Investor Relations

Esteemed Members of the Doğuş Otomotiv Family, Dear Business Partners and Shareholders,

2009 was a successful year for the Doğuş Otomotiv family, marking a period in which we were able to appreciate the importance of past experience, adapting to the realities of the day, the ability to accurately forecast the future and set out strategies based on such foresight. We, as Doğuş Otomotiv, have left behind a productive and profitable year thanks to the long-term plans that we have designed so delicately, as well as our decisive management approach. Despite being affected, like everyone else by the recession, we have achieved success in parallel with our targets.

The global crisis, which spread from the financial markets of developed countries, began to affect the whole world from the last quarter of 2008, with its impact peaking in 2009. Although the fallout from the crisis eased in the last quarter of 2009, the crisis and the recession in key global economies, gave rise to difficulties in the automotive sector, which is one of the world’s leading industries.

The Turkish economy demonstrated a trend in line with projections made at the beginning of 2009, indicating a 5.5-6% contraction. While we harbored concerns that the recession would precipitate a drastic contraction in the automotive industry, the gloom gave way to a more optimistic environment as the government cut the rates of the special consumption tax in a sound and timely move. In fact, the sector did not contract in 2009, and some specific segments demonstrated growth. This bright picture was also reflected to the brands we distribute in Turkey. A combination of the tax cut and the dynamic sales strategy which we implemented paved the way for the highest sales figures ever in the passenger car segments, wrapping up a year in which our total vehicle sales demonstrated a sound performance in general. We, as Doğuş Otomotiv, sold 50,789 vehicles in 2009. Also, Doğuş Otomotiv applied effective cost policies in 2009, within the framework of its simple and efficient management approach. A controlled and flexible cost structure was provided in all business processes during the year, with particular priority placed on savings. Having undergone a restructuring process in 2006 implementing "Lean Management" processes, Doğuş Otomotiv completed a productive and effective operating year.

Despite negativities in the economy,  our pleasure in concluding the year without any sacrifice to our market-related and investment targets  grew stronger with the pride of celebrating the 15th anniversary of our foundation. In our 15th year, we came together with all our brands under the same roof in our new operation building in Şekerpınar. In the wake of our 15 years, a period we believe we have moved forward in great bounds, we believe we have now completed our company’s foundation period and entered a new forward looking period of maturity with our settled corporate organizational structure.

The distance Doğuş Otomotiv has covered since 1994, when the company took its first step in the sector, is clearly a success story. During this period, Doğuş Otomotiv raised the number of brands it distributes from 2 to 15, reached 500 points of contact with customers and enriched its primary business lines, imports and distributorship, with such complementary fields of services as retail, finance, spare parts and accessory trade, logistics and customer services, 2nd hand vehicle trade, fleet rental, fast service, vehicle inspection and insurance. In line with its vision of being present in every segment of the automotive value chain, Doğuş Otomotiv added manufacturing to its chain of operations. Within this framework, a dumper factory was opened in 2008 in cooperation with Meiller, and a trailer factory was built in Tire in partnership with Krone, which was completed and put into service in 2009.

Another development which fills us with pride was bringing our new Company, D-Auto Suisse, which we set up in Switzerland, into operation. We opened Switzerland’s biggest and most modern Porsche sales and service center in Lausanne on September 10, 2009. To be a Turkish company selling motor vehicles manufactured in Germany to the Swiss, having opened a showroom in Europe, represents an important and proud step which we have taken in the international retail market.

All these achievements place us among the top 50 companies according to a research study conducted by the magazine Fortune, listing Turkey’s biggest 500 companies, and in Capital 500, a similar research conducted by the magazine Capital. In addition, Doğuş Otomotiv rose by 6 places to 19th in the "Accountability Rating 2008" research study, in which companies conducting their operations in accordance with social responsibility principles are determined.

As a result of the Doğuş Group values, as well as its qualified human resources, efficient business strategies and long-term thinking, we have set up a dynamic structure designed to constantly improve itself under all circumstances, . We will continue to invest in our future in the coming period while  providing our customers the utmost service to ecxeed their expectations

Backed by the strength of our shareholders, the trust of our manufacturer partner, the determination of our employees and the efforts of our authorized dealers, we will always focus on the future while continuing to lead our sector.

Yours sincerely,

Aclan Acar

Chairman of the Board of Directors of Doğuş Otomotiv