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2019
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2019ANNUAL REPORT
2019ANNUAL REPORT
2019
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Contents
OPERATIONAL MAP
KEY FINANCIAL INDICATORS
FINANCIAL AND OPERATIONAL HIGHLIGHTS
CORPORATE PROFILE
DOĞUŞ HOLDING AND ITS FUNCTIONS
CORPORATE RISK MANAGEMENT AND INTERNAL
AUDIT
DOĞUŞ GROUP’S APPROACH TOWARDS ITS
STAKEHOLDERS
CREDIT RATINGS
MEMBERS OF THE BOARD OF DIRECTORS
COMMITTEES ESTABLISHED BY THE BOARD OF
DIRECTORS
6
8
9
11
12
15
16
17
18
21
22
32
40
48
70
82
88
108
116
CONTENTS
AUTOMOTIVE
CONSTRUCTION
MEDIA
HOSPITALITY AND RETAIL
REAL ESTATE
ENERGY
NEW INITIATIVES AND OTHER LINES OF BUSINESS
CORPORATE SOCIAL RESPONSIBILITY
CONSOLIDATED FINANCIAL STATEMENTS
2019
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AMERICA
1. USAd.ream Partnerships
2. Saint BarthsD-Hotels & Resorts
AFRICA
3. LibyaDoğuş Construction Libya Branch
4. MoroccoDoğuş Construction Morocco Branch
5. Tanzania Doğuş Construction Tanzania
ASIA
6. Azerbaijand.ream FranchiseD-Hotels & Resorts
7. Chinad.ream Partnerships
8. North IraqD-Auto L.L.C.
9. KazakhstanDoğuş Construction Kazakhstan BranchDoğuş L.L.C.
10. QatarDoğuş Construction LLCDoğuş Construction Qatar Branchd.ream Partnerships
11. Saudi ArabiaDoğuş Construction Saudi Arabia Branchd.ream Partnerships
12. Thailandd.ream Partnerships
13. United ArabEmiratesDoğuş Management Services Ltd.d.ream PartnershipsREIDIN Headquarters
14. IndiaDoğuş Construction and Trade Inc.
15. OmanDoğuş Construction Oman Branch
16. UzbekistanDoğuş Construction Uzbekistan Branch
17. PhilippinesDoğuş Construction Philippines Branch
EUROPE
18. Turkey
19. BulgariaDoğuş Construction Bulgaria BranchDoğuş Construction Representative Office
20. CroatiaD-Hotels & Resorts
21. GermanyDoğuş Media Group GMBHEuromessage Deutschland GMBH
22. GreeceD-Hotels & Resortsd.ream Partnerships
23. ItalyD-Hotels & Resortsd.ream Partnerships
24. Spaind.ream Partnerships
25. SwitzerlandD-Hotels & Resorts
26. The NetherlandsD Hospitality BVd.ream International BV
27. United Kingdomd.ream Partnerships
28. UkraineDoğuş Construction L.L.C.Doğuş Construction Representative Office
29. Franced.ream Partnerships
30. Austriad.ream Partnerships
2019
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ORGANIZATIONAL MAP
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2014 2015 2016 2017 2018 2019
Banking and Finance
Segment Assets 7,063,906 3,295,202 3,739,155 - - -
Total Interest and Commission Income
- - - - - -
Automotive
Segment Assets 2,538,297 3,660,224 4,528,387 4,996,214 4,731,059 4,569,998
Revenue 7,694,772 10,891,069 11,927,635 13,223,499 10,691,910 9,848,536
Construction
Segment Assets 1,675,571 2,444,333 2,969,001 3,652,409 4,006,170 3,816,848
Revenue 800,605 1,595,468 2,367,530 2,923,556 3,378,351 2,609,391
Media
Segment Assets 1,498,397 1,674,877 1,511,772 1,463,137 1,291,503 1,239,058
Revenue 746,683 648,599 621,909 664,072 598,371 476,661
Hospitality
Segment Assets 4,783,342 6,701,410 9,986,720 11,867,400 13,530,356 12,562,363
Revenue 822,985 1,210,727 1,718,518 2,435,317 3,663,116 3,930,856
Energy
Segment Assets 36,940 2,253,241 2,261,469 3,151,331 3,151,331 3,431,187
Revenue 68,840 114,942 676,047 406,748 406,748 407,501
Other Industrial Segments
Segment Assets 9,257,548 9,381,954 9,974,600 11,412,022 12,910,980 14,757,040
Revenue 238,968 321,793 248,183 729,941 556,113 567,966
TOTAL ASSETS
40,376,494 REVENUES
17,840,911 GROSS PROFIT
3,160,418
KEY FINANCIAL INDICATORS(TL THOUSAND)
2014 2015 2016 2017 2018 2019
Total Assets 26,854,001 29,411,241 34,971,104 36,542,513 39,621,399 40,376,494
Total Shareholders' Equity 10,626,543 10,992,945 8,459,088 6,064,210 3,678,745 2,722,046
Revenues 10,372,853 14,782,598 17,559,822 20,383,133 19,294,609 17,840,911
Net Profit for the Year 60,739 (432,841) (2,126,083) (2,404,860) (2,944,243) (889,476)
Gross Profit 1,185,416 1,519,199 1,694,309 2,436,678 3,126,584 3,160,418
Profit before Net Finance Cost
1,046,099 1,735,479 144,168 5,376 1,128,877 1,661,709
FINANCIAL AND OPERATIONAL HIGHLIGHTS
2019
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Automotive
Automotive
Construction
Construction
Media
Media
Tourism and Services
Tourism and Services
Energy
Energy
Others
Others
TOTAL ASSETS BY SEGMENT 2019
TOTAL REVENUE BY SEGMENT 2019
11%
55%
31%
22%
9%
15%
8%
2%
3%
3%
37%
3%
Doğuş Group, founded in 1951, sets standards for a better
living by being at the forefront of discoveries that shape
modern life.
Doğuş, which aspires to be a global house of best in class
lifestyle brands that create aspiration, not only for customers
but also employees, partners and even competitors,
continues to work in all of its fields of operation with the
aim of becoming a global player.
The Group, active in six core businesses including automotive,
construction, media, hospitality & retail, real estate and
energy, sustains its growth with new investments in the
areas of technology, sports, and entertainment along with
its current operations. With over 300 companies and more
than 20,000 employees, the Group serves its customers
with advanced technologies, highest brand quality and a
dynamic human resource.
Doğuş Group owes its success to a management approach
centered on customer satisfaction and efficiency. As a
result of this approach, the Group continues to build strong
partnerships with globally reputable brands, and represent
Turkey across the world. The Doğuş Group currently partners
and cooperates with some of the large global players
including: Volkswagen AG and TÜVSÜD in automotive;
Hyatt International Ltd. in tourism; the Latsis Group and the
Kiriacoulis Group in marina and nautical operations; the
international Azumi Group that holds under its roof brands
such as Coya, Roka, Zuma and Oblix in food&beverage,
the international Paraguas Group that holds under its roof
brands such as Amazonico, Ten Con Ten, El Paraguas and
the South Korean SK Group in e-commerce.
Doğuş Group’s management approach also embodies
a strong corporate citizenship awareness that the
whole society does and will benefit. In launching social
responsibility projects, the Group always aims to leave
a mark on people’s life and make it much better. The
Group’s social responsibility projects are managed with the
objective to help the society to create a progressive future;
a modern lifestyle.
The Group launches and carries out a variety of corporate
social responsibility and sponsorship projects, particularly
focused on culture and arts, sports and education. Aware of
its responsibilities in all the areas it supports, Doğuş Group
acts with the vision of leading the community by example,
and contributes to the economy and employment through
its investments.
As a pioneer of change in Turkey, Doğuş Group capitalizes
on its broad network of services, knowledge base and
collaborations to attain its goals. The Group, driven by its
vision of becoming a global player that sets the standards
and advances through explorations, continues to consider
the partnership and investment opportunities that might
be beneficial for the nation’s economy.
Doğuş Group serves its customers with over 300 companies and more than 20,000 employees.
CORPORATE PROFILE
CONSOLIDATED INFORMATION BY SEGMENTS
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Doğuş Holding’s mission is to fulfill steering, coordination,
control and audit functions, as well as to generate value
for the group and its companies, monitor activities of
the group companies on behalf of the shareholders, and
perform the financial audit and administer control systems.
Doğuş Holding aims to create competitive companies that
put regional growth at the focal point of their operations.
In the management of its subsidiaries, Doğuş Holding is
committed to fulfilling the following responsibilities:
• Updating the group’s strategy along with the changing
investment climate and steering the group companies in
line with the predetermined strategy.
• Ensuring generation of sufficient financial resources to
realize the group’s long-term vision.
• Formulating and managing corporate initiatives to enable
the group to adapt in the quickest manner possible to
the developing and evolving business environment.
• Leading the creation and management of strategic
alliances and corporate partnerships.
• Providing communication among the group companies
and identifying opportunities that will result in synergies.
• Coordinating and consolidating the financial and
corporate reporting of group companies.
• Ensuring optimum use of technology, knowledge and
human resources across the group.
• Formulating and maintaining corporate values and
communicating them within and outside the group.
• Instilling an awareness of social responsibility and
corporate citizenship.
• Implementing the ERM (Enterprise Risk Management)
approach, to assure that the business risks undertaken by
the Group companies are aligned with shareholders’ risk
appetite.
Finance and Risk ManagementThe Finance Department is responsible for the relations
with local and foreign financial institutions, in order to
meet the financing needs at both Holding company and
the group level and to allocate the cash in possession.
The department’s responsibilities include corporate
treasury functions and cash management, executing
corporate financing and project financing deals of the
group, monitoring the financial performance of the
group companies and estimating cash flow and capital
requirements, relations with rating companies and
management of rating process, monitoring the global and
domestic capital markets, detecting the risks and taking
necessary actions for mitigation.
The Risk Management Department’s main responsibility
is to seek and provide assurance that the risks and
opportunities across Doğuş Group Companies are
identified and risk topics are properly measured, managed
and actioned upon to ensure the shareholder value is
sustained. Risks monitored by the Department include
financial, strategic, business and operational risks as well
as emerging ones. The Department works closely with
the Group companies and their respective finance, sales,
operations and other executive functions as well as the risk
management departments in order to evaluate necessary
risk intelligence and their due consideration in the decision-
making processes. The Department is also responsible for
the oversight and strategy for risk retention and transfer
through design and procurement of corporate insurance
cover with relevant insurance policies. In accordance with
risk management guidelines, the Department regularly
prepares risk reports, facilitates risk-based discussions in
management meetings, and makes recommendations
to the CEO, Risk&Audit Committee, and the Board of
Directors.
Human Resources The Human Resources Department is responsible for
the management of Doğuş Holding human resources
processes in line with corporate values and long-term
strategies. The Department aims to create common
language for human resources policies among the other
Doğuş Group companies. The main goals of the Human
DOĞUŞ HOLDİNG AND ITS FUNCTIONS
Resources Department are attracting and recruiting
talented individuals; investing in and creating a well
educated, innovative, ethical and sensitive workforce;
developing employees’ careers based on the future needs of
the Group; enhancing practices within the Group through
assignments, transfers and rotation program for employee
and organizational development; establishing competitive
reward and recognition systems; and increasing employee
motivation and commitment. The other functions of the
Department are implementing organizational development
policies, career planning, compensation, benefits and
performance management for Doğuş Group companies.
The Department is also responsible for the management
of internal communication platform, Do’lu Hayat as well
as the organization of the hobby clubs established by the
employees and the volunteering activities. The department
also provides strategic and operational human resources
policies among the other Doğuş Group companies and
ensures an environment suitable for lifelong learning.
With the leadership of Doğuş Holding Chairman and
CEO Ferit F. Şahenk, Doğuş Holding Human Resources
Department aims to improve women’s employment within
the Group.
Corporate Communications The Corporate Communications Department is responsible
for Doğuş Group’s reputation management through the
means of strategic communication tools, media relations,
social responsibility projects and sponsorship activities. The
Department is also responsible for the coordination of the
internal communications among Doğuş Group companies
and the group’s external communication tools including
the annual report, corporate responsibility report, and the
corporate website.
Internal Audit The Internal Audit Department is responsible for the
performance of financial and operational audits at Doğuş
Group companies. Audit activities are performed in
accordance with International Standards on Auditing,
International Standards for the Professional Practice of
Internal Auditing issued by the Institute of Internal Auditors
(IIA) and Generally Accepted Auditing Standards. An audit
includes the studies to obtain reasonable evidence about
whether material weaknesses exist in the processes defined
in accordance with the risk based approach, the internal
controls are effective and the determined significant
accounts are free of material misstatement.
In addition, the Department tracks all internal audit
findings and coordinates follow-ups to ascertain that the
appropriate action taken. The department periodically
reports the results to the Risk&Audit Committee and
Board. The Internal Audit Department also supports M&A
transactions.
Legal Affairs The Legal Affairs Department is responsible for the
legal representation of Doğuş Holding and other group
companies and for ensuring that all kinds of contracts,
legal processes and counseling services are handled in line
with the Group’s best interests and with no legal risk.
Investments The Investments Department is responsible for business
development activities in new sectors and in those sectors
in which Doğuş Group already operates. It evaluates
domestic and regional investment opportunities that are
in line with the Group’s strategy and developments in
the global economy. Department responsibilities include
providing thorough analysis of business opportunities and
undertaking M&A activities of the Group for the projects
approved by Doğuş Holding Board of Directors. The
Department is also responsible for monitoring projects
after successful initiation to ensure timely and efficient
returns.
Financial Affairs, Tax Affairs and Financial ReportingThe Financial Affairs Department is responsible for book
keeping in accordance with tax legislation and within the
framework of a single-form accounts plan, preparing and
controlling of monthly, quarterly and annually tax returns,
preparing and submitting the financial reports (quarterly
P&L, balance sheet, reconciliations and other reports as
required) to the authorities. The Department is liable for
the approval of the invoices in line with the manual of the
Company, and following up their maturity dates. It also has
the responsibility of providing assistance in terms of tax
accountability, relations with tax authorities, intercompany
relations, and financial activity compatibility.
The Tax Affairs Department is responsible for assistance and
support services for Doğuş Group, as well as its subsidiaries,
regarding tax laws and procedures such as tax disputes,
incentives, M&A, transfer pricing, training, and structuring
to avoid international double taxation. The Department
also participates in the meetings of the related associations
such as TÜSİAD and YÖİKK to support the tax legislation
process.
The Financial Reporting Department is mainly responsible
for the preparation of consolidated financial statements,
management reports and projections in accordance with
Turkish and International Financial Reporting Standards,
and monitoring and reporting of deviations from business
line budgets. The Department also monitors the planning
and budgeting process and carries out the Group Reporting
System convergence projects.
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Security and Administrative Affairs Security and Administrative Affairs Department supports
Doğuş Holding and its group companies in administrative
situations such as occupational safety, employee
health, cleaning, catering, gardening, spraying, stock
management, valet service, call center and courier services,
protocol services, library and archive services. Educational
supervision, security training services, ambulance service,
transportation, purchasing, joint purchasing, vehicle fleet
rental, technical maintenance, emergency management,
electronic security applications and project management,
private security and other administrative affairs Doğuş
Group’s vision, mission in line with the basic principles and
conditions.
The Security and Administrative Affairs Department
organizes a “Security Managers Seminar” every year with
the participation of Doğuş Group Security Managers. The
department informs the Group companies about the
necessary notifications about the 5188 law and the new
electronic and physical developments in the world.
The Department acts as a managing partner in the
promotion of new suppliers and shares new trends and
developments in the procurement process during the
monthly meeting with Doğuş Group Purchasing Managers.
By organizing “Supplier Meeting” meetings and days
with Doğuş Group Purchasing and Administrative Affairs
Managers, their contributions and developments to be
made for the coming periods are shared. The Department
shares its current knowledge and experience regarding
the Occupational Health and Safety Law with the Group
Companies and follows the developments. The department
determines on-site and advises on Electronic and Physical
Security, Technical and Occupational Health and Safety in
accordance with the scope of Doğuş Group companies.
The department follows up with Occupational Health and
Safety, Fire and Architectural Inspections and Building
Hygiene inspections.
Social Projects The Social Projects Department is responsible for
managing Doğuş Holding’s sustainable social programs,
mainly concentrated on the financial literacy and the
empowerment of women; including the “Goal: 20,000
Women- on the path of Istanbul becoming a Finance Center”
program, “Equality at Work Platform”, “3 Kumbara Financial
Literacy Education Program” and “DOKU” Platform. DOKU
was initiated in 2016 with the aim for continuous economic
and social development of women via establishing women
centers built with the support of local authorities, in which
women are given personal development and soft skill
training as well as vocational training. The Department also
supports women related initiatives of the Group such as
The Women’s Empowerment Principles (WEPs) and The
Business against Domestic Violence (BADV) Project. The
Social Projects Department works in close cooperation
with public authorities, NGOs and various organizations
that are within the scope of the undertaken programs. The
Department aims to generate various sustainable projects
that are of benefit to the Turkish society.
Protocol The Protocol Department is responsible for the overall
coordination of meetings, events and organizations in
which the Chairman of Doğuş Group is involved and
invited as well as the logistical coordination of protocol
services and event management. This includes conducting
the necessary arrangements to represent the Chairman at
the national and international platforms in line with the
protocol, the coordination of the official relations of Doğuş
Group and the coordination of the official organizations
to which the Doğuş Group Executive Board members are
invited. The Protocol Department’s responsibilities also
include drafting statements, letters and protocol messages,
preparing documents and presentations upon request of
the Chairman.Global and local risk experiences in recent years have made
effective risk management mechanisms crucial. Long-term
success goals around sustainable growth and profitability
along with increasing regulatory requirements have made it
essential for companies to employ robust risk management
and internal control systems. Doğuş Group, with diverse
business operations in different regions and countries, is
cognizant of its need to monitor and manage various risks,
including financial, strategic, business and operational risks.
Risk Committee meetings are held on a regular basis in
Group sectors and these meetings generate valuable and
relevant risk information, which is discussed and escalated
when necessary.
The Risk Management Department of Doğuş Holding works
closely with the sector Risk Management departments
in order to strengthen risk culture and penetrate risk
management activities across the Group and in order to
obtain and generate sound, timely risk intelligence into
its decision-making processes. Holding Risk Management
Department provides policies, guidance and know-how
to Group companies, and raises group-wide awareness
for different types of risks via periodical risk roundtables,
workshops, dashboards and reports it facilitates/generates.
The Department is also responsible for the oversight and
strategy of risk retention and transfer through design and
procurement of insurance programs.
At Doğuş Group, the Board of Directors oversee the risk
management and internal audit activities and their
effectiveness. The Risk and Audit Committee of Doğuş
Holding is held on a regular basis. In addition, every major
sector has its own Risk and Audit Committee. These
Committees, which function under the respective Board
of Directors, are also responsible for assessing risks and
proposing appropriate solutions aligned with Group’s risk
appetite. Internal Audit Department of Doğuş Holding
contributes to the long-term success of Doğuş Group by
promoting an effective framework of controls by performing
the following functions:
• Assessing and reporting to group and company audit
and risk committees and to management as appropriate,
on the effectiveness of the design and operation of the
framework of controls.
• The Internal Audit Department of Doğuş Holding is
responsible for performing financial and operational
(process) audits at Doğuş Group companies in accordance
with its annual risk-based audit plan. The Department
operates with a risk-based approach, tracking all internal
audit findings and coordinating follow-ups to ascertain
that appropriate action is taken. Results are periodically
reported to the Risk and Audit Committee of Doğuş
Holding, which in turn monitors and reviews the scope,
extent and effectiveness of the activity of the Internal
Audit Department. The Internal Audit team consists of
qualified professionals in different audit disciplines with
relevant experience in the business processes that are
under review.
• The Internal Audit Department of Doğuş Holding
works closely with the Internal Audit departments of
various sectors to improve the effectiveness of control
environments within the Group companies.
CORPORATE RISK MANAGEMENTAND INTERNAL AUDIT
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DOĞUŞ GROUP’S APPROACH TOWARD ITS STAKEHOLDERS
TRANSPARENCY AND ACCOUNTABILITY
Doğuş Group adheres to strict business ethics that include
transparency and accountability in an environment where
all players, from large corporations to individual customers,
and from employees to society in general, are affected by
each other’s actions. In all of its operations and business
activities, Doğuş Group has fully integrated globally
accepted principles of responsible business conduct. All
stakeholders have been informed of the Group’s position on
these matters. Upholding these principles and high ethical
standards is not limited to its own business dealings; the
Group also requires that the same approach be followed
by all of its stakeholders, on both national and international
levels. Doğuş Group embraces the principle of “not being
involved” with any party that acts contrary to globally-
accepted standards and that cannot provide reliable
disclosures with regards to its actions.
Much attention is paid by Doğuş Group to the disclosure
of its financial and non-financial information to its
shareholders, employees, customers, national and
international business partners, suppliers, existing and
potential investors of its publicly floated companies, and the
public at large. The Group makes all relevant information
available on its website and informs the public about its
corporate strategy, activities, and new fields of investment
via annual reports, periodic press releases, and conferences.
The Group’s financial statements are drawn up quarterly
in accordance with International Financial Reporting
Standards (IFRS). Semi-annual and year-end consolidated
financial statements together with independent auditors’
review and audit reports, respectively, are shared with the
public.
All Doğuş Group affiliated companies listed on Borsa Istanbul
(BIST) have their individual Investor Relations departments
that are able to effectively manage the flow of information
to their stakeholders in line with national regulations. The
fields of activity and performance of the Group’s publicly-
floated companies are disclosed in conformity with the
principles of their respective companies by the Capital
Markets Board of Turkey (SPK).
ETHICAL PRINCIPLES
As a participant to the United Nations Global Compact
since April 2007, the Group has reaffirmed its commitment
to fight corruption both internally and in other areas, which
may fall within its sphere of influence. Ethical principles
are spelled out and documented in procedures under the
following headings:
• Time and resource utilization at the companies,
• Relations with customers, subcontractors, suppliers of
goods and other companies and individuals with whom
the company has commercial interactions,
• The acceptance of gifts, invites, aids and donations,
• Relations with the media,
• Actions that can result in conflict of interest,
• Safeguarding of information pertaining to the companies,
personal information, professional misconduct, security
and harassment.
All Doğuş Group affiliated companies listed on Borsa Istanbul (BIST) have their individual Investor Relations departments that are able to effectively manage the flow of information to their stakeholders in line with national regulations.
CREDIT RATINGS
Transparency and accountability are the two key
components of Doğuş Group’s management approach.
In this regard, Doğuş Holding is rated by one of the major
internationally recognized rating agencies and the ratings
are announced on the web site. Doğuş Holding has been
rated by Standard&Poor’s since 2000.
Standard & Poor’sRating Outlook Rating
Foreign Currency Lt and Turkey National Scale Rating
trBB
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FERİT F. ŞAHENK
Chairman & CEO
Ferit F. Şahenk is the Chairman and CEO of Doğuş Group.
Formerly, he served as the founder and Vice President of
Garanti Securities, CEO of Doğuş Holding, Chairman of
Doğuş Otomotiv and Chairman of Garanti Bank. Previously,
Mr. Şahenk served as a Board Member of the Foreign
Economic Relations Board (DEİK) of Turkey. He also served
as the Chairman of the Turkish-German Business Council;
the Chairman of the Turkish-American Business Council; Vice
Chairman of Turkish-United Arab Emirates Business Council
and Executive Board Member of Turkish-Greek Business
Council of DEİK. He serves on the Regional Executive Board
of Massachusetts Institute of Technology (MIT) Sloan School
of Management for Europe, Middle East, South Asia and
Africa. Mr. Şahenk holds a Bachelor’s degree in Marketing and
Human Resources from Boston College.
HÜSNÜ AKHAN
Deputy Chairman
Hüsnü Akhan completed his secondary and high school
education at Birecik High School (Şanlıurfa). He is a graduate
of Middle East Technical University, Department of Business
Administration and received his Master’s degree in Economics
from University of Miami (USA). Mr. Akhan served at various
positions of the Central Bank of the Republic of Turkey. He
served as Representative at London Office and Assistant
General Manager at the Foreign Relations Department of
the Central Bank of the Republic of Turkey. He joined Doğuş
Group in 1994. After serving as the Executive VP responsible
for Treasury, Operations and Foreign Relations at Garanti
Bank, he was assigned as the General Manager of Körfezbank
in 1998. Mr. Akhan was a Board Member and CFO of Doğuş
Group during 2001-2005, Board Member and CEO of Doğuş
Group during 2006-2019. As of July 2019, he has been
assigned Deputy Chairman of the Board of Directors of Doğuş
Group. Additionally, he currently serves as the Chairman of
the Board for Doğuş Real Estate, Doğuş Construction, Doğuş
Data Processing & Technology, Hedef Medya Related Digital
Marketing, PIT Istanbul Hotel Management Company, Korfez
Aviation, Doğuş Planet Electronics & Informatics Services,
Ara Güler Doğuş Art & Museum and as a board member for
TÜVTÜRK, VDF.
MEMBERS OF THE BOARD OF DIRECTORS
AHMET KURUTLUOĞLU
Board Member/Chief Legal Counsel
Ahmet Kurutluoglu graduated from Istanbul University with
a bachelor’s degree in law. Afterwards, he received master’s
degrees in Business Administration and Employment Law
from Istanbul University Faculty of Business Administration
and Istanbul University Faculty of Law, respectively. In 1981, Mr.
Kurutluoğlu joined Doğuş Group where he started working
as a legal counsel at Doğuş Group and Doğuş Construction
and has been acting as the Chief Legal Counsel of Doğuş
Group since 1987. Mr. Kurutluoğlu is on the Board of Directors
of various Doğuş Group companies and has been an active
board member of Doğuş Holding since 2001.
E. NACİ BAŞERDEM
Board Member
E. Naci Başerdem was born in 1957 in Aksaray. After graduating
from the Faculty of Economics and Administrative Sciences at
Boğaziçi University in 1981, he worked at various managerial
levels in banking and private sector organizations. Since 1998,
he has been serving as a senior executive at Doğuş Group.
He has served in the Doğuş Yayın Grubu A.Ş., Tansaş, Doğuş
İnşaat ve Ticaret A.Ş., TÜVTÜRK, Doğuş Perakende Satış, Giyim
ve Aksesuar Ticaret A.Ş. and Doğuş Turizm Sağlık Yatırımları
ve İşletmeciliği Sanayi ve Ticaret A.Ş. Mr. Başerdem serves as a
Board Member at Doğuş Holding since October 2014.
ERMAN YERDELEN
Board Member
Erman Yerdelen was born in 1938. He graduated from Işık
High School and continued his higher education in Germany.
In 1966, he graduated from the Istanbul Economic and
Commercial Sciences Academy and completed his master’s
degree at Marmara University. Mr. Yerdelen embarked on
his career in 1968 at Tatko T.A.Ş. He left TATKO TAŞ in 1997
and started serving as the Chairman of Tatmak A.Ş., of which
he is a Founding Partner. He continues to serve as a Partner
and the Chairman of Karyer and Tatmak, family businesses
founded in 1953. From January 1992 to April 1996, he served
as the Chairman of Turkish Airlines. At the end of 1996, Mr.
Yerdelen became one of the founders of NTV and he served
as the Chairman of Doğuş Publishing Group until April 2018.
He serves as a Board Member at Doğuş Holding. Mr. Yerdelen
also has been serving as a Board Member and the Chairman
of TÜVTÜRK since its foundation in 2005.
GÖNÜL TALU
Board Member
Gönül Talu was born in 1938 in Elazığ. He completed his
bachelor’s and master’s degrees from the Department of Civil
Engineering of Istanbul Technical University. Mr. Talu joined
Doğuş Construction and Trade Inc. in 1969, served at various
executive levels and promoted to Chairman and Executive
Director at Doğuş Construction in 1994 and also served as the
Chairman at Ayson Geotechnical and Marine Construction
Co. during 1999-2018. At the end of 2018, he became Honorary
President of Doğuş Construction, besides serves as a Board
Member at Doğuş Holding.
EKREM NEVZAT ÖZTANGUT
Board Member
After graduating from the Faculty of Economics and
Administrative Science, Hacettepe University, Ekrem Öztangut
joined the Capital Markets Board of Turkey and served as an
Auditor and a Chief Auditor at the Audit Department between
1984 and 1994. Mr. Öztangut then continued his career as an
academic member of Marmara University between 1992 and
1994. Mr. Öztangut has been the CEO of Garanti Securities
between 1994 and 2015. Mr. Öztangut served as the Chairman
of Doğuş SK Private Equity Company and Director of the
Board of Garanti Pension Fund, Doğuş Otomotiv, Doğuş Oto,
Doğuş Energy. He has also been the Deputy Chairman of the
Settlement & Custody Bank (Takas Bank of Turkey) between
2000 and 2013, President of the Association of Capital Market
Intermediary Institutions of Turkey between 2007 and 2011,
Chairman of the Junior Achievement Education Foundation
between 2011 and 2015, Independent Board Member of
Goodyear Lastikleri between 2011 and 2017 and the Chairman
of D.ream Doğuş Restaurants Group of Companies between
2014 and 2018. He is currently member of the Board of
Directors at Garanti Investment Trust and Doğuş Holding A.Ş.
2019
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E. ALİ BİLALOĞLU
Board Member
Emir Ali Bilaloğlu, after receiving his post-graduate degree
at Berlin Technical University, Department of Engineering,
commenced his professional career in 1991 as the Financial
Control and Regional Sales Manager at Audi AG headquarters
based in Germany. In 2000, Mr. Bilaloğlu served as the
responsible person for Business Development and Strategy
at Doğuş Otomotiv and in 2001, he was appointed as the
Founding General Manager of Audi AG in Dubai, United Arab
Emirates. Upon his return to Turkey in 2004, Mr. Bilaloğlu was
assigned as the General Manager responsible for Audi and
Porsche brands within the body of Doğuş Otomotiv, where
he was appointed to be the Chief Executive Officer (CEO)
of Doğuş Otomotiv in June 2007. In the Ordinary General
Assembly Meeting of Doğuş Otomotiv on 29 March 2018, Mr.
Bilaloğlu was unanimously elected Chairman of the Board of
Directors. Mr. Bilaloğlu also resumes his role as Chief Executive
Officer of Doğuş Otomotiv. As for the companies operating
under Doğuş Group, Mr. Bilaloğlu acts as the Chairman of
the Board at Doğuş Oto Pazarlama and performs duty as the
Board Member at various Doğuş Group companies including
Doğuş Holding, Yüce Auto, Volkswagen Doğuş Finance
(vdf), Doğuş Technology and Doğuş Marketing Services.
Since March 2018, Mr. Bilaloğlu has been the Chairman of
the Automotive Distributors’ Association (ODD). In addition
to his position as the Executive Council Member of the
Turkish-German Business Council at DEIK (Foreign Economic
Relations Board), which furnishes consultancy services in the
area of foreign economic relations, Mr. Bilaloğlu also performs
an active role as the Member of the Advisory Board at Turkey:
Culture of Change Initiative (TCCI) affiliated to Turkish Industry
and Business Association (TÜSİAD), as well.
