Dogan Sirketler Grubu Holding A.s. · BIST:DOHOL
Dogan Sirketler Grubu Holding A.s — Doğan Holding — Investor Presentation (March 2024)
45 slides from Dogan Sirketler Grubu Holding A.s's investor presentation, March 2024
Slide 1: Doğan Holding Investor Presentation March 2024
Doğan Holding Investor Presentation March 2024
Slide 2: Doğan Holding at a Glance
Doğan Holding at a Glance Shareholder Structure A Brief History 1959 Establishment of Doğan Group as an Automotive Distributor Doğan Family 36% 1979 Entry into media sector after acquisition of Milliyet newspaper 1980 Free Float 64% Incorporation of Doğan Holding 1990s - 2000s Acquisition of promine
Slide 3: Doğan Holding Snapshot
Doğan Holding Snapshot Electricity Industry & Finance & Internet & Real Estate Production Trade Automotive Investment Entertainment Investment •* •* • Prominent wind and • Türkiye’s leading • - MG and Suzuki solar energy electronics company Türkiye Distributor producer • - Vespa, Piaggio • Digital I
Slide 4: Continuing portfolio simplification to create long-term value
Continuing portfolio simplfication to create long-term value 2020 2022 2023 DMC Milpa Land Sale Aytemiz Sale • USD23.4 mn, 60% share • USD100 mn • USD160 mn, 50% share Çelik Halat Milpa Share Sale • EUR26 mn, 70% share • USD55 mn, 82% share • >USD250mn cash flow from disposals since 2020, further st
Slide 5: Efficient deployment of cash in value-added targets
Efficient deployment of cash in value-added targets 2020 2021 2022 Sesa Ambalaj Profil Grubu Karel Elektronik Flexible packaging Electronics production Steering and suspension • EUR57.8 mn, 70% share parts production • TL843 mn, %40% share • EUR2.9 mn, 70% share Maksipak Flexible packaging • EUR7.9
Slide 6: We transform and improve financial and operational management
We transform and improve financial and operational management…. Karel Elektronik Sesa Ambalaj • Revenue and EBITDA almost doubled YoY following • 20% US$ revenue CAGR since acquisition in 2020 the acquisition. • Continued investment into capacity and • Significant steps to lower working capital and
Slide 7: We establish new businesses leading to robust growth
We establish new businesses leading to robust growth 2021 2022 Doğan Yatırım Bankası Hepiyi Sigorta Investment banking Digital Insurance Doğan Trend Otomotiv Automotive distribution • Focusing on new sectors with growth potential • Competitive advantages leading to disruption in the competition • Co
Slide 8: Strong execution in new businesses leading to swift results
Strong execution in new businesses leading to swift results Doğan Trend Otomotiv Hepiyi Sigorta • 9M23 revenue almost doubled 2022 figures. • Started operations in July 2022. • MG launched in 2021 and continues to gain • Leading insuretech in the market market share • Digital capabilities leading to
Slide 9: Diversified business portfolio with strong growth prospects
Diversified business portfolio with strong growth prospects… Steady Growth High Growth Businesses Businesses • Milta Marina • Karel Elektronik • Doğan Dış Ticaret • Galata Wind • Kanal D Romanya • Doğan Trend Otomotiv • Ditas • Hepiyi Sigorta • Doğan Yatırım Bankası • Sesa Ambalaj • Strong cash flow
Slide 10: Net Asset Value (NAV)
Net Asset Value (NAV) Value (USD mn) Share in NAV Total NAV: USD2.3 billion Energy Generation 290 12% Industry and Trade 250 11% Listed companies share: 22% Automotive Trading 305 13% Unlisted companies share: 42% Finance and Investments 179 8% Land and Real Estate Portfolio: 10% Internet and Entert
