Dogan Sirketler Grubu Holding A.s. · BIST:DOHOL

Dogan Sirketler Grubu Holding A.s — Q1 2017 Earnings Presentation

39 slides from Dogan Sirketler Grubu Holding A.s's earnings presentation, May 12, 2017

  1. Slide 1: Doğan Holding 1Q17 Financial Highlights

    Doğan Holding 1Q17 Financial Highlights May 12, 2017

  2. Slide 2: Agenda

    Agenda I. Highlights 2 II. Business Segments I. Media 6 II. Energy 18 III. Retail 22 IV. Industry & Others 25 III. Financials 29 1 Doğan Holding 1Q17 Financial Results

  3. Slide 3: Highlights of 1Q17

    Industry & Highlights Media Energy Retail Others Highlights of 1Q17 In 1Q17, consolidated revenues reached TL2.0 bn; up by 27% yoy; mainly led by energy segment’s contribution. EBITDA was down to TL83 mn vs. TL113 mn; mainly due to media segment’s weak operational performance. Net Other Operating In

  4. Slide 4: Financial highlights of 1Q17

    Industry & Highlights Media Energy Retail Others Financial highlights of 1Q17 Revenues – mn TL Income Statement Summary +31% in TL mn um 1Q16 u 1Q17 u ∆ um 7,774 Sales 1,588 2,015 27% +27% Gross Profit 300 283 -6% 5,951 2,015 Gross Margin 18.9% 14.0% -4.9 p.p. 1,588 Operating Expenses (-) 251 270 7%

  5. Slide 5: Financial highlights of 1Q17

    Industry & Highlights Media Energy Retail Others Financial highlights of 1Q17 Revenue Bridge – mn TL* EBITDA Bridge – mn TL 147 2,015 62 83 1,173 -1 185 265 6 3 14 246 Publishing Broadcasting Retail Energy Other Toplam Publishing Broadcasting Retail Energy Other Toplam -9% -1% 13% 49% 50% 27% 5% 1%

  6. Slide 6: Financial Structure

    Industry & Highlights Media Energy Retail Others Financial Structure Consolidated Net Cash/(Debt) – in TL mn1 Consolidated Net Cash/(Debt) Position (TL mn)1 31.Dec.16 31.Mar.17 2 Cash&Marketable Securities 1,801 1,698 S/T Debt 1,394 1,489 -1,221 -1,404 L/T Debt 895 845 Financial liabilities due to c

  7. Slide 7: Media

    Media

  8. Slide 8: Media Segment - Highlights of 1Q17

    Industry & Highlights Media Energy Retail Others Media Segment - Highlights of 1Q17 Based on negative market environment in 1Q17, revenues declined by 3% to TL 533mn vs TL 552 mn in 1Q16 . Turkish ad market growth in 1Q17 was 6% yoy; with the contribution of internet ad spend. Newspaper ad market co

  9. Slide 9: Media

    Industry & Highlights Media Energy Retail Others Media Revenues – in TL mn* Summary Financials (Publishing + Broadcasting)* -5.2% Publishing Broadcasting in TL mn 1Q16 1Q17  538 Sales 552 533 -3% 510 Cost of Goods Sold -391 -421 7% 267 Gross Profit 161 113 -30% 265 21% Gross Margin 29.1% 21.1% -8.0

  10. Slide 10: Ad market growth in 1Q17

    Industry & Highlights Media Energy Retail Others Ad market growth in 1Q17 Ad Market in Turkey* Quarterly Ad Market in TL mn and yoy Growth 2016 1Q17 TL mn yoy TL mn Share yoy 7.0% TV 3,561 10.4% 855 49% 5.3% 11.5% 9.7% 13.4% 8.9% 7.3% 6.2% 3.8% Internet 1,849 16.3% 510 29% 20.4% Newspaper 804 -7.6

  11. Slide 11: Construction and finance supported total ad market in 1Q17

    Industry & Highlights Media Energy Retail Others Outlook Construction and finance supported total ad market in 1Q17 Turkish Ad Market by top 10 Sectors* Total  in TL mn in TL mn Share  in Share  yoy Food 3 150 9% -0,4 pp 2% Construction 43 112 6% +2,2 pp 62% Finance 24 95 5% +1,1 pp 33% Retail 15

  12. Slide 12: Publishing Segment

    Industry & Highlights Media Energy Retail Others Publishing Segment Revenues –TL mn* Summary Financials* -1% Advertising in TL mn 1Q16 1Q17  1,131 1,120 Circulation & Printing Sales 281 263 -7% Other 357 375 Cost of Goods Sold -188 -187 0% Gross Profit 94 76 -19% 260 260 Gross Margin 33.2% 28.9% -4

