Dogan Sirketler Grubu Holding A.s. · BIST:DOHOL
Dogan Sirketler Grubu Holding A.s — Q1 2014 Earnings Presentation
50 slides from Dogan Sirketler Grubu Holding A.s's earnings presentation, May 2014
Slide 1: Doğan Holding Investor Presentation – May 2014
DOĞAN HOLDING Investor Presentation – May 2014 1
Slide 2: Company Name and Key Facts
Company Name Doğan Şirketler Grubu Holding A.Ş. Date of Establishment 22.09.1980 Share Capital 2,450,000,000 Listing Borsa Istanbul Ticker Symbol DOHOL Address Burhaniye Mah. Kısıklı Cad. No:65 Üsküdar - İSTANBUL Web Site www.doganholding.com.tr E-mail ir@doganholding.com.tr Phone +90 (216) 556 90 0
Slide 3: Agenda
AGENDA 1. Doğan Group in Brief 2. Merger with DYH 3. Media 4. Energy 5. Other Investments 3
Slide 4: Well positioned to benefit from demographic & social trends
Well positioned to benefit from demographic & social trends Media Energy Retail Doğan Yayın Holding Doğan Enerji D&R Music & Bookstores Mcap US$584 mn* - (80.0% ownership) (100% ownership) (100% ownership) PRINT MEDIA: LEADERSHIP Hürriyet The most influential daily. HYDRO: INCOME STREAM UP LIFESTYLE
Slide 5: Strategic Partnerships
Strategic Partnerships Books Publishing - JV Broadcasting - Partnership Financial Partners Magazines - JV 5
Slide 6: Shareholders and Share price
Shareholders and Share price Total Share Capital TL2.450.000.000 SHAREHOLDERS DOGAN HOLDING STOCK PERFORMANCE Free-float 32.8% Adilbey Holding 52.7% Doğan Family 14.5% May 09, 2014 Share price TL0.71/US$0.34 Mcap (mn) TL1,740/US$836 52 wk US$1,674/US$713 High/Low Mcap (mn) 6
Slide 7: Financial Summary
Financial Summary Media’s share in total revenues was 71% in 1Q14. DOĞAN HOLDING CONSOLIDATED REVENUES (TL M) DOĞAN HOLDING CONSOLIDATED EBITDA (TL M) 342 3,301 3,067 187 223 326 2,861 826 776 7
Slide 8: Segment Breakdown
Segment Breakdown TL mn 2012 2013 ∆ YoY 1Q13 1Q14 ∆ YoY Media Sales 2,460 2,524 3% 608 588 -3% Gross Profit 725 653 -10% 158 98 -38%DOĞAN HOLDING CONSOLIDATED EBITDA (TL M) EBITDA 316 212 -33% 59 -1 n.m. EBITDA Margin (%) 13% 8% 10% 0% Profit/Loss Before Tax 323 -208 n.m. -24 -101 n.m. Retail Sales
Slide 9: Balance Sheet - Summary
Balance Sheet - Summary CONSOLIDATED BALANCE SHEET SUMMARY in TL mn 03/31/14 12/31/13 ∆ Current Assets 4,109 3,978 3% Non Current Assets 3,340 3,610 -7% Total Assets 7,449 7,588 -2% Current Liabilities 2,147 2,024 6% Non Current Liabilities 1,413 1,563 -10% Minority Interest 712 750 -5% SHs Equity,
Slide 10: Consolidated Income Statement - Summary
Consolidated Income Statement - Summary in TL mn 1Q14 1Q13 ∆ YoY Sales 826 776 6% Gross Profit 162 196 -17% Gross Margin 19,7% 25,2% -5,5 p.p. General Administrative Expenses -93 -87 6% Marketing Expenses -121 -103 18% Other Operating Income/(Expense),net 36 40 -9% Share of Profit/(Loss) on Investme
Slide 11: Merger Considerations with Doğan Yayın Holding – April 2014
Merger Considerations with Doğan Yayın Holding – April 2014 1. Doğan Group in Brief 2. Merger with DYH 3. Media 4. Energy 5. Other Investments
Slide 12: Rationale for Doğan Holding and Doğan Yayın Holding Merger
RATIONALE FOR DOĞAN HOLDİNG AND DOĞAN YAYIN HOLDİNG MERGER 1 1. LEAN MANAGEMENT AND OPERATIONS 2 1. SIMPLIFIED DECISION-MAKING PROCESS 3 3. COST SAVINGS WITH THE MERGER 4 4. FURTHER IMPROVED CORPORATE GOVERNANCE PRINCIPLES 5 5. EXPANSION OF INVESTOR BASE 12
Slide 13: Doğan Holding Operations
DOĞAN HOLDİNG OPERATIONS As of 2013, Media operations, which come from Doğan Yayın Holding, represent 75% of Doğan Holding’s revenues and 80% of its EBITDA DOĞAN HOLDİNG Doğan Yayın Holding (Media) Other Broadcasting Publishing REVENUES 75,4% 24,6% TL3,301m EBITDA 80,3% 19,7% TL264m 13