Slide 11: Strategic Segments
Strategic Segments Renewable Energy Industry ● Galatawind 2025 capacity target: 550 ● Value added, high-tech production MW ● Focus on changing consumer habits ● Organic, inorganic growth Active Portfolio Management Higher NAV Regular Dividend Payments Automotive Finance, Technology ● Vertical integr
Slide 12: Prudent Capital Allocation for Value Creation - 1
Prudent Capital Allocation for Value Creation - 1 Consistent Dividend Payments Share Buy-back Program • Increasing dividend inflow from group companies • Program size: TL300 million • Operational dividends • Buybacks re-initiated in December 2023 • Strategic dividends • Total buyback: 1.1% of paid-i
Slide 13: Prudent Capital Allocation for Value Creation - 2
Prudent Capital Allocation for Value Creation - 2 Criteria for Target Companies Global Perspective • Fit with global trends Proactive M&A Strategy • High entry barrier, value added products • Attractive to global investors • Rigorous M&A process for deployment of USD682 Turkey Perspective million ne
Slide 14: Medium and Long Term Road Map
Medium and Long Term Road Map 2023 2025 2027 NAV: USD2.3 bn NAV: USD3.1 bn NAV: USD4.0 bn • Entry into at least • 1-2 IPO 1 sector • Strategic segment • Strategic segment NAV share: ~80% • Strategic segment NAV share: ~70% NAV share: ~60% Simpler portfolio structure Higher share of listed companies
Slide 15: 2024 Guidance
2024 Guidance Revenue Growth CPU + ~5-10% • Slight improvement in electricity generation on increased capacity EBITDA Margin • Flat margins in industry and trade segment • Margin decline in automotive business due to market conditions 14
Slide 16: Highlighted Strategic Actions
Highlighted Strategic Actions 2020 2021 2022 2023 Karel Elektronik Acquisition Sesa Ambalaj Profil Grubu • TL843 mn, %40% share • EUR57.8 mn, 70% share • EUR2.9 mn, 70% share Maksipak • EUR7.9 mn, 70% share Establishment Doğan Yatırım Bankası Hepiyi Sigorta Doğan Trend Otomotiv IPO Galata Wind • USD
Slide 17: Segment Outlook
Segment Outlook
Slide 18: Energy Generation – Galatawind
Energy Generation – Galatawind About Galatawind Galatawind Financials (USD mn) • Operates 3 Wind and 2 Solar power plants. Revenue • Total capacity: 291MW 139 • EBRD credit agreement of USD45 million 72 44 48 61 54 48 • Ongoing Investments • Taşpınar Wind PP • Taşpınar Hybrid Solar PP 2018 2019 2020
Slide 19: Energy Generation – Galatawind Investment Pipeline
Energy Generation – Galatawind Investment Pipeline Turkey International Turkey Beyond 2025 Pre-Licences for Production+Storage Current and Additional Capacity Facilities Current Additional New Capacity Two agreements signed with Proje Kapasite Capacity (MW) Capacity (MW) (MW) Start Period Bakacak RE
Slide 20: Industry and Trade
Industry and Trade Industry and Trade Highlights Segment Financials (USD mn) • Main businesses: Karel Elektronik, Sesa Ambalaj, Ditaş Revenue • Karel Elektronik: Türkiye’s leading Electronics manufacturer 477 451 301 322 • Sesa Ambalaj: High-growth flexible packaging business 88 75 193 • Gama Recycl
Slide 21: Industry and Trade – Karel Elektronik
Industry and Trade – Karel Elektronik About Karel Elektronik Strategy and Focus Areas • More than 35 years of experience • Improvement in working capital and net debt • Leading electronics company in Türkiye • Changing financial debt composition • >3,500 employees, 206 R&D engineers • Organizational
Slide 22: Industry and Trade – Karel Elektronik