  13. Slide 13: Newspaper ad market contracted by 17%, mainly due to cut in telecoms and retail

    Industry & Highlights Media Energy Retail Others Newspaper ad market contracted by 17%, mainly due to cut in telecoms and retail ad spend Turkish Newspaper Ad Market by top 10 Sectors (Jan – Mar 2017)* Total  in TL mn in TL mn Share  in Share  yoy Construction 0 19 12% +2,3 pp 2% Retail -3 18 12%

  14. 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 2.2 mn in 3.3 mn in 1Q17, down by 21.6% yoy. 1Q17, down by 24.7% yoy. Newspaper Circulation in 1Q17 (0

  15. Slide 15: Broadcasting

    Industry & Highlights Media Energy Retail Others Broadcasting Revenues – TL mn* Summary Financials* -0.4% Advertising in TL mn 1Q16 1Q17  Subscription 1,095 1,091 Other Sales 271 270 -0.1% 154 123 Cost of Goods Sold -204 -234 15% 393 Gross Profit 67 37 -45% 444 -1% Gross Margin 24.8% 13.6% -11.2 p.

  16. Slide 16: Highest contribution from Construction & Finance sectors in 1Q17

    Industry & Highlights Media Energy Retail Others Highest contribution from Construction & Finance sectors in 1Q17 Turkish TV Ad Market by top 10 Sectors in (Jan – Mar 2017)*  in TL mn in TL mn Share  in Share  yoy Food 3 133 15% -0,6 pp 2% Construction 42 75 9% +4,6 pp 123% Finance 22 67 8% +2,2

  17. Slide 17: TV Broadcasting: Kanal D #2 in Prime Time

    Industry & Highlights Media Energy Retail Others TV Broadcasting: Kanal D #2 in Prime Time 1 Kanal D’s Audience share in Total Day & Prime Time/AB Group (%) Total Day Prime Time 9.6 9.6 Kanal D ranked #2 in PT/AB Group and 9.0 8.0 #3 in TD/AB Group in 1Q171 CNN Türk ranked #1 News Channel in Rank #1

  18. Slide 18: D-Smart #2 in Digital Pay TV business

    Industry & Highlights Media Energy Retail Others D-Smart # 2 in Digital Pay TV business D-Smart subscribers - 000 TV Internet  D-Smart has 84 HD channels and this +1% +1.1% is the highest number of HD channels 935 936 943 330 available on any Pay TV service in the 307 311 territory.  D-smart offer

  19. Slide 19: Energy

    Energy

  20. Slide 20: Energy Segment - Highlights of 1Q17

    Industry & Highlights Media Energy Retail Others Energy Segment - Highlights of 1Q17 Revenues increased by 48% and reached TL1,179 mn in 1Q17, led by both Aytemiz and D-Tes operations. Aytemiz’s contribution in total revenues was TL950 mn in 1Q17, vs. TL609 mn in 1Q16; thanks to increased number of

  21. Slide 21: Aytemiz - Doğan Partnership

    Industry & Highlights Media Energy Retail Others Aytemiz - Doğan Partnership  Doğan Enerji acquired 50% stake in Aytemiz for TL152 mn and injected TL127 Shareholder Structure mn to the company for its share through a capital increase. Doğan Holding Aytemiz Family  Aytemiz started to be fully conso

  22. Slide 22: Energy

    Industry & Highlights Media Energy Retail Others Energy Consolidated Energy Segment Revenues – mn TL* Summary Financials* +58% in TL mn 1Q16 1Q17  4,334 Electricity gen. & tra. Sales 795 1,179 48% Petroleum prod. dist. Gross Profit 67 85 27% 2,743 Gross Margin 8.4% 7.2% -1.2 p.p. 3,474 +49% Operati

  23. Slide 23: Retail

    Retail

  24. Slide 24: Retail

    Industry & Highlights Media Energy Retail Others Retail D&R - Number of Stores D&R - Sales sqm +3% +2%  D&R had 154 stores as of 150 154 60,114 61,339 1Q17.  dr.com.tr & idefix.com’s monthly UV was 5.7 mn as of 1Q17.  Retail segment revenues increased by 13% to TL185 mn 1Q16 1Q17 1Q16 1Q17 in 1Q1

  25. Slide 25: Retail

    Industry & Highlights Media Energy Retail Others Retail Consolidated Retail Segment Revenues – mn TL Summary Financials* +9% in TL mn 1Q16 1Q17  677 Sales 163 185 13% 620 Gross Profit 60 66 9% Gross Margin 36.8% 35.6% -1.2 p.p. Operating Expenses (-) -60 -62 4% +13% Other Operating Inc./(Exp.), net