Slide 14: Proposed Merger of Doğan Holding and Doğan Yayın Holding
PROPOSED MERGER OF DOĞAN HOLDİNG AND DOĞAN YAYİN HOLDİNG CURRENT STRUCTURE PROPOSED MERGED STRUCTURE Free Free Adilbey Holding Doğan Family Adilbey Holding Dogan Family Float Float 32.8% 52.7% 14.5% Free Doğan Doğan Holding Dogan Holding Float Family Doğan Yayın Holding 18.1% 1.9% 80.0% Non Media Do
Slide 15: Merger Process Overview
MERGER PROCESS OVERVIEW April 14, May 08, 2014 2014 • CMB • Expert • CMB • General • Merger application Institution approval Assembly Report Meeting Investors voting against te merger in the General Assembly will have the right to exit Buy-back price for “right to exit” at 30-day adjusted weight
Slide 16: Agenda
1. Doğan Group in Brief 2. Merger with DYH AGENDA 3. Media 4. Energy 5. Other Investments 16
Slide 17: Media: Doğan Yayın Holding in Summary
MEDIA Doğan Yayın Holding in Summary Market Leader in TV, Newspapers and Magazines in Turkey. Market leader in newspaper circulation with 19% share Hurriyet reaches 6.9 mn people daily Around 7 mn circulation pa with 30 Magazines Market leader in magazine circulation with 40% share in 1Q2014 One of
Slide 18: Media
MEDIA Doğan Şirketler Grubu Holding A.S. “Dogan Holding” US$836 mn Mcap, 33% Free Float Doğan Yayın Holding US$584 mn Mcap, 18% Free Float Publishing Broadcasting Other Newspaper Magazine&Book Publishing Dogan TV Holding Non Media Products Distribution Publishing Publishing &Distribution *Dogan Burd
Slide 19: DYH – 1Q14 Highlights
MEDIA DYH – 1Q14 Highlights Consolidated revenues decreased by 3% yoy to TL588mn in 1Q14, due mainly to lower ad market. Digital platform subscription revenues were strong with 15% yoy growth. EBITDA loss was TL1 mn, mainly due to higher costs in broadcasting. Net financial expenses in 1Q14 was TL75
Slide 20: DYH P&L Consolidated Results
MEDIA DOĞAN YAYIN HOLDİNG P&L Consolidated Results (TL mn) 1Q14 1Q13 YoY Consolidated Revenues 588 608 -3% Advertising 262 290 -10% Circulation 55 57 -3% Printing 18 21 -16% Subscription 109 94 15% Other 144 146 -1% EBITDA* -1 59 n.m. EBITDA Margin 0% 10% Net Profit (Loss) -64 -28 n.m. * As calculat
Slide 21: Media - Broadcasting
MEDIA - Broadcasting 21
Slide 22: Broadcasting Segment
MEDIA Broadcasting Segment Kanal D Audience Share Audience Share * Jan. 01 – Mar. 31, 2014 (%) *Source: TNS (Total Individual) 22
Slide 23: Digital Platform
MEDIA Digital Platform Attractive demographics and viewing trends D-Smart Statistics (in thousands) Young population in Turkey and increasing number of households. Average daily TV viewing time above 5 hours in Turkey. D-Smart will benefit from the attractive demographics and viewing trends: 41 HD C
Slide 24: Broadcasting Revenues & EBITDA
MEDIA Broadcasting Revenues & EBITDA Subscription revenues continue to grow. Total broadcasting revenues decreased by 3% yoy in 1Q14. Ad revenues down by 16% yoy. Positive impact on revenues from D- Smart: 15% yoy increase in D-Smart’s number of Pay TV subscribers. Higher programming costs due to we
Slide 25: Broadcasting P&L Results
MEDIA BROADCASTING P&L Results (TL mn) 1Q14 1Q13 YoY Revenues 266 274 -3% Advertising 127 151 -16% Subscription 109 94 15% Other Revenues 31 30 4% EBITDA* -25 31 n.m. EBITDA Margin -9% 11% Net Profit (Loss) -69 -20 n.m. *As calculated by DYH; before intersegment eliminations DYH Broadcasting Revenue
Slide 26: Media - Publishing
MEDIA - Publishing 26
Slide 27: Publishing Segment