Industry and Trade – Karel Elektronik Business Lines Recent Developments, Targets • A capacity of 15 million cards • Factory modernization started • Design and production for durables and defense products • 35% increase in efficiency and 30% in capacity until 2024-end • Certified supplier for BSH, N
Slide 23: Industry and Trade – Karel Elektronik – Daiichi Acquisition
Industry and Trade – Karel Elektronik – Daiichi Acquisition About Daiichi Customer Portfolio • Design/production of infotainment systems • Tier-1 supplier • Operations in 6 countries • Products sold to global manufacturers • Value added growth on R&D capabilities and software focused products • Kare
Slide 24: Industry and Trade – Sesa Ambalaj
Industry and Trade – Sesa Ambalaj About Sesa Ambalaj Strategic Approach • Leading flexible packaging producer in Türkiye • Higher capacity and revenue generation on capacity • Products used in food packaging expansion in recent years • Exports to more than 40 country. • Inorganic growth potential th
Slide 25: Industry and Trade – Ditaş
Industry and Trade – Ditaş About Ditaş Operations • 7.8 million production capacity • Two main brands after the acquisition of Profil Group: • Leading rot producer in Turkiye Ditaş and PRS Grup • “A”-class supplier of prominent car manufacturers • Increasing production capabilities • Spare part and
Slide 26: Automotive Trading – Doğan Trend Otomotiv
Automotive Trading – Doğan Trend Otomotiv About Doğan Trend Otomotiv Segment Financials (USD mn) • Distributor of Suzuki and MG Revenue • Suzuki branded marine sales 475 • Distributor of Vespa, Piaggio, Kymco in motorcycle 216 segment 73 127 124 59 52 • Vertical integration through suvmarket.com, a
Slide 27: Automotive Trading – Doğan Trend Otomotiv
Automotive Trading – Doğan Trend Otomotiv Türkiye Auto Market (‘000 units) Doğan Trend Otomotiv Sales Data 3Q22 3Q23 Δ 9M22 9M23 Δ +85% Distribution Operation 300 MG 219 4,743 2066% 851 8,144 857% Suzuki 1,079 1,977 83% 1,737 3,921 126% Automobile Distribution Sales 1,298 6,720 418% 2,588 12,065 366
Slide 28: Finance and Investments
Finance and Investments Finance and Investments Highlights Segment Financials (USD mn) • Newly established businesses: Hepiyi Insurance and Revenue Doğan Investment Bank • Fast growth on strong execution 261 123 58 45 38 37 30 About Doğan Investment Bank 2018 2019 2020 2021 2022 9M22 9M23 • Establis
Slide 29: Finance and Investments – Hepiyi Insurance
Finance and Investments – Hepiyi Insurance Assets Under Managament About Hepiyi Insurance Monthly Premium Generation (TL mn) (USD mn) 554 570 174 • Started operations in June 2022. 500 507 420 423 • End-to-end digital based insurance service (insurtech) 299 316 354 • Fair price, simplified processes
Slide 30: Internet and Entertainment
Internet and Entertainment About Kanal D Romania Segment Financials (USD mn) • 2nd most watched channel in prime time in Romania Revenue • Comprehensive media assets including TV, radio and 70 80 69 65 63 57 websites. 47 • Strong balance sheet and EBITDA generation • Consistent dividend payments 201
Slide 31: Real Estate Investments
Real Estate Investments About Trump Towers Segment Financials (USD mn) • Office and mall located in İstanbul Revenue • Higher tenancy rates following the end of the pandemic 19 22 22 16 15 16 16 About Milta Marina • Located in a top tourism destination, Bodrum 2018 2019 2020 2021 2022 9M22 9M23 • Co
Slide 32: Financial Performance
Financial Performance
Slide 33: 2019-2022 Financial Performance - 1