  26. Slide 26: Industry & Others

    Industry & Others

  27. Slide 27: Industry & Others

    Highlights Media Energy Retail Industry & Others Industry & Others Consolidated Other Segment Revenues – mn TL Summary Financials* +50% in TL mn 1Q16 1Q17  147 Sales 107 154 44% 35 Gross Profit 28 37 33% 98 24% Gross Margin 26.1% 24.0% -2.0 p.p. 34 27 45% 12 Operating Expenses (-) -26 -42 60% 14 7

  28. Slide 28: Çelik Halat

    Highlights Media Energy Retail Industry & Others Çelik Halat Çelik Halat Sales – mn TL Çelik Halat – Summary Income Statement +9% in TL mn 1Q16 1Q17  153 Sales 33.1 48.5 47% 140 Gross Profit 3.5 9.0 156% Gross Margin 10.7% 18.6% 0.7 p.p. +47% Operating Expenses (-) -3.1 -3.4 8% Operating Profit 0.4

  29. Slide 29: Ditaş

    Highlights Media Energy Retail Industry & Others Ditaş Ditaş Sales – mn TL Ditaş – Summary Income Statement -12% in TL mn 1Q16 1Q17  79 Sales 16.8 17.3 3% 70 Gross Profit 3.7 5.6 49% Gross Margin 22.3% 32.3% 10.0 p.p. +3% Operating Expenses (-) -4.0 -4.1 3% Operating Profit -0.3 1.4 n.m. 17 17 Net

  30. Slide 30: Financials

    Financials

  31. Slide 31: Highlights of 1Q17 – Income Statement Summary

    Highlights of 1Q17 – Income Statement Summary in TL mn um 1Q16 u 1Q17 u ∆ u 2015 2016 u ∆ Sales 1,588 2,015 27% 5,951 7,774 31% Gross Profit 300 283 -6% 1,027 1,280 25% Gross Margin 18.9% 14.0% -4.9 p.p. 17.3% 16.5% -0.8 p.p. Operating Expenses (-) 251 270 7% 939 1,102 17% Other Operating Inc./(Exp.

  32. Slide 32: Highlights of 1Q17 – Balance Sheet

    Highlights of 1Q17 – Balance Sheet in TL mn 12/31/2016 03/31/2017 ∆ yoy Current Assets 3,906 3,905 0% Non-Current Assets 3,926 3,999 2% Total Assets 7,832 7,904 1% Current Liabilites 2,789 2,918 5% Non-Current Liabilities 2,026 2,020 0% Non-Controlling Interests 439 431 -2% SHs Equity, Parent 2,578

  33. Slide 33: Revenue Breakdown

    Revenue Breakdown TL mn 1Q16 1Q17 ∆ yoy FY15 FY16 ∆ yoy Media 538 510 -5.2% 2,227 2,211 -0.7% Publishing 271 246 -9.4% 1,131 1,120 -1.0% Advertising 111 105 -5.4% 514 485 -5.7% Circulation & Printing 66 70 5.8% 260 260 0.0% Other 94 71 -24.7% 357 375 4.9% Broadcasting 267 265 -1.0% 1,095 1,091 -0.4%

  34. Slide 34: Operational Results by Segments

    Operational Results by Segments mn TL 1Q16 1Q17  yoy FY15 FY16  yoy Revenues 1,588 2,015 27% 5,951 7,774 31% Publishing 281 263 -7% 1,183 1,158 -2% Broadcasting 271 270 0% 1,117 1,115 0% Retail 163 185 13% 620 677 9% Energy 795 1,179 48% 2,771 4,366 58% Other 107 154 44% 401 594 48% Intersegment E

  35. Slide 35: Operational Results by Segments

    Operational Results by Segments mn TL 1Q16 1Q17  yoy FY15 FY16  yoy EBIT 49 13 -73% 88 178 103% Publishing 11 1 -88% 51 16 -68% Broadcasting 16 -17 n.m. -17 46 n.m. Retail 0 3 n.m. 18 16 -15% Energy 23 35 53% 58 111 91% Other 2 -5 n.m. -22 -9 -60% Intersegment Eliminations -2 -4 89% 0 -2 n.m. EBIT

  36. Slide 36: 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

  37. Slide 37: EBITDA Reconciliation

    EBITDA Reconciliation TL mn 1Q16 1Q17 yoy FY15 FY16 yoy Operating Profit (EBIT) 49 13 ‐73% 88 178 103% Depreciation & Amortization (+) 86 136 58% 314 486 55% Programme Rights Amortization (-) ‐25 ‐76 205% ‐87 ‐222 155% Net IAS Impact (+) 2 10 294% 33 33 0% EBITDA 113 83 ‐26% 347 474 37% *EBITDA

  38. Slide 38: 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

  39. Slide 39: 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 38 Doğan Holding 1Q17 Financial Results

Doğan Şirketler Grubu Holding A.Ş. — Q1 2017 Earnings Presentation on 6ix