MEDIA Publishing Segment NEWSPAPER CIRCULATION IN 1Q14 (000 COPIES DAILY) TOTAL MAGAZINE CIRCULATION IN 1Q14 (UNITS M & YOY GROWTH) -15% 403 Market DYH 415 5,294 1,016 4.2 170 -9% 1.7 27 Market DYH Source: Basın - İlan Source: DPP & Dogan Burda Dergi Yay. • DYH includes Dogan Burda & Dogan Egmont Av
Slide 28: Publishing Revenues & EBITDA
MEDIA Publishing Revenues & EBITDA Lower revenues had negative impact on margins. Publishing revenues down by 5% yoy in 1Q14. Domestic ad revenues were flat, thanks to Medyanet’s contribution. Foreign operations’ performances had a negative impact on revenues. Circulation & printing revenues were do
Slide 29: Publishing P&L Results
MEDIA PUBLISHING P&L Results (TL mn) 1Q14 1Q13 YoY Revenues 316 332 -5% Advertising 138 145 -5% Domestic 107 107 0% International 31 38 -19% Circulation 55 57 -3% Printing Revenues 18 21 -16% Other Revenues 106 109 -3% EBITDA* 19 27 -28% EBITDA Margin 6% 8% Net Profit (Loss) -25 -5 n.m. *As calculat
Slide 30: Advertising Market in Turkey
MEDIA Advertising Market in Turkey Turkish ad market declined 1% in 1Q14, mainly led by lower ad spending of telecoms, finance and construction sectors. Based on estimated figures, TV ad market declined by %2, newspaper ad market contracted by 14% yoy. Internet ad market registered 13% yoy growth, w
Slide 31: Total Ad Spending in Turkey
MEDIA Total Ad Spending in Turkey* Advertising as % of GDP in Turkey is lower than the global average estimate of 0.69% AD SPEND PER GDP Source : ZenithOptimedia (Dec 2013) and DYH Ad Platform 31
Slide 32: DYH - Revenues By Segments
MEDIA DYH - Revenues By Segments* TL mn FY12 FY13 ∆ YoY 1Q13 1Q14 ∆ YoY Publishing 1,391 1,369 -2% 332 316 -5% Advertising 647 651 1% 145 138 -5% Circulation 233 222 -5% 57 55 -3% Printing Revenues 80 92 15% 21 18 -16% Other Revenues 431 404 -6% 109 106 -3% Broadcasting 1,090 1,152 6% 274 266 -3% Ad
Slide 33: DYH – Ad Growth by Segment
MEDIA DYH – AD Growth by Segment TL mn 2012 2013 ∆ YoY 1Q13 1Q14 ∆ YoY Publishing 640 644 1% 143 136 -4% Hürriyet Grup excluding TME 380 369 -3% 85 77 -9% TME 163 152 -7% 36 29 -19% Doğan Gazetecilik 95 98 3% 22 21 -4% DMG International 8 6 -30% 1 1 -13% Other 0 26 n.m. 0 9 n.m. Interseg. Elim. (-)
Slide 34: Agenda
1. Doğan Group in Brief 2. Merger with DYH 3. Media AGENDA 4. Energy 5. Other Investments 34
Slide 35: Energy: Doğan Enerji
ENERGY Doğan Enerji (100% ownership) HYDRO: INCOME STREAM UP • Boyabat HEPP-513MW, full production at 2012-end. • Aslancık HEPP - 120 MW, full production expected in 3Q14 WIND: OPPORTUNITY KNOCKS • Two operational wind plants with 126 MW capacity acquired as of Jun 2012; capacities reached 147 MW at
Slide 36: Electricity Consumption (GWh)
ENERGY Electricity Consumption (GWh) 242 230 210 198 194 190 175 161 128 86 57 36 25 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 30
Slide 37: Electricity Consumption per Capita and Installed Capacity
ENERGY Electricity Consumption per Capita – 2012 (Kw/hour) USA 13.361 OECD 8.315 GERMANY 7.217 SPAIN 6.155 GREECE 5.245 CHINA 2.942 WORLD 2.892 TURKEY 3.4x 2.424 BRASIL 2.384 Installed Capacity (GW) GDP (billion $) CAGR 1998-2012 GDP 8.0% Installed Capacity 6.7% 31
Slide 38: Doğan Enerji – Energy Investments
ENERGY Boyabat 33% Hydro‐Power Plant Doğan Enerji – Energy Investments 513 MW Aslancık 33.3% Hydro‐Power Plant 2 Current Energy Investments 1 120 MW Galata 100% 3 Wind‐Power Plant TURKEY 105 MW 4 Akdeniz 100% 5 Wind‐Power Plant Erbil PSC 20% Oil and Gas E&P Asset 42 MW IRAQ 1 Galata WPP: Acquired in
