yoy to 3,646,056 ton in 11M21. (2020/11: 3,594,199 ton) Petroleum Products Consumption in Turkey (2020/11 vs 20
Slide 17: Petroleum Products Retail – Aytemiz
Petroleum Products Retail – Aytemiz Aytemiz Market Share (%) Oil Price, Exchange Rates and Aytemiz LPG Petroleum Products Average 4Q20 4Q21 % ch y/y 2020 2021 % ch y/y 5.4 5.2 5.1 5.1 Avg. Brent (USD/bbl) 45.3 79.7 76% 43.2 70.9 64% 4.3 3.7 Avg. USD/TRY 7.86 11.16 42% 7.01 8.89 27% 3.4 4.2 4.5 4.2 4
Slide 18: Aytemiz
Aytemiz Doğan Enerji acquired 50% stake in Aytemiz in March 2015. Shareholder Structure Aytemiz has 570 stations scattered around Turkey, 474 of which are auto gas fuels, 11 fuel supply points 5 fuel storage Doğan Holding Aytemiz Family facilities (total 194,408 m3 capacity) and 4 auto gas stora
Slide 19: Petroleum Products Retail
Petroleum Products Retail Petr. Pro. Retail Segment Revenues – mn TL* Summary Financials* +45% TL mn 4Q20 4Q21 Δ FY20 FY21 Δ 11,331 Sales 2,181 3,820 75% 7,794 11,331 45% Cost of Goods Sold -2,085 -3,440 65% -7,453 -10,585 42% Gross Profit 95 380 299% 340 746 119% 7,794 Gross Margin 4.4% 10.0% 4.4%
Slide 20: Business Segments: Electricity Generation
BUSINESS SEGMENTS ELECTRICITY GENERATION
Slide 21: Electricity Generation
Electricity Generation Turkish electricity consumption increased by 7.7% yoy to 329,634 GWh in 2021. Total electricity generation increased by 8.1% yoy to 331,492 GWh in 2021. The share of renewables (wind, hydro, solar and geothermal) production was down 6.5 p.p. and realized 35.8%. Electricity pri
Slide 22: Electricity Generation
Electricity Generation Highly Efficient Renewable Portfolio With F-i-T Mechanism New Wind Project – Taşpınar WEPP & Hybrid Power Plants Şah WEPP 11% Mersin WEPP 7% Taşpınar WEPP 7% Çorum SEP Boyabat HEPP 1% 58% Erzurum SEP 3% Aslancık HEPP 13% Totally 902 MW installed capacity; 3 wind power plan
Slide 23: Electricity Generation
Electricity Generation Mersin Şah Taşpınar Çorum Erzurum Boyabat Aslancık WPP WPP WPP SEPP SEPP HEPP HEPP F-i-T: feed-in-tariff Capacity 62.7 MW 105 MW 67.2 MW 9.36 MW 24.7 MW 513 MW 120 MW * With the use of domestic equipment, a Termination of licence 2056 2057 2069 unlicensed unlicensed 2056 2057
Slide 24: Electricity Generation
Electricity Generation Electricity Gen. Segment Revenues – mn TL* Summary Financials* +61% TL mn 4Q20 4Q21 Δ FY20 FY21 Δ 540 Sales 86 209 142% 335 540 61% Cost of Goods Sold -21 -37 79% -89 -146 63% Gross Profit 66 172 162% 246 395 60% 335 Gross Margin 76.0% 82.3% 73.4% 73.1% Operating Expenses -7 -
Slide 25: Electricity Generation - Galata Wind
Electricity Generation - Galata Wind Galata Wind Revenues – mn TL* Summary Financials * +61% TL mn 4Q20 4Q21 D 2020 2021 D 540 Revenues 86 209 142% 335 540 61% Gross Profit 64 171 165% 246 395 60% 335 Gross Margin 74.6% 81.7% 7.0 p.p. 73.5% 73.1% -0.4 p.p. Operating Expenses -6 -9 47% -17 -30 74% Op
Slide 26: Business Segments: Industry & Trade
BUSINESS SEGMENTS INDUSTRY & TRADE
Slide 27: Industry & Trade
Industry & Trade Industry & Trade Segment Revenues – mn TL* Summary Financials* +98% TL mn 4Q20 4Q21 Δ FY20 FY21 Δ 2,676 Sales 491 800 63% 1,352 2,676 98% Cost of Goods Sold -385 -617 60% -1,117 -2,155 93% Gross Profit 106 183 73% 234 520 122% Gross Margin 21.5% 22.9% 17.3% 19.4% 1,352 Operating Exp
Slide 28: Industry & Trade – Çelik Halat
Industry & Trade – Çelik Halat Steel Wire Prestressed Concrete Strand Specialized in mining, Domestic leader with 55+ Globally well-known petroleum exploration, years of experience & brand with exports to fishing, marine, elevator strong customer profile more than 42 countries and crane ropes sector