2019-2022 Financial Performance - 1 %46 2,772 USD mn 2,337 Revenue 1,900 1,517 • Higher revenue generation of strategic businesses • Positive contribution of acquisitions 2018 2019 2020 2021 2022 %34 245 USD mn EBITDA 183 120 129 • Higher share of industrial and automotive segments • Improving EBITD
Slide 34: 2019-2022 Financial Performance - 2
2019-2022 Financial Performance - 2 Solo Net Cash Position Strong Cash Position USD mn 650 682 564 606 522 509 • Net Cash Position, 3Q23: USD682 million • Consolidated Gross Cash Position: USD1,061 million • Proactive M&A strategy for efficient use of cash 2018 2019 2020 2021 2022 9M23 Consolidated
Slide 35: ESG
ESG
Slide 36: Sustainability Targets
Sustainability Responsible Investment Holding and 20230 Targets Holding Targets • Reaching leading level in ESG assesments (MSCI etc.) until 2025 • Increasing ESG funds ownership to 10% until 2025 Investment Investment Fields Investment Value into into Planet into Future Inclusive Society • Become c
Slide 37: Sustainability Management
Sustainability Management • Sustainability is managed at the Board level • Sustainability Committee defines and realizes sustainability on behalf Board of Directors of the Board • Sustainability Sub Work Groups under Doğan Impact Team operates to reach related goals in three value fields. Sustainabi
Slide 38: Corporate Governance
Corporate Governance Structure of Board of Directors Board of Directors • Board of Directors consists of 11 members. • Dogan Family represented with 4 members. Early • 3 independent board members Head of Audit Detection of & Risk Executive Risk Management Committee Committee Structure of Executive C
Slide 39: Appendix
Appendix
Slide 40: Appendix: Financial Results
Appendix: Financial Results TL million 3Q22 3Q23 Δ 9M22 9M23 Δ TL million 2022 3Q23 Δ Sales 4,081 13,846 239% 9,423 29,123 209% Current Assets 30,280 45,878 52% Non-Current Assets 12,189 13,543 11% Cost of Goods Sold -2,851 -11,905 318% -6,521 -22,679 248% Total Assets 42,470 59,421 40% Gross Profit
Slide 41: Appendix: Revenue Breakdown
Appendix: Revenue Breakdown TL million 3Q22 3Q23 Δ 9M22 9M23 Δ Electricity Generation 345 481 39% 863 1,072 24% Electricity Sales 345 481 39% 863 1,072 24% Industry & Trade 2,426 4,159 71% 5,102 9,993 96% Industry 1638 2558 56% 2482 6298 154% Foreign trade 231 841 265% 1264 1814 43% Packaging 538 73
Slide 42: Appendix: Net Cash / (Debt) Breakdown
Appendix: Net Cash / (Debt) Breakdown TL million 2022 3Q23 Δ Electricity Generation 208 81 -61% Industry & Trade -4,328 -4,221 -2% KAREL -2,287 -2,618 15% DITAS -259 -426 64% Doğan Dış Ticaret -938 -398 -58% Sesa Yatırım -789 -793 0% Other -55 14 -126% Automotive -564 -2,046 263% Finance & Investmen
Slide 43: Appendix: Segment Breakdown by Major Companies
Appendix: Segment Breakdown by Major Companies TL mn Petroleum Products Automotive Trade & Internet & Real Estate Electricity Generation Industry & Trade Financing & Investing Retailing Marketing Entertainment Investments Revenue n.a. 481 4,159 5,809 2,658 499 239 Revenue Shr. n.a. 3% 30% 42% 19% 4%
Slide 44: Appendix: Net Asset Value
Appendix: Net Asset Value Valuation (mn DOHOL Stake Valuation Method Stake US$) (mn USD) Electricty Generation 290 Boyabat HPP 33.00% 0 0 Aslancık HPP 33.33% 0 0 Galata Wind Market Cap 70.00% 415 290 Industry and Trade 250 Ditas Market Cap 68.24% 53 36 Doğan Dış Ticaret Book Value 100.00% 8 8 Sesa A
Slide 45: Disclaimer
Disclaimer This presentation contains information and analysis on financial statements as well as forwardlooking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the information and analysis are correct and expectation