Slide 39: Power Generation (Hydro) – Boyabat HEPP
ENERGY – Power Generation (Hydro) BOYABAT HEPP Installed Capacity: 513 MW Shareholders Share (%) Configuration: 3X171MW Doğan Holding %33 Fuel: Hydro Type: Dam Doğuş Holding %34 Avg. Generation: 1,5 TWh* Unit Investment %33 Investment: 1,25 billion USD Operational as of 2012-end İstanbul Sinop * fir
Slide 40: Power Generation (Hydro) – Aslancık HEPP
ENERGY – Power Generation (Hydro) ASLANCIK HEPP Installed Capacity: 120 MW Configuration: 2X60MW Shareholders Share (%) Fuel: Hydro Doğan Holding %33 Type: Dam Doğuş Holding %33 Avg. Generation: 418 GWh* Anadolu Group %33 Investment: 240 Million USD Expected COD: 3Q14 İstanbul Giresun *firm+secondar
Slide 41: Power Generation (Wind)
ENERGY – Power Generation (Wind) GALATA WPP (Bandırma) Current Installed Capacity: 105 MW İstanbul (Increased its capacity by 12 MW as of May 2013) Bandırma License: 2008 Ankara Status: Operational Doğan Enerji acquired Akdeniz (Mersin) & Galata (Bandırma) Wind Power Plants as of June-end 2012. Thei
Slide 42: Oil and Gas E&P - Iraq
ENERGY Oil and Gas Exploration&Production - IRAQ Doğan Enerji owns 50% of Gas Plus Erbil (“GPE”). GPE holds 40% interest in Erbil Production Sharing Contract with 20+5 years of develop.& prod. period. Declaration of Commerciality of the Benenan and Bastora Discoveries filed on 25 June 2011. The deve
Slide 43: Oil and Gas E&P - Yemen
ENERGY Oil and Gas Exploration&Production - YEMEN San’a Block 84 731km2 Gas Pipeline Oil Pipeline Doğan Enerji submitted an offer for exploration Block 84 together with DNO International of Norway on 29 June 2013 Yemen Government awarded the Block 84 to Doğan Enerji – DNO JV on 8 July 2013 Operator
Slide 44: Agenda
1. Doğan Group in Brief 2. Merger with DYH 3. Media 4. Energy AGENDA 5. Other Investments 38
Slide 45: Retail: D&R Music & Bookstores
RETAIL D&R Music & Bookstores (100% ownership) LIFESTYLE RETAIL: LEADERSHIP • # 1 player in the market • 143 stores in 25 cities in Turkey. • 2.5 Million store visitor per month. • 1.1 Million traffic per month in online service. • Books, music, movies, magazines and game • Hobby, multimedia and ele
Slide 46: D&R
RETAIL D&R* D&R, celebrating its 16th anniversary this year, offers books, music, movies, magazines and games, as well as hobby, multimedia and D&R Stores electronic products, accessories and stationery at its 143 stores in 25 cities. As of 31 March 2014, D&R reached 143 stores and net store area of
Slide 47: Industry
INDUSTRY ÇELİK HALAT DİTAŞ DOĞAN Steel Ropes, industrial high carbon galvanized wires, Rods and parts to the vehicle manufacturers (OEM) finishing galvanized wires, industrial spring wires, bed wires and spare parts (IAM) and pre-stressed wires and strands manufacturer Suppliers of 42 companies in T
Slide 48: Tourism
TOURISM Milta MARINA RESORT MANAGEMENT Located on Bodrum City Center Bodrum Işıl Club Located in Torba on 35.000 sqm land International Marina granted with Gold Award by U.K. Yacht Number of rooms 292 Harbour Association Land status is rented from the state up untill 2046 Shopping mall,Yacht Club, H
Slide 49: Appendix / Disclaimer
APPENDIX / DISCLAMIER Doğan Şirketler Grubu Holding A.Ş. contract or investment decision. events which may not prove to be (“Doğan Holding”) has prepared this Investors and prospective investors in accurate. The forward-looking book (the “Book”) for the sole purposeof securities of any issuer mentio
Slide 50: 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 44
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