Slide 29: Industry & Trade – Çelik Halat
Industry & Trade – Çelik Halat Çelik Halat Sales – mn TL Çelik Halat – Summary Income Statement +105% 687 TL mn 4Q20 4Q21 D 2020 2021 D Revenues 104 233 124% 335 687 105% Gross Profit 18 56 219% 51 123 140% Gross Margin 16.9% 24.0% 7.1 p.p. 15.3% 17.9% 2.6 p.p. 335 Operating Expenses -13 -23 78% -42
Slide 30: Industry & Trade – Çelik Halat
Industry & Trade – Çelik Halat Gross Revenue by Product (%) – 2021 Gross Revenue Breakdown (%) 6% 1% Prestressed Concrete Strand Export sales Steel Wire Rope 33% 39% Local sales 19% 49% 51% 35% Spring Wire 57% Galvanized Spring Wire Others 67% 61% 51% 49% 43% 38% 2017 2018 2019 2020 2021 Export Shar
Slide 31: Industry & Trade – Ditaş
Industry & Trade – Ditaş Product Range One of the biggest steering and suspension Strong brand reputation systems manufacturers Class “A” Supplier of & holds a significant in Turkish automotive Turkey’s Largest Vehicle share in the OEM and sector with 50 years of Manufacturers OEM Customers replacem
Slide 32: Ditaş: Profil Group Acquisition
Industry & Trade – Ditaş: Profil Group Acquisition Product Range Quality Speed on the Competitiveness put on market M&A Product Range 31 Doğan Holding FY21 Financial Results
Slide 33: Ditaş: Profil Group & Synergies
Industry & Trade – Ditaş: Profil Group & Synergies 1. Volume Growth 2. Profit Growth 3. Expanding Product Range 5. New Customer Relations 6. Economies of Scale 4. Productivity & Personnel Cost & Press Ability 32 Doğan Holding FY21 Financial Results
Slide 34: Industry & Trade – Ditaş
Industry & Trade – Ditaş Ditaş Sales – mn TL Ditaş – Summary Income Statement +83% TL mn 4Q20 4Q21 D 2020 2021 D 258 Revenues 47 83 77% 141 258 83% Gross Profit 14 20 38% 36 73 101% Gross Margin 30.7% 24.0% -6.7 p.p. 25.8% 28.3% 2.5 p.p. 141 Operating Expenses -8 -16 97% -27 -43 57% Operating Profit
Slide 35: Industry & Trade – Ditaş
Industry & Trade – Ditaş Revenues by Product Revenue Breakdown 6% 47% 57% 60% 64% 63% 60% 58% 36% 58% 53% 43% 40% 36% 37% 40% 42% 2015 2016 2017 2018 2019 2020 2021 Export Share by Country Export Destinations 2% 3% 10% Germany 37% USA 14% Italy UK Hungary Other 34% 34 Doğan Holding FY21 Financial Re
Slide 36: Industry & Trade – Sesa Ambalaj
Industry & Trade – Sesa Ambalaj Founded in 1989, Sesa Ambalaj ve Plastik Sanayi Ticaret A.Ş. (“Sesa”) moved to its current 12,000sqm SHAREHOLDER STRUCTURE (%) Kemalpaşa plant in 1997. Sesa is specialized in multi-storey flexible packaging and barrier films and produces bobbin and bags. Sesa prod
Slide 37: Industry & Trade – Sesa Ambalaj
Industry & Trade – Sesa Ambalaj Revenues Breakdown by Product Export vs. Domestic Revenue Export Destinations 8% 7% Other Export • Export clients in 59 countries Bag Domestic • Exported to 42 different countries in Bobbin 40% 2021 35% 38% 49% • Top 2 export destinations were the UK and the USA accou
Slide 38: Industry & Trade – Doğan Dış Ticaret
Industry & Trade – Doğan Dış Ticaret Founded in 1978, Doğan Dış Ticaret has made its first paper foreign trade transaction in 1993. In addition to newspaper and magazine paper, supply of cardboard and packaging materials, petrochemical raw materials is among the main businesses of the company. D
Slide 39: Business Segments: Automotive Distribution
BUSINESS SEGMENTS AUTOMOTIVE DISTRIBUTION
Slide 40: Automotive Distribution