GÜR ÇAĞDAŞ
Board Member
Gür Çağdaş graduated from Istanbul University Faculty of
Political Sciences in 1983 and received his masters’ degree
from Istanbul University School of Business Administration -
Institute of Managerial Economics in 1985. He started working
as an Investment Specialist in Eczacıbaşı Securities in 1986. He
established Istanbul VakıfBank Securities Centre in 1988 and
continue working there as Manager until 1990. Joining the
Dogus Group in May 1990, Mr. Çağdaş respectively worked; as
a Group Manager of Capital Market in Turk KörfezBank, as an
Assistant General Manager in Garanti Securities and Garanti
Investment and Trade Bank; served as a Chief Executive
Officer, as a Vice Chairman and lastly as a Chairman of
Garanti Asset Management. As of January 1st 2016, Mr. Çağdaş
has been appointed as an Advisor to the Chairman within
the Doğuş Holding and as a Vice Chairman of Doğuş Group
Companies. He chaired TKYD (Turkish Institutional Investment
Managers’ Association) between the years of 2007-2014,
meanwhile representing Turkey in European Fund and Asset
Management (EFAMA). Mr. Çağdaş also served as a member
of Board of Directors between the years of 2013-2014 and as a
Vice Chairman between the years of 2015-2018 of Corporate
Governance Association of Turkey (KYD). Currently along with
his positions as a Member of Board of Directors, Chairman and
Vice Chairman in Doğuş Group Companies, as of 2019 he has
been serving as a Member of Board in Doğuş Holding.
THE RISK AND AUDIT COMMITTEE
The Doğuş Holding Risk and Audit Committee is established
by the Doğuş Group Board of Directors to assist the Board
in its oversight of risk and risk management across the
Group and Group Companies. It exists to support the Board
in its responsibility for ensuring that a sound system of
internal control exists. The Committee consists of two Board
Members elected by the Board. It meets regularly prior to
the Group Board meetings, and no less than four times a
year. The Committee is supported by Doğuş Holding Risk
Management and Internal Audit departments.
Risk Management related responsibilities include:
• Reviewing the design, completeness and effectiveness
of the risk management framework relative to the
Group sectors’ activities; reviewing the adequacy and
quality of the risk management function; reviewing the
effectiveness of risk reporting (including timeliness and
risk events),
• Reviewing regular information flow from Group sectors
and evaluating risk information as well as Group strategies,
business plans, budgets and investments,
• Reviewing management’s view of emerging and
potential risks; and reviewing the management actions,
if any, required in response to changes in the risk profile
and emerging or potential risks,
• Reviewing Group risk levels to ensure that they are in line
with shareholder risk preferences,
• Providing guidance to the Doğuş Holding Risk
Management Department.
Internal Audit related responsibilities include:
• Overseeing the efficiency of actions taken by Group
companies in response to the results of financial,
operational audits performed by the Doğuş Holding
Internal Audit Department,
• Evaluating the efficiency of the internal control processes
of Group companies and advising on ways to improve the
internal control environment,
• Overseeing the efficiency of financial control and internal
audit activities within the Group,
• Overseeing the efficiency of actions taken by Group
companies in response to the results of financial and
operational audits performed by the Doğuş Holding
Internal Audit Department,
• Assisting the Board of Directors in order to ensure that the
business activities of Group companies are in compliance
with the requirements of applicable laws and regulations
in coordination with Legal Affairs Department.
THE HUMAN RESOURCES COORDINATION COMMITTEE
The Human Resources Coordination Committee was
established to inform the Board of Directors of Doğuş Group
companies’ human resources management policies and
practices. The Committee consists of the Human Resources
Managers of Doğuş Group companies and meetings are
held quarterly under the leadership of the Doğuş Holding
Human Resources Department. In parallel with the human
resources strategies, human resources project groups come
together and work throughout the year.
The Committee:
• Develops human resources policies and practices in line
with the Group’s strategy and objectives,
• Shares know-how about the best practices within the
Group,
• Sets up working groups to address the issues on the
agenda of the Group,
• Shares information on potential candidates, succession
and career planning within the group,
• Develops joint projects to boost employee engagement.
COMMITTESS ESTABLISHED BY THE BOARD OF DIRECTORS
2019
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Automotive
2019
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TOTAL ASSETS
4,664,944 REVENUES
9,844,133 GROSS PROFIT
1,269,704
2015 2016 2017 2018 2019
Total Assets 3,979,903 4,851,854 5,166,882 4,798,662 4,664,944
Revenues 10,889,161 11,925,176 13,220,361 10,688,489 9,844,133
Gross Profit 1,108,563 1,152,876 1,300,984 1,301,094 1,269,704
Celebrating its 25th anniversary in 2019, Doğuş Otomotiv is
Turkey’s leading automotive importer and distributor that
provides value to more than 650 thousand customers a year
with its 12 international brands, more than 80 models, sales-
service-spare parts services, more than 2,000 employees,
and nearly 550 service locations.
Despite the challenging economic conditions that began
in the second half of 2018 and have since continued,
Doğuş Otomotiv managed this process well and retained
its position in the market. In 2019, Doğuş Otomotiv had
a market share of 16.7% with 80,182 units sold excluding
heavy commercial vehicles.
Aftersale Services had better revenue flow, while the Spare
Parts and Logistics department achieved significant cost
advantages in both vehicle and spare parts logistics as a
result of the department’s effective cost management,
as well as the practices carried out with suppliers for
the purposes of improving efficiency. In addition, stock
costs were reduced by a considerable margin without
compromising on spare parts availability, thanks to strong
stock management.
STRONG FAMILY STRUCTURE
Adopting sustainable success as its main strategy since the
day it was founded, Doğuş Otomotiv worked closely with its
Authorized Dealer network in 2019, ending the year without
any losses due to its efficiency-focused solutions and
prudent management policy. With the regional meetings
held throughout the year, focused and efficient work was
carried out, strategy and actions were transferred, and
improvements were made by taking mutual opinions.
THE 25TH YEAR
Doğuş Otomotiv celebrated its 25th year in 2019. Operating
in the automotive industry, one of the leading sectors
in Turkey, for a quarter of the century, the Company held
many meetings in its 25th year, sharing its future vision
and strategies with its employees, business partners and
stakeholders. During the conversations held with General
Managers throughout the year, employees had a chance
to listen to the 25th year story and future vision of Doğuş
Otomotiv. Again, as part of the 25th anniversary, young
employees could express their opinions and suggestions
through a Generation Y version of “Bir’iz Employee
Committee” held under the Bir’iz Employer Brand.
Business partners and stakeholders which have shared
the same vision as Doğuş Otomotiv for years formed an
important part of the 25th anniversary events and assessment
studies. During this special year, the future vision of Doğuş
Otomotiv was cemented through the communication
studies conducted with the executive management and
brand marketing managers.
Celebrating its 25th anniversary in 2019, Doğuş Otomotiv continued to be the leading automotive importer and distributor of Turkey with its 12 international brands and over 80 models, sales, after-sales service and spare parts services, over 2 thousand employees and nearly 550 service points.
DOĞUŞ OTOMOTİV IN ITS 25TH YEAR
KEY FINANCIAL INDICATORS(TL THOUSAND)
Source: Figures are based on Doğuş Otomotiv CMB Report.
2019
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DIGITAL TRANSFORMATION
As part of the Company’s long-term strategy, in 2019
Doğuş Otomotiv focused on domestic operations and
opportunities that are deemed to have great potential for
creating value, such as digitalization.
Taking the “Agile Methodology” focused on the concept of
“Value” as the internal digital project development strategy,
Doğuş Otomotiv laid the foundations of transition to an agile
and analytical organizational structure in 2019. Accordingly,
roles suitable for the agile management structure are
defined and procedures to provide communication and
coordinated work between Information Technologies and
business units were determined. As part of the ongoing
digital transformation, Human Resources processes were
also transferred to digital platforms at a maximum level.
In line with Doğuş Otomotiv’s long-term strategy and future
vision, the new Business Development department started
cooperating with venture capital companies in 2019 in order
to be well-prepared for the changing business models of
the future. In order to develop the entrepreneurial skills
of company employees, a Startup Catalogue website was
launched in 2019. Internal workshops and cooperation with
venture capital companies will continue unabated in 2020.
Within the scope of employer brand activities, Doğuş
Otomotiv focused on social media channels in external
communication. The company actively using Linkedln,
Facebook and Instagram has reached 101 thousand
followers in Linkedln. Facebook, which started as of March
2018, has exceeded 40 thousand and Instagram exceeded
20 thousand followers. With its unique and storified
content, the Company has accelerating interaction rates in
all channels.
Doğuş Otomotiv’s social responsibility platform, Traffic
is Life! has the highest number of followers among the
social responsibility platforms of the sector in social media.
As of the end of 2019, Traffic is Life! platform’s Facebook
account reached 154,780 followers with an increase of 21%,
and Instagram account reached 16,676 followers with an
increase of 220%.
Also placing a high degree of importance on digitalization
in brand communication, Doğuş Otomotiv brands created
a success story in 2019 by using digital communication
channels in an effective manner.
Volkswagen Passenger Cars website, which is the largest
showroom of the brand, received 17 million visits in 2019.
A total of 24,200 digital request forms were received from
digital channels in 2019, and 2.1% of these forms were
converted into sales. In that regard, Volkswagen Passenger
Cars far surpassed the automotive sector average of 1.1%, as
stated in Google Auto Report. Thanks to a strong strategy
and unique content, Volkswagen Passenger Cars social
media channels were some of the most-followed in the
automotive sector in 2019. The brand has maintained its
leadership on Facebook with over 4 million local followers,
and has become the most popular automotive brand on
Instagram with 440,000 followers. The “Volkswagenim”
application, which offers numerous user-friendly functions,
reached 450 thousand people by the end of 2019.
Audi Turkey, which places digitalization at the center of
its business processes, has been hailed by Audi AG as a
benchmark to other countries with its digital showrooms
and benchmark projects. Like in previous years, Audi Turkey
- which continued its effective social media presence in
2019 - preserved its position at the top of the list of the most-
followed Twitter accounts of the Turkish automotive sector.
Similar to its performance over the years, Audi Turkey’s
website ranked among the most visited Audi websites
throughout the world. The “Audi Intelligence: CRM” project,
which was developed using artificial intelligence and
machine learning techniques, made a positive contribution
to vehicle sales in 2019.
Focusing on communicating the Leon and Ateca
models in 2019, SEAT conducted 100% of its campaign
communications on digital platforms throughout the year.
Using social media channels effectively all through 2019,
SEAT’s brand recognition was realized as 27.2% in 2019,
while its brand likeability increased to 7.2%.
In 2019, Porsche Turkey’s Instagram followers rose by 20%,
while the YouTube channel grew by 102%.
Developments to the “Smart Turkuaz Screen” application,
which has been used in Volkswagen Authorized Dealers
and Services since its launch in 2016, and which ensures
offering more targeted services to Volkswagen Commercial
Vehicles users, continued in 2019. With a new interface
integrated into the service function of the application,
users are able to learn their pre-defined service discounts
without going to an Authorized Dealer, and get a service
appointment online.
Developed by Scania, “Scania’m Cepte” is also a pioneering
application of the sector. The application increased
its effectiveness by reaching a total number of 8,400
downloads in 2019.
Sales SuccessDespite the contraction experienced in the market in 2019,
Doğuş Otomotiv brands further enhanced their market
positions and achieved remarkable accomplishments.
Volkswagen Passenger Cars ranked third in the passenger
car market in 2019 with 38,820 units sold and a market
share of 10%. The Golf, Passat and Passat Variant models
closed the year at the top of their respective segments.
The newest version of Passat, equipped with state-of-the-
art technology, continued its success of being the most
2019
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Having received the ŠKODA global STLI (Service Technical
Performance Index) “Best Performance Award” in 2018,
Yüce Auto continued its success in 2019 and came second
in the STLI Awards.
Thanks to the customer loyalty studies towards the Porsche
vehicle park which grew by 3% in 2019, service revenue rose
by 11%, accessory sales by 11%, and extended warranty sales
by 12%. Doğuş Otomotiv-Porsche was awarded the top price
in the Porsche Service Excellence Awards (PSEA), carried
out every year among Porsche distributors and Authorized
Services. In 2019, the first of Porsche Destination charging
stations, which will serve electric vehicles, was launched.
Volkswagen Commercial Vehicles Aftersale Services raised
its total number of Authorized Services to 78 in 2019 with
the opening of new service locations in Iğdır and Gaziantep.
The brand also began to offer on-site maintenance and
express service to its customers with the “Volkswagen
Commercial Vehicles Mobile Service” project, which was
launched at certain Authorized Dealers in 2019.
AWARDS
Having received many awards both at a corporate and
brand level in 2019, Doğuş Otomotiv was named the “Most
Honored Company” in the 2019 Emerging EMEA Executive
Team Survey held by Institutional Investor Magazine. Within
the scope of the same research, Kerem Talih, the Company’s
CFO, ranked third in the “Best CFO in the Automotive Sector”
category, and Investor Relations Manager Müge Yücel
ranked second in the “Best Investor Professional” category.
In addition, Doğuş Otomotiv received the “Women-
Empowered Board” award by Sabancı University Corporate
Governance Forum. Ela Kulunyar, General Manager of
Human Resources and Process Management, was rated
among the “Most Effective 50 CHROs” selected by Fortune-
DataExpert. In a survey held by Toptalent.co, Doğuş
Otomotiv’s D-Staj internship program ranked 10th among
the best-liked 100 internship programs, and 2nd in the
automotive sector.
Doğuş Otomotiv brands and support function departments
also received many awards throughout the year. Volkswagen
Passenger Cars, just like in the past six years, was elected
Turkey’s most-loved automobile brand at “Turkey’s
Lovemarks 2019 Survey” conducted by the Mediacat
magazine and Ipsos. In addition, the brand was awarded
the Bronze Apple in the Media/Service category in the
Crystal Apple Festival, which gives out the most prestigious
creativity awards in the world of marketing.
Continuing its ad campaigns and communication efforts
to raise its brand recognition, Audi was deemed worthy of
the Crystal Apple awards in the press ad category of the
Crystal Apple awards and the Bronze Apple awards in the
open air category with the “art of quattro” communication
prepared within the framework of Contemporary Istanbul
sponsorship. The radio spot prepared for Father’s Day was
also awarded with the Bronze Apple.
Yüce Auto added another success to its long list of
accomplishments in terms of service quality and received
the best improvement award in the “Brand and Quality”
category of the Exporters of the Year 2019 awards given by
ŠKODA Auto. Moreover, in the Marketing Summit organized
by ŠKODA Auto in Poland, the Yüce Auto marketing team
was granted the “Best Event” award within the scope of the
best marketing practices of 2019.
Volkswagen Commercial Vehicles received an award in the
“Commercial Automotive” category of the A.L.F.A. Awards,
which evaluates brands’ customer experience performance.
Sector leader in reefer units, Thermo King, was also named
the “Best Brand” for the 15th time in the Reefer category at
ETM Awards 2019.
DOĞUŞ OTO
Operating in 7 regions in total with 36 Authorized Dealers
and 33 Service points and over 1,400 employees, Doğuş Oto
provides new vehicle, used vehicle, spare part, and accessory
sales and aftersale services for Volkswagen Passenger Cars,
Volkswagen Commercial Vehicles, Audi, Porsche, SEAT and
ŠKODA. Doğuş Oto sold 27,649 units of new and 4,066 units of
second-hand vehicles in 2019. With a total of 288,955 service
entries, 2019 was a year when the predetermined financial
targets were exceeded.
In line with the target of keeping the digital experiences of
the customers at the highest level, the Company continued
developing its sales and aftersale services on its corporate
website, and further further increased its reachability
through its social media posts.
Spare Parts & LogisticsManaging the importation, warehousing and distribution
of vehicles and spare parts to Authorized Dealers for some
of the world’s most prestigious brands such as Volkswagen,
Audi, SEAT, ŠKODA, Porsche, Bentley, Lamborghini, and
Scania, as well as Scania Industrial and Marine Engines,
Thermo King Transport Temperature Control Systems,
Spare Parts and Logistics imported 58,174 vehicles, and
Doğuş Otomotiv was named the “Most Honorable Company” in the EMEA Region Management Team 2019 Survey held by the Institutional Investor Magazine.
preferred import vehicle in the passenger car market in
2019.
The Audi brand, which achieved remarkable success in 2019,
led the premium segment with a retail purchase figure of
10,024 units.
SEAT preserved its second-place position in the A-HB
segment with its Leon model, capturing a segment share of
14.1%. SEAT sold a total of 5,914 passenger vehicles in 2019,
with a market share of 1.53%.
ŠKODA sold 15,369 units in 2019, achieving the second-
highest market share in its history with 4.0%. Especially
the Kodiaq and Superb models ranked top two in their
respective segments, further strengthening the brand’s
sales success in upmarket models. Octavia, often considered
the heart of the brand, closed the year in the first place
with 6,815 units sold in the last sales period of the current
generation before leaving its place to the fourth generation
coming in 2020.
Porsche’s 718 model led its segment with a 39% market
share, with 37 units sold in 2019.
Volkswagen Commercial Vehicles preserved its third place
with a market share of 10.5% despite the contraction in the
light commercial vehicle market in 2019, while remaining the
leader in import commercial vehicles sales. The Transporter
model continued to lead its segment with a market share of
33.8%. Volkswagen Commercial Vehicles received the “Best
Customer Oriented Market - Turkey” award, being named
the most customer-oriented distributor in 2019 thanks to its
success in sales and aftersale services.
Increasing its marine engine sales by 62% in 2019, Scania
Engines has preserved its place among the largest engine
vendors. In 2019, Scania Engines increased its market
share in the generator engine sector by becoming part
of the product lineup of many Turkey-based generator
manufacturers.
Long hailed as the leader in the refrigerator unit market,
Thermo King maintained its success by providing solutions
for various needs and preserved its lead in the cold chain
transport sector.
Aftersale ServicesVolkswagen Passenger Cars After-Sales Services, which is in
continuous development in order to maintain the unique
automotive experience it offers to customers, increased the
number of service points to 78 with Döşman and Egecan
Authorized Services opened in 2019. The brand’s spare parts
revenue rose by 3.91 in 2019, with labor revenue up to 2.22%.
Thanks to its 64% customer loyalty praised across Europe,
the Audi brand achieved an increase of 6% in its revenue
in Aftersale Services. Audi Aftersale Services continued
its enduring success by becoming first once again in the
Authorized Dealer Satisfaction Survey (DSS) carried out by
Audi AG with the participation of service managers and
company owners.
In 2019, the spare parts revenue of SEAT Authorized Dealers,
which serve its customers at 45 locations across Turkey, rose
by 3% and the labor revenue rose by 11% compared to the
previous year. The brand’s customer experience survey score
was 4.84 out of 5, thanks to its customer-oriented aftersale
services.
VALUE CHAIN 2019
REPLACEMENT PARTS ANDAFTER SALES SERVICES (TR)
Quick Fix to All BrandsSpare Parts and Logistics
OTHER INVESTMENTS
IMPORT & DISTRIBUSTION
FINANCE
RETAIL Doğuş Otomotiv Independent Authorized Dealers
USED VEHICLE SALES DOD Used Vehicle Sales
Automotive Financing*
FactoringInsurance*
Fleet
Insurance*
2019
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dispatched 75,539 vehicles to Authorized Dealers in 2019,
ending the year with a total revenue of TRY 1,337.8 million.
Dpar B2B website that brings commercial customers in
the spare parts market together with Authorized Dealers
and thereby facilitates over-the-counter original spare part
sales was launched in early 2019. Moreover, spare parts
availability was maintained at 99% in 2019 thanks to the
use of advanced stock management systems.
DOD
Celebrating its 20th year in 2019, DOD is the largest
corporate used car brand in Turkey. In 2019, when there
was a significant contraction in vehicle sales, the company
commissioned the 3-month DOD Warranty product and
achieved 126% increase in guaranteed vehicle sales with
the new product. Continuing its showroom renovation and
personnel training efforts throughout the year, DOD held
additional trainings in line with the professional expertise
requirement stipulated for sector employees in 2018. All of
the personnel who participated in the exams were entitled
to receive their Professional Expertise Certificate.
The year 2019 was also quite fruitful in terms of digitalization
efforts. The internal reporting platform DOD Portal was
launched, and development efforts began on the DOD
Auction Website in the fourth quarter of the year. In addition,
social media management continued in the focus of rich
content production and successful results were achieved
throughout the year.
TÜVTÜRK
Achieving growth in 2019 in all operation areas including
periodic vehicle inspection services, TÜVTÜRK - which
provides services in 81 provinces in Turkey with its 210
fixed stations, 74 mobile stations, 5 motorcycle stations
and 13 mobile tractor stations operating in 16 provinces -
succeeded in increasing its revenue by 28.3% from TRY 1,991
million to TRY 2,555 million. The operations of TÜVTÜRK
Istanbul accounted for TRY 427 million of the total
revenue. TÜVTÜRK, the most effective public-private sector
collaboration in Turkey, has contributed a total of TRY 9.4
billion to the public since the day it began operations. This
figure was realized as TRY 1.9 billion in the year 2019.
A total of 9,950 million vehicles went through periodic
inspections in 2019, representing a 4% rise year-on-year.
During the inspections, 34.9% of the vehicles were found
to be seriously defective or unsafe. 97.8% of the 3.4 million
cars that came in for a re-inspection were found to have
their defects addressed, and these vehicles were once again
permitted to return to the streets.
In 2019, a total of 3.8 million cars were inspected for exhaust
gas emission levels. There was a 2.6% rise year-on-year
in exhaust gas emissions tests, and the ratio of exhaust
gas emission tests to periodic inspections was 38.7%.
The number of vehicles that underwent roadworthiness
inspections which are offered in 31 stations was 29,077 in
2019.
VDF AUTOMOTIVE FINANCING
Encompassing financial services, insurance, factoring and
fleet companies, vdf Group continued its market leadership
among finance companies and banks in 2019 with a 13%
market share in vehicle loans. Providing 30,121 new loans in
2019, vdf reached its targets with a total number of 81,908
performing loans.
Maintaining its position as the largest insurance agency
in 2019 regarding total net premium generation and
performing policy figures, vdf Insurance continued its
steady growth with a total net premium generation worth
TRY 350 million. The company managed 243 thousand
policies in 2019.
Offering factoring and financing services to 160 Doğuş
Otomotiv and Yüce Otomotiv Authorized Dealers across
Turkey, vdf Factoring reached a transaction volume of TRY
9.6 billion, and a total asset value of TRY 528 million in 2019.
vdf Fleet Rental had 8,027 active contracts in 2019, 66% of
which comprised Doğuş Otomotiv group branded vehicles.
HUMAN RESOURCES
The most important progress in the field of Human
Resources in 2019 was in the field of digitalization. Thanks
to the technological investments in HR, many processes
that were carried out manually and created operational
load began to be carried out on digital platforms. For
example, 30% of the interviews held by the Authorized
Dealer Human Resource Management during Authorized
Dealer recruitments and promotions in 2019 were
remote interviews conducted using digital instruments.
The digitalization of processes such as candidate exams
and inventory, orientation, competency assessment and
feedback, office stock, and backups contributed positively
to the sustainable company policy of Doğuş Otomotiv.
In addition to the online and classroom trainings for
professional development that continued throughout
2019, Doğuş Otomotiv also carried out the GO-Fest event,
which allowed employees to participate in seminars of their
choice depending on their areas of interest, and to develop
themselves while having fun together with surprise gifts
and activities. The Reverse Mentoring Program, launched in
2018, continued in 2019 to take advantage of the dynamism
and competencies of its new generation, to create synergy
by bringing them together with the company’s top
executives, and to establish a relationship between different
values and perceptions.
Within the framework of Doğuş Otomotiv’s cooperation
with Vocational High Schools with the goal of contributing
to the development of a high-quality workforce for the
sector, visits were organized to schools equipped with VW
Laboratories, and presentations were made to 9th grade
students prior to their choice of profession. In addition,
many universities were visited to reach potential employees.
In a survey held by Toptalent.co, Doğuş Otomotiv’s D-Staj
internship program ranked 10th among the most-liked 100
internship programs, and 2nd in the automotive sector.
According to the Ideal Employer Survey held by Universum-
Turkey, Doğuş Otomotiv preserved its place among the top
50 companies in 2019.
Doğuş Otomotiv considers increasing women’s participation
in the workforce as one of its main goals. The company aims
to increase the number of female employees, as well as to
empower them to be more impactful in decision-making
mechanisms through the “İş’te Eşitlik” (Equality at Work)
program. In this context, activities for women employees
continued all the year round. As part of the Coaching and
Mentoring Program for Women, 15 new female managers
participated in trainings, and the education program
developed jointly with TEV to prepare female students for
business life gave its first graduates.
SUSTAINABILITY
Having started its sustainability journey in 2009, Doğuş
Otomotiv accepts its sustainability strategy, which is
based on utilizing all resources efficiently, creating a
positive sphere of influence and further strengthening the
trust of stakeholders, as the key factor that will carry the
Company into the future. The Company closely monitors
all developments in the field of sustainability and the
corporate standards that are changing in line with these
developments, and reviews and updates its corporate
sustainability strategies on a regular basis.
The progress and process improvements that have been
made for years in the Borsa Istanbul Corporate Governance
Compliance Rating allowed Doğuş Otomotiv’s grade to
reach 9.65 in 2019, making it one of the best in Turkey. Doğuş
Otomotiv maintained its stability in this regard by entering
the BIST Sustainability Index for the 5th consecutive time in
2019.
The Company’s world-class Ethics Code published in 2012
and associated systems, auditing and control mechanisms,
trainings and notifications continued unabated in 2019.
A total of 22 Doğuş Otomotiv (Value and Care Center-
DIM) employees received 55 man-hours of face-to-face
Ethics Code training. In addition, Ethics Code information
was spread through the 347.5 man-hours of e-orientation
training provided to 139 employees.
At the decision-making level, the Corporate Governance
and Sustainability Committee continued its activities in
2019 as well. The performances related to the priority areas
renewed in 2018 started to be implemented, and work
plans created in line with the targets were.
Believing the importance of creating social value in
addition to financial success for a sustainable future, Doğuş
Otomotiv created the Traffic is Life! platform in 2004 with
the stated goal of creating a long-term positive cultural
transformation in traffic safety. The Traffic is Life! platform
carries out awareness studies towards various target
audiences, with a view to changing the behavior and habits
of individuals from all age groups regarding traffic safety.
In 2019, the Traffic is Life! platform turned its attention
on the reflections of urban living, rising mobility, and
technology on our daily lives, and used its social media
accounts in order to reach as large a crowd as possible. As of
December 2019, the number of followers on the Facebook
account of the Traffic is Life! platform rose by 21% to hit
154,780, while its Instagram account increased its followers
by 220% to reach 16,676. Thanks to interactive content
such as surveys, tests, and puzzles that are published
through Instagram’s story feature, the platform sought
to keep its communication with its target audience alive;
moreover, a contest titled “Give me a sign” was held. The
platform, which predominantly aimed at young people
in 2019, sent messages to a total of 87,775,401 people on
Facebook and 943,145 people on Instagram, using tools and
communication methods popular in social media.
The platform’s brand ambassador Prof. Dr. Üstün Dökmen
met with automotive editor and popular YouTuber Doğan
Kabak, and their interview was shared with a large audience
via YouTube and social media platforms. In addition, a
series of short videos created to offer drivers information
and guidance on safe driving techniques were published
also by the General Directorate of Security, receiving nearly
3 million views.
In 2019, the Traffic is Life! platform continued its “Traffic
Safety Distance Education”, which was launched in 2013.
Recommended by the Council of Higher Education as a
“Elective Social Course”, the project has so far reached more
than 25,000 students from 14 universities all around Turkey.
The Borsa Istanbul Corporate Governance Compliance Rating allowed Doğuş Otomotiv’s grade to reach 9.65 in 2019, making it one of the best in Turkey.
2019
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Construction
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2015 2016 2017 2018 2019
Total Assets 2,503,179 3,168,812 3,901,196 4,478,745 4,401,545
Revenues 1,873,797 2,576,171 2,944,038 3,336,930 2,662,076
Gross Profit 7,105 56,182 131,442 209,753 83,025
TOTAL ASSETS
4,401,545 REVENUES
2,662,076 GROSS PROFIT
83,025
KEY FINANCIAL INDICATORS(TL THOUSAND)
Doğuş Construction and Trade Inc. is considered a world-
class leader in the construction sector, having completed
over 250 mega-infrastructure and superstructure projects
since 1951 with a total value of USD 28,2 billion. It has
operated within joint ventures and consortiums with many
international companies in projects across Turkey, Middle
East, North Africa, Eastern Europe and Gulf Countries, and
has been featured in ENR’s annual list of the world’s top 250
construction companies since 2003.
Doğuş Construction’s impressive and diverse portfolio of
projects include 1515 km of roads, 43 km of bridges and
viaducts, over 340 km of subways, railways and tunnels,
and 21 dams and hydroelectric power plants capable of
producing 3350 MW of electricity. Its 3,45 million square
meter of building construction includes shopping and
leisure centres, offices, residential and industrial buildings.
Also, the Company implemented 2,6 million square meter
building construction within the scope of Doğuş Group real
estate investments.
As a result of the benchmark research by Great Place to
Work® Institute in 2014 and 2017, in recognition of its efforts
to provide its employees a safe working environment and
due to its superior Human Resources Practices, Doğuş was
qualified as one of the “Best Place to Work” and awarded
“Occupational Health and Occupational Safety” special
category prize among top 10 companies in the category
of 50-500 employees. Doğuş Construction is the very first
and only construction company in Turkey that is awarded
this prize in consideration of recognition, appreciation, trust
and formation of emotionally and psychologically healthy
and satisfying working environment for their employees.
Doğuş established long-term strategic partnerships and
alliances with reputable global companies in the industry
to share risks in the projects and expand its field of activities
and concluded these projects in efficient coordination and
success. Besides, Doğuş also implemented “smart growth”
strategy by long-term collaborations with the world’s
leading specialist system providers and sub-partners who
provide systems that require high technology, know-how,
specific software and hardware the project necessitates.
In the light of this strategy, Doğuş has become a “turn-key”
service provider for its employers especially in terms of rail
systems and environmental projects by managing and
coordinating the interfaces between the systems.
In the near future, Doğuş’s objective is to carry its “smart-
growth” strategy not only in contracting but also relevant
services to its employers in different project types.
Doğuş Construction and Trade Inc. employed 5,536
employees (3,564 subcontractor employees) in construction
and trade activities as of December 31, 2019.
DOMESTIC PROJECTS
In 2019, the Company’s projects in Turkey included metro
and light rail system projects as well as highways and roads,
railways ports, electromechanical works and buildings.
Doğuş Construction applied for preliminary qualification/
preselection of 3 projects out of 16 in the domestic arena
Impressive and diverse portfolio of projects include 1,515 km of roads, 43 km of bridges and viaducts, over 340 km of subways, railways and tunnels, and 21 dams and hydroelectric power plants capable of producing 3,350 MW of electricity.
