Dogus Otomotiv Servis ve Ticaret (DOAS) Investor presentation summary

Macroeconomic and market environment

• Inflation and exchange rates remained high, with annual CPI at 71.6% and significant currency depreciation impacting costs and pricing.

• Automotive loan rates and central bank interest rates increased, affecting consumer financing conditions.

• Consumer confidence index showed fluctuations, while retail automotive sales volumes remained robust.

• Second-hand vehicle sales activity remained strong, with over 721,000 units changing hands in May 2024.

Operational and market performance

• Wholesale sales grew 67% in 2023, but only 4% in the first half of 2024, with mixed performance across brands.

• Market share in passenger vehicles and light commercial vehicles declined slightly, while competition intensified with new entrants.

• Electrification advanced, with electric and hybrid vehicles accounting for 19% of sales in the first half of 2024.

• D-Charge, the charging network subsidiary, aims for 780 charging units across Türkiye by year-end.

Financial performance

• Q1 2024 revenue rose 2% year-over-year to TRY 34.1 billion, but net profit dropped 48% to TRY 3.0 billion.

• Gross margin fell to 17.8% from 22.6%, and EBITDA margin declined to 13.8% from 19.8% due to higher costs.

• Operational expenses increased 37%, mainly from higher administrative costs.

• Net cash position improved to TRY 2.4 billion, and total assets grew 5% to TRY 82 billion.