Automotive Distribution Turkey Light Vehicle Market (units) 2020 2021 ch y/y Passenger Car 610,109 561,853 -7.9% According to the Automotive Distributors’ Association (ADA) figures, total Light Commercial Vehicle 162,678 175,497 7.9% sales of passenger cars (PC) and light commercial vehicles (LCV) L
Slide 41: Automotive Distribution - Doğan Trend Otomotiv
Automotive Distribution - Doğan Trend Otomotiv 40 Doğan Holding FY21 Financial Results
Slide 42: Automotive Distribution
Automotive Distribution Automotive Dist. Segment Revenues – mn TL* Summary Financials* TL mn 4Q20 4Q21 Δ FY20 FY21 Δ +120% Sales 197 394 100% 513 1,130 120% 1,130 Cost of Goods Sold -176 -320 82% -446 -950 113% Gross Profit 21 74 250% 68 180 165% Gross Margin 10.7% 18.7% 13.2% 15.9% Operating Expens
Slide 43: Business Segments: Finance & Investment
BUSINESS SEGMENTS FINANCE & INVESTMENT
Slide 44: Finance & Investment
Finance & Investment Fin. & Inv. Segment Revenues – mn TL* Summary Financials* +76% TL mn 4Q20 4Q21 Δ FY20 FY21 Δ Sales 62 228 270% 266 467 76% 467 Cost of Goods Sold -32 -87 169% -104 -196 88% Gross Profit 29 141 380% 162 272 67% Gross Margin 47.7% 61.9% 61.0% 58.1% 266 Operating Expenses -51 -84 6
Slide 45: Finance and Investment - Doğan Investment Bank
Finance and Investment - Doğan Investment Bank SHAREHOLDER STRUCTURE(%) Established upon the decision of the Banking Regulation and Supervision Agency ("BRSA") dated March 19, 2020 and numbered 8953. Doğan Yatırım Bankası A.Ş. ("Doğan Investment Bank") was registered in the Istanbul Trade Registry
Slide 46: Finance and Investment - Öncü VCIT
Finance and Investment - Öncü VCIT SHAREHOLDER STRUCTURE(%) Öncü Venture Capital Investment Trust was founded in December 2014. Öncü’s objectives include investing in scalable businesses, technology, 25% digitalization, e-commerce and ventures with growth potential for Turkey. D GAYRIMENKUL Ön
Slide 47: Business Segments: Internet & Entertainment
BUSINESS SEGMENTS INTERNET & ENTERTAINMENT
Slide 48: Internet & Entertainment
Internet & Entertainment Internet & Entert. Segment Revenues – mn TL* Summary Financials* +61% TL mn 4Q20 4Q21 Δ FY20 FY21 Δ 712 Sales 152 235 55% 441 712 61% Cost of Goods Sold -68 -118 75% -212 -379 79% Gross Profit 84 118 39% 229 332 45% 441 Gross Margin 55.5% 49.9% 51.9% 46.7% Operating Expenses
Slide 49: Internet & Entertainment - Kanal D Romania & Hepsiemlak
Internet & Entertainment - Kanal D Romania & Hepsiemlak Kanal D Romania Hepsi Emlak The 2nd most watched TV channel in Romania in Prime Successful rebranding of the real estate portal as Time hepsiemlak.com (previously hurriyetemlak.com) was completed in 2021. The campaign was launched in May
Slide 50: Business Segments: Real Estate Investments
BUSINESS SEGMENTS REAL ESTATE INVESTMENTS
Slide 51: Real Estate Investments
Real Estate Investments Real Estate Inv. Segment Revenues – mn TL* Summary Financials* +16% TL mn 4Q20 4Q21 Δ FY20 FY21 Δ 154 Sales 31 42 39% 133 154 16% 133 Cost of Goods Sold -18 -30 71% -71 -95 34% Gross Profit 13 12 -5% 62 59 -4% Gross Margin 42.0% 28.6% 46.7% 38.4% Operating Expenses -7 -6 -14%
Slide 52: Land/Real Estate Owned by Doğan Holding
Land/Real Estate Owned by Doğan Holding Lands/Real Estate owned by Dogan Holding Appraisal Value (TL million) Property Location 2020 2021 D Yapı Romania Bucharest, Romania 161.4 270.5 Doğan Holding Gümüşsuyu, Istanbul, TR 37.9 75.5 Milpa Ömerli, Istanbul, TR 335.5 430.1 Kandilli Gayrimenkul Tepeüstü
Slide 53: Appendix
APPENDIX