CONSTRUCTION
Source: Figures are based on Doğuş İnşaat FRS Financial Statements.
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and prequalified for 3 of these projects. The Company bid
for 2 projects.
Ongoing Domestic Projects
As of 31.12.2019Expected
Project Value (USD Million)
Doğuş’s Share
Mavi Tünel Potable Water Transmission Pipeline 70 70
Tokat-Niksar Road 160 80
Kılavuzlu Irrigation Main Channel, Section 1 88 88
Kömürhan Bridge Connection Tunnel and Road 72 36
Ankara-Sivas Railway, Section between Kayaş-Kırıkkale, Viaducts V7-V9-V10-V15
116 116
Construction of Ergene Basin Deep Marine Discharge 23 23
Ankara-İzmir High Speed Railway, Infrastructure Works of Afyon-Uşak (Banaz) Section
80 40
Eminönü-Alibeyköy Tramline Construction and Electromechanical Works
194 194
Afyon Alkaloids Factory Water Treatment Plant 7 7
Başakşehir Wholesale Market Building Complex and Recreation Facilities
89 54
Çekmeköy-Sancaktepe-Sultanbeyli and Sarıgazi-Taşdelen-Yenidoğan Metro Construction and Electromechanical Works
679 408
Kaynarca-Karasu-Kocaali 4th District Borderline 117 117
Kayaş-Yerköy High Speed Railway, Superstructure and Electromechanical Works
188 188
Malatya-Elazığ State Road, Construction of Velipalas Landslide 20 10
Torbalı (Excluded)-Ödemiş-Çatal-Tire Railway Line Signalization and Telecommunication Works
1 1
Tüpraş Water Transmission Line Rehabilitation 1 0,5
TOTAL 1,905 1,437
Doğuş Construction awarded “Tokat-Niksar Road” in 2013.
The project which involves the construction of 49 km of
2x2 lane road, 7 bridges and 125 engineering structures, is
planned to be completed by the end of 2021.
“Kömürhan Bridge Connection Tunnel and Road” which
involves the construction of a bridge connection tunnel and
road, was commenced in late 2013. The bridge connection
tunnel has a total length of 4,820 m including double
tubes with 4 vehicle crossings and 4 turnouts. The project is
envisaged to be completed at the end of 2022.
“Mavi Tünel Potable Water Transmission Pipeline” is still
under construction while a similar environmental project
“Kılavuzlu Irrigation Main Channel, Section 1” with a total
irrigation area of 55,536 hectares in Kahramanmaraş,
Gaziantep and Hatay is expected to be completed in the 3rd
quarter of 2020.
STAR Refinery Marine Works Project’s contract has been
signed by Doğuş-ES Adi partnership in February 2015, in
which Doğuş Construction shares 50%. The temporary
acceptance agreement of the contract was made in August
2019. Under the EPC contract, the final acceptance stage
has been started for 3 scaffolding structures with a total
length of 1.187 m and for backfield reclamation works.
The contract for the construction works of “Galataport
Cruise Terminal Pier” located in Karaköy has been signed
in 2015. Within the scope of the project; 1,464 m steel
pipe piled quay construction with a total length of 1,250
m has been completed. In the project where a total of
60,500 m³ of concrete was used, 182,000 m³ of hydraulic
fill was executed and 46,750 m³ excavation work have been
performed. The Stone Column and Water Intake Structure
works, which were added later, are ongoing and the project
is expected to be completed in April 2020.
Doğuş Construction has undertaken “Platform Jetty 36’’
Crude Oil, 10’’ Fire Water and 6’’ Service Water Pipelines
Renovation” project by TÜPRAŞ (Kocaeli) involving
underwater pipelines to be erected and renovated for
36’’ Crude Oil, 10’’ Fire Water and 6’’ Service Water. The
completion of the project will be at the end of 2020. Doğuş
Construction shares 50% in this project. (Doğuş-Sukot Adi
Partnership)
“Ankara-Sivas Railway, Section between Kayaş-Kırıkkale”
involves the construction of 4 viaducts with a total length of
6,216 m which are going to be the tallest high-speed train
viaducts of Turkey. It was completed at the end of 2019.
The contract was signed for “Başakşehir Wholesales Market
Building Complex and Recreation Facilities” Project which
was awarded to Doğuş-Dusa Joint Venture in January 2017.
The project involves the construction of 930 wholesale
stores, banks and restaurants as well as 109 commercial
stores, a parking lot with a vehicle capacity of 1,125 cars and
social facilities. It is expected to complete in the 3rd quarter
of 2020.
“Çekmeköy-Sancaktepe-Sultanbeyli and Sarıgazi-Taşdelen-
Yenidoğan Metro Construction and Electromechanical
Works” involves the construction of two metro lines
including the supply and installation of electromechanical
systems and commissioning works. The line between
Sancaktepe and Sultanbeyli will be 10,9 km and include 8
stations. On the other hand, the line between Taşdelen and
Yenidoğan which is integrated to Çekmeköy-Sancaktepe-
Sultanbeyli line from Sarıgazi Station will be 6,95 km and
include 6 stations. The project is planned to be completed
in September 2022.
“Kaynarca-Karasu-Kocaali Road” involves the construction
of 25 km-long road including earthworks, bridge and
tunnel works, engineering structures, superstructure and
additional works. As a part of Blacksea Coastal Road, this
road is being constructed by Doğuş Construction as a
sole contractor, parallel to the world’s largest deep spot
and connects to Istanbul 3rd Bosphorus Bridge. Since the
project route passes through Sakarya River, construction
of this road requires to employ modern and different
engineering solutions especially in filling areas and this is
what makes the project remarkable. Estimated completion
date for the project is December 2021.
“Kayaş-Yerköy High Speed Railway, Superstructure and
Electromechanical Works Project” is envisaged to be
completed in December 2021.
From the core of Historic Peninsula throughout the coast of
unique Golden Horn, “Eminönü-Alibeyköy Tramline” Project
is Istanbul’s and yet Turkey’s first ‘catenary-free’ tramline,
generated from embedded ground power supply system.
Having 25,000 passengers/hour capacity in one direction;
a double-track route of 10 km will pass through 14 stations.
Besides building the railroad and its stations, the scope of
works also includes the construction of tramcars’ depot and
workshop area, the supply and commissioning of whole
electromechanical systems and the supply of tramcars.
Estimated completion date for the project is December
2020.
“Afyon Alkaloids Factory Water Treatment Plant” Project
involves the construction of a treatment plant including
physical treatment, biological treatment (anoxic tank,
aerobic tank, membrane bioreactor, evaporation and
crystalization), sludge treatment (sludge dewatering,
thermal sludge drying) and one year of operation. The
waste water of the Opium Alkaloids Factory will be treated
by employing ultrafiltration (MBR) and nanofiltration
(NF) systems. Generated sludge will be minimized by
evaporation and crystallization, and drying systems.
“Ankara-İzmir High Speed Railway, Infrastructure Works
of Afyon-Uşak (Banaz) Section” involves the infrastructure
works of Afyon-Uşak (Banaz) section of Ankara-İzmir high
speed train railway. Total length of the section is 81,5 km
where the main line is 67,2 km and Afyon direct transition
is 14,3 km. However; the liquidation of the project was
approved on 18.07.2019 with the decree numbered 7161 and
the temporary acceptance of the liquidation was made.
Doğuş Construction signed the contract for “Malatya-Elazığ
State Road, Construction of Velipalas Landslide” in April
2018. The project aims to construct the Malatya-Elazığ State
Road through the Velipalas Landslide area by building a
reinforced cut and cover tunnel including piling works. The
project is envisaged to be completed in December 2020.
Another project awarded to Doğuş Construction in
2018 is “Torbalı Excluded-Ödemiş-Çatal-Tire Railway
Line Signalization and Telecommunication Works”. The
signalization and communication systems along the railway
line in order to maintain the safety and effectiveness for not
less than 160 km/hr train speed. ATS (Automatic Train Stop)
system and ETCS (European Train Control System) will be
assembled. The project is envisaged to be completed in
January 2021.
INTERNATIONAL PROJECTS
With its proactive business development approach,
Doğuş Construction extends its reach to newly emerging
markets and takes advantage of opportunities in the
international arena. The Company follows businesses in
the Middle East, Gulf Region, Africa, Eastern Europe, CIS,
Scandinavian Countries, Central and South Asia. In order
to gain competitive advantage, share risks and adhere to
qualifications, Doğuş cooperates with leading international
and local companies. Doğuş Construction increases its
experiences by diversifying its project portfolio via joint
ventures and strategic partnerships in new markets.
Together with current markets such as Bulgaria, Ukraine,
Georgia, Morocco, Qatar, Saudi Arabia and India, in 2019
the Company was interested in projects such as roads,
highways, railways, tunnels, metros, ports/off-shore works,
infrastructure projects and hydroelectric power plants
in Philippines, Croatia, Hungary, Romania, Poland, UAE,
Kyrgyzstan, Kazakhstan, Uzbekistan, Mozambique and
Kuwait.
The Company has been interested in 70 overseas projects
in total. Doğuş Construction applied for preliminary
qualification/preselection for 15 projects in 2019. The
Company bid for 14 international projects.
2019
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Ongoing International Projects
As of 31.12.2019Expected
Project Value (USD Million)
Doğuş’s Share
Qatar
Construction and Upgrade of Al Rayyan Road 1,208 1,208
Saudi Arabia
Riyadh Metro, Construction of TBM Tunnels of North and South Lines 448 448
Aldara Hospital and Medical Center 56 56
Bulgaria
Sofia Metro Extension, Line III Lot 4 127 76
India
Mumbai Metro Line III, Package UGC-03 414 207
Georgia
Tbilisi Metro Rehabilitation, Lot 1-2 0,7 0,35
TOTAL 2,260 2,030
The contract for “Construction and Upgrade of Al Rayyan
Road” which is the most critical of seven big projects that
was tendered by the Public Works Authority (Ashghal) was
signed in January 2014. Within the scope of the project; the
construction and development works on a 5,3 kilometers
section of the current 10,7 kilometers Al Rayyan Road is
being constructed by Doğuş Construction. The temporary
acceptance of the Al Rayyan Project as of December 16,
2019 has been made and the project has passed to the
maintenance period as of this date. The maintenance
period will last 400 days.
“Riyadh Metro Project” which involves the construction of
North and South lines TBM tunnels with a total length of
16,5 km besides piling, grouting and civil works as well as
installation of rails and walkways, was signed in November
2014. The project was completed in 31.03.2019 and currently
at the temporary acceptance stage
“Aldara Hospital and Medical Center” tendered by AHMC in
Riyadh in May 2018, was completed at the end of 2019.
Doğuş Construction awarded a new section of “Sofia Metro
Extension Project” in September 2015. The construction
of the new line with a total length of 6,7 kilometers will
was completed in 5.11.2019. The Project is currently at the
temporary acceptance stage.
Doğuş Construction carried its profound expertise in
railways to its new route: India by signing the contract for
Mumbai Metro Line, Package UGC-03 in October 2016. The
project involves the construction of 5 stations between
Mumbai Train Station and Worli at a total length of 5,055
meters and 3,550 meters long double tunnel including
electromechanical works. Estimated completion time for
the project is December 2021.
“Tbilisi Metro Rehabilitation, Lot 1-2” Project involves the
rehabilitation of cables and ventilation fans which will
take place during the operation of Tbilisi Metro. Lot 1
involves the dismantling of the old cables and design,
supply and installation of new cables in 16 stations over
20.1 km in Akhmeteli–Varketili Line and 6 stations over
7 km in Saburtalo Line, on the other hand Lot 2 involves
dismantling the old ventilation fans and design, supply and
replacement of the 32 ventilators of the 2 metro lines. The
total line length will be 27.1 km for double track. Estimated
completion time for the project is second quarter of 2020.
2019: Delivering Quality and Expanding Core CompetenciesGeopolitical risks, trade war and uncertainties in the
global arena as well as imbalances in oil and gas industry,
exacerbate international construction sector over the past
years. Considering this highly competitive environment,
rather than general contracting activities Doğuş
Construction concentrates on the fields in parallel with its
vast expertise in railways, specific bridges, environmental
projects and marine works in collaboration with other key
players of the sector.
Doğuş Construction, which has been listed since year 2003
in the “The Top 250 International Contractors” list that is
determined every year by Engineering News Record (ENR)
based on the previous year’s foreign project revenues of the
world’s leading contracting firms, took place at 135th stage
in 2019 and 15th place within Turkish firms.
With its EPC contractor identity, Doğuş Construction
continues marketing and business development activities
in Sub-Saharan Africa, India, Eastern and Central Europe.
FUTURE PLANS
By the end of 2019, local and international contracting
industry has shrinked dramatically. This led Doğuş
Construction to focus mainly on neighbor countries together
with countries where the Company is already active. Doğuş
aspires to be a powerful regional and global player with its
potential and expertise in infrastructure projects.
In 2020, Doğuş will continue its operations with a
cautious optimistic manner in reliable and sound markets
and projects with secure funding. Doğuş Construction
concentrated on adapting its organization to keep pace
with new financing models by foreign credit institutions.
The Company not only aims to take part in the rehabilitation
of current infrastructure in Central Europe but also plans
to monitor railway investments in Scandinavian Countries
and significantly increase its presence in EU countries in the
coming period.
Integrated Management Systems (Quality, Occupational Health & Safety and Environmental Management Systems)Doğuş Construction implements and maintains integrated
Quality, Occupational Health and Safety and Environmental
Management Systems in accordance with the leading
international standards (ISO 9001:2015, ISO 14001:2015 and
OHSAS 18001:2007) and these management systems are
audited and certified by Bureau Veritas.
Ayson Geotechnical and Marine ConstructionAyson Geotechnical and Marine Construction Co. will keep
using its expertise and know-how under Doğuş Construction
as Marine and Geotechnical Works Department. Doğuş
Construction’s Marine and Geotechnical Works Department
will continue its bidding and business development
activities in 2020, especially in the Gulf countries (Qatar,
Saudi Arabia, Oman, UAE) and in Georgia, Bulgaria, Iraq and
Romania.
TEKNİK ENGINEERING AND CONSULTING INC.
Established in 1984, Teknik Engineering and Consultancy
is specialized in engineering, consultancy and technical
services. Teknik Engineering provides a variety of services
concentrating on infrastructure projects such as highways,
motorways, state roads, railways, metros, tramlines, tunnels,
bridges, dams and hydroelectric power plants, geotechnical
works as well as superstructure projects.
Teknik Engineering implements innovative designs and
produces creative solutions in designing transportation
projects based on the know-how it has acquired throughout
the years. With its specialized workforce comprising expert
architects, engineers and technicians from different
disciplines, it provides integrated solutions in structural,
architectural, geotechnical, alignment and E&M work
design services for domestic and overseas projects.
Teknik Engineering focuses its activities mainly on Non-
Linear Dynamic Structural and Geotechnical Analysis and
Building Information Modelling (BIM) as these are the state-
of-the-art practices in AEC (Architecture, Engineering and
Construction) industry in recent years. The Company is keen
to develop high quality and cost-effective engineering and
architectural projects with the cooperation of academic
institutions and partnerships within the industry.
Ongoing ProjectsTeknik Engineering prepared and successfully completed
the detailed design application of “Tokat-Niksar Road
Project” which is implemented by Doğuş Construction.
In the same way, Teknik Engineering performed all
design works including structural, architectural and E&M
works of “Eminönü-Alibeyköy Tramline Construction and
Electromechanical Works Project” which involves the
construction of a 10 km tramline, 14 stations and 1 depot
area. The Company continues to execute all design works
of “Çekmeköy-Sancaktepe-Sultanbeyli Metro”. It applies
BIM (Building Information Technology) for structural,
architectural and E&M works of 13 stations and the line with
a total length of 17 km.
FUTURE PLANS
Teknik Engineering is going to perform the structural,
architectural and geotechnical design works of “Kayaş-
Yerköy High Speed Railway, Superstructure and
Electromechanical Works” which involves the construction
of a Kırıkkale and Elmadağ stations along with TCDD Ankara
control center building.
No Project Design Scope Commencement Completion Proposed Value (USD)
1 Eminönü-Alibeyköy TramlineDesign Works
Architectural, Structural, Geotechnical, Alignment, As-Built 2016 2021 150.000
2Çekmeköy-Sancaktepe-Sultanbeyli and Sarıgazi-Taşdelen-YenidoğanMetro Design Works
Architectural, Structural, Geotechnical 2017 2020 164.125
3Kayaş-Yerköy High Speed Railway, Superstructure and Electromechanical Works
Architectural, Structural, Geotechnical Design of Stations 2020 2021 300.000
2019
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Media
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2015 2016 2017 2018 2019
Total Assets 1,849,280 1,707,713 1,681,381 1,678,794 1,474,995
Revenues 697,050 1,098,725 1,176,809 1,165,413 1,039,076
Gross Profit 4,430 89,061 220,973 210,826 140,105
TOTAL ASSETS
1,474,995 REVENUES
1,039,076 GROSS PROFIT
140,105
KEY FINANCIAL INDICATORS(TL THOUSAND)
DOĞUŞ MEDIA GROUP
Doğuş Media Group’s vision is to become the world’s best-
known Turkish media and entertainment company. From
TV and internet to radio and magazines, Doğuş Media
Group has made its mark with its prestigious and high
quality publications. The Group aims to cater to the needs
of consumers by following and supporting developments
and innovations in technology and media.
Doğuş Media Group directs and influences the Turkish media
sector with its innovations and successful applications. The
success of Turkey’s first news channel, NTV, heralded a
new era of thematic channels in Turkey. The Media Group
widened its audience profile when it acquired Turkey’s first
private mainstream entertainment channel, Star TV, in 2011.
Doğuş Media Group has made significant progress with
both created and acquired brands and has built upon
global alliances with partners such as Condé Nast.
The Group has broadened its operations from TV to
magazines, radios, digital and print media, and it has
become the leading media organization providing
thematic content to the public. With 866 employees (580
male and 286 female Doğuş Media Group currently is one of
the largest companies in the media industry. Doğuş Media
Group fosters public trust with its professionalism and
quality-focused business dealings. The sense of belonging
it creates for consumers also give rise to expectations of
continuous progress and distinction.
The close bonds developed with consumers by Doğuş Media
Group also have had an impact on advertisers, leading them
to prefer the Media Group’s brands for promotions.
Always staying one step ahead in its advertising practices,
Doğuş Media Group generates tailored solutions for
customers who wish to be associated with the Media
Group’s brand equity and to differentiate themselves from
the competition. Advertisers are offered various media
solutions and a high level of efficiency.
Doğuş Media Group reaches millions of people through its
innovative, informative and entertaining broadcasts.
Doğuş Media Group offers a wide variety of high quality
media including not only television, but also magazines,
radio, various internet portals and more. Thus, this
participating in the budgets of advertisers for several
segments is an advantage for the Group.
Within the entertainment sector, television is preferred most
by advertisers. With the acquisition of Star TV, the Media
Group also began to meet the expectations of advertisers in
the entertainment sector.
ACTIVITIES IN 2019
TV ad sales constituted 51% of Turkey’s total advertising
market in 2019, and the entertainment sector represented
86% of that. The total advertising market in 2019 is increased
by 2%* and share in active markets of Doğuş Media Group
is 9.2%.
The Group’s market share in 2019 is 7.2% of the total ad
market.
The Groups’ radio stations’ market share is 12.2%, while the
internet segment is 2.3% and magazines 13.2% in 2019.
Doğuş Media Group directs and influences the Turkish media sector with its innovations and successful applications.
* Based on Doğuş Media Group Estimates
Source: Figures are combined statements of Doğuş Yayın Group, Doğuş Dijital Hizmetler A.Ş., TV8 and Pozitif.
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Technological InfrastructureThe uplink system that enables satellite distribution of
Doğuş Media Group’s TV and radio programming consists
of four live-broadcast vehicles – two in Istanbul, two in
Ankara. The Group has a total of 171 NTV transmitters, 188
STAR transmitters, 15 NTV Radio transmitters, 27 KRAL FM
transmitter and 27 KRAL POP Radio transmitters.
Star TV HD and NTV HD broadcast on Turksat 4A satellite
(FTA), on D-Smart, Digiturk, TiviBu and Teledünya platforms.
AwardsDoğuş Media Group was honored as the recipient of 2,344
awards between 2000 and 2019 for its broadcasts and
social responsibility campaigns.
FUTURE PLANS
Doğuş Media Group’s vision is to become the world’s best-
known Turkish media and entertainment company.
DOĞUŞ MEDIA GROUP BRANDS
TV CHANNELS
NTVIn 1996, NTV began broadcasting the first 24-hour news
channel in Turkey. In January 1999, it became a member
of the Doğuş Media Group family. The success of NTV
altered the Turkish media landscape by ushering in an era
of thematic TV channels. In addition to NTV’s Head Office
in Istanbul, the latest developments in Turkey are followed
by NTV from its offices in other cities; Ankara, İzmir, Antalya
and Diyarbakır. Reporters and news agencies scour the
entire country for the latest happenings. For international
news, NTV reporters in major cities like Washington D.C. ,
London, Brussels,
Strasbourg, Rome, Athens, Tehran and worldwide well-
known news corporations – ENEX, Reuters and APTN.
STARStar TV began broadcasting under the name of Magic
Box in May 1990 in Liechtenstein. In September 1990 it
commenced official broadcasts via the German satellite,
Eutelsat and subsequently changed its name to Interstar
in 1992 before finally becoming Star TV in 2002. A new
era began when Star TV joined Doğuş Media Group in
November 2011.
With a mission to provide “entertainment for everyone”
Star has always enjoyed a colorful and intimate brand
perception. Adhering to this mission, Doğuş Media Group
enhanced this objective as “high quality entertainment for
everyone.” With Star, the Group aims to raise the standards
of TV networks in Turkey.
TV8TV8, a mid-scale TV channel, was acquired by Acunmedya-
Doğuş partnership in late 2013. The channel was
relaunched in 2014 with a brand new vision. Thanks to its
dynamic hands-on management approach and top rated
entertainment programs, TV8 has consolidated its position
among leading TV channels in a very short time. Barely
one year after the acquisition, TV8 achieved highest yearly
average “prime time” audience share in 2015.
TV8 has an alternative, “pure entertainment” programming
strategy which is also unique among to TVs with its “news
free” program grid. With its motto of “All together”, TV8
committed to be the TV of the whole family. The extensive
expertise on producing high quality content with its
internal sources, TV8 is one of the most promising players
in the market. TV8’s agile and creative content production
skills not only secure long term profitability but also provide
the strength required to withstand the disruptive waves of
media sector.
INTERNET
ntv.com.trTurkey’s News Portal ntv.com.tr, was founded on 15th of
May, 2000 with NTV’s news experience and network. The
content of ntv.com.tr is prepared and developed by its
own editors. Providing news on a wide range of subjects,
ntv.com.tr caters to the daily news needs of readers with
various subjects from national to international news; latest
developments in breaking news along with detailed reports
on special events. Ntv.com.tr has 9.3 million followers on
Facebook, Twitter, Instagram and YouTube.
NTVSpor.netNTVSpor.net is one of the leading sports portal in Turkey.
The website covers news from football to basketball and
volleyball to motorsports and other sports categories 24/7
with its own editors. NTVSpor.net has 9.9 million followers
on Facebook, Twitter, Instagram and YouTube.
Startv.com.trStartv.com.tr is the online platform for Star TV, where users
can enjoy the content that is possessed by Star TV both VOD
and live. According to latest comscore figures for Turkey
(July 2014) it is the most used premium video content site
in Turkey. Startv.com.tr also provides exclusive relevant
Doğuş Media Group has4 TV channels,3 radio stations,and4 internet portals.
content with Star TV. Star TV is digitally accessible via startv.
com.tr, iPad, iPhone and Android applications. Startv.com.
tr has 8.5 million followers on Facebook, Twitter, Instagram
and YouTube.
kralmuzik.com.tr Kral.muzik.com.tr was found in May 15, 2014. kralmuzik.
com.tr is an internet platform in which you can find all
media of Kral Group; including all the current programs,
the archives and worldwide music production. In addition,
radio frequencies and broadcast streaming can be followed
via kralmuzik.com.tr. Daily updated music lists which are
closely followed by the whole Turkish music industry (TOP
10, Top 20, POP List, etc.) are also available on kralmuzik.
com.tr.
vogue.com.trVogue Türkiye’s website vogue.com.tr was found in March
2010. The website consists of daily, weekly and monthly
special content and categories. It’s a comprehensive site
including the social media platforms. Fashion, beauty,
lifestyle, celebrity and fashion shows are put together as
content through Vogue’s perspective.
gq.com.trGQ Türkiye’s website gq.com.tr was found in March 2012
parallel to the launch of the magazine. It’s an online guide
for Men’s lifestyle. The website consists of style, news, living
and all the important things about a Man’s world.
RADIO STATIONS
NTV RadyoLaunched in November 2000, NTV Radyo carries out an
important mission as a news radio channel broadcasting
live around the clock. It’s well known for bulletins with
the latest politics, economics, sports, community, lifestyle,
environment, art and culture news from Turkey and the
World. NTV Radyo also attracts attention with informative
and entertaining talk shows and documentaries about
music, cinema, theater, literature and drama. Through the
internet and smartphone applications as well as terrestrial
broadcasting, NTV Radyo reaches a global audience
worldwide.
Kral FMTurkey’s most-listened to radio station, Kral FM, was
launched in 1992 and became a member of the Doğuş
Media Group in June 2008. Kral FM plays the best of Turkish
pop, folk, classical, rock, and arabesque. The radio station
also delivers daily news and the latest developments in
Turkey. Kral FM reaches its listeners via 27 transmitters and
has one of the largest radio communities in Europe.
Kral Pop RadioWith the acquisition of Kral TV and Kral FM in 2008, Doğuş
Media Group became a prominent member of the music
industry. Kral Pop Radio started broadcasting on the
national network on May 17, 2011. In 9 years Kral Pop Radio
has become one of the most popular radio stations in
Turkey.
PERIODICALS
Vogue TürkiyeVogue, a Condé Nast publication, has been leading and
inspiring the fashion world since 1892 and now reaches
millions of people in 19 countries. There was a long wait for
Vogue in Turkey, and the magazine was finally launched
by Doğuş Media Group in March 2010. The magazine not
only informs its readers of new trends, it also decides what
fashion is. Vogue Türkiye is courageous, avant-garde and
innovative with its shoots.
GQ TürkiyeGQ was established in the United States in 1932. The
magazine became a part of Condé Nast Publications 32
years ago and is currently published in 20 countries and in
12 different languages.
GQ Türkiye has been published by Doğuş Media Group since
March 2012. The best-selling men’s magazine in the world,
GQ outshines competitors with extraordinary photo shoots,
a humorous tone, and the best writers and photographers.
It combines its global position with the values and dreams
of Turkish men.
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Digital TV Broadcasting (OTT): puhutvDoğuş Digital, which focuses its activities on the digital
transformation of television- the main actor of household
entertainment in our country-, launched its online television
puhutv in November 2016.
Puhutv, which is a “catch-up TV”, was established with the
vision of becoming the online address of popular Turkish TV
shows and other domestic productions. In addition, puhutv
focused on giving sustainable support to Turkish television
series. When online content consumption seriously
increased in 2019, puhutv added foreign movies and Life
categories to its catalogue.
Puhutv, which reached 11 million mobile application
downloads and 3.3 million registered users at the end of
2019, now offers viewers many shows aired on Turkish
television networks, many foreign movies and cult Turkish
movies through long standing licensing deals it has struck
with Turkey’s major production companies, major domestic
networks and film distributors via its website puhutv.com,
mobile phone and tablet applications, Apple TV and smart
TVs.
Puhutv, which continued to provide its viewers with the
most elite entertainment content at the end of 2019 with
10,000 hour licensed content catalogue, also brought Fi,
Turkey’s most watched internet show with over 200 million
views, and award winning original shows such as Şahsiyet
and Dip.
Puhutv, which brought comedy to the digital world in 2019
with a show called Jet Sosyete, broke another record when
12 million people watched the 12-episode show.
During the premier of the show at Galataport, we got the
chance to talk about our masterpiece to the press with the
actors of the show.
Şahsiyet, a puhutv original show, received 8.9 points out of 10
on IMDB and made it to number 50 on the Must Watch 250
List, passing some of the world’s most popular international
shows and setting a record of its own. Haluk Bilginer, who
played the lead role of Agah Beyoğlu in Şahsiyet, was
named Best Actor at the 47th Emmy Awards that took place
on November 2019. Haluk Bilginer became the first Turkish
actor to receive an International Emmy Award.
MCN (Multi Channel Network)Doğuş Digital, which is one of the biggest partners of
YouTube and Dailymotion in Turkey, offers all the digital
content it owns on these platforms.
With over 45 million views, Doğuş Digital is YouTube’s
biggest partner in Turkey. Turkish content is viewed in over
150 countries via YouTube. The ever-evolving digital market
provides new opportunities for our content.
There are various options for monetization of Turkish
TV shows including new OTT brands and regional video
platforms.
Content ProtectionAll content offered by Doğuş Digital are actively protected
24/7 against illegal use by our team and content is quickly
removed from major video platforms and file sharing
servers. This way, Doğuş Digital swiftly protects the rights
of its content, preventing loss of revenue from contents on
its platforms, ensuring a superior quality video viewing for
its viewers.
DOĞUŞ DIGITAL
As Turkey’s leading integrated entertainment marketing
company, Pozitif is dedicated to creating beyond-the-
ordinary cultural experiences that connect communities,
creators and brands around best-in-class arts, culture and
entertainment platforms.
Through 30 years of expertise and an ecosystem of
complementary services now on the forefront of the
converging entertainment and experience economy, Pozitif
has a strong offering to engage multiple hard to reach
audience segments and a legacy of excellence in long-term
partnerships with top companies in finance, beverages,
automotive, telecommunications, technology, fashion,
retail and more. Pozitif provides brands with high value
engagement opportunities across its ecosystem through
branded entertainment, integrated content marketing,
creative programming, experience design and production.
Culture NetworkActively transforming Istanbul and Turkey’s cultural and
entertainment landscape since 1989, Pozitif currently
engages up to 2,000,000 participants physically each
year and creates reach of approximately 10 million fans
online with amplification it generates through its cultural
ecosystem:
Babylon live music club (capacity: 120,000 annually), has
been hosting various local and international musicians and
artists from all-encompassing tastes and genres: ranging
from Sun Ra Arkestra, Jimmy Scott to Jane Birkin, Patti
Smith and Marianne Faithful at its HQ club venue in the
heart of Istanbul at Bomontiada.
Volkswagen Arena, Turkey’s first amplified live music and
experience venue, hosting music, dance performances,
gaming leagues, conferences, and basketball games
(Capacity: up to 5,800 per event, 500,000 per annum).
Doublemoon Records, independent music and cultural
publishing label.
Pozitif is also the creator and producer of Turkey’s first
international multi-disciplinary destination festival in
Cappadocia named as Cappadox Festival, Red Bull Music
Festival, Babylon Soundgarden Festival and Akbank
International Jazz Festival.
Pozitif’s cultural content network extends to Istanbul’s
oldest alternative international music programming station
Radio Eksen and Turkey’s first and only new age and world
music station Radio Voyage, engaging up to 5 million
listeners via regional satellite and online global broadcast.
POZİTİF
As Turkey’s leading integrated entertainment marketing company, Pozitif is dedicated to creating beyond-the-ordinary cultural experiences that connect communities, creators and brands around best-in-class arts, culture and entertainment platforms.
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Hospitality &Retail
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TOTAL ASSETS
17,847,727 REVENUES
2,836,760 GROSS PROFIT
985,192
2015 2016 2017 2018 2019
Total Assets 9,021,324 13,931,530 19,765,407 24,573,360 17,847,727
Revenues 2,059,154 2,796,397 3,979,095 5,615,500 2,836,760
Gross Profit 1,126,195 1,324,558 2,010,339 2,955,048 985,192
KEY FINANCIAL INDICATORS(TL THOUSAND)
FOOD ANDBEVERAGE |d.ream
d.ream (Doğuş Restaurant Entertainment and Management)
began its operations in March 2012 and has achieved a
dominant position in the food and beverage sector. With
the support of Doğuş Group, d.ream has a unique position
in the sector through the variety and number of restaurants
it has both in Turkey and internationally.
d.ream, with presence in 13 countries with more than 40
brands and at around 140 locations, manages its global
operations through its partnerships including Coya,
Paraguas Group and Azumi Group, which has multiple
brands like Zuma, Roka, Etaru, Oblix and Inko Nito.
In 2019, d.ream has continued its sustainable growth not
only in Turkey but also in international arena with new
openings in London, Dubai, Paris, Boston and Mykonos.
FUTURE PLANS
d.ream aims to continue its sustainable growth through
both domestic and global expansion as well as introducing
innovative new concepts.
Overseas investments will continue for Nusr-Et mainly in
USA market under ‘Saltbae’ brand. London opening is also
in the pipeline for 2020.
Besides its operations in Turkey and Dubai, Günaydın plans
to grow mainly in Middle East market including Bahrein.
Rüya, which successfully represents the Turkish cuisine in
the international arena, will accelerate its growth with new
branches abroad.
d.ream is also working on launching brand new concepts
as well as new branches at Galataport, which is one of the
most exiting city projects for Istanbul.
d.ream, with presence in 13 countries with more than 40 brands and at around 140 locations.
*Figures are based on combined financial statements of Dream, Doğuş Tourism Group, Doğuş Retail Group and D-Marin Marinas Group compines.
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HOTELS |D-Hotels andResorts
D-Hotels and Resorts consist of 14 hotels: 7 luxury hotels
within D-Hotels and Resorts brand (D Maris Bay, argos in
Cappadocia, Aldrovandi Villa Borghese, Villa Dubrovnik,
D-Resort Göcek, D-Resort Sibenik, D-Resort Ayvalık Murat
Reis) and 7 management agreements and partnerships
(Grand Hyatt Istanbul, Soho House Istanbul, Four Seasons
Astir Palace, Athens, Eden Rock St Barths, Maça Kızı & Villa
Maça Kızı and Hyatt House Gebze)
All of D-Hotels and Resorts properties share common vision
and values; each hotel is committed to the highest level of
quality and standards. A true hospitality leader, D-Hotels
and Resorts strives to be known for excellence on both local
and international arenas.
2019 HIGHLIGHTS
The renovation process of Park Weggis on Luzern Lake,
continued throughout 2019. The hotel is expected to
operate as a wellness hotel under the brand Chenot Palace
in May 2020.
Renovation of Astir Palace have been completed in 2019
and the hotel started operating in 2019 as Four Seasons
Astir Palace, Athens.
Completion of the acquisition of the remaining 20% of
Argos in Cappadocia shares in 2019.
Renovation plans for SPA & sports facilities, additional
rooms and a restaurant, are planned to be completed in
2021.
Eden Rock St Barths, which was damaged during the
hurricane in 2017 and which renovation works continued
during 2018, started to serve again in 2019.
The new concept of the beaches and restaurants of D Maris
Bay was completed in April 2019.
Il Riccio Beach House was rebranded as Villa Maça Kızı and
operated as an event and banqueting venue by Maca Kizi
hotel during the 2019 summer season.
Alanya Alantur Hotel continues to be operated by Labranda
Group under the long-term lease agreement.
Capri Palace hotel, Park Hyatt Istanbul and Rixos Downtown
Antalya hotels were sold in 2019, as well as the shares of The
Raleigh Miami.
MARINAS |D-Marin
D-Marin is dedicated to providing a premium service
in marina management and development, offering
distinguished experience to clients and outstanding
standard of quality to business partners.
Our vision is to be most effective company in marina
management & yachting business by creating and offering
distinguished nautical experiences.
D-Marin’s mission is to sustain growth by setting new
standards & strategies in marina & yachting business and
create value to its partners.
SUPERYACHTS
D-Marin offers marina guests full homeport solutions
around the world’s most spectacular cruising destinations.
You can explore the coastline of Turkey and unique islands
of Greece, sail through the natural wonders of Dalmatia
and Montenegro, enjoy the vibrance of Athens and Venice,
experience ancient towns of Zadar and Šibenik in Croatia
with D-Marin excellence. The marinas provide berthing
facilities for yachts from 30 m to 150+ m and ensure that
all of the marinas can now provide superyacht homeport
facilities and destination berths for visiting superyachts.
Extensive range of services and amenities designed
exclusively for superyachts, with exceptional marina
facilities and specialized staff ensure that D-Marin marinas
offer its guests unforgettable experiences in every visit.
FOR KIDS
D-Marin does not forget the guests’ kids. With the goal of
being a “kids friendly” marina, D-Marin has initiated the
“D-Marin Kids Programme”. D-Marin Kids aims to strengthen
kids’ bonds with the sea starting from the early ages and
will continue with different activities including educational
programmes and creative workshops.
SOCIAL RESPONSIBILITY
Contribution to social life: D-Marin has been supporting many important local and
international races, regattas, events such as: Sponsorship
of International Šibenik Šansona Festival, GKK Šibenik
Basketball Team, KK Zadar Basketball Club, Sailing Club Sv.
Krševan (Fantela-Marenić, Croatian Olympic sailing crew in
Class 470, for the 2016 Summer Olympic Games in Rio de
Janeiro)
Farr 40 Šibenik & Zadar - 2016, Maxi 72 – 2017
TP52 Super Series May 2018 Šibenik, June 2018 Zadar, Melges
Regatta, ORC 2019, Šime & Mihovil Fantela sailing crew for
Tokyo 2020 Olympics;, Brindisi - Corfu Regatta2019-2020
J70 Races class races & Turkey Championship 2019-2020
Contribution to environment: Collaboration with Turmepa DenizTemiz (Clean Seas)
Foundation in Turkey, Blue Flag award (Turgutreis, Didim,
Göcek, Mandalina, Dalmacija, Flisvos, Gouvia, Lefkas), 5 Gold
Anchors award (Turgutreis, Göcek, Didim, Mandalina)
Contribution to local community: Land/waterfront access and social facilities for local
community, waterfront destination supporting the
surrounding commercial businesses and the local economy,
direct employment for local residents.
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D-MARIN DİDİM
37°20’26’’N, 27°15’34’’E VHF 16 & 72
One of the largest luxury marinas in the Eastern
Mediterranean, D-Marin Didim is a first-class home base for
yachts and superyachts entering the splendid Aegean Sea.
LocationD-Marin Didim sits on western Turkey’s stretch of shoreline,
near Didim, a charming seaside town nicknamed the “city
of the golden coast”. An official port of entry, the marina is
located between two international airports: Milas–Bodrum
(90 km southeast) and İzmir Adnan Menderes (145 km
north).
NatureExplore Turkey’s spectacular Aegean beaches: sunbathe
on the golden sands of Altınkum or dip into turquoise-
blue waters at Manastır Bay. Two magnificent Greek islands
await less than 30 nautical miles away; Kos is Hippocrates’
birthplace and Kalymnos is a hikers’ paradise.
CultureThe nearby ruins of the Temple of Apollo showcase over
2000 years of diverse history, from ancient Greek to
Christian. Once part of the Ionian League, Priene is another
easy outing, 46km away. Nearby Bafa Lake isn’t all nature:
legend says the goddess Selene loved a mortal there.
CuisineDiscover fresh Mediterranean fare of the Turkish coast, from
mezes like eggplant in tahini yogurt to desserts like katmer,
a pistachio pancake. Don’t miss the seafood casserole at
Key-F Restaurant & Café.
Must-SeeTake in the Hellenistic Great Theatre and the Roman
Faustina Bath at the formerly vibrant Miletus. The birthplace
of modern philosophy, the now-ruined city was historically
inhabited and influenced by ancient Greeks, Persians,
Romans, Christians and Turks, ever since the Bronze Age.
Head to the marvelous Greek island of Samos, less than 30
nautical miles away and known as birthplace of ancient
mathematician Pythagoras. Famed for its muscat wine,
Samos is home to the ruined Temple of Hera, a UNESCO
World Heritage Site, along with fine pebble and sand
beaches.
D-MARIN TURGUTREİS
36°59’57’’N, 27°15’19’’E VHF 72
D-Marin’s elegant flagship marina is located just 20 km
away from beautiful Bodrum and features an award-
winning marina village and heliport.
LocationD-Marin Turgutreis sits on the magnificent Bodrum
peninsula, renowned for its stretching sandy beaches, steep
mountains and surrounding sun-drenched islands. The
marina is 50 km southwest of Milas–Bodrum Airport and
243 km south of Izmir Adnan Menderes Airport. D-Marin
Turgutreis has border crossing and periodical ferryboats
from Bodrum Peninsula to Greece and Greek islands.
NatureNearby island highlights include Karaada’s healing mineral
springs (said to have been frequented by Cleopatra)
and the translucent seas and pretty olive groves of Orak.
Opportunities abound for scenic watersports; the coastal
abode of Kadıkalesi and Akyarlar are known as one the
world’s windsurfing hotspots.
CultureA city steeped in rich history, Bodrum showcases a
magnificent castle built in the 14th century by the Knights
of St John, the ancient Bodrum Amphitheatre and the
remains of the Mausoleum of Halicarnassus, also known as
the tomb of King Mausolus, dating back to 352 B.C.
CuisineWhen in Bodrum, savour some of Turkey’s traditional street
food from gözleme, a flatbread filled with goat cheese,
vegetables and spices to dolmas, grape leaves stuffed with
meat and rice with freshly squeezed lemon juice. Wash it
all down with a glass of rakı. D-Marin Turgutreis Yacht Club
offers all these unique tastes and more.
Must-SeeMosey around the sweet fishing village of Gümüşlük and
the miniscule Rabbit Island that you can walk to from
village shores through knee-deep seawater. Named after
its furry inhabitants, Rabbit Island is an active archeological
site, home to the ruins of Myndos, a drowned ancient Greek
colony.
Sail into safe harbour on a scenic bay to wander the chic
town of Türkbükü, Turkey’s answer to Saint-Tropez. Stroll
down its semi-circular boardwalk, popping into elegant
shops, stylish bars and upscale restaurants.
Roam the remains of the ancient city of Ephesus, built in
the 10th century B.C. and famed for its striking Temple of
Artemis. Gape at the monumental theatre capable of
holding 25,000 spectators and the Library of Celsus, once
the third largest in the world.
A leisurely sail away are 14 Turkish islands and the Greek
islands of Kos (7NM), Kalymnos and Rhodes (70NM).
Gorgeous Kos is steeped in history dating back to Homeric
times (a contingent from Kos participated in the siege
of Troy) and the ancient gymnasium and odeon are still
marvelously well-kept.
D-MARIN GÖCEK
36°44’ 54’’N, 28°56’ 36’’E VHF 73
Turkey’s safest natural marina with a large maneuver area
and deep drafts, D-Marin Göcek features smooth sandy
beaches and hundreds of stunning Aegean islands an arm’s
reach away.
LocationD-Marin Göcek nestles on the stretch of Turkey’s western
shores known as the Turquoise Coast, acclaimed for its
pristine natural beauty. Dalaman Airport is just 22km to the
west, while Antalya Airport is 225 km to the east.
NatureExplore the beautiful Butterfly Valley, 55 km to the south,
home to a bevy of butterfly species and striking cliff-dotted
shores. Another easy day trip is to Fethiye Bays, a string of
bustling beaches and peaceful coves 38km to the south,
where you can marvel at clear turquoise waters.
CultureDelve into Göcek’s mythical side; according to legend,
the city’s stretch of sea is where Icarus fell after his wings
melted. For an easy day trip, visit the ruins of Telmessos.
Once an important center of Lycian civilization, today it’s a
spot to gaze at ancient sarcophagi and rock tombs.
CuisinePlease enjoy your palate by sampling specials like a full
Turkish breakfast with sinfully sweet halva, a wide selection
of olives and a cup of strong Turkish coffee. The area’s freshly
caught seafood is a delight, a dash of local olive oil as your
cherry on top.
Must-SeeÖlüdeniz is one of well-known tourism icons of Turkey.
Head off on a scenic drive, passing the lovely Lake Köyceğiz,
to the ancient city of Caunos. En route, take in a range of
historic sights, from city walls and rock-cut tombs dating to
the first millennium B.C. to one of Anatolia’s best-preserved
Byzantine basilicas.
Explore the evocative ruins of Tlos, formerly the most
powerful city of the ancient region of Lycia. Today, you can
see what’s left of its 3,000-capacity Roman stadium, temple
honouring Kronos and Lycian sarcophagi.
Marvel at the lovely beach of İzutzu to the west of Göcek, a
pine-fringed spot also known as Turtle Beach. It’s a nesting
site for loggerhead turtles who lay their eggs here between
May and August; hatching lasts from July to September.
D-MARIN MANDALİNA
43°43’ 0’’ N, 15°54’ 3’’ E VHF 17
Croatia’s only marina designed for superyachts and
recognized by the prestigious Yacht Harbour Association of
London, D-Marin Mandalina in the city of Šibenik is one of
the safest berthing places in the Adriatic.
LocationD-Marina Mandalina is a short drive away from the heart
of the historic city of Šibenik, positioned roughly at the
centre of the Dalmatian coast. The marina is positioned on
St. Anthony’s channel, a sea entrance to the city, and both
Split and Zadar international airports are a 40-minute drive
away.
CultureThe only city in Croatia with two UNESCO World Heritage
Sites – Cathedral of St. James and St. Nicholas Fortress,
Šibenik is renowned for its immaculately preserved
architecture dating back to the medieval times and the
Venetian era, when the city flourished and prospered.
Another notable site is St. Michaels Fortress, also from the
Venetian era.
NatureSail through the spectacular archipelago of Šibenik,
showcasing over 200 islands, islets and reefs and discover
the nearby Krka National Park with its numerous waterfalls,
including the majestic Skradinski Buk with seven cascades.
CuisineDon’t miss the region’s signature dish, the creamy Skradin
risotto with veal, slow-cooked for up to eight hours. For a
memorable meal, book a table at the Michelin-starred
Pelegrini in Šibenik, where chef Rudolf Štefan prepares
inventive Mediterranean fare.
Must-SeeCatch a concert at the open-air amphitheater at St.
Michael’s Fortress perched at the top of the old town; take
in spectacular views of the islands from Barone Fortress and
admire St Nicholas’ Fortress on an islet, declared a UNESCO
World Heritage Site in 2017.
Gaze at St. James Cathedral, a striking triple-nave basilica
built entirely of stone between 1431 and 1535. This grand
domed beauty with carved faces adorning its walls has
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been a World Heritage Site since 2000, preserving its
Gothic-Renaissance features.
Roam the car-free Zlarin island in the Šibenik archipelago,
known for its fragrant pine forests, sunny climate with 2,700
hours of sunshine per year, red coral used for traditional
jewelry and serene beaches and bays.
D-MARIN BORIK
44°07’ 54’’N, 15°12’36’’E VHF 17
A top-of-the-line boutique marina in Croatia’s ancient city
of Zadar, D-Marin Borik is a fantastic gateway to the island-
dotted Adriatic coast.
Location
D-Marin Borik is located right outside the historic heart of
Zadar, the third largest coastal city in Croatia. Accessible
by land and sea, the marina sits 13 km from the Zadar
International airport, with flights to more than 50 European
destinations.
NatureWith more than 300 islands to explore in the Zadar
archipelago, D-Marin Borik is a short sail away from
extraordinary nature sights like the nearby Kornati National
Park, a magnificent archipelago with a string of 89 islands,
islets and reefs.
CuisineDiscover Mediterranean cuisine that features ingredients
like fresh seafood, award-winning olive oils and traditional
dishes like peka, a unique roasting method that produces
the most succulent results – and pair all that with exuisite
Dalmatian wines.
CultureA vibrant city with a rich history that spans 3,000 years, Zadar
is a showcase of strikingly preserved Roman, Byzantine and
Venetian architecture, including the 9th-century circular
church of St. Donatus and the city’s defensive walls, a
UNESCO World Heritage Site.
Must-SeeBe enchanted by the sound of sea waves at Zadar’s Sea
Organ, a sound art installation by architect Nikola Bašić. Sit
on the perforated marble stairs dropping into the sea as the
water pushes air through the whistles and pipes, creating
hypnotic sounds.
Wander around the ancient temples, colonnades and
columns of Zadar’s Roman Forum for a whiff of ancient
history. Commissioned by the first Roman emperor,
Augustus, it was built between 1st century BC and 3rd century
AD. Today it’s a bustling area by the seafront.
Discover the serene bays and sandy beaches of Dugi Otok
(Long Island), perfect for dropping anchor. The white-
sand Sakarun can stand in for a Caribbean beach, while
Brbinjšćica cove appeals with its mighty cliffs and many
caves.
D-MARIN DALMACIJA
44°3’ 10’’ N, 15°18’4’’E VHF 17
D-Marin Dalmacija is the largest marina on the Croatian
coast, located near the city of Zadar with top of the line
facilities and luxury gastro and hospitality service
LocationD-Marin Dalmacija is located 7 kilometers south of the
ancient port town of Zadar, just 5 kilometers from the Zadar
International airport, with flights to more than 50 European
destinations.
NatureWith more than 300 islands to explore in the Zadar
archipelago, D-Marin Dalmacija is a short sail away from
extraordinary nature sights like the nearby Kornati National
Park, a magnificent archipelago with a string of 89 islands,
islets and reefs.
CuisineDiscover Mediterrean cuisine that features ingredients
like fresh seafood, award-winning olive oils and traditional
dishes like peka, a unique roasting method that produces
the most succulent results – and pair all that with prime
Dalmatian wines.
CultureA vibrant city with a rich history that spans 3,000 years, Zadar
is a showcase of strikingly preserved Roman, Byzantine and
Venetian architecture, including the 9th century circular
church of St. Donatus and the city’s defensive walls, a
UNESCO World Heritage Site.
Must-SeeWander around the ancient temples, colonnades and
columns of Zadar’s Roman Forum for a whiff of ancient
history. Commissioned by the first Roman emperor,
Augustus, it was built between 1st century BC and 3rd
century AD. Today it’s a bustling area by the seafront.
Be enchanted by the sound of sea waves at Zadar’s Sea
Organ, a sound art installation by architect Nikola Bašić. Sit
on the perforated marble stairs dropping into the sea as the
water pushes air through the whistles and pipes, creating
hypnotic sounds.
Explore the stunning bays of Telašćica Nature Park on the
southeastern part of Dugi Otok island, with its pristine
coves, wild vertical cliffs that drop into the sea and forests of
Aleppo pine and holm oak. With a little luck, you may even
spot dolphins.
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D-MARIN I PORTONOVI
42°44’ N, 18°59’E VHF 74
A luxurious marina at the entrance to Montenegro’s
breathtaking Boka Bay, D-Marin Portonovi is perfectly
positioned for exploring the southern Adriatic
LocationD-Marin I Portonovi is located in Herceg Novi, at the very
entrance of Boka Bay, where the turquoise Adriatic Sea
meets the mighty mountains of Montenegro. The marina
is a part of the exclusive resort Portonovi. The three nearest
international airports are Tivat (17 km southeast), Dubrovnik
(35km northwest) and Podgorica (101 km east).
NatureBoka Bay’s Lovćen National Park and its namesake mountain
are known as the heart of Montenegro and the inspiration
behind the country’s name. Don’t miss southern Europe’s
largest lake, the pristine Lake Skadar, and the bright blue-
green rivers of Durmitor National Park.
CultureThe delightful town of Kotor was an important Venetian
trading post. Today its old town is a showcase of medieval
palaces, maze-like stone alleyways and dazzling vistas from
the city wall viewpoint up 1,350 stairs. The 17th-century
Ostrog Monastery, carved almost vertically out of a cave, is a
worthwhile day trip.
CuisineThe cuisine of Boka Bay is traditionally Mediterranean,
featuring an array of seafood and shellfish. When in Boka,
try providurova palamida, stuffed mackerel served with
olives, or sardele a la bisernice, rolled sardines with a special
onion and olive oil mixture.
Must-SeeLose your sense of time in historic Perast, a small town with
one main street and 16 churches; notice the striking St.
Nicholas Church jutting out of the skyline. Surrounded by
rocky mountains and stark blue bays, the town’s shoreline is
home to St. George Island and its medieval church.
Stroll the old town of Budva that spans 2,500 years of history
in its cobblestone squares and ancient churches, delight
in its 35 beaches, ranging from Drobni Pijesak to sandy
Mogren, and take in the town’s buzzy nightlife, paired with
shots of rakija.
Marvel at the natural beauty of the Tara Canyon, a UNESCO
World Heritage Site featuring emerald cascades, mirror-like
lakes encircled by pine trees and ripe-for-trekking mountain
peaks like Prokletije. Take your pick of outdoorsy
fun, from rafting and zip-lining to hiking up Mount Ćurevac
for superb views.
Meander the winding stone streets of Herceg Novi, the
town that proudly guards the entrance to Boka Bay.
Explore its serene spots like Savina Monastery, with an on-
site 18th century-style winery, lounge at the bustling cafes
like Gradska Kafana and gaze at the Adriatic over a plate of
freshly grilled prawns.
D-MARIN LEFKAS
38°49’47’’N, 20°42’51’’E VHF 69
A short walk away from Lefkas island’s historic centre, this
first-class marina is a great base for exploring the coast of
western Greece and its dreamy Ionian Islands.
LocationD-Marin Lefkas is situated on the center Ionian Sea’s fourth-
largest island, Lefkada, right off the west coast of Greece.
A bridge connects the island with the mainland, and the
nearest airport, Aktion (17 km northeast).
NatureThe nearby waterfalls of Nydri, surrounded by verdant
plane trees and white cliffs, are pure eye candy. The cave
of Papanikolis on the island of Meganisi southeast coast is
a striking spot to see, while the island’s iconic west coast
showcases beaches like the white-sand Kathisma and the
world famous and awarded Porto Katsiki Beach.
CultureThought to be Homer’s Ithaca, Lefkas is home to ancient
monuments like the Doukáto lighthouse. Legend has it that
the famed poet Sappho committed suicide on its south
side. Also see the island’s oldest chapel of Agios Ioannis
Antzoussis, built into a rock back in the 1500s.
CuisineLefkas may not have much fertile ground, but it won’t leave
you wanting. Savour freshly made street food, ranging
from gyros stuffed with grilled lamb and pork souvlaki
to lefkaditiki ladopita, a tasty local dessert with olive oil,
cinnamon and sugar – even sweeter from a quaint village
stand.
Must-SeeVisit the historic fort and its surrounding canal of Agia Mavra,
a Venetian castle dating back to 1294. Originally built as a
fortress, the castle received additional touches throughout
the years, like its 15th-century church and the 17th-century
lion, a symbol of Venice.
Wander around Lefkada, the island’s northeast capital,
popping into its Venetian churches like the 17th-century
Christou Pandokratora and taking a deep dive into the
classical era at the town’s Archeological Museum.
Discover the unique half-moon shape of Porto Katsiki,
an enchanting beach hideaway reachable by 80 cliff-
entrenched steps. Situated on the island’s southwest coast,
the beach is easily accessible by yacht.
The mountain villages of Lefkada, such as Karya, Exanthia,
Athani and many more are a must to explore by the visitors.
D-MARIN GOUVIA
39°38’59’’N, 19°51’07’’E VHF 69
Located on the spectacular island of Corfu, a UNESCO World
Heritage Site, this luxury marina links the Adriatic and the
Mediterranean.
LocationD-Marin Gouvia is nestled on Corfu’s Gouvia Bay, eight
nautical miles west of the Albania-Greece border and 75
nautical miles east of Italy’s southeastern Puglia. The closest
international airports is Corfu (7 km southeast).
NatureAdmire the unique rock formations of Cape Drastis, both
jutting and smooth, like beautiful shattered parts of a clay
masterpiece. Hike the wilderness of northeastern Erimitis to
isolated pebble beaches like the pretty Akoli.
CultureCorfu’s iconic 17th-century Vlacherna Monastery is situated
on its very own islet, linked to the mainland via a stone
pier. Roam the remains of Austrian and Venetian cultural
vestiges, too; visit Austrian Empress Sisi’s Achilleion Palace
from the 19th century and the 18th century Venetian Arsenal
at Gouvia.
CuisineSeafood is fresh, flavorful and prepared in a number of
delectable ways. Don’t miss savoring classic Corfiot dishes
like pastitsada, sofrito or bourdeto, best washed down with
a glass of tsipouro, unaged Greek brandy.
Must-SeeMeander through the maze of narrow cantons and romantic
dungeon alleys that unite the Old Fortress with the New
Fortress, a route that will take you back in time. One of the
most notable examples of Venetian architecture in Greece,
the fortresses are guarded by two Venetian lions from its
bastion walls.
Visit the legendary Palaiokastritsa, a pretty village in
northwestern Corfu that’s thought to be the Homeric home
of the Phaeacians. See the 13th-century monastery
of Palaiokastritsa, featuring a church, a museum and a store
where you can buy homemade olive oil and kumquat liquor
made by monks today.
Explore the neoclassical Achilleion Palace built in the 19th
century by Austrian Empress Sisi (real name: Elizabeth).
Colorful Greek columns and statues adorn the palace
exteriors, while pastel-hued frescoes cover the inner ceilings.
D-MARIN ZEA
37°56’02’’ N, 23°38’09’’ E VHF 09
A vibrant megayacht marina near the bustling port of
Piraeus, D-Marin Zea is a stellar gateway for exploring the
Saronic Gulf and the iconic Cyclades
LocationSituated on the northeast side of the Saronic Gulf, D-Marin
Zea is just 3 km from the port of Piraeus, the largest port in
the Mediterranean (by passenger numbers and commerce).
Athens International Airport is 46 km to the east.
NaturePiraeus is situated in the southwest part of the central
plain of Attica, also widely known as the Athens or Attica
Basin. Piraeus is bounded by the Mount Aigaleo to the
northwest, and the Saronic Gulf to the south and west, and
connected with the rest of the Athens Urban Area to the
east and northeast. The “city proper” of Piraeus consists of a
rocky peninsula, originally an island, featuring three natural
harbours. In addition to the central one, called Kantharos
in ancient times, the smaller harbours to the east are still
in use: Zea, also known as Pasalimani, and Munichia, the
smallest of the three and widely known as Mikrolimano.
The central harbour is a hub of commercial and passenger
shipping, whereas the two smaller ones cater to recreational
and fishing craft as well as passenger hydrofoils.
CultureD-Marin Zea is the most historic marina as it was first
found as a war harbor with shipyards, dry docks and other
installations at the beginning of the 5th century B.C. for the
fleet of triremes, the ancient warships. Ruins of the ancient
fortification walls can be still found in the marina.
CuisinePiraeus is a foodies’ delight, running a gamut of cuisines
and is mostly famous for its sea food meze restaurants and
tavernas where locals eat. Within a 10 minute walk from the
marina there is Mikrolimano area with some of the best
sea food restaurants in Athens. The Michelin Star and multi
awarded Varoulko restaurant can also been found there.
For casual bites, hit the vibrant Plaka neighborhood and
munch on old-school souvlaki.
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Must-SeePiraeus is marked by the diversity of culture among its
neighborhoods. The hill of Kastella is one of the most
prosperous and attractive neighborhoods of the city, with
a panoramic view over Athens and the Saronic Gulf. The
coastal area of Neo Faliro has been upgraded and is also
prominent, with the Peace and Friendship Stadium and the
Karaiskakis Stadium, an indoor arena and a football ground
respectively lying opposite one another, predominating.
The Veakeio Theater and a church dedicated to the Prophet
Elijah are the most popular buildings. The Municipal Theater
in the center of Piraeus was built in 1885 and remains an
impressive neo-classical building. Located across from the
Neo-Byzantine Piraeus Cathedral, it forms one of the most
renowned landmarks of the city and a popular meeting
place. The Municipal Art Gallery and the Municipal Library,
one of the largest in Greece, are also prominent within the
culture of Piraeus.
Piraeus is home to several museums and other institutions
of great interest within their field. The Archaeological
Museum of Piraeus displays objects from classical antiquity
found at the area of Piraeus. The Hellenic Maritime Museum
located in D-Marin Zea exhibits more than 2,500 objects
sorted chronologically and thematically.
Also, within short distance from D-Marin Zea you may visit
the monumental Acropolis with its majestic temples and
grand statues. Inhabited from the 6000s B.C., the Acropolis
saw the last of its human occupancy in 6th century B.C. –
when it was declared strictly Greek god territory. Its crown
jewel, the glorious Parthenon, took over 15 years to build.
For fun galore, make it to Mykonos, 90 nautical miles
southeast, shopping and eating your way up and down the
chic Matogianni street. The island has earned its reputation
as the Greek counterpart to St. Tropez but it has more up
its sleeve.
D-MARIN I BUSINESS BAY
25°11’21’’N 55°17’13’’E VHF 16
D-Marin I Business Bay is the first leisure yacht marina on the
Dubai Canal. Linking the Creek with the Jumeirah coastline,
D-Marin I Business Bay provides calm city cruising.
LocationLocated in the heart of the city nearby to Downtown Dubai,
the marina boasts iconic views of Burj Khalifa and Business
Bay. The journey to open sea is a short 30-minute cruise,
surrounded by remarkable architecture and a breathtaking
waterfall bridge. The marina is also close to major highways
and metro stations which provides easy access around the
city, with Dubai International Airport 20 minutes away.
NatureExplore Dubai’s natural wonders all around the city. The
city comes alive for lovers of nature in places like the Dubai
Miracle Garden, Dubai Butterfly Garden, under the shade
of a palm tree or among one of many lakes and lawns in
the heart of the Emirate. With its diverse flora, fauna and
beautiful peaks of Hatta and the Hajar mountains not too
far away, you will discover a new side of the country.
CultureAlthough Dubai is renowned as a modern metropolis, the
cultural attractions of the city are rewarding and give a
glimpse into the city’s history. A few must see places are:
The Jumeirah Mosque, the gold souk on the Deira side of
the Dubai Creek with the spice souk, textile souk, perfume
souk close by, and Bur Dubai Creek side offers traditional
and historical architecture which can not be missed.
CuisineDubai is a culinary mecca of the region. Among the city’s
diverse restaurants, one can find a cuisine to suit any palate.
From true Emirati flavours, to famous international well-
known restaurants and bars.
Must-SeeGaze at the city skyline from the world’s tallest tower Burj
Khalifa, with the beautiful fountain right next door as well
as the Dubai Opera.
The Dubai Mall, a famed shoppers’ paradise with more
than 1,200 shops and 150 restaurants. If you get tired of
shopping, peek at the mall’s giant aquarium, Ice rink or see
the underwater zoo.
Marvel at the palm-shaped Palm Jumeirah, one of the
world’s largest artificial islands. Connected to the mainland
via tram, the island is home to a variety of high-end hotels
and restaurants and other activities.
Make sure to pay a visit to Souk Madinat Jumeirah, an
authentic re-creation of an ancient marketplace with
traditional Middle Eastern style and ambiance and with
Burj Al Arab close by.
D-MARIN I JADDAF WATERFRONT
25°134’3’’N 55°20’31’’E VHF 16
D-Marin I Jaddaf Waterfront is sheltered in a quiet west-
side neighborhood located at the foot of Dubai’s world-
renowned Palazzo Versace Hotel.
LocationJaddaf Waterfront is an easy stroll away from Jameel Arts
Center, a renowned contemporary art gallery, and the
Jaddaf Waterfront Sculpture Park which is UAE’s first open-
air art and sculpture park. The Marina is close to major
city activities such as Festival City, and only 15 minutes
from Downtown Dubai and 5 minutes away from Dubai
International Airport.
NatureExplore Dubai’s natural wonders all around the city. The
city comes alive for lovers of nature in places like the Dubai
Miracle Garden, Dubai Butterfly Garden, under the shade
of a palm tree or among one of many lakes and lawns in
the heart of the emirate. With its diverse flora, fauna and
beautiful peaks of Hatta and the Hajar mountains not too
far away you will discover a new side of the country.
CultureAlthough Dubai is renowned as a modern metropolis, the
cultural attractions of the city are rewarding and give a
glimpse into the city’s history. A few must see places are:
The Jumeirah Mosque, the gold souk on the Deira side of
the Dubai Creek with the spice souk, textile souk, perfume
souk close by, and Bur Dubai Creek side offers traditional
and historical architecture which cannot be missed.
CuisineDubai is a culinary mecca of the region. Among the city’s
diverse restaurants, one can find a cuisine to suit any palate.
From true Emirati flavours, to famous international well-
known restaurants and bars.
Must-SeeFeel like a local at the Sheikh Mohammed Centre for
Cultural Understanding. Sign up for a tour and learn
about local culture over Arabic tea or coffee and dates,
sampling treats like chabab, cardamom pancakes. Delight
in the Dubai Gold Souk, a bustling maze with stalls selling
handcrafted jewelry made with precious stones, metals
and, of course, an abundance of gold; it’s Dubai’s most
visited market. Marvel at Dubai’s Jumeirah Mosque, holding
up to 1200 people. Take in its white stone exteriors lined
with date palm trees and tour the interiors to learn about
Islamic culture from local guides.
D-MARIN I AL SEEF
25° 15’ 34” N 55° 18’ 37” E VHF 22
D-Marin I Al Seef marina is ideal for yacht owners looking
for a bustling waterfront promenade with rich heritage and
contemporary areas that invite visitors to rediscover the
heart of Dubai.
LocationD-Marin I Al Seef marina an exclusive quay sits in old
Dubai, a vibrant space where Dubai’s heritage and culture
meets. This family-friendly lifestyle destination creates a
blend between the past and today, and the perfect place
to explore, shop, dine, relax, and stay with a backdrop of
the iconic creek. The marina is 15 minutes away from Dubai
International Airport and 20 minutes away from Downtown
Dubai.
NatureAl Seef is nestled right on the saltwater Dubai Creek, where
the main activities for many years included shipping,
pearling and fishing; today it’s connected to Ras Al Khor
Wildlife Sanctuary, home to salt flats and mangroves. You
can also explore Dubai’s natural wonders all around the city.
The city comes alive for lovers of nature in places like the
Dubai Miracle Garden, Dubai Butterfly Garden, under the
shade of a palm tree or among one of many lakes and lawns
in the heart of the Emirate.
CultureThe nearby Al Fahidi Historic District was built by Persian
merchants in the 1900s; it has since become a prime spot
for scenic wandering. It offers a glimpse into Dubai as it
was before the modern makeover, with stone and palm
wood buildings. Although Dubai is renowned as a modern
metropolis, the cultural attractions of the city are rewarding
and give a glimpse into the city’s history. A few other must-
see places are: The Jumeirah Mosque, the gold souk on the
Deira side of the Dubai Creek with the spice souk, textile
souk, perfume souk close by, and Bur Dubai Creek side
offers traditional and historical architecture which cannot
be missed.
CuisineDubai is a culinary mecca of the region. Among the city’s
diverse restaurants, one can find a cuisine to suit any palate.
From true Emirati flavours, to famous international well-
known restaurants and bars.
Must-SeeCity Walk, the urban lifestyle destination by Meraas, is a
popular family-friendly neighborhood with a sophisticated
ambiance and a unique mix of residences, high-end retail,
dining, entertainment, hospitality, grooming and wellness
options.
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Set against the fresh blue waters of the Arabian Gulf, The
Beach at JBR embodies urban living at its sunny best –
the latest entertainment, delicious cuisine, water sports, a
600-meter running track, a fully equipped outdoor gym
that offers classes and some of the city’s best and most
unique shops – you really can have it all.
La Mer is a world-class beachfront neighborhood by
Meraas that incorporates a minimalist and contemporary
design with a unique mix of dining, shopping, leisure,
entertainment, residential and hospitality experiences.
Kite Beach is Dubai’s favorite community beach – an action-
packed, picture-postcard destination for the adventurous
and playful, just fifteen minutes from Downtown Dubai.
Last Exit is a first-of-its-kind themed food truck concept
offering a selection of fresh and tasty gourmet street food
in a chilled, fun and convenient atmosphere. Each location
has its own unique theme created using upcycled materials,
with entertainment for all ages to explore and discover, and
a range of convenient services and amenities.
With an exclusive selection of premium residences, retail,
dining, and leisure and entertainment experiences,
Bluewaters is a modern, family-oriented island destination
with a pioneering spirit that blends waterfront living with
the exhilaration of urban city life.
D-MARIN I DUBAI HARBOUR
42°44’N, 18°59’E VHF 74
Set to open in September 2020, Dubai Harbour is a world-
class maritime destination boasting the most advanced
cruise terminal and the biggest marina in the region.
Inspired by the Gulf’s long tradition with the sea, D-Marin I
Dubai Harbour marina is set to further enhance the position
of Dubai as a leading global maritime hub.
LocationD-Marin I Dubai Harbour marina is located at the
intersection of the iconic Palm Jumeirah and Bluewaters,
equidistant from Dubai International Airport and Al
Maktoum International Airport. This unique waterfront
neighborhood is a stone’s throw away from the city’s most-
loved landmarks, beautiful beaches and world-famous
attractions such as Ain Dubai and Burj Al Arab.
FacilitiesD-Marin I Dubai Harbour marina will offer marina guests
and crew a full home port solution in one of the world’s
most spectacular cruising grounds. With a total of 1,100
berths planned, 800 of which will be ready for the opening
date, the marina is one of the largest in the Middle East,
with the capacity to host yachts up to 160 meters in length.
The main harbour office will be a state-of-the-art
architectural masterpiece specifically designed to sit at
the heart of the neighborhood and create a yachting
community center which will include yacht brokerage
companies, crew placement, maritime insurance, ship
chandlery as well as select retail and F&B outlets.
The Marina will also be home to the marina’s crew facility
including a restaurant, gym, lounge and satellite marina
office. Adjacent to the building will include two helicopter
landing platforms.
Must-SeeCity Walk, the urban lifestyle destination by Meraas, is a
popular family-friendly neighborhood with a sophisticated
ambiance and a unique mix of residences, high-end retail,
dining, entertainment, hospitality, grooming and wellness
options.
Set against the fresh blue waters of the Arabian Gulf, The
Beach at JBR embodies urban living at its sunny best –
the latest entertainment, delicious cuisine, water sports, a
600-metre running track, a fully equipped outdoor gym
that offers classes and some of the city’s best and most
unique shops – you really can have it all.
La Mer is a world-class beachfront neighborhood by
Meraas that incorporates a minimalist and contemporary
design with a unique mix of dining, shopping, leisure,
entertainment, residential and hospitality experiences.
Kite Beach is Dubai’s favorite community beach – an action-
packed, picture-postcard destination for the adventurous
and playful, just fifteen minutes from Downtown Dubai.
Last Exit is a first-of-its-kind themed food truck concept
offering a selection of fresh and tasty gourmet street food
in a chilled, fun and convenient atmosphere. Each location
has its own unique theme created using upcycled materials,
with entertainment for all ages to explore and discover, and
a range of convenient services and amenities.
With an exclusive selection of premium residences, retail,
dining, and leisure and entertainment experiences,
Bluewaters is a modern, family-oriented island destination
with a pioneering spirit that blends waterfront living with
the exhilaration of urban city life.
WATCH & JEWELLERY BRANDS |D Watches and Jewellery
D Watches and Jewellery was founded in June 2013 to add
high watchmaking and jewellery lane to the luxury services
of Doğuş Group. Doğuş Perakende Satış Giyim Tic. A.Ş, took
over D Saat and Mücevherat Ticaret A.Ş. by a merger with
the decision of the board of directors dated 18 March 2019.
D Watches and Jewellery is the exclusive distributor of the
world’s leading brands of high luxury watches, jewellery
and accessories in Turkey. It holds the distribution rights of
the well-known Swiss made watches such as Arnold&Son,
Bell&Ross, Breitling, Hublot, HYT, Tag Heuer, Bvlgari
(acquired in 2019) as well as the German safe and winder
manufacturer Döttling and the French jewellery brand
Messika in Turkey.
D Watches and Jewellery meets its represented brands
with its customers at the stores of Hublot, Quadran Luxury
Timepieces at Istinyepark Istanbul and Quadran Boutique
at D-Maris Bay in Datça Peninsula.
Today, the company counts 33 point of sales which includes
its own multi-brand stores Quadran Luxury Timepieces and
Hublot Boutique. Since 2014, Quadran Luxury Timepieces
hosts world leading brands of high luxury watches, jewellery
and accessories for the enthusiasts and collectors. In
addition, the experienced sales representatives present its
enchanting products to local and foreign visitors at world
standards level. Furthermore, ‘Quadran Culture’ magazine
which is prepared in house and published by D Watches
and Jewellery, communicates the innovations in the field of
watch, jewellery and the art of luxurious lifestyle.
The employees of the head office and boutiques have
been provided with the training programs with the title of
Corporate Representation and Chemistry of Luxury under
the roof of Luxury Academy Istanbul.
In the two multi-brand boutiques of Quadran Luxury
Timepieces, the high-end watch brands of Swiss watch
manufacturing Arnold&Son, Bell&Ross, Bovet, Breitling,
Corum, Graham, Hublot, HYT, Jaeger-LeCoultre, Bvlgari,
MontBlanc, Omega, Panerai, Parmigiani Fleuier, Roger
Dubuis, Romain Jerome, Ulysse Nardin, Tag Heuer, Zenith
and the designs of the safe manufacturers Buben Zörweg
and Döttling are presented.
Moreover, Paris-Based lighter manufacturer S.T. Dupont
and the pen collections of Montegrappa and Montblanc,
jewellery brands such as Baraka, L’estasi are some of the
brands presented.
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RETAIL |Fashion Retail
Doğuş Fashion Retail initially secured the franchises for
Emporio Armani and Gucci in 1997, opening their first
boutiques in one of Istanbul’s most prestigious locations,
the historical Maçka Palas Building.
Initiating a multi-brand fashion retail project under the store
name of ‘In-Formal,’ the Company continued to present
prestigious labels to a fashion-conscious clientele with
exclusive service standards in a unique surrounding. The
Emporio Armani store was opened in 2007 at İstinyePark,
one of Istanbul’s most prominent shopping malls, followed
by Armani Jeans and Gucci boutiques. In addition to these
new stores, the Company also secured the franchise of Loro
Piana a brand known for its premium quality of cashmere,
in the same year. The Loro Piana boutique was opened in
the fashionable Nişantaşı district of Istanbul in 2007 and
later moved to İstinyePark in 2010. Emporio Armani Panora
store was also opened in the same year in Ankara, where
the city finally gained access to the brand.
In 2012, another In-Formal store was opened at D-Maris Bay
Marmaris. In the same year, Doğuş Fashion Retail was given
the distribution rights of several luxury brands in Turkey
such as Giorgio Armani, Armani Jeans and Armani Junior,
entering the wholesale business.
The Company continued to further penetrate into the luxury
market in 2013; two Armani Jeans stores at Vialand Mall in
Istanbul and Palmarina Bodrum; three In-Formal stores
in Palmarina Bodrum, Kaya Palazzo Belek and D-Resort
Göcek; an outlet retail concept branded as “in4out” at
ViaPort Istanbul were opened.
Doğuş Fashion Retail was also proud to introduce
Capritouch - the Italian brand famous for its hand-
made linen collection inspired by Capri Hotel located on
marvelous Capri Island of Italy - via its store at Palmarina
Bodrum. M Missoni’s distribution rights were also acquired
the same year.
2014 witnessed the second Capritouch store at D-Maris Bay
at Datça Peninsula as well as a sales corner at In-Formal
D-Resort Göcek, reaching a total of 3 sales points.
Bringing together all Armani brands under the same roof,
spanning 6 floors, the Armani/Istanbul store was opened at
Nişantaşı Abdi İpekçi, where the Company, for the first time,
introduced the Giorgio Armani brand to the fashion lovers
of Turkey at its own store.
In 2015, Doğuş Fashion Retail expanded its sales network by
opening its 4th Capritouch sales point at Il Riccio Bodrum;
as well as the second in4out store at ACity Outlet Center in
Ankara.
In 2016, “in4out” store at Maçka Palas was opened; as well
as the first Orlebar Brown store at Akasya Mall in Istanbul
and the second Orlebar Brown store at Bodrum Palmarina.
The Company has become the brand representative of
Eleventy in Turkey and was given the distribution rights also
the same year.
Doğuş Retail holds the distributorship rights of Orlebar Brown and Eleventy, besides; the group also has franchising agreement with Gucci and Loro Piana.
In 2017, the Loro Piana boutique renovated and enlarge
from 247 sqm to 332 sqm. During the same year, Eleventy
sales corner was opened at Galeries Lafayette at Emaar
Square in Istanbul.
Through its global co-operations and superior customer
service, Doğuş Fashion Retail continues to respond to the
fashion expectations of consumers in the national market.
The Company currently operates 11 brands and has 21
owned stores with around 50 points of sale.
In 2018, the distributorship agreement with Armani wasn’t
extended and terminated mutually, and all the existing
stores closed.
Capritouch store in D-Maris Bay Hotel was changed into
Orlebar Brown and opened.
The distributorship agreement with Capritouch was
terminated mutually, and all the existing stores closed at
the end of the year.
The distributorship agreement with Missoni was terminated
mutually. Orlebar Brown store in Akasya Mall moved to
İstinye Park Mall. The first Eleventy store was opened in
İstinyePark Mall.
In 2019, Eleventy selling point which was opened in Galeries
La Fayette in Emaar Square Mall was closed. Eleventy store
was opened at Yalıkavak Marina Bodrum.
The distributorship agreement with Orlebar Brown was
terminated mutually at the end of 2019.
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SPORTS BRAND |Under Armour
Under Armour is a sports performance apparel, footwear
and accessory brand that supports the athletes for 23 years
and offers its products to customers with the enthusiasm of
endless innovation.
Doğuş Retail Group secured the franchise rights for
Under Armour in 2015. After that, total of 24 stores have
been launched in the most prestigious locations of 8
major cities over the past 3 years. With the introduction
of UNDERARMOUR.COM.TR in February 2017, they keep
helping athletes improve themselves all around Turkey.
First store was a concept store in D-Gym and opened in
March 3, 2016. The brand added to its launches with 9 stores
in 2016 and 11 stores in 2017. Having 13 stores in Istanbul,
3 stores in Ankara, 2 stores in Izmir and Cyprus, 1 store in
Bursa, Izmit and Antalya by the end of 2018, Under Armour
found itself in a solid place in sports industry in Turkey and
succeeded to make its mark with 24 stores in total.
During this period, Under Armour sponsored premium
fitness centers such as D-Gym & Hillside and had
organizations for running and training events to strengthen
the communication with the target group of the brand.
The brand end the year 2019 with 23 stores, online sales web
site and a wide wholesale range reaching up to 90 accounts.
COSMETIC BRAND |KIKO Milano
KIKO MILANO was established and founded in 1997 by
the Percassi Group. It is an Italian professional cosmetics
brand that features a range of cutting-edge makeup, face
and body treatments. Safe and effective products of the
highest quality, created to satisfy the beauty requirements
of women of any age.
KIKO is constantly committed to a single objective: to
allow all women to treat themselves to the most innovative
cosmetics without having to sacrifice their budget. To give
all their customers the chance to experiment in all areas of
makeup and treatments with top quality shades, packaging
and formulas, which are always on trend. Finally, to create
a beauty care concept which is able to rewrite the rules
of cosmetics: quality is no longer synonymous with high
prices. With KIKO, professional luxury is an exciting reality
you can touch.
The identity of KIKO MILANO has its origins in the values of
Made in Italy and in the fashion, art and design capital. The
research into original textures and colors are combined with
studies performed on quality formulas with guaranteed
effectiveness in order to offer a perfect fusion between
quality and creativity.
In 2015, Kiko Milano entered to Turkish market with
Doğuş Group. First store was opened at Capacity Mall in
March 2016. The Company, continued to further penetrate
into the market with stores in Istanbul İstinyepark, Tepe
Nautilus, Forum Istanbul, Watergarden, Buyaka, Hilltown
Malls, Istanbul Istiklal Street Flagship Store and with stores
out-Istanbul Zafer Plaza Bursa, Kentpark Ankara, Espark
Eskisehir and Ankamall Ankara.
As end of 2019, KIKO ended up with 12 stores.
End of 2019: 12 STORES1 in Bursa,2 in Ankara,1 in Eskisehir,8 in Istanbul.
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PHOTOGRAPHY AND ART BRAND |Leica
Doğuş Group has partnered with Leica, a legend in the
history of photography, for a new investment in Turkey, in
2016.
Doğuş Group, promoting and contributing to the
development of culture and arts, has entered into an
important partnership with Leica Camera AG, which is one
of the outstanding representatives of visual history for over
one hundred years.
As part of this partnership, Doğuş Group built a Leica
complex consisting of a Leica store, gallery and academy
in Istanbul.
Built in Bomontiada, the new culture and arts hub of
Istanbul, and spread on 1,000 sqm, Leica Istanbul Complex
will house a store where Leica products will be sold, and will
also be home to many firsts that will lead the development
of photography in Turkey. At the complex, Leica will offer
a complete experience to photography enthusiasts from
buying and trying to training and exhibitions, along with
opportunities for brand’s fans, new beginners, amateurs
and photography professionals to get together.
Leica complex is one of the largest Leica complexes in
the world after Los Angeles and Frankfurt. Leica currently
has over 200 stores worldwide, and the brand’s first store
in the Middle East region is brought to Istanbul with this
important initiative of Doğuş Group to the delight of
photograph enthusiasts.
FUTURE PLANS
Doğuş Group aims to create a new market for photographers
and collectors in Turkey with Leica. Leica Istanbul Complex
will give photography enthusiasts a chance to have direct
access to Leica cameras and accessories, and play a unique
role in communicating both the technical and also the
artistic aspects of photography through exhibitions and
lecture programs in international scale.
In the long run, with Leica Galerie and Leica Akademie,
Doğuş Group is aiming at promoting Turkish artists in the
international arena, encouraging collectors for photography,
and ensuring that photography is perceived much more
consciously in terms of technique and content. In addition
to hosting globally acclaimed photographers, the Leica
Galerie housed in Istanbul, will also welcome Turkish
photographers who produce internationally acknowledged
works. In terms of training, Doğuş Group will proceed in line
with international programs.
ANTUR
Antur, an IATA-accredited agency since 1976, is specialized
in Corporate Travel and Event Management and ranks
among the pioneers in its fields of operations.
Antur’s offerings appreciate every detail and keep up with
the innovations in a bid to fully address corporate and
individual customer needs, while facilitating lives amid
many professional challenges.
Antur is a member of IATA (The International Air Transport
Association), ASTA (American Society of Travel Advisors),
UFTAA (United Federation of Travel Agents´ Associations),
TURSAB (The Association of Turkish Travel Agencies), and a
founding member of KURAP (Corporate Agencies Platform).
Corporate Travel Management Corporate travel management is a powerhouse among
Antur’s business functions. Antur leverages a range of
specialties and experiences to add value to its services, while
catering to customer needs with tailor-made solutions. A
travel expert focused on flight booking, accommodation,
and rent a car services, Antur boasts extensive know-how on
implementing and reporting on corporate travel policies.
Through its 2018 offering to the market, an alternative
digital solution, Antur enables corporate customers to
organize and manage their travels. The company has also
an in-house visa department accredited to visa centers.
Event ManagementAntur’s professional and creative event management team
delivers projects and events spanning a wealth of segments
including internal communications events, festivals, red
carpet ceremonies, and special nights for organizations at
every corner of the globe. With a customer-centric approach
culminating in trailblazing event management projects,
Antur serves leading Turkish companies and international
giants with various contents and at many levels.
Tailored Services Antur boasts a rich portfolio of partners: segment-
leading tour operators in every country beside local and
international hotels and hotel chains at different parts of
the world. The agency delights its guests with exclusive
services through Four Seasons Preferred Partners, Mandarin
Oriental Fan Club and Hyatt Prive memberships. The
company designs original travel experiences tailored to the
needs of individuals or groups.
Concierge and Travel Consultancy ServicesThe Antur - DMS collaboration has in store concierge
services for the premium credit card owners at Garanti
Bank, QNB Bank and Yapı Kredi Bank. Designed to offer
personalized travel consultancy in every corner of the world,
this structure is at service 24/7.
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Real Estate
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TOTAL ASSETS
6,137,340 REVENUES
412,286 GROSS PROFIT
357,673
2015 2016 2017 2018 2019
Total Assets 4.004.737 4.304.495 4.681.316 5.881.122 6,137,340
Revenues 202.495 222.069 247.077 354.978 412,286
Gross Profit 180.857 202.382 220.261 308.564 357,673
*Figures are based on standalone financial statements of Doğuş Gayrimenkul Yatırım ve İşletme A.Ş., Doğuş Gayrimenkul Yatırım Ortaklığı A.Ş. and Doğuş Turizm Sağlık Yatırımları ve İşletmeciliği Sanayi ve Ticaret A.Ş.
KEY FINANCIAL INDICATORS(TL THOUSAND)
Doğuş REIT launched operations on July 25, 1997, under the
title of Osmanlı REIT and held its IPO on March 25, 1998, as
the third real estate investment trust to be traded on the
Istanbul Stock Exchange.
By the end of 2001, two Doğuş Group companies, Osmanlı
Bank and Garanti Bank merged and, with this transaction,
51% of the Osmanlı REIT shares were transferred to Garanti
Bank and the company became a subsidiary of Garanti
Bank under the title Garanti REIT.
Garanti REIT laid the foundations of its first residential
Project, EVIDEA, in November 2004. Developed on a land
of 34,000 sqm in total, the Project EVIDEA consists of
a construction area of 101,000 sqm in total including a
residence area of 73,000 sqm and, a social facility area of
24.500 sqm.
All the houses within the Project EVIDEA developed with
the combination of the experiences of Garanti REIT and,
Yapı Kredi Koray in the fields of real estate development
and financing have been delivered to the respective owners
as of the end of 2007.
Garanti REIT started the construction of the project Doğuş
Center Maslak in Maslak, Istanbul in June, 2005. Doğuş
Center Maslak that has a total area of 63,202 sqm, of which
47,398 sqm is leasable space was opened on November 9,
2006.
Upon the sales of the Garanti REIT shares held by Garanti
Bank to General Electric (GE) Capital Corporation and
Doğus Holding, the shareholding structure of our company
changed as of December 1, 2006 to 25.5% held by Doğus
Holding, 25.5% held by GE and, 49% by the public, and the
corporate name changed to Doğus-GE REIT as of the same
date.
In January 2011, General Electric (GE) Capital Corporation
sold all of its shares in Doğuş-GE REIT to Doğuş Group and
the company’s shareholder structure became 51% Doğuş
Group and 49 % publicly-traded. On the same date, the
company’s trade name was changed to Doğuş REIT.
As a result of the partial demerger completed on December
26, 2013, the Gebze Center Shopping Mall was included
into the real estate portfolio of Doğus REIT. The Gebze
Center Shopping Mall started to be constructed by Doğus
Gayrimenkul Yatırım ve İşletme A.Ş. in August, 2008 came
into operation on September 3, 2010 with a leasible area
of 59,054 sqm and, about 130 stores and an investment
budget of USD 180 million.
After the inclusion of the Gebze Center Shopping Mall into
the real estate portfolio of Doğus REIT, the development
efforts started to be carried out to create a mixed life center
by means of extending the existing Shopping Mall to include
additional buildings and a hotel project. The project started
to be constructed with the respective building license
obtained on February 20, 2015. There is a 158-room hotel
and, various commercial areas in the project consisting of a
construction area of 47,045 sqm.
As a result of the partial demerger completed on September
6, 2016, the Doğus Center Etiler was included into the
real estate portfolio of Doğus REIT. The total land area of
the Doğus Center Etiler is 36,440.80 sqm consisting of 45
detached independent sections and, the total leasible area
is 9,827 sqm. The Doğus Center Etiler is considered to be
one of the most important business centers in the region
due to its office and social areas and, the opportunities to
use it provides.
The project Gebze Center Hotel and Additional Buildings,
the investment of which started in 2015, was completed in
2017 and, the hotel opened under the brand “Hyatt House
Gebze”. The rental procedures for the automotive showroom
and the service area as well as additional Shopping Mall
units have been completed.
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The sales procedures for Antalya 2000 Plaza were completed
in June, 2018 and, it has been removed from our portfolio of
real estate investments.
In December, 2018, the D-Ofis Maslak office building located
in Maslak that is one of the most important business and
trade centers in Istanbul and, the Gym Center that consists
of the independent senctions no. 16 and 17 located within
the Doğuş Center Etiler complex within our portfolio. D-Ofis
Maslak is considered a valuable office building since it is
located in a prestigious location where there are offices,
shopping centers and luxury houses and residences and, its
useable area is 40,438 sqm. And the Gym Center within the
Doğuş Center Etiler complex is operated by D-Gym, one of
the most prestigious gym centers in Istanbul and, it consists
of a leasable area of 6,745 sqm.
As of the end of 2019, the real estate portfolio of Doğuş
REIT consists of Doğuş Center Maslak, D-Ofis Maslak, Doğuş
Center Etiler – Office Building, Doğuş Center Etiler – Gym
(D-GYM), Gebze Center – Shopping Mall, Gebze Center –
Hotel (Hyatt House Gebze), Gebze Center – Automotive
Showroom and Service (Doğuş Oto Gebze) and, the value
of the investment real estate portfolio of Doğuş REIT has
reached an amount of TL 1.92 billion.
REAL ESTATE PORTFOLIO
Istanbul / Sarıyer - Maslak, Shopping Mall, “Doğuş Center Maslak”Doğus Center Maslak serves with the brands, showrooms
and services areas of Doğus Automotive, the brands of
Doğus Media Group and, the food court area.
It is situated in Maslak, a significant location considered
to be at the heart of the business and finance center of
Istanbul, where there are many business centers. The total
area of the center is 63,202 sqm, of which there is a leasible
area of 47,398 sqm.
The construction of the project was completed in November
2006, and the Doğuş Center Maslak was opened for service.
The value of the building with a share of 23.44% in the
total investment real estate portfolio of the company is
TL 449,385,000 according to the appraisal report issued
by Epos Gayrimenkul Danışmanlık ve Değerleme A.Ş.,
December 26, 2019.
Istanbul / Sarıyer - Maslak, Office Building, “D-Ofis Maslak”Located in Maslak, Sarıyer, European Side of Istanbul, D-Ofis
Maslak is in Büyükdere Boulevard, a central business area of
the city, where there are many other office buildings.
Located in Maslak, D-Ofis is a valuable office building since
it is in a prestigious location, where there are offices, the
most important shopping centers of the city, and luxury
houses and residence buildings.
D-Ofis Maslak completed as of 2018 was constructed on a
land of 4.725 m2, and the D-Ofis Maslak building as an office
building consisting of the leasable area of 40,437 m2 in total,
composed of 8 Basements + Ground Floors + Mezzanines +
20 Normal Floors + Roof and Heliport.
The value of the building with a share of 30.22% in the
active investment real estate portfolio of the company is
TL 579,255,000 according to the appraisal report issued
by Epos Gayrimenkul Danışmanlık ve Değerleme A.Ş.
December 26, 2019.
The real estate D-Ofis Maslak was sold to Kuveyt Türk Katılım
Bankası A.Ş. January 22, 2020 for a price of Euro 40,000,000
by means of Sell and Leaseback on the condition that it
REAL ESTATE INVESTMENT PORTFOLIO
Real Estates & Real Estate Projects
Other Assets
Cash & Capital
December 31, 2019 1,917,060.000 – TL
December 31, 2018 1.771.905.000 – TL
DOĞUŞ REIT APPRAISAL VALUE
97.65%
2.18%
0.17%
shall be repurchased at the end of the agreement in order
to pay off a certain portion of the existing credit debts of the
company and, decrease the financial expenses accordingly.
Accordingly, a Financial Leasing Agreement between the
Company and Kuveyt Türk Katılım Bankası A.Ş.
Since the real estate shall be re-included to the portfolio
within 1 to 10 years following the completion of the sale, this
transaction should be considered a financial transaction,
not a Sale of Tangible Asset.
Istanbul / Beşiktaş - Etiler, Business Center, “Doğuş Center Etiler” Independent SectionsDoğuş Center Etiler is an office building located in Etiler,
Beşiktaş, Istanbul, operating in an easily accessible central
location, within a peaceful environment.
Doğus Center Etiler is a center offering privileged office
unites and different working environment in a great
combination, in respect of its usage efficiency, architectural
features, location and size.
The total land area of the Doğus Center Etiler is 36,440.80
sqm, and the total leasible area of 47 detached independent
sections owned by the company is 16.572 sqm.
The value of the building with a share of 13.86% in the
active investment real estate portfolio of the company is
TL 265,730,000 according to the appraisal report issued
by Epos Gayrimenkul Danışmanlık ve Değerleme A.Ş.,
December 26, 2019.
Kocaeli / Gebze, Shopping Mall, ‘’Gebze Center Shopping Mall’’Gebze Center Shopping Mall is the first shopping and
entertainment center in the region.
Considering the accessibility to the city center, the
shopping mall has become the only attraction and social/
entertainment center in the region.
Consisting of a leasible area of 66,072.72 sqm, about 130
stores, cinema theaters, bowling, gym and kid entertainment
areas, the Gebze Center came into operation on September
3, 2010 and, accommodates more than 9 million visitors in
a year.
The value of the building with a share of 28.42% in the
active investment real estate portfolio of the company is
TL 544,850,000 according to the appraisal report issued by
TSKB Gayrimenkul Değerleme A.Ş., December 30, 2019.
Kocaeli / Gebze, Hotel, ‘’Hyatt House Gebze’’Hyatt House Gebze has become the new ring of the chain
of Hyatt Hotel, starting to operate with 158 rooms as of
November 1, 2017. Hyatt House Gebze, the first concept
of the brand Hyatt House in Turkey provides such details
that make the guests accommodating for a long time feel
that they live all together with their neighbors in a peaceful
environment.
Consisting of 3 basements, 1 mezzanine and a 13-level
hotel building started to be constructed in May 2015, in a
land of 21,983.12 m2, Hyatt House Gebze opened its doors
on November 1, 2017 in line with the global standards and
concept of the brand Hyatt. Hyatt House Gebze consisting
of 158 rooms in total provides services of swimming pool,
business center, lounge and food & beverage.
The value of the building with a share of 2.77% in the
active investment real estate portfolio of the company is TL
53,165,000 according to the appraisal report issued by TSKB
Gayrimenkul Değerleme A.Ş., December 30, 2019.
Real Estate Portfolio Portfolio Breakdown Appraisal Value (TL)
Doğuş Center Maslak 23.44% 449,385, 000
Doğuş Center Etiler 13.86% 265,730,000
D - Ofis Maslak 30.22% 579,255,000
Gebze Center - Shopping Mall 28.42% 544,850,000
Gebze Center - Hotel 2.77% 53,165,000
Gebze Center - Automotive Showroom and Services 1.29% 24,675,000
TOTAL 100% 1,917,060,000
2019
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Kocaeli / Gebze, Automotive Showroom and Service, ‘’Doğuş Oto Gebze’’Since it is within the same area as the Shopping Mall, the
first and only shopping center of the region, the intense
circulation from this shopping center greatly contributes to
Doğus Oto Gebze, which will be opened in 2018, and thus
the region of Gebze.
Doğus Oto Gebze has an enclosed area of 12,212.21 sqm in
total consisting of 3 basements + ground floor + mezzanine
+ roof in the automotive showroom and service.
The value of the building with a share of 1.29% in the
active investment real estate portfolio of the company is TL
24,675,000 according to the appraisal report issued by TSKB
Gayrimenkul Değerleme A.Ş., December 30, 2019.
FINANCIAL OUTLOOK 2019
As of December 31, 2019, Doğuş REIT’s registered capital
and paid-in capital are TL 500,000,000 and TL 332.007.786,
respectively.
Doğuş REIT’s total asset size in 1,963 million TL, and a net
profit is 95.04 million TL for 2019. The company’s total real
estate investment portfolio is 1,917 million TL, and its market
capitalization is 1.5 billion TL.
Doğuş REIT is traded at BIST Index with the code “DGGYO’’.
CAPITAL AND SHAREHOLDING STRUCTURE OF THE COMPANY 2019
The shareholding structure of Doğuş REIT is as follows as of
31 December 2019;
Name/CorporateName Of Shareholders
GroupShare
Amount (TL)
Share Percentege
(%)
DOĞUŞ HOLDİNG A.Ş.(NON-PUPLIC)
A 2,604,451 0.78
DOĞUŞ HOLDİNG A.Ş.(NON-PUPLIC)
B 48,693,875 14.67
PUBLIC (*) B 280,709,460 84.55
TOTAL 332,007,786 100.00
(*) As of 31 December 2019, the other publicly-held shares belong to Doğuş
Holding A.Ş. amounting to TL 261.038.907 and to Doğuş Turizm Sağlık Yatırımları
ve İşletmeciliği Sanayi ve Ticaret A.Ş. amounting to TL 1.522.029.
Doğuş Real Estate Investment and Management belongs
entirely to the Doğuş Group. The Company was founded
in 2006. Since its foundation, its goal has been to be the
most valuable company in the sector without comprising
its principles of trustworthiness, respectability, honesty, or
its commitment to high quality service. It has also been
committed to hiring expert staff that works to improve the
fields of real estate, construction management, sales and
marketing.
Doğuş Real Estate stays abreast of developments in the
sector and helps promoting Doğuş Group’s growth, which
owns and invests in the Company’s extensive real estate
portfolio. The Company seeks to stay on top of developments
in residential properties, trade centers, hotels, hospitals, and
the field of logistics via its project management and project
development services.
Doğuş Real Estate follows developments in the real estate
sector in Turkey closely, and in doing so, continues its project
management services in the field of residential properties,
trade centers, hotels and office buildings.
Doğuş Real Estate, which holds 12 assets all over Turkey,
continues to work with great care to make the best use of
these assets.
TARGETS
• To focus on unconditional customer satisfaction
• To reflect the Doğuş identity and different points of views
in all of its projects
• To create spaces that provide high standards of living
• To become the most valuable and respected company
in the sector
PRINCIPLES
• Trustworthiness
• Respectability
• Honesty
• Fulfilling the responsibilities towards current and future
generations
• Maintaining a high quality of service
• Providing permanent institutional competitive
advantages
• Keeping team work at the forefront
COMPLETED PROJECTS
• Gebze Center Shopping Mall Project
• Doğuş Holding Dubai Office Project
• D-Life Ulus Project
• D-Gym Maslak Project
• Ayazağa Doğuş Group Office Building Renovation Project
• Darüşşafaka Ayhan Şahenk Sports Center Renovation
Project
• Artvin School Project
• Grand Hyatt Hotel Restaurant Renovation Project
• D-Hotel Maris Renovation Project
• D-Resort Göcek Phase 1 Project
• d.ream Ortaköy Office Building
• Nusr-Et Building Project
• D-Resort Göcek Phase 2 Project
• D-Gym Etiler Project
• Van OÇEM Project
• Volkswagen Arena Project
• Bodrum Castle Performing Center Project
• Crate&Barrel Store Decorations Project (Akasya & Zorlu
AVM)
• Doğuş Holding Ankara Office Project
• D-Marin Turgutreis Yatch Club Renovation Project
• Murat Reis Ayvalık Hotel Renovation Project
• Il Riccio Bodrum Project
• D-Office Maslak Project
• Bomonti Babylon Project
DOĞUŞ REAL ESTATE
2019
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• DMS Office Renovation Project
• Volkswagen Arena Sports Hall Project
• Leica Bomonti Project
• Il Riccio Bodrum Phase 2 Project
• Ayvalık Cultural Center
• Holding Athens Representative Office Project
• RTE Uni. Faculty Building Project
• Darülaceze Okmeydanı Visitor Center Project
• Soma Housing&Misc. Facilities Complex Project
• Ömer Halisdemir Uni. Livestock Research&Development
Center Project
• Fenerbahçe Faruk Ilgaz&Dereağzı Facilities Renovation
Project
• Holding Athens Representative Office 1st-2nd-3th floor
Renovation Project
• Il Riccio Bodrum Phase 3 Project
• Gebze Hotel and anexes Project
• Göbeklitepe Archaeological Site Project
• Hotel Aldrovandi Renovation Project
• Ara Güler Beyoğlu Museum Project (Bomontiada)
• Ara Güler Museum Archive (Bomontiada)
ONGOING PROJECTS
Salıpazarı Port ProjectConstruction Area: 389,541 m2
Construction period is still ongoing.
Chenot Palace Weggis ProjectConstruction Area: 21,400 m2
Construction period is ongoing.
Serbia Basketball Academy ProjectConstruction Area: 3,755 m2
Construction period is ongoing.
D-Office MASLAK Fit Out ProjectConstruction Area: 16,995 m2
Construction period is still ongoing
FUTURE PLANSDoğuş Real Estate’s mission is to increase its investments
in the coming years with steady growth and to achieve the
highest level of customer satisfaction possible by carrying
out its real estate projects with the utmost professionalism.
Galataport Istanbul, is a JV of two leading Turkish
conglomerates, Dogus Group and Bilgili Holding since
2014. Galataport Istanbul is waterfront development
project of $1,7 billion investment, including a unique cruise
port, a distinguished hotel brand, cafes, restaurants, small
boutiques, along with two contemporary art museums
within a 1.2 km shoreline.
Once Galataport Istanbul is launched, this unique coastline,
which has been closed to public access for approximately
200 years, will be opened for the use of Istanbulites and the
visitors of the city.
Galataport Istanbul Cruise Port, the main port of Istanbul,
is a unique project that will be designed to be quite unlike
anything else, the terminal is being built underground on
29,000 square meters so that domestic and foreign tourists
can continue their journey without any interruption. As a
first in the world, the temporary custom-area is separated
from the rest of the site with a special three-metre high
modular hatch system. Thanks to Galataport Istanbul, one
of the most beautiful promenade of Istanbul which had
been hidden behind razor fences, old warehouses and
custom-boundaries will be open to everyone.
The historical buildings in Galataport will be restored as
part of the project, regaining their former importance as
the historical treasures of Istanbul. The Project also has a
177-room distinguished hotel brand established with the
restoration of some of these buildings. The Hong Kong
and Shanghai Hotels, owner and operator of The Peninsula
Hotels, one of the most prestigious global hotel brands, is
coming to Istanbul, right across the “historical peninsula”.
The plans of the project include roughly 250 retail points
where nearly 35% will be dedicated to culinary by the
coastline and around the small streets. Retail concept and
mix of the project has also been designed with a special
approach. Experience will be at the heart of each brand,
both retail and f&b. The total area reserved for rent by food
retailers is approximately 52,000 square meters, while total
office space for rent is roughly 43,000 square meters.
Galataport Istanbul will also have one of the largest
recreational area of the city, crowned by the long hidden
beautiful and renovated Tophane Clock Tower. Hosting the
Istanbul Modern Museum (first modern and contemporary
arts museum of Turkey) and Istanbul Painting and Sculpture
Museum of Mimar Sinan Fine Arts University (One of the
oldest academic institutions of Turkey in fine arts) within
its premises, Turkey’s best practices in contemporary arts,
Galataport will become the new arts and culture centre of
Istanbul. The Tophane Square, whose landscape design is
part of the project, will once again become a major square
of Istanbul. This area will mark the first museum square of
Istanbul and become a living centre with various activities
planned to run throughout the year.
Galataport Istanbul is projecting to welcome 25 million
visitors, seven million tourists, including 1.5 million cruise
passengers and crew per year.
GALATAPORT ISTANBUL
Galataport Istanbul is projecting to welcome 25 million visitors, seven million tourists, including 1.5 million cruise passengers and crew per year.
2019
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Offering luxury, style and convenience under the same roof,
İstinyePark lets its guests experience a world of elegance
and luxury in Istanbul. Since September 2007, Doğuş
Group has been operating İstinyePark under a partnership
between Doğuş Turizm Sağlık Yatırımları ve İşletmeciliği
and Orta Gayrimenkul Yatırım Yönetim. Doğuş Holding
owns 42% while Orta Gayrimenkul Yatırım Yönetim owns
58%.
Since it’s opening in September 2007, İstinyePark has
been working tirelessly to offer the best possible service to
its visitors. The shopping mall provides a vast selection of
products and services, thanks to its considerable 270,000
m2 surface area, 87,000 m2 store area, 3,600-unit car park
and wide range of stores.
İstinyePark offers viable alternatives to a wide scale of visitors
from all ages and backgrounds. The shopping mall features
both indoor and outdoor spaces. With its giant glass dome
and glass ceilings, the Mall basks in an abundance of natural
light, creating a perfect combination of indoor comfort and
outdoor airiness for its visitors.
İstinyePark was built according to the belief that a shopping
mall should provide the highest standards in service and
presentation, as well as in architectural splendor and
technical innovation. Visitors to İstinyePark can experience
the joy of sitting under the shade of a tree or the comfort of
chatting with local shopkeepers, together with the ultimate
pleasure of watching a movie in a state-of-the-art theater
or the fulfillment of living an active urban life – all under
one roof.
In 2019 some of the luxury brands such as Rolex and
Louis Vitton decided to extend their squaremeters of their
stores. Also Inditex group brands such as Zara, Massimo
Dutti and Zara Home extended and renovated their stores.
There were new openings both international brands like
Pandora, Nautica, Huawei and Swatch and also Turkish
brand investing to international markets like Bee Goddess,
Nocturne and Atelier Rebul.
Completing the year 2018 with 17 million visitors and 100%
occupancy, İstinyePark completed the year 2019 with 16
million visitors with 100% occupancy.
İSTİNYEPARK
İstinyePark completed the year 2019 with 16 million visitors with 100% occupancy.
2019
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Energy
2019
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TOTAL ASSETS
4,542,961 REVENUES
566,134 GROSS PROFIT
359,206
2015 2016 2017 2018 2019
Total Assets 3.243.176 3.264.710 3.253.476 4.234.951 4,542,961
Revenues 262.837 719.562 842.007 516.952 566,134
Gross Profit 50.838 154.683 122.964 246.095 359,206
KEY FINANCIAL INDICATORS(TL THOUSAND)
*Figures are based on combined financial statements of Doğuş Enerji Group companies with Doğuş shares.
The energy sector in Turkey is characterized by low per-
capita usage and ongoing liberalization of the market. To
maintain the continuity of Turkey’s economic, sociological,
and technological progress and expansion, the energy
sector must support and keep up with the latest
developments in this industry. Installed capacity reached
91,3 GW at the end of 2019. According to the Investment
Support and Promotion Agency projections, the country’s
installed capacity is expected to reach 109,5 GW in 2023.
The increase is expected to be undertaken by the private
sector. From this perspective, the share of private sector
in Turkey’s installed capacity is expected to increase every
year.
Doğuş Holding holds a 100% share in D Energy, which
holds:
Doğuş Energy develops and grows through strategic and
profitable enterprises to maintain an optimal generation
portfolio. In order to maintain the sustainability of the
economical, sociological and technological progress,
Doğuş Energy aims for reduction of the foreign energy
dependency through utilization of power generation from
local energy sources.
The company aims to stay abreast of all the developments
concerning energy sector, both within Turkey and
throughout the region. It is responsible for formulating
and generating strategies for all energy and infrastructure
investments within Doğuş Group. The ultimate goal of
DOĞUŞ ENERGY
Doğuş Energy is one of the leading private companies in the generation of renewable energy, with its 1 GW installed capacity.
share in Boyabat HEPP
share in Artvin HEPP
share in Aslancık HEPP
100%
34%
33%
2019
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this organization is to make sure that the Group takes all
necessary measures in the energy sector and to create
profitable business enterprises.
Doğuş Energy is one of the leading private companies
in the generation of renewable energy, with its 1 GW
installed capacity. Doğuş Energy focuses on the continuous
improvement of service skills and capabilities in order to
provide customers with better plus services. The importance
of service transparency and fair trade is central to the
Company’s beliefs, and it tries to show this in its activities.
GENERATION ASSETS
In consideration of Turkey’s growing energy dependence;
benefiting from domestic and renewable energy sources is of
strategic importance for the country. In addition, renewable
sources play a key role in supporting endeavors to decrease
carbon emission levels. In this regard, hydroelectric energy,
which is a domestic, renewable and clean energy source,
has begun to assume greater importance in Turkey, as
stated in the strategic paper declared by the State Planning
Agency.
Artvin HEPP is on the Çoruh River and located 20 km
southwest of Artvin. The project is fully owned by Doğuş
Energy and began operations in December 2015. Artvin
HEPP is one of the largest hydroelectric power plants in
Turkey with 332 MW installed capacity and more than 1
billion kWh of electricity generation per year.
Boyabat HEPP is on the river Kızılırmak and located 180 km
east of Samsun and 150 km south of Sinop. Boyabat HEPP
has an installed capacity of 513 MW and annual average
electricity generation is 1.5 billion kWh per year and began
operations in December 2012. The project has second
largest installed capacity of any private sector hydroelectric
power plant in Turkey.
Aslancık HEPP is located on Harsit River on province of
Doğankent and Tirebolu in Giresun and began operations
in March 2014. Aslancık HEPP has an installed capacity of
120 MW and annual average electricity generation of 418
million kWh.
Artvin and Boyabat HEPPs, which represent 88% of Doğuş
Energy’s total capacity investment, are designed to benefit
from peak hours. Both will help the Company to maximize
its profit and serve the country by stabilizing spot market
electricity prices in peak hours.
FUTURE PLANS
Doğuş Energy closely monitors privatization initiatives and
also greenfield and brownfield projects in various regions of
the country in order to optimize its portfolio.
2019
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New Initiatives and Other
Lines of Business
2019
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bomontiada an independent post- industrial space and
unique meeting point with free access for the public was
brought to the city’s cultural and artistic world by Doğuş
Group in 2015 as a platform to encourage creating, thinking
and sharing. Today, it continues to shape the creative, dining
and entertainment scene of Istanbul. A multidisciplinary
space, it is building bridges between performing arts, open
air film screenings, music events, workshops, events for
children and visual arts. bomontiada also hosts institutions
such as the Ara Güler Museum, the Ara Güler Archives and
Research Center, Leica store, ALT and ATÖLYE.
bomontiada, which provides a venue for festivals, music and
art from different countries, offers visitors the opportunity to
experience different cultures with activities such as French
Music Day, Colombia Day, Swiss Day, Chinese Culture Day
and Indian Culture Day.
In 2019, Yapı Kredi became the title sponsor of bomontiada
for three years. bomontiada was positioned as one of the
major aspects in Yapı Kredi’s activities.
The Yapı Kredi bomontiada event calendar for 2019 was
filled with plays, the classical music series “Tuesday Classics”
and interviews, as well as workshops that enable children to
learn while having fun.
Shaped around an interdisciplinary cultural program,
bomontiada hosted a total of 139 activities in 2019, including
cultural activities, two plays, five exhibitions, 55 concerts,
43 movie screenings, 22 meet-and-greets and 12 festivals,
in collaboration with its residents and stakeholders.
Throughout 2019, bomontiada hosted more than 1 million
guests, an increase of 7 percent compared to 2018.
YAPI KREDİbomontiada / Culture Campus
In 2019 Yapı Kredi became the naming sponsor partner of bomontiada for three years. bomontiada was positioned as one of the major pillars in Yapı Kredi‘s arts and culture activities.
Founded in partnership with Doğuş Group and South
Korean SK Group, Doğuş Planet’s B2C e-commerce platform
n11.com, has reached more than 165,000 registered stores
and a trade volume of approximately 15.4 billion Turkish lira
since its inception six and a half years ago.
The business model of n11.com, open marketplace, revolves
around helping Turkish SMEs to reach out to more retail
customers. In a period as short as six and a half years,
n11.com managed to be one of the biggest e-commerce
platforms in Turkey with over 19 million listed products and
16 million members.
In 2016, n11.com launched the “11.11, Shopping Event of the
Year” concept which broke the daily e-commerce sales
record in the Turkish market.
Since then, this event has become an annual tradition of
the platform and has been recognized as the triggering
event both for online and offline retailers as they prepare
for their end of year campaigns.
n11.com also used the “11.11, The Shopping Event of the
Year” concept to introduce new car sales on e-commerce
platform. As part of the promotion, every year in less than
an hour time frame, 111 cars are sold to consumers which
helps build the excitement towards campaigns that will
follow.
n11.com
The platform has reached more than 165,000 registered stores, 16 million members within six and a half years.
2019
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Related Group aims to provide the best marketing
automation and AI platform along with interactive services
and help our customers engage with their audiences in
a meaningful way. In accordance with its strategies on
digital marketing, Doğuş Group became an investor of euro.
message and Related Group in 2012.
Related Group incorporates the euro.message brand, which
is Turkey’s most prominent digital marketing platform that
allows its customers to manage interactive marketing
campaigns on a single platform through different channels.
Merging with euro.message, Related Group enters the
Turkey market as a leading email service provider with its
various online marketing services for different business
sectors.
Related Group offers web optimization and social media
measurement services after merging with Visilabs in 2014
and Semanticum in 2016. In 2016, after the integration
of euro.message and Visilab products under the
Related Marketing Cloud (RMC), Related Group created
the marketing automation platform that focuses on
omnichannel interaction, AI-based customization, and
social media-based business intelligence.
Therefore, Related Group has amplified its position in the
global market and has decided its London office to become
the center of its global operations with its new brand,
namely, Related Digital.
To serve its integrated solutions and services in a more
efficient work environment, Related Group, which is the
investment of Doğuş Group began to serve in the new office
that gathers the whole Doğuş Group companies altogether.
It has started to provide customization and automation
solutions by extending its long-standing collaboration with
the RMC platform to Estee Lauder Companies to 15 new
countries.
Related Group becomes to provide social media strategy,
customer experience modeling, and web/mobile
personalization services, considering the current needs of
the market by reconstructing the Madebycat interactive
agency. Related Group owns a much stronger position in
the market since the new version of social media tracking,
management, and analysis platform Semanticum launched
in 2017.
In 2018, for Turkey’s most preferred automation,
personalization and management platform of digital
marketing channels Related Group’s strategy is to sustain
its position as Turkey’s most preferred digital marketing
hub, through new company acquisitions and expanded
service offerings through new digital marketing products
and technologies. Related Group also continues to create
valuable partnerships in Europe and MENA to expand its
international presence.
With its investment in infrastructure, technology, and
operations in 2018, Related Group currently serves in 30
countries and has increased its technology exports in six
times compared to the previous year.
Related Digital product range expanded with a new
product in 2019.
Euromessage Express, which is the self-service e-mail
marketing product for Start-ups and SMEs in Turkey, was
developed. Product design and infrastructure works were
carried out in corporation with Related Digital and Doğuş
Technology.
Company organization studies supported the vision of
trouble-free service and perfect customer experience. Also,
product stabilization, R&D studies, and brand positioning were
provided by technology investments. For our growth strategy
in Europe and MENA Region, we develop a partnership with
many global companies like Microsoft. The investments of
human resources and marketing are increased by the Ministry
of Commerce incentives in support of local software and
digital service export.
RELATEDGROUP
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Doğuş Teknoloji was founded in 2012 with the excitement
of creating value in the field of information technologies
for Doğuş Group companies and, now, it carries out all the
necessary infrastructural studies and the adaptation of
systemic and software products in the field of information
technology.
While remaining to serve as an R&D center since 2017, it also
continues to be one of the companies which value people,
pursue new technologies with passion and revolutionize
the IT sector with an agile and reliable working culture.
The areas of expertise of Doğuş Teknoloji include the
design, development, installation, maintenance, updating
and troubleshooting of demands related to software and
information systems, determined as a result of the analysis
of business needs arising from the automation of business
processes, reporting, security and other reasons. Other
elements contain planning for the systems that will work
in coordination, ensuring their safety, monitoring the
operation and reporting anomalies, offering consultancy
service and managing all these processes.
Accordingly, Doğuş Teknoloji, which prioritizes customer
satisfaction, has started to provide services to brands other
than Doğuş Group in the field of information technology
as of 2018. Providing timely delivery and effective project
management services by reflecting its comprehensive
technological and sectorial operational experience onto
the products, Doğuş Teknoloji reviews and continuously
improves the methods with which it will meet needs,
offering the highest quality, in order to keep customer
satisfaction at the highest level and expand its customer
range with the principles of competence and reliability.
As of April 2019, Doğuş Müşteri Sistemleri (Doğuş Marketing
Services) operates under the trade name of Doğuş Bilgi
İşlem ve Teknoloji Hizmetleri A.Ş.
R&D CenterThere are currently 13 ongoing R&D projects at Şekerpınar
and 6 at Maslak R&D Centers, while 4 at Şekerpınar and 5
at Maslak were completed by the end of 2018. We have 123
researchers at Şekerpınar and 73 at Maslak R&D centers
respectively.
Being the most important output of our R&D Competency
Model, “R&D Games” were played successfully during the
year and 21 of our personnel became entitled to share a
total reward of TL 200.000.
In order to improve qualifications of our R&D personnel,
participation in 80 trainings, 50 domestic and 3 foreign
conferences were supported. Number of universities
contacted were increased to 25 in 2018, in order to build
a network of academic collaboration and intern provision.
During 2018, we made 3 grant applications for our projects
to TÜBİTAK Industrial R&D Projects Grant Programme and
all 3 applications were approved.
Achieving short term targets in 2018 with our distinguished
R&D management style, we have taken our place among
Turkey’s leading R&D centers. In 2019 we aim to strengthen
our eco system with universities and other R&D companies
in order to increase our experience in both domestic and
international grant programs.
DOĞUŞ TEKNOLOJİ
Doğuş Teknoloji has 123 researchers at Şekerpınar and 73 at Maslak R&D centers respectively.
Service Design Doğuş Technology believes that to achieve effective results
for both customer and business owner satisfaction it has
to start with a service design process. A team of service
design experts work closely with our clients to improve the
quality and interaction between the service provider and
its customers.
Below is a list of some of the Company’s products:
TurkuazA large scale enterprise software used by Doğuş Otomotiv,
as well as all its authorized dealers / service providers, OEMs,
and suppliers, which adds value to all automotive processes.
It is a fully integrated system that provides instantaneous
data access and analysis capabilities for all brands, modules
and points of operation.
D-SuitD-Suit is a tool provided by Doğuş Technology that digitizes
the complete work processes of Doğuş Group companies.
Allowing the employee to complete any form ranging from
expenditure forms to leave terms in the digital environment
with a single software, D-Suit will remove the paperwork
etc. approval processes and aim to save from time and
costs. On the other hand including the Procurement,
Human Resources and Asset Management, it will ensure
the standardization of all processes of a company.
DO’lu HayatDo’lu Hayat has become a social network that bring the
social media experience to the office and increase the
collaboration in the organization. It allows single point
access to news regarding Doğuş Group, to discounts,
awards, events and furthermore it allows following persons
or groups and increase interaction and sharing with
followers or groups.
• Vehicle Planning, Ordering and Sales (Distributor &
Dealer)
• After Sales Services
• Spare Part and Logistics
• Customer Relationship Management
• Financial & Administrative Affairs, Finance
• Integrated Accounting Application
• Reporting and Business Intelligence
• Numerous integration points by producing companies-
vendors
DODSecond hand vehicle sales system for Doğuş Otomotiv and
authorized dealers.
MYSCost tracking and reporting system developed for Doğuş
Construction. Costs, incomes and projects transferred
into the system. Calculation algorithms are run at certain
intervals. Detailed costs of projects can be observed in
different aspects.
D-İnsanIntegrated employee performance evaluation system.
VIAOnlineVehicle Inspection Automation software developed
for TÜVTURK, which is used in more than 200 vehicle
inspection stations.
VDFNetAuto Loan System - Credit application, assessment,
drawdown and tracking system developed for VDF Finance
Company.
VDF Factoring SystemDeveloped for VDF Factoring Company. It’s a solution for
authorized dealers to supply stock finance. It consists
of invoice tracking, collection and payment schedule
functions.
VDF InsuranceDeveloped for VDF Insurance. This application consists of
on credit or non-credit sales of insurance policies of VDF
Insurance products.
Fleet Management System Developed for VDF Fleet Company. It consists of
management of proposals for long-term car rentals,
contract management, operation management and
collection functions.
BOSBroker Automation System developed for TDB Insurance. It
consists of sales of insurance policies and management of
TDB Insurance products.
PYSPolicy Management System developed for Doğuş Insurance.
It consists of management of Insurance products as well as
Doğuş Group assets and general ledger.
QSmartA service management suite developed for Samsung
Electronics Turkey. The system consists of Customer Service,
Pickup and Dealer applications used in Samsung mobile
device service locations and dealers spread in Turkey.
Aria Marina Management SystemAn application developed for all marinas under D-Marin
Marinas Group which comprises customer and boat
management, offer / bidding, reservation, contract process,
management and monitoring all sorts of boat operations,
finance and accountancy integrations, reporting and all
other global integrations.
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D-ERPFinance software to set up an ERP foundation for the Group
companies, starting with Doğuş Holding Headquarters.
MISA restaurant management application / software for the
restaurants within Doğuş Restaurant Entertainment and
Management - d.ream.
Axapta ERP SoftwareAn end-to-end ERP software developed for merchandising
and all operations of Crate & Barrel Brand, which is
incorporated by Doğuş Avenue. All Russia and Turkey
operations are conducted by this system.
New Accountancy SystemA reconstruction of the accountancy system’s infrastructure
and interfaces, considering the necessities for E-book/
journal.
Web Site ServicesDoğuş Teknoloji, with its award-winning design agency
Madebycat inside provides user centric design, development
and technical support for over 300 web sites which are
owned by Turkey’s well-known brands.
Document Management SystemDocument Management System used for storing, managing
and sharing Dogus Group documents in safe and secure
standards.
DPAYCredit card payment integration infrastructure used by DMS,
Crate&Barrel, ANTUR, Doğuş Enerji, Porsche, Doğuş Oto,
D-Resort and Mobilet. Includes virtual POS integration with
all national banks, PAYCELL, MasterPass and GarantiPAY.
DOĞUŞ MARKETING SERVICES (DMS)
DMS was established as a data-driven marketing company
in 2014 in order to provide integrated CRM, database
management, cross-marketing and customer experience
enhancement services. The first order of operation when
DMS was formed was to collect Doğuş Group Companies’
offline data into a central data repository to understand
who Doğuş Group’s customers are. DMS is in charge of
managing Doğuş Group’s Central Data Warehouse, which
currently consists of nearly 13 million unified offline data.
ZUBIZU, the lifestyle loyalty platform developed by DMS, has
reached nearly 3,5 million users. Alongside B2C endeavors,
DMS also offers consultancy and data analytics services to
corporate clients.
DMS has many third-party brand alliances and strategic
partners working alongside Doğuş Group Companies
such as the leading finance, telecom and entertainment
companies operating in Turkey.
The vision of DMS is to create cross synergy opportunities,
direct communication within the Group Companies
and a shared database. DMS aims to increase customer
engagement and generate innovative solutions through a
new approach based on customer profiling and providing
the highest quality services.
DMS leverages a wide range of brands, products and
services to achieve its objectives, including:
BRANDS
ZUBiZU, a lifestyle and entertainment mobile application
with currently more than 400 brands at 15,000 point of
sale (ranging from retail stores, grocery chains, gas stations,
restaurants to travel agents and telecom operators), was
launched officially in April 2016. Program members get
special discounts and entry to special events. Besides these
benefits, ZUBİZU also provides the users with latest trends
and unique contents according to their interests. There are
also convenience functions for the members such as online
restaurant reservation, mobile payment, hotel reservation,
and ticketing. ZUBİZU has nearly 3,5 million customers.
As of April 2019, Doğuş Müşteri Sistemleri (Doğuş Marketing Services) operates under the trade name of Doğuş Bilgi İşlem ve Teknoloji Hizmetleri A.Ş.
REZERVİN, an online restaurant reservation mobile
application, was launched officially in July 2015. Rezervin
receives reservations through multi channels (Rezervin
mobile application, functional website, call center, ZUBİZU,
and widgets that are placed on member-restaurant
websites). With its extensive category lists and suggestions,
it helps its members to find and reserve fine-dining
restaurants based on cuisine, location and availability of
their choice.
BRANDMAIL, connects exclusive brands and
organizations with members of its opt-in database of over
600,000 members from partners. The Partners are A+
brands such as airlines, luxury restaurants, etc. Brandmail
sends out newsletters based on members’ interests, age
and gender, amongst other demographics, making it easy
to create campaigns that directly reach the target audience
since 2008.
SERVICES & COOPERATIONS
DMS Travel & Concierge, was established by Dogus
Marketing Services and Antur in order to serve the best
travel and lifestyle concierge experiences to their customers
worldwide. It offers a wide range of services including
flight, hotel and restaurant reservations, airport transfers,
city tours and activities, visa services, event organizations,
gifting, event ticketing and tailor-made travel itineraries.
With its broadly experienced team in the tourism industry,
DMS Travel&Concierge offers customized solutions to its
customers on a 24/7 basis. DMS Travel & Concierge started
its operations on March 2017, serving to Garanti Bank’s
customers and then expanded its business by serving QNB
Finansbank and Yapı Kredi Bank’s customers.
DMS has initiated a DMP (Data Management Platform)
project in 2017, a digital data driven marketing tool, enabling
the company to consolidate its online and offline data to
conduct more extensive customer segmentation with a
single customer perspective. The platform is fed by online
and offline data derived from Doğuş Group companies
operating in a variety of industries, including Automotive,
Retail, Tourism, Media and Food & Beverage. The platform will
enable DMS to know Doğuş Group customers with deeper
insight, redirect the relevant marketing communications to
targeted audiences through the right digital platforms and
channels, help Group Companies monetize their data while
optimizing their digital marketing budgets. These business
objectives are achieved through gathering customer data
from both offline and online customer touch points and
categorizing this data according to customers’ business
needs and utilizing the data for both Group and non-group
companies to conduct their digital marketing activities with
the right audience and through the right channels; thus
adding value to customers’ digital marketing endeavors.
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market in 2020 compared to the past years, general
economic markets, strengthening of the dollar exchange
rate and the current supply.
Turkey Real Estate Market in 2019 and Future ExpectationsIn Turkey Residential Sales Price Index for December 2019
Real estate type apartments in the monthly rate of 1.02
percent, a nominal increase on an annual basis Considering
the level of 8.23 percent was recorded. During 2019, there
was an average 0.66 percent increase in house sales prices
on a nominal basis, while the real change adjusted for
inflation was down by 0.27 percent. During 2019, house
sales prices increased by 7.95 percent in nominal terms in
total; On a real basis, housing sales prices decreased by 3.24
percent in total.
In Turkey Residential Lease Value Index, apartment types
are monthly rate of 0.43 percent, while the level of 9.04
percent when viewed on an annual basis in question is
a nominal increase are in December 2019. During 2019,
an average of 0.73 percent increase was observed in the
housing rental values on a nominal basis, while the real
change adjusted for inflation was decreased 0.21 percent.
During 2019, housing rental values increased by a nominal
rate of 8.71 percent; On a real basis, housing rental values
decreased by 2.49 percent in total.
Real Estate Sector Confidence Index was measured as
Partially Pessimistic in 2019 with 84.9 (average of four
quarters). The Real Estate Sector Confidence Index, which
was Partially Optimistic with 103.8 in the first quarter of
2020, is an indication that the confidence in the sector
turned positive.
The Real Estate Sector Price Expectation Index was
measured as Partially Pessimistic with 91.6 (average of four
quarters) in 2019, and Partially Optimistic with 126.8 in the
first quarter of 2020.
While the confidence and price expectation were negative
in 2019, tables have turned in 2020 to positive.
ACTIVITIES IN 2019
The sale of the RETAIL product, which can perform
location analysis with machine learning techniques, has
started. Thus, the selection branch location analysis, sales
forecasting Toamasina up on many issues, Turkey and Dubai
continue to allow the market to be analyzed independently
of administrative boundaries and outside customers in the
rapidly growing real estate portfolio.
Thanks to INSIGHT’s new capabilities, the real estate sector
started to move its decision support systems to the top.
With INSIGHT, companies can access price indexes and
detailed prices in all locations.
REIDIN homepage has started to be defeated on
www.reidin.com and all social media accounts. In the
middle of the second quarter of 2020, it is aimed to renew
the accounts in all media.
FUTURE PLANS
AVM 3.0 - A new product, which continues to be developed
specifically for the real estate sector and that allows
individual customers to analyze their real estate, will
be ready for Q4 2020. With this product, it aims to add
individual customers to the REIDIN portfolio as well as
corporate customers.
Tests developed specifically to CMA Estate Agent is about to
end, in 2020 to work full Web and mobile design compatible
with Turkey and the United Arab Emirates in the market as
of 3Q 2020 is planned to be released.
Since 2007, we have been known for being the leading
provider of property data and real estate information
company for emerging markets. From being the first
company to offer price indices enriched with hard-to-get
real estate data in Turkey and UAE, we have become a global
player in Data Analytics and Data Science utilizing the most
advanced AI algorithms and techniques to process large
amounts of our proprietary and client data. Today we are
a multidisciplinary Data & Analytics Company helping our
clients make better strategic decisions, increase revenues,
lower costs, and beat competition. Among our clients are
government organizations, banks, insurance companies,
retailers, property developers, brokers, consultants, and
appraisers.
PRODUCTS
• REBIS – Real Estate Business Information Service
• REIDIMAP – Real Estate Investment & Development
Information Map
Dubai Real Estate Market in 2019 and Future ExpectationsThe Dubai Residential Property Sales Price Index for all
residential decreased by 1.4 points, from 216.2 to 214.8,
which represents a decrease of 0.63% in December 2019.
Prices also decreased 6.13% y-o-y.
The Dubai Residential Property Rental Price Index for all
residential decreased by 0.6 points, from 73.6 to 73.0, which
represents a decrease of 0.76% in December 2019. Prices
also decreased 8.4% y-o-y.
Despite the price drops in the Dubai Real Estate market,
there was an increase in sales of both new housing (units
sold by real estate developers) and ready-made housing
compared to the previous year. New house sales increased
by 35 percent compared to the previous year and reached
23,733 units, while ready-made housing sales increased by
5 percent to 18,378 units. Among the reasons for this rise,
cheap housing prices are seen as attracting more attention
of investors and the increase in the population of the living
in the country.
In 2019, approximately 36,000 new residences were added
to the Dubai market and the total housing stock in the free
zones (regions where international investors can invest in
housing) reached 375,000 units. It is among the delivery
numbers realized after 50 years. Indeed, although these
differences may be a negative situation for investors, it
may be other, the decrease in the supply in the real estate
market, the sudden price changes. 2019 Seyh Maktoum bin
Muhammed bin Raşid Al Maktoum decided to establish
a committee to better balance the supply-demand in the
real estate market.
The number of residences expected to enter the market in
2020 is expected to be around 60,000. As we have stated
above, there will be a difference between what is expected.
Over the past December, the Dubai government has
announced its 2020 and 2021 budget as 196 Billion AED.
It was announced that it will support Expo 2020 fair. It
has been announced that it will be used for Expo and real
estate development.
In the light of the real estate market trends and macro-
economic factors mentioned above, sales & rental prices
are expected to follow a similar direction with the previous
years due to the increase in transactions in the real estate
REIDIN
REIDIN homepage has started to be defeated on www.reidin.com and all social media accounts.
2019
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Zingat.com started operating in cooperation with Doğuş
Group and REIDIN in 2015. Zingat.com is a reliable real
estate information and marketing platform that brings
together real estate professionals and individuals under
the same roof with true and comprehensive reference
information by adhering to the concept of high quality
service and transparent information.
Zingat.com with the mission of “Property. Knowledge. Trust.”
is a source of information and a meeting point in Turkey for
real estate sellers/renters, for those who make investments
in the real estate sector, for those who make professional
earnings in this sector and for those who search for a new
home.
The Turkish Real Estate Sector – 2019 The number of realized house sales was 1,348,729 according
to the house sales statistics published by the Turkish
Statistical Institute (TUİK) in the year of 2019. The total
number of houses sold in Turkey throughout the year of
2018 was 1,375,398. Housing sales to foreigners increased
significantly while total house sales declined by 1.9%
compared to the previous year.
While house sales across Turkey recorded as 332,508
mortgaged and 1,016,229 other type of sales, the share of
mortgaged sales was 24.7%. First hand house sales realized
as 511,682, and second hand house sales were 837,047 in
2019.
Istanbul had the highest share of house sales with 17.6%
and 237,675 houses. The followers of Istanbul were Ankara
with 132,486 house sales with 9.8% and Izmir with 79,221
house sales with 5.9%. Ardahan was the province with the
least number of house sales with 185 houses.
House sales to foreigners left its mark on the year 2019.
House sales to foreigners last year were recorded as 45,483
by increasing 14.7% compared to the year of 2018.
The followers of Istanbul were Antalya with 8,951 houses,
Ankara with 2,539 houses and Bursa with 2,213 houses.
Iraqi citizens kept their first rank position by having bought
7,596 houses from Turkey in 2019. Iranian citizens with 5,423
houses, Russian citizens with 2,893 houses, Saudi Arabian
citizens with 2,208 houses and Afghan citizens with 2,191
houses followed Iraqis in terms of house ownership in
Turkey.
While 775,653 (57.5%) houses were bought by men and
420,276 (31.2%) houses were bought by women, 24,141 (1,8%)
houses were bought jointly by men and women across
Turkey last year. Istanbul became the province in which the
most house purchase realized by women with 66,414 (15.8%)
house sales. 126,170 houses were bought by men in Istanbul
in 2019. The number of houses jointly bought by men and
women were recorded as 5,337 in the city. Ardahan became
the province in which the least number of house sales were
realized with 46 houses by women and 125 houses by men.
Zingat.com
Zingat.com has succeeded to be one of the first three actors among the vertical portals that provide services in the sector in a short period and reached 6 thousand corporate clients in 2019.
2019 ACTIVITIES
• Zingat.com has succeeded to be one of the first three
actors among the vertical portals that provide services
in the sector in a short period and reached 6 thousand
corporate clients in 2019.
• While 271,246 total real estate ads appeared on Zingat.com
in 2019, the number of monthly visitors has increased to
about 6 million by the end of 2019.
• Having set out with the motto of “Property. Knowledge.
Trust” as a real estate and information marketing platform,
Zingat.com’s new commercial film was broadcasted in
the month of May. The common slogan of the commercial
movie “Zingat Find Me A House” conveying the service,
which transforms the process for people who looking for
houses to buy or to rent, into a fast and painless form,
in a witty saying was “Zingat searches the house you are
looking for, finds it and it brings you together.”
• Outdoor advertisements were conducted in 16 provinces
in line with the year 2019 objectives. Marketing
communication was supported by campaigns on local
and national radio channels and by the commercial film
in 15 provinces.
• Zingat.com signed a cooperation protocol with the
Vocational Qualification Centers A.Ş. (TOBB MEYBEM)
which was established by the Union of Chambers and
Commodity Exchanges of Turkey (TOBB). With that
protocol Zingat.com aimed to generalize the use of MYK
Vocational Qualification Certificate which was made
mandatory by the Turkish Commerce Ministry and to
increase the knowledge and skills of those candidates
beforehand who will take the examination. Zingat
contributed to the registered real estate professionals’
preparedness for MYK Vocational Qualification
Examinations by establishing its training infrastructure
and by conducting organizations.
• Zingat.com has started to offer a brand new experience
customer experience to the families who are in the
search of a house near the school by its newly developed
app: Zingat Okullar. Information about thousands of
educational institutions is obtainable and updated real
estate for sale and rent can be listed on the Zingat Okullar
page which consists information about 70,000 schools
across the country. From this aspect, Zingat Okullar is
assessed as the easiest, fastest and shortest way to find a
house for sale and rent near the school.
• Zingat presented its new R&D project to the international
companies and academicians at the Conference on
International Computer Sciences, Machine Learning
and Big Data which was held in Istanbul by WRFASE
in November 2019. The paper’s presentation heading
was “The Artificial Intelligence Supported Optimum
House Price Determination Model for Turkish Real Estate
Market”. Zingat is continuing R&D projects in the Turkish
real estate sector as the owner of the first Onsite R&D
Centre approved by the Ministry of Science, Industry and
Technology.
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Since its foundation, TDB Sigorta ve Reasürans Brokerliği
A.Ş. (TDB) has adopted a customer-oriented approach to
service. In 2019, the company increased its risk capacity,
especially for corporate affairs, by acquiring a reinsurance
license and accelerated its meetings with global reinsurance
companies. TDB increased the number of its business
partners in the automotive sales channel in 2019 and has
been carrying out the management of insurance processes
at approximately 56 car dealerships on behalf of its business
partners. The company generated a total premium of 100
million Turkish lira and achieved 102,000 policies in 2019.
Having strengthened its digital insurance infrastructure with
additional investments in 2019, TDB aims to reach a wider
customer base in 2020 with the sigortaladım.com brand.
With its new corporate identity, sigortaladım.com aims to
become the most popular brand in the online insurance
industry. The platform offers customers a comparison
of the most suitable insurance offers from 22 insurance
companies online and via call center and allowsthem to
purchase their product of choice quickly, hasslefree and
securely. In addition to this, sigortaladim.com will offer a
different experience not only at the time of the sale but also
after the sale with the Car Insurance Claims Hotline that will
provide 24/7 service.
sigortaladım.com
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The company provides calibration, periodic inspection
and maintenance and repair services throughout Turkey
with workshops and warehouses in five provinces of Turkey
and four mobile laboratories. In 2019, revenues rose by
approximately 20 percent, with turnover increasing to over
TRY 20.6 million from TRY 17.2 million in 2018.
SALES AND PROMOTION EVENTS
The company expanded its sales network and volume by
sharing its activities with 130 companies at Automechanika,
Turkey’s leading international trade fair for the automotive
industry, from April 4 to 7; with 147 companies at Kalite,
the only metrology fair in Turkey, from October 23 to 26;
and with 113 leading industry executives by sponsoring a
meeting of the Defense, Aviation and Space Association
(DASA), a major association representing the Turkish
defense industry, on October 19.
In addition, company promotional videos were created
in two different lengths (1 and 3.5 minutes). These were
published in all promotional events and also on YouTube.
PERSONNEL AND FACILITY INVESTMENTS
After the second mobile laboratory was accredited,
investments for the third and fourth mobile laboratories
were also completed, and the laboratories started operating
without accreditation.
In 2019, the number of employees increased to 52 from 44.
In addition, continuous technical and theoretical training
was provided by Turkey’s leading scientific institutions
(TÜBİTAK, YUKAL, Boğaziçi University, and so on) to improve
employee competence.
TDB KALİBRASYON
After celebrating the third anniversary in 2019, TDB has expanded the scope of its certification activities in order to provide services to companies in different industries (temperature, electricity, time and frequency and high frequency) and widened the scope of its services to include every province of Turkey with its unique accredited mobile laboratory service that it introduced to the calibration industry in Turkey.
D-Gym is a high-quality health club equipped with the
most advanced technological infrastructure and has been
serving in the area of sports and healthy lifestyle in Turkey
since 2009. The complex aims to promote the message:
“Improve the way you exercise, Improve your quality of life,
Change for the better.” In accordance with this purpose,
being the most comprehensive fitness club D-Gym Etiler,
began its operations in 2015, January. The club prides itself
on offering a large variety of zones and instruments such
as multi-purpose studios, a swimming pool, a basketball
court, a squash court, a pilates studio, an H.I.P.T studio, a
kick-box studio, kinesis devices, table tennis, CoreAlign unit
and many other professional services including nutrition
counselling.
The spa service of the club is customized to our guests for
massage, traditional Turkish bath, steam rooms, saunas,
relaxation lounges and skincare. The facility also has a
special parking garage for D-Gym members.
D-Gym is the only facility having ambulance and doctor
service in Turkey. The facility takes place on 8,500 m²
area with 25 professional trainers. D-Café, located within
D-Gym, welcomes members and non-members offering
a tempting and healthy menu, which combines local and
seasonal ingredients.
D-GYM
D-Gym is the only facility having ambulance and doctor service in Turkey. The facility takes place on 8,500 m2. area with 25 professional trainers.
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Körfez Havacılık Turizm ve Ticaret A.Ş.(Körfez), under the
affiliation of Doğuş Group, was formed in 2007 and in May
2008 received its Operating Certificate (AOC) from the
Turkish Civil Aviation Authority. Körfez’s fleet, comprised
of one Gulfstream 550, one Airbus H145 helicopter and
one Sikorsky S76C++ helicopter, is authorized to operate
commercial flights domestically and internationally.
Körfez Havacilik does also conduct management of one
Gulfstream 450 under its AOC.
The company’s main operations center is at the General
Aviation apron of Istanbul Atatürk Airport. Körfez has its
own special hangar in which the aircraft are based and
where the experienced technical personnel perform regular
maintenance, when necessary. Maintenance is performed
at authorized service centers under the observation of the
team of experts.
The company has established and applies a Quality
Management System (ISO 9001:2008) for Air Taxi
Management. The company has a compliance with national
and international aviation rules and its implementing rules.
KÖRFEZ HAVACILIK - KÖRFEZ AVIATION
Körfez has its own special hangar in which the aircraft are based and where the experienced technical personnel perform regular maintenance, when necessary.
Doğuş Group strongly values entrepreneurship and
entrepreneurial spirit amongst its employees. As a result,
Doğuş Group’s Corporate Entrepreneurship Programme,
InvenDO, was established in 2016. This program aims to
promote the development of creative and innovative
projects within the Group, and to nurture employees’
entrepreneurial spirits.
In order to manage the programme in a more professional
and efficient manner, a subsidiary of Doğuş Holding was
established under the name Doğuş Yeni Girişimler ve
Projeleri A.Ş. in 2017.
Doğuş Yeni Girişimler has 2 purposes to serve. One of them
is closed innovation. With respect to that purpose, corporate
entrepreneurship programme has been executed since
2016.
The first start-up that is incubated from this programme
is Stokartı, which is a marketplace platform that enables
companies from various countries and sectors, including
contractors, subcontractors, repair shops, spare parts
resellers, equipment rental companies, to list and sell their
used equipment and/or new old spare parts. As of 2019,
there are more than 500 corporate members (out of which
200 are global) with listings of 30,000 products on the
platform. Up until now, Stokartı has mediated the export of
these products to 12 different countries.
The second start-up that is incubated from this programme
is Aktivido, which is an outdoor and experience based
activity platform. This marketplace mediates the
transactions of the customers from the activity providers
active on the platform. As of 2019, there are more than 150
activity providers with more than 500 products on Aktivido.
After the pilot stages, both of these projects are funded for a
period of 12 months starting from February 2019. Following
this period, if the projects aforementioned can meet the
KPI targets, spin-off companies will be established under
the umbrella of Doğuş Yeni Girişimler.
InvenDO accepts Project applications from Dogus Group
employees all year long.
The third programme was executed in 2019 and 2 start-ups
are in the pilot stage.
The second purpose that Doğuş Yeni Girişimler serves is
open innovation.
We believe that innovation comes not only comes from the
inside of the Group, but also from the outside. Therefore
we are willing to introduce innovative companies with
innovative products and services to the Group companies
which might lead to strategic partnership opportunities.
Therefore, Doğuş Yeni Girişimler actively scouts the Turkish
start-up ecosystem with the help of its strong connections
to angel networks and VCs.
In 2019, about 300 start-ups have been scouted. Out of this
300, 20 start-ups were taken to upper management and 6
start-ups are in the POC process with several Doğus Group
companies.
We aim to increase the number of start-up partnerships in
the following years which will lead to innovative products
and services within the Group companies.
iNVENDO
Doğuş Yeni Girişimler actively scouts the Turkish start-up ecosystem with the help of its strong connections to angel networks and VCs.
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CorporateSocial
Responsibility
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INHERENTLY A BETTER FUTURE FOR ARTS
We support the promotion of arts, the lifelines of a
progressive society. We have served as main sponsor of the
PRESIDENTIAL SYMPHONY ORCHESTRA OF TURKEY for
the past 12 years, and the founding sponsor of the BODRUM
MUSIC FESTIVAL, which meet with music enthusiasts in
Bodrum every summer, and A SPACE FOR ART, which
brings the works of young artists to art enthusiasts.
Presidential Symphony Orchestra of Turkey*One of the few special orchestras in the world that has
managed to survive to date. In 2007, Doğuş Group signed
an agreement, with the Ministry of Culture and Tourism,
to become the main sponsor of the orchestra aiming to
support its success around the World.
A Space for Art Doğuş Group has dedicated much effort to providing
“Inherently a Better Future for Art” since 2015 through “A
Space for Art” platform to support the development of
all art forms in Turkey. The Platform aims to provide an
opportunity for university students to exhibit their works
and ensure they are not lost in small spaces in big cities.
The “Space for Art” platform breaks away from
conventional exhibition techniques taking it to streets
and meets the unexpecting viewers in surprising
ways with works of young artists. These spots of
encounter become a meeting point for both viewer
and young artists who want to share their artistic
output. The Platform carried out group exhibitions,
pop-up exhibitions, talks and related events via
digital exhibitions and alternative locations and have
reached to more than 8,000 art lovers since
its earliest days. The website of the Platform is
a yearlong digital exhibition and has over 1,000
members with more than 6,000 works uploaded
and its ever-growing. Until today, more than 700
works of 300 art students have been exhibited in
restaurants, showrooms and festival venues owned
by Doğuş Group and over 100 of them founded
their new homes.
Ara Güler Museum and Ara Güler Archive and Research CenterAGAVAM operates within the fold of a company
entitled Ara Güler Doğuş Sanat ve Müzecilik A.Ş. that
was established in 2016 as a result of an agreement
between Ara Güler and the Doğuş Group. Its task is
to preserve the Ara Güler Archive, one of Turkey’s most
important photographic archives, as an integral whole,
and to ensure that it is passed on to future generations.
Meanwhile, the Ara Güler Museum, opened at Istanbul
Yapı Kredi Bomontiada last year on Ara Güler’s 90th
birthday, is carrying out a number of activities with
the aim of bringing the work of this highly important
photographic artist to the attention of a wider public. The
aforementioned two institutions, which are professionally
managed and non-profit-making in nature, are mutually
supportive both from the operational point of view and in
terms of content. The archive team, led by Doğuş Group
Arts Advisor Çağla Saraç, is sorting through and classifying
hundreds of thousands of pieces of work by Ara Güler; it
is compiling an inventory and carrying out the processes
of digitalisation and indexing – in addition, of course, to
the task of preservation. The team’s current goal is to
make the various collections in the archive available to
photography enthusiasts and researchers via a portal.
Bodrum Music FestivalDoğuş Group continues to provide support for the
development of classical music, striving to ensure its
access to a wider section of the population and
help Turkish artists produce world-class pieces. Since
2005, Doğuş Group has been organizing the Bodrum
Music Festival in Bodrum. This Festival highlights
the support that is required for the development
of diverse forms of music. The proceeds obtained
from the Festival are donated to the Tohum Autism
Foundation, Bodrum Health Foundation and to the
Kelebek Çocuklar Foundation for the first time in
2019. The Festival has already constituted a loyal
audience of its own, constantly increasing each year.
Since 2005, the Festival has reached over 230,000
audiences and held almost 4,000 artists within 130
concerts. The goal is to foster a growing interest
in the festival in the years to come, thereby
disseminating a taste for classical music in the
general public and hosting international artists and
orchestras more often in Turkey.
INHERENTLY A BETTER FUTURE FOR SPORTS
This country will be the birthing place of many a great
athlete… This is our wholehearted belief as we proudly
support the Fenerbahçe Sailing.
Fenerbahçe Sailing Branch Sponsorship Creating the best teams not only in Turkey but of the World.
4-year sponsorship activities, which will continue until
2020 includes the restoration of the Fenerbahçe Sailing
All our endeavors have but one goal: to help this country and its people to achieve an inherently better future. For history, children, arts and sports...
* The contract ended at the en d of August 2019.
OUR CREED
We invest in the future. The future of our country…
In improving the lives and increasing the living standards of
its people… We wish to allow our children grow with sports
and arts, and become the architects of our tomorrow. We
wish to preserve the rich history of this land, and pass it on
to future generations. It is these goals that have brought
Doğuş Group the proud achievement of becoming one of
Turkey’s biggest investors in corporate responsibility efforts.
All our endeavors have but one goal: to help this country
and its people to achieve an inherently better future. For
history, children, arts and sports... Inherently a better future,
with Doğuş.
WHAT WE DO
We wish to leave our mark in people’s lives. With corporate
responsibility projects we undertake in a variety of areas,
we are returning to the society what we have earned. We
support the establishment of a modern lifestyle as we blaze
towards a more modern future, together. The overarching
motto of our projects, “A Good Future by Doğuş” was born
for the purpose of making these goals a reality. For us, it is
not a mere tagline to our logo; it is the foundation of all of
our projects.
We are entrusted with the duty of working for a better,
modern future with higher standards of living. And we
are proud to be Turkey’s biggest investor in corporate
responsibility with over 9 projects in different areas.
INHERENTLY A BETTER FUTURE FOR CHILDREN
We wish to see children grow up into conscientious
individuals through music and pave the way for world-
class maestros of the future with DOĞUŞ CHILDREN’S
SYMPHONY ORCHESTRA.
Doğuş Children’s Symphony OrchestraDoğuş Children’s Symphony Orchestra was established in
2005 as Turkey’s first national and permanent children’s
symphony orchestra. The Orchestra is comprised of
conservatory students between 11 and 18 years of age from
different regions of Turkey, and introduces the wonder of
symphonic music to Turkish children as performed by their
peers. Since its establishment, Doğuş Children’s Symphony
Orchestra performed 72 concerts, both in Turkey and
abroad, brought together more than 800 young students
reaching a total audience of 94,000.
INHERENTLY A BETTER FUTURE FOR HISTORY
We realize that the way to a bright future lies in embracing
our common roots…
For this reason, we sponsor the efforts for unearthing,
preserving and promoting GÖBEKLİTEPE, a world heritage
with a history going back almost twelve millennia, while
also developing a world-class visitor center at the site.
GöbeklitepeDoğuş Group is committed to develop and implement
social projects that enrich the society and preserve our
heritage for future generations, and Göbeklitepe is one
of the Group’s flagship projects. Acting with a vision to
make Göbeklitepe a global icon, Doğuş Group signed a 20-
year agreement with the Turkish Ministry of Culture and
Tourism. Doğuş Group sponsors excavation, research and
preservation works in this groundbreaking Neolithic site.
In addition to sponsoring the critical ground work that will
help the us gain deeper understanding of the Göbeklitepe
site, Doğuş Group has also built a world-class visitor and
exhibition center and donated vehicles for transport of
visitors from the visitor center to the site itself. The goal of
the sponsorship is to make Göbeklitepe a global icon that
draws millions of tourists every year through worldwide
communication campaigns.
CORPORATE SOCIAL RESPONSIBILITY
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section searching with keywords (in Turkish) such as speed,
babyseat, smartphone, trafficislife, seatbelt, passenger,
pedestrian, travel, safety, life, dogusotomotiv, brake, gas,
bicycle, and motorcycle.
Just as in earlier years, the Facebook Chat Bot application,
which had been used within the program for the first time
in a social responsibility project, was provided to those who
take the exam to get a driver’s license in 2019 as a study
aid that asked them questions - approved by the Ministry
of National Education - that appeared in the tests of prior
years. A total of 161,779 participants have benefitted from
the application - which aims to measure the participant’s
level of knowledge before the actual exam - since December
2017.
The Traffic is Life! platform sent messages to a total of
87,775,401 people on Facebook, and 943,145 people on
Instagram, thanks to the social media communications it
published throughout 2019.
HOP!The Traffic is Life platform aims to inform not only drivers
but everyone with the goal of enhancing traffic safety in
general. The platform also carries out projects towards
cyclists, who experience the highest percentage of injurious
accidents in traffic and therefore are one of the groups that
require the most attention. The HOP! mobile application
launched in 2017 warns pedestrians and drivers if there is
a cyclist within 30-40 meters. Aiming to prevent accidents
this way, HOP! was further developed with Blesh integration
in 2018, allowing both cyclists and drivers to receive and
send signals even without downloading the application. In
2019, a total of 133 people downloaded the application and
benefited from its features.
Remote education for more than 25 thousand students at 14 universitiesIn 2019, the Traffic is Life! platform continued its
“Traffic Safety Remote Education” - started in 2013 -
for the purpose of creating a cultural transformation
in society about traffic, which is the fundamental
mission of the platform. The remote education,
offered in the category of “Elective Social Courses”
recommended by the Council of Higher Education, is
the first social responsibility project that has entered
the university SCORM system with its traffic safety
content. The project has so far reached more than
25,000 students from 14 universities.
Taking advantage of Doğuş Group’s synergy, the platform
continued to build efficient collaborations in 2019. The
Pictoos character, which was created by Varol Yaşaroğlu
in 2017 in order to remind children of traffic rules and
teach them about them, is offered as a coloring page
along with the kids’ menu at Mezzaluna and Kitchenette
restaurants belonging to Doğuş Group. This way, children
color the traffic-related visuals of the Pictoos character,
simultaneously gaining awareness about traffic and having
a good time.
2020 GoalsThe Traffic is Life! platform intends to continue its efforts
aimed at creating a positive culture in traffic for all sections
of society and raising awareness through interactive
projects and field activities that will allow the platform to
reach large swathes of society and make its voice heard.
Ayhan Şahenk FoundationIn the footsteps of Ayhan Şahenk, the late Founder and
Honorary Chairman of Doğuş Group, and in line with its
mission and duties stated in the articles of foundation, the
Foundation, as in previous years, continued to be engaged
in the fields of education, culture, health, and environmental
and social responsibility to relieve the burden on the
government for running such social services and contribute
to the needs of society and those in need in 2019 as well.
Throughout the year, we have carried out projects in
education, health, culture, and environmental and social
responsibility, giving priority to education and health
projects while putting children, the cornerstone of our
future, first.
In 2019, 19,146 people in need benefited from the eye and
general healthcare services that we have been providing
with our Mobile Healthcare Units for 22 years. Children
constituted 84 percent of this number. From the beginning
of the project to the end of 2019, nearly 550,000 people
benefited from the health services we provide with our
Mobile Healthcare Units.
As part of our efforts to support healthcare providers and
patients, we also provided medical devices to public health
The Foundation continued to be engaged in the fields of education, culture, health, and environmental and social responsibility to relieve the burden on the government for running such social services and contribute to the needs of society and those in need in 2019.
Branch facilities, and the support of professional and
amateur athletes in the international arena. Besides, Doğuş
Group’s ambition is to contribute to the recognition and
development of sailing in Turkey.
INHERENTLY A BETTER FUTURE FOR THE SOCIETY
TRAFFIC IS LIFE has been our rallying cry for 15 years as
we strive to promote an awareness of traffic safety in all
segments of society. We are also working actively to raise
the bar in living standards in our country through a variety
of projects developed by the AYHAN ŞAHENK VAKFI in
fields with a direct impact on the society, particularly
health, education, and environment.
TRAFFIC IS LIFE!As Traffic is Life!, the longest social responsibility
project of the automotive sector, celebrates its 15th
anniversary, it aims to raise safety awareness and
develop a positive culture about traffic with the
practices it creates in light of society’s needs and
expectations.
Considering sustainability as part of its strategy, Doğuş
Otomotiv conducts its efforts with a sense of responsibility
towards its stakeholders and society at large. Setting out to
create a positive cultural transformation in society regarding
traffic safety, the Company launched Traffic is Life! in 2004
as a social responsibility project that will contribute to social
development and leave its mark for future generations.
The Traffic is Life! platform has carried out awareness
studies towards various target audiences for 15 years as
the longest social responsibility project in the sector, with
a view to changing the behavior and habits of individuals
from all age groups regarding traffic safety, and raising
awareness in society. The platform believes that a positive
cultural transformation in traffic would make a favorable
contribution to all areas of life, leading to inhabitable cities,
and a future worth living.
In 2019, the Traffic is Life! platform turned its attention
on the reflections of urban living, rising mobility, and
technology on our daily lives. Correctly analyzing changing
technology and media consumption trends, the platform
adopted the strategy of taking an active stance in social
media and digital platforms in order to efficiently reach its
target audience.
Interactive communication through social mediaThroughout the year, the platform used its social media
accounts in order to reach as large a crowd as possible
regarding child safety in traffic, traffic safety, and other
relevant matters. As of December 2019, the number of
followers on the Facebook account of the Traffic is Life!
platform rose by 21% to hit 154,780, providing informative/
educational value to every demographic in society thanks
to its regular content on traffic. In 2019, the number of
followers the platform has on its Instagram account rose by
a remarkable 220% to reach 16,676. Thanks to interactive
content such as surveys, tests, and puzzles that are published
through Instagram’s story feature, the platform managed
to keep its communication with its target audience alive. A
contest titled “Give me a sign” was held on what new traffic
signs can be introduced to meet different needs, reaching
a total of 35,103 people on Instagram, and 415,000 on
Facebook. In the contest, the signs that won were “Do not
use your smartphone in traffic”, “Signal when you turn”, and
“Respect”. Content was shared not only for motorists, but
also for motorcycle riders, cyclists, pedestrians, parents, and
animals. Some content concerned new vehicles such as
e-scooters, various technologies, and changing regulations.
Educational VideosGiven that target audiences respond to respectable
“influencers”, the platform’s brand ambassador Prof. Dr.
Üstün Dökmen met with automotive editor and popular
YouTuber Doğan Kabak, where the two had a fruitful
discussion on children in traffic, being a parent in traffic,
and the relation ship between drivers and their vehicles.
Making recommendations with respect to how children
should travel in the car in order to raise awareness regarding
child safety in traffic and in the car, Üstün Dökmen also
shared - during his talk with Doğan Kabak - what needs to
be done in order to manage stress in traffic. Viewed 159,000
times on YouTube, the video also reached a large audience
on social media.
The platform prepared a series of short videos in
order to fill the knowledge gap on the part of
drivers in Turkey with regard to safe driving, and
to offer them guidance on traffic related matters.
Cooperating with Road Safety Expert Ahmet Özgün
in this project, the platform created videos on issues
such as speed, smartphone use, blind spots, driving
position, traffic signs and speed limits, based on
statistics from the General Directorate of Security.
The videos aimed to grab the attention of drivers
with real-life examples on the dangers of smartphone
use in traffic, the risks of exceeding speed limits
and speeding in general, and the importance of
traffic signs and blind spots. The videos, which
were published on the social media accounts of
Traffic is Life! as well as the General Directorate of
Security, received 2,893,186 views and 12,402,741 hits.
Youth in FocusTraffic is Life! focused on the things that young people pay
the highest attention to in its communications, in order to
pique their interest. In that regard, the year 2019 saw a more
prominent focus on young people for the Traffic is Life!
platform. For this purposes, GIFs were used for the first time
on Instagram as a vehicle for social messaging, resulting
in the development of 5 traffic-themed GIFs. Instagram
users are able to find Traffic is Life! GIFs from the stories
2019
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institutions and financial support for the treatment of
patients in need.
In 2019, we continued to attend to the maintenance, repair
and education material needs of the schools built by our
foundation in different regions of the country and handed
over to the Ministry of National Education. To contribute
to the creation of equal opportunities in education, 523
successful students in need of financial support have been
granted scholarships and educational support at various
educational levels at home and abroad.
Our social responsibility projects, started by our founder
and traditionally provided every year without interruption,
continued in 2019. In this context, 3,322 families in need
were provided with cereals and other grain products, 1,000
students were given clothing and 74,000 people were
hosted at our iftar table.
To leave a healthy and livable world and a healthy
environment for future generations, spring and autumn
maintenance was carried out in 2019, as in previous years,
for the healthy growth of the Ayhan Şahenk Forests, created
with the planting of 570,000 saplings in different regions of
the country.
All these efforts have been funded by the conditional and
unconditional donations made by Doğuş Group companies
and the income from our income-generating activities.
Ayhan Şahenk Faculty of Agricultural Sciences and Technologies and “Ayhan Şahenk Student Dormitory”Ayhan Şahenk Faculty of Agricultural Sciences and
Technologies was opened for the 2013-2014 academic
year at Niğde Ömer Halisdemir University, holding that
effective human capital management is essential for the
development of Turkey’s agricultural industry.
Located in the central campus of Niğde Ömer Halisdemir
University, the faculty includes the “Agricultural Genetic
Engineering”, “Animal Production and Technologies”,
“Biosystem Engineering” and “Plant Production and
Technologies” departments, each of which accepts 30
students.
Graduating its third class this year, Ayhan Şahenk is the only
faculty in Turkey to provide agricultural education in English
with its modern facilities, high-tech labs and excellent
academic staff. The Ayhan Şahenk Foundation provides
full scholarships for all undergraduate and graduate
students enrolled in the faculty. Ayhan Şahenk Dormitory
was opened for the 2013-2014 academic year to provide
accommodation for 200 students.
Soma HomesWe completed the construction of Soma Doğuş Evleri
in 2016 to help ease the suffering of those who lost their
relatives in the Soma Mining Disaster.
Consolidated Financial
Statements
10 March 2020
This report includes 5 pages of independent auditor’s report and
125 pages of consolidated financial statements together with their
explanatory notes and 5 pages of supplementary information.
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Independent Auditor’s ReportTo the Board of Directors of Doğuş Holding Anonim Şirketi
OpinionWe have audited the consolidated financial statements of Doğuş Holding Anonim Şirketi (“the Company”) and its subsidiaries (together “the Group”), which comprise the consolidated statement of financial position as at 31 December 2019, the consolidated statements of profit or loss and other comprehensive income, changes in equity and cash flows for the year then ended, and notes, comprising significant accounting policies and other explanatory information.
In our opinion, the accompanying consolidated financial statements give a true and fair view of the consolidated financial position of the Group as at 31 December 2019, and of its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with International Financial Reporting Standards (“IFRS”).
Basis for OpinionWe conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under those standards
are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report.
We are independent of the Group in accordance with International Ethics Standards Board for Accountants Code of Ethics for
Professional Accountants (“IESBA Code”) together with the ethical requirements that are relevant to our audit of the consolidated
financial statements in Turkey and we have fulfilled our other ethical responsibilities in accordance with these requirements and
the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Telephone : +90 212 316 60 00
Fax : +90 212 316 60 60
Internet : www.kpmg.com.tr
Doğuş Holding Anonim Şirketi and its Subsidiaries
Description Pages
Independent Auditor’s Report 119
Consolidated Statement of Financial Position 124
Consolidated Statement of Profit or Loss and Other Comprehensive Income 126
Consolidated Statement of Changes in Equity 128
Consolidated Statement of Cash Flows 129
Notes to the Consolidated Financial Statements 130
Appendix: Supplementary Information - Convenience Translation to US Dollar 250
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Revenue recognition on construction contracts Refer to notes 41 (l) (i), “Revenue and cost recognition” for the relevant accounting policy and a discussion of significant accounting
estimates
Key audit matter How the matter was addressed in our audit
The revenue from the construction contracts of the
Group that constitutes a 15% portion of the Group’s total
revenue. The Group operates with its subsidiaries in the
construction sector, conducting construction projects in
Turkey and abroad.
The construction projects are complex and exposes the
Group to various business and financial reporting risks.
The revenue from construction contracts is calculated
using the input method, and the Group recognizes
revenue when it satisfies the performance obligation in
accordance with IFRS 15 “Revenue from Contracts with
Customers”. The Group recognises revenue in accordance
with input method to compare proportion of contract
costs incurred for performance obligation with expected
total contract costs of related performance obligation.
The recognition of revenue and the expectation of the
outcome of construction contracts with project specific
terms require significant management judgement, in
particular with respect to estimation the cost to complete
and the amounts of variation orders and claims to be
recognized. Due to the significance of the estimates,
assumptions, the level of judgements and its complex
structure, revenue recognition on construction contracts
has been identified as key audit matter.
We discussed on the status of projects under construction
with finance and technical staff of the Group and made
site visits for financially significant projects to evidence
our understanding with the supporting documents.
We recomputed contract revenue by using the percentage
of completion method.
We tested, on a sample basis, the revenue recognised
from the construction contracts to amounts invoiced
to customers and the subsequent receipts of payment
from those customers and obtained confirmations
or performed alternative procedures for outstanding
balances from customers.
We tested the cost for the construction contracts
recognised to amounts invoiced by suppliers and
subcontractors and obtained confirmations or performed
alternative procedures for outstanding balances to
subcontractors.
The cost budgets of construction contracts and estimates
used by management is evaluated through comparing
with prior year’s figures. In addition, the management
estimates related to completion rates and the change in
cost budgets were analysed.
Where we considered as applicable we performed
substantive analytical procedures using third party inputs
to determine of recoverability of variations and claims.
We have evaluated the appropriateness and adequacy
of the disclosures of the financial statements including
disclosures of key assumptions and judgements.
Telephone : +90 212 316 60 00
Fax : +90 212 316 60 60
Internet : www.kpmg.com.tr
Key Audit MattersKey audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Impairment of goodwill and other intangible assets
Refer to notes 41.e).i), “Intangible assets and goodwill” for the relevant accounting policy and a discussion of significant accounting
estimates
Key audit matter How our audit addressed the key audit matter
Goodwill and indefinite useful life intangible assets arise
as a result of acquisitions made by the Group. The Group
Management conducted their annual impairment test
to assess the recoverability of the goodwill and indefinite
useful life intangible assets. In order to establish whether
an impairment exists, fair value less costs to sell or the
value in use is determined and compared to the net book
value of the goodwill and intangible assets.
This determination of an impairment is highly subjective
as significant judgement is required by the Group
management in determining the fair value less costs to
sell or the value in use as appropriate. The value in use
is based on the cash flow forecast model for each cash-
generating unit and requires the estimation of model
assumptions, most importantly the discount rate and
growth rate. Accordingly, due to the high estimation
uncertainty, the accounting for goodwill and indefinite
useful life intangible assets is considered to be a key audit
matter.
We focused our testing of the impairment of goodwill and
intangible assets on the key assumptions made by the
Company management.
We evaluated the Group management’ cash flow forecasts;
including comparing them to the latest management
approved budgets. Working with our valuation specialists,
we challenged the Group management’ key assumptions,
including the long term growth rate by comparison to
historic growth rates and managements’ budgets and the
discount rate by independently estimating a range based
on market data and analysis of comparable companies.
We evaluated whether the model used to calculate the
fair value less costs to sell and value in use of the individual
cash-generating units complies with the requirements of
IAS 36: Impairment of Assets.
The Group management performed sensitivity analysis
around these assumptions to ascertain the extent of
change that either individually or collectively would
be required for the goodwill to be impaired. We then
considered the likelihood of such movement in those key
assumptions arising.
We have evaluated the appropriateness and adequacy
of the disclosures of the financial statements including
disclosures of key assumptions and judgements
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• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’
report. However, future events or conditions may cause the Group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,
and whether the consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the
Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and
performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance
in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe
these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely
rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
KPMG Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.
A member firm of KPMG International Cooperative
Ruşen Fikret Selamet
Partner
10 March 2020
Istanbul, Turkey
Other MatterOur audit was made for the purpose of forming an opinion on the consolidated financial statements taken as whole. The
supplementary information included in Appendix I is presented for the purposes of additional analysis and is not a required part of
the basic consolidated financial statements. The US Dollar amounts presented in Appendix I are solely for the convenience of the
reader as additional analysis and have not been subjected to the audit procedures applied in the audit of the basic consolidated
financial statements. Accordingly, we do not express an opinion on this supplementary information.
Responsibilities of Management and Those Charged with Governance for the Consolidated Financial StatementsManagement is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with
IFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s consolidated financial reporting process.
Auditors’ Responsibilities for the Audit of the Consolidated Financial StatementsOur objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout
the audit. We also:
• Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
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DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESConsolidated Statement of Financial Position (continued)As at 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
Notes 31 December 2019 31 December 2018
LIABILITIES
Current liabilities:
Short term loans and borrowings 25 2.356.116 3.865.592
Short term portion of long term loans and borrowings 25 3.191.125 9.142.438
Liabilities from leasing transactions 25 174.750 --
Derivative instruments 26 -- 135.008
Trade payables 16 2.202.644 2.304.050
- Due to related parties 37 36.609 127.853
- Due to third parties 2.166.035 2.176.197
Current tax liabilities 22 48.173 43.408
Provisions 27 190.369 153.899
- Employee benefits 56.002 49.783
- Other provisions 134.367 104.116
Other current liabilities 30 768.034 973.395
Subtotal 8.931.211 16.617.790
Liabilities directly associated with the assets held for sale 23 557.063 --
Total current liabilities 9.488.274 16.617.790
Non-current liabilities:
Loans and borrowings 25 23.859.555 15.624.969
Liabilities from leasing transactions 25 656.275 --
Derivative instruments 26 507.363 520.362
Other payables 290.274 --
- Due to related parties 37 290.274 --
Provisions 27 326.846 186.812
- Employee benefits 143.558 141.302
- Other provisions 183.288 45.510
Deferred tax liabilities 22 804.287 980.072
Other non-current liabilities 31 491.730 927.832
Total non-current liabilities 26.936.330 18.240.047
TOTAL LIABILITIES 36.424.604 34.857.837
EQUITY
Equity attributable to owners of the Company:
Share capital 862.837 856.027
Adjustments to share capital 1.512.094 1.512.094
Treasury shares (-) (87.883) --
Capital stock held by subsidiaries (-) (94.531) (94.531)
Share premium 167.384 167.384
Other comprehensive income items that will never be classified to profit or loss 2.876.253 2.836.203
Other comprehensive income items that are or may be classified to profit or loss (461.714) (49.462)
Restricted reserves 7.417.952 5.958.196
Accumulated losses (8.580.870) (4.562.923)
Loss for the year (889.476) (2.944.243)
Total equity attributable to owners of the Company 32 2.722.046 3.678.745
Non-controlling interests
Şahenk family 97.673 32.739
Other 1.132.171 1.052.078
Total non-controlling interests 32 1.229.844 1.084.817
TOTAL EQUITY 3.951.890 4.763.562
TOTAL EQUITY AND LIABILITIES 40.376.494 39.621.399
The accompanying notes form an integral part of these consolidated financial statements.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESConsolidated Statement of Financial Position As at 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
The accompanying notes form an integral part of these consolidated financial statements.
Notes 31 December 2019 31 December 2018
ASSETS
Current assets:
Cash and cash equivalents 13 1.668.982 2.111.404
Other investments, including derivatives 14 218.259 246.644
Trade receivables 16 2.596.030 2.581.184
- Due from related parties 37 658.478 531.538
- Due from third parties 1.937.552 2.049.646
Inventories 17 1.348.637 1.744.356
Prepayments 28 127.786 167.105
Other current assets 28 1.712.056 1.555.624
Subtotal 7.671.750 8.406.317
Assets held for sale 23 1.104.987 39.168
Total current assets 8.776.737 8.445.485
Non-current assets:
Trade receivables 16 -- 344.653
- Due from third parties -- 344.653
Other investments, including derivatives 14 25.460 --
Investments in equity accounted investees 15 4.420.531 4.130.928
Investment property 18 10.669.832 9.208.914
Property and equipment 19 11.327.250 12.062.820
Right of use assets 20 834.264 --
Intangible assets 21 2.310.663 3.100.830
- Goodwill 1.076.482 1.233.194
- Other Intangible assets 1.234.181 1.867.636
Prepayments 29 46.395 144.890
Deferred tax assets 22 1.583.071 1.426.392
Other non-current assets 29 382.291 756.487
Total non-current assets 31.599.757 31.175.914
TOTAL ASSETS 40.376.494 39.621.399
2019
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DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESConsolidated Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 31 December 2019 (continued)(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
Notes 2019 2018
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit or loss: 366.949 497.941
Revaluation of property and equipment 19 224.315 510.934
Remeasurements of defined benefit liability 27 (23.011) (14.734)
Tax on items that will not be reclassified to profit or loss:
- Deferred tax 22 (1.555) (48.147)
Other comprehensive income from equity accounted investees, net of tax 15 167.200 49.888
Items that are or may be reclassified to profit or loss: (261.639) 30.337
Foreign currency translation differences for foreign operations (373.128) (75.281)
Changes in fair value of financial assets at FVOCI 16.760 (9.109)
Net investment hedge for foreign operations 32 (220.117) (670.203)
Tax on items that are or may be reclassified to profit or loss:
- Current tax 22 44.023 134.041
- Deferred tax 22 (407) 345
Other comprehensive income from equity accounted investees, net of tax 15 271.230 650.544
OTHER COMPREHENSIVE INCOME 105.310 528.278
TOTAL COMPREHENSIVE INCOME / (LOSS) (526.307) (2.401.000)
Total comprehensive income / (loss) attributable to:
Non-controlling interests 328.540 111.007
- Şahenk Family 5.516 7.594
- Other 323.024 103.413
Owners of the Company (854.847) (2.512.007)
(526.307) (2.401.000)
The accompanying notes form an integral part of these consolidated financial statements.
Notes 2019 2018
PROFIT OR LOSS
Revenue 6 17.840.911 19.294.609
Cost of sales (-) 7 (14.680.493) (16.168.025)
Gross profit 3.160.418 3.126.584
Administrative expenses (-) 8 (1.623.054) (1.609.787)
Selling, marketing and distribution expenses (-) 8 (606.760) (761.185)
Other operating income 12 722.820 968.383
Other operating expenses (-) 12 (542.595) (471.843)
Share of profit / (loss) of equity accounted investees 15 203.986 (134.094)
Operating profit 1.314.815 1.118.058
Gains from investing activities 9 538.965 538.596
Losses from investing activities (-) 9 (192.071) (527.777)
Profit before net finance cost 1.661.709 1.128.877
Finance income 10 1.446.871 1.851.110
Finance cost (-) 11 (3.731.353) (5.965.374)
Loss before tax (622.773) (2.985.387)
Tax (expense) / income
- Current tax expense 22 (146.087) (244.096)
- Deferred tax income 22 137.243 300.205
Loss for the year (631.617) (2.929.278)
Profit / (loss) attributable to:
Non-controlling interests 32 257.859 14.965
- Şahenk family 5.516 7.340
- Other 252.343 7.625
Owners of the Company (889.476) (2.944.243)
Net loss for the year (631.617) (2.929.278)
The accompanying notes form an integral part of these consolidated financial statements.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESConsolidated Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 31 December 2019 (continued)(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
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DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESConsolidated Statement of Cash Flows For the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
Notes 2019 2018A. Cash flows from operating activities
Loss for the year (631.617) (2.929.278)Adjustments for
Depreciation and amortisation 5.3,19,21 856.933 714.360
Impairment loss on property and equipment 5.4 -- (12.894)
Provision for and reversal of employee severance indemnity, net 5.4,27.2 20.025 16.040
Warranty provision 5.4 139.023 117.264
Other provisions 100.013 81.688
Provision for doubtful receivables 9.674 18.948
Interest expense 5.4 370.884 47.206
Fair value change in investment property 5.4,18 (317.722) (643.456)
Loss on written off of property and equipment 5.4,11 39.597 9.663
Taxation 22 8.844 (56.109)
Share of profit of equity accounted investees 15 (203.986) 134.094
(Gain) / loss on sale of subsidiaries 9 (283.542) (256.653)
Loss on sale of associate / joint venture 9 (40.178) 18.495
Gain on sales of property and equipment 9 (36.288) (156.453)
Impairment of goodwill 9 -- 181.647
Adjustments resulting from changes of shares of associates 15 (20.382) --
Loss from construction business segment 5,4 191.293 --
Impairment of brand name 9 37.813 43.557
Impairment of associates 9 -- 137.197
Gain on sale of investment property 9 -- (94.265)
Other impairments (78.956) 150.404
Unrealized foreign exchange losses 1.164.050 1.014.846
Foreign currency differences of cash and cash equivalents, net (89.405) (454.017)
Change in working capital
Trade receivables 328.418 1.015.447
Inventories 395.719 96.100
Trade payables 188.868 292.005
Other assets and liabilities 1.701.716 1.338.687
Cash flows from operations
Dividends received from equity accounted investees 15 121.572 94.104
Contribution to share capital increase of equity accounted investees 15 (147.950) (73.728)
Acquisition of equity accounted investees 15 (23.278) (3.277)
Employee severance indemnity paid 27.2 (40.780) (21.697)
Warranty expense paid (143.974) (125.281)
Recoveries from doubtful receivables 16 1.389 983
Taxes paid 22.2 (97.299) (107.651)
Proceeds from sale of investment property 122.405 514.899
Acquisition of investment property 18 (860.371) (473.518)
Cash flows provided from / (used in) operating activities 2.782.508 629.357
B. Cash flows from investing activities
Proceeds from sales of subsidiaries 1.578.093 843.706Change in non-controlling interests in consolidated subsidiaries without a change in control
12.737 (248.764)
Proceeds from the sale of joint ventures and associates 424.908 121.952
Proceeds from sale of property and equipment and intangible assets 541.183 1.716.914
Acquisition of property and equipment and intangible assets (982.433) (1.194.628)
Cash flows provided from / (used in) investing activities 1.574.488 1.239.180
C. Cash flows from financing activities
Proceeds from loans and borrowings 25 8.368.488 5.553.293
Repayments of loans and borrowings 25 (10.268.033) (5.716.581)
Interest paid (2.824.532) (2.029.661)
Dividends paid (179.050) (87.641)
Cash flows from financing activities (4.903.127) (2.280.590)Net increase / (decrease) in cash and cash equivalents before the effects of foreign currency
differences (A+B+C)(546.131) (412.053)
D. Effects of foreign currency differences on cash and cash equivalents 89.405 454.017
Net increase / (decrease) in cash and cash equivalents (A+B+C+D) (456.726) 41.964
E. Cash and cash equivalents at 1 January 13 2.111.404 2.069.440
Cash and cash equivalents at 31 December (A+B+C+D+E) 13 1.654.678 2.111.404
The accompanying notes form an integral part of these consolidated financial statements.
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(1) In
clud
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of t
he s
ale
of s
hare
s of
Hot
el V
illa
Mag
na a
nd 17
,34%
sha
res
of D
ream
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rnat
iona
l B.V
. (2
) On
26 J
uly
2019
, the
Gro
up s
igne
d a
shar
e sa
le a
gree
men
t to
sell
65 %
sha
res
of M
arin
a B
arce
lona
92
S.A
. The
sha
re tr
ansf
er h
as b
een
final
ised
on
16 O
ctob
er 2
019
.
DO
ĞU
Ş H
OLD
İNG
AN
ON
İM Ş
İRK
ET
İ AN
D IT
S S
UB
SID
IAR
IES
Cons
olid
ated
Sta
tem
ent
of C
hang
es in
Equ
ity
For t
he Y
ear E
nded
31
Dec
embe
r 201
9(A
mo
un
ts e
xpre
ssed
in t
ho
usa
nd
s o
f Tu
rkis
h L
ira
(“TL
”)
un
less
oth
erw
ise
stat
ed.)
The
acco
mpa
nyin
g no
tes
form
an
inte
gral
par
t of t
hese
con
solid
ated
fina
ncia
l sta
tem
ents
.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
130 131
1 Reporting entity
Doğuş Holding Anonim Şirketi (“Doğuş Holding” or “the Company”) was established in 1975 to invest in and coordinate the activities
of companies operating in different industries, including automotive, construction, tourism, media, real estate, energy, food and
beverage and entertainment and is registered in Turkey.
Doğuş Holding is owned and managed by the members of Şahenk Family. As at 31 December 2019, the principal shareholders and
their respective shareholding rates in Doğuş Holding are stated in note 32.
The address of the registered office of Doğuş Holding is as follows:
Maslak Mahallesi
Büyükdere Caddesi, No: 249
34485 Sarıyer / İstanbul-Türkiye
As at 31 December 2019, Doğuş Holding has 190 (31 December 2018: 203) subsidiaries (“the Subsidiaries”), 76 (31 December 2018:
85) joint arrangements (“the Joint Arrangements”) and 41 (31 December 2018: 40) associates (“the Associates”) (referred to as “the
Group” or “Doğuş Group” herein and after). The consolidated financial statements of Doğuş Group as at and for the year ended 31
December 2019 comprises Doğuş Holding and its subsidiaries and the Group’s interest in associates and joint arrangements. As
explained in more detail in this note, Doğuş Holding holds controlling interest directly or indirectly via other companies owned
and/or exercising the control over the voting rights of the shares held by the members of Şahenk Family, in all its subsidiaries
included in the Group.
The Group operates partnerships and has distribution, management and franchise agreements with internationally recognised
brand names, such as Volkswagen AG, Volkswagen Financial Services AG, Audi AG, Dr.Ing.h.c. F.Porsche Aktiengesellshaft, Bentley
Motors Limited, Seat SA, Scania CV AB, Automobili Lamborghini S.p.A., Thermo King, Hyatt International Ltd., Soho House, Eden
Rock St. Barths, Chenot, Bodyism, Peninsula, Four Seasons, Eleventy, Messika Group S.A, Gucci, Loro Piana, Orlebar Brown, Kiko,
Under Armour, Hublot, Arnold&Son S.A., Bell and Ross, Breitling, Vacheron Constantin, HYT, Döttling, Bulgari, Leica, Tag Heuer,
Kitchenette, Zuma, Roka, Mezzaluna, Coya, Oblix and La Petite Maison.
The number of employees of the Group at 31 December 2019 is approximately 20.363 (31 December 2018: 20.950).
As explained in more detail in note 5, The Group is organised mainly in Turkey under 7 core operating segments:
• Construction
• Automotive
• Hospitality and Retail
• Media
• Energy
• Others (Real Estate and Others)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Description Pages
1 Reporting entity 131
2 Basis of accounting 141
3 Functional and presentation currency 141
4 Use of estimates and judgments 141
5 Operating segments 144
6 Revenue 150
7 Cost of sales 150
8 Administrative, selling, marketing and distribution expenses 150
9 Gains and losses from investing activities 151
10 Finance income 152
11 Finance cost 152
12 Other operating income and expenses 152
13 Cash and cash equivalents 153
14 Other investments, including derivatives 154
15 Investments in equity accounted investees 155
16 Trade receivables and trade payables 159
17 Inventories 160
18 Investment property 161
19 Property and equipment 164
20 Right of use assets 166
21 Intangible assets 166
22 Taxation 178
23 Assets held for sale and liabilities directly associated with the assets held for sale 183
24 Due from/due to customers for contract work 184
25 Loans and borrowings 184
26 Derivative instruments 187
27 Provisions, commitments and contingencies 188
28 Other current assets and prepayments 191
29 Other non-current assets and prepayments 191
30 Other current liabilities 192
31 Other non-current liabilities 192
32 Capital and reserves 192
33 Financial instruments – Fair values and risk management 195
34 Group enterprises 208
35 Significant events 217
36 Interests in other entities 218
37 Related party disclosures 219
38 Subsequent events 221
39 Basis of measurement 221
40 Changes in accounting policies and reclassifications 222
41 Significant accounting policies 226
Appendix: Supplementary information 250
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
132 133
1 Reporting entity (continued)
1.2 Entities in automotive segment Below entities are first consolidated under Doğuş Otomotiv Servis ve Ticaret A.Ş. (“DOAŞ”); then consolidated under the Group.
Subsidiaries Nature of business Country of incorporation
DOAŞ Automotive distribution Turkey
D-Auto Limited Liability Company (“Doğuş Auto Iraq”) Automotive retail Iraq
Doğuş Oto Pazarlama ve Ticaret A.Ş. (“Doğuş Oto”) Automotive retail Turkey
Doğuş Sigorta Aracılık Hizmetleri A.Ş. (“Doğuş Sigorta”) Insurance agency Turkey
Joint ventures Nature of business Country of incorporation
Karadeniz Taşıt Muayene İstasyonları İşletim A.Ş Vehicle inspection station Turkey
TDB Sigorta Brokerlik A.Ş. Insurance agency Turkey
TÜV SÜD Doğuş Ekspertiz ve Danışmanlık Hizmetleri Limited Şirketi (“TÜV SUD Doğuş Ekspertiz”)
Valuation services Turkey
TÜVTURK Güney Taşıt Muayene İstasyonları Yapım ve İşletim A.Ş. (“TÜVTURK Güney”)
Vehicle inspection station Turkey
TÜVTURK İstanbul Taşıt Muayene İstasyonları Yapım ve İşletim A.Ş. (“TÜVTURK İstanbul”)
Vehicle inspection station Turkey
TÜVTURK Kuzey Taşıt Muayene İstasyonları Yapım ve İşletim A.Ş. (“TÜVTURK Kuzey”)
Vehicle inspection station Turkey
Associates Nature of business Country of incorporation
Driver Turkey Master S.A. Special purpose Luxembourg
VDF Faktoring Hizmetleri A.Ş. (“VDF Faktoring”) Factoring Turkey
VDF Filo Kiralama A.Ş. (“VDF Filo Kiralama”) Fleet management Turkey
VDF Servis ve Ticaret A.Ş. (“VDF Servis Holding”) Investment company Turkey
VDF Sigorta Aracılık Hizmetleri A.Ş. (“VDF Sigorta”) Agency/brokerage Turkey
Volkswagen Doğuş Finansman A.Ş. (“VDF Tüketici”) Consumer finance Turkey
Yüce Auto Motorlu Araçlar Ticaret A.Ş. (“Yüce Auto”) Automotive distribution Turkey
1.3 Entities in hospitality and retail segment
Subsidiaries Nature of business Country of incorporation
Ad Yiyecek İçecek Ticari Sanayi A.Ş. (“AD Yiyecek”) Restaurant establishment Turkey
Alantur Turizm ve Ticaret A.Ş. (“Alantur”) Hospitality Turkey
A.L.E. Gıda Turizm ve Ticaret A.Ş. (“A.L.E. Gıda”) Restaurant establishment Turkey
Altınhan Turizm ve Ticaret A.Ş. (“Altınhan”) Restaurant establishment Turkey
Anadolu Göcek Marina Turizm Yatırımları