Slide 54: Historical Financials 2017 – 2021
Historical Financials 2017 – 2021 Revenues – mn TL* Gross Profit – mn TL* EBITDA – mn TL* +89% +90% +57% 16.921 2.439 1,715 13.254 12.146 10.770 1.289 902 7.739 1.015 1.076 679 559 603 507 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 2017 2018 2019 2020 2021 Net Profit (Parent) – mn TL* Solo Ne
Slide 55: Bank Debt Breakdown
Bank Debt Breakdown Repayment Schedule of Bank Debt –TL mn Breakdown of Bank Debt – FY21 4,362 3,154 FX 28% 2,503 1,018 652 164 26 72% Total 2021 2022 2023 2024 bank debt TL S/T bank debt S/T portion of L/T debt L/T debt 54 Doğan Holding FY21 Financial Results
Slide 56: Revenue Breakdown
Revenue Breakdown in TL mn 4Q20 4Q20 Δ yoy FY20 FY21 Δ yoy Petroleum Products Retail 2,179 3,817 75.1% 7,784 11,315 45.4% Fuel sales 1,844 3,194 73.2% 6,433 9,461 47.1% LPG sales 304 576 89.6% 1,237 1,698 37.2% Other 32 47 49.3% 113 156 37.4% Electricity Generation 86 209 141.8% 335 539 60.9% Indust
Slide 57: Operational Results by Segments
Operational Results by Segments in TL mn 4Q20 4Q21 Δ yoy 2020 2021 Δ yoy Revenues 3,181 5,704 79% 10,770 16,921 57% Petroleum Products Retail 2,181 3,820 75% 7,794 11,331 45% Electricity Generation 86 209 142% 335 540 61% Industry & Trade 491 800 63% 1,352 2,676 98% Automotive Distribution 197 394 1
Slide 58: Operational Results by Segments
Operational Results by Segments in TL mn 4Q20 4Q21 Δ yoy 2,020 2,021 Δ yoy EBIT 162 673 315% 566 1,303 130% Petroleum Products Retail 12 262 2066% 54 389 619% Electricity Generation 59 162 177% 227 365 61% Industry & Trade 49 104 110% 107 278 160% Automotive Distribution 8 43 460% 19 74 286% Finance
Slide 59: Net Cash / (Debt) Breakdown
Net Cash / (Debt) Breakdown Net Cash/(Debt) Breakdown TL mn 2020 2021 Petroleum Products Retail -484 -625 Electricity Generation -191 -488 Industry & Trade -542 -1,152 CELHA -71 -135 DITAS -23 -79 Dogan Dış Ticaret -132 -432 Sesa Yatırım -316 -499 Other 0 -7 Automotive Distribution -120 -238 Finance
Slide 60: Energy – JV Hydro Assets
Energy – JV Hydro Assets Boyabat Financial Results* Aslancık Financial Results * Installed Capacity: 513 MW Installed Capacity: 120 MW Avg. Generation: 1 TWh* Avg. Generation: 350 GWh* * firm+secondary , based on 40 years water data *firm+secondary Boyabat Aslancık in TL mn FY20 FY21 Δ in TL mn FY20
Slide 61: Dogan Holding - Snapshot
Dogan Holding - Snaphot Share of Foreign Investors in Free Float (%) Shareholder Structure Media asset sales 50.59 14.5% Doğan Family 37.27 33.22 30.76 30.97 35.9% 21.39 Free Float 49.7% Adilbey FY16 FY17 FY18 FY19 FY20 FY21 Holding Stock Performance – DOHOL vs BIST 100 DOHOL is included in the foll
Slide 62: Corporate Governance
Corporate Governance Board of JCR Credit Rating Long Term Short Term Directors 11 Board Member (4 Independent & 45% woman member) Foreign Currency BB B International Local Currency BB B Investment FC Stable Stable CEO, CFO, Head of Strategic Management, Head of Operational Management, Outlook Commit
Slide 63: Notice
Notice Doğan Şirketler Grubu Holding A.Ş. (“Doğan Holding”) has Investors and prospective investors in securities of any issuer Doğan Holding and its Subsidiaries and Joint Ventures (Doğan prepared this book (the “Book”) for the sole purpose of mentioned herein are required to make their own indepen
Slide 64: 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 63 Doğan Holding FY21 Financial Results
Doğan Şirketler Grubu Holding A.Ş. — FY2021 Earnings Presentation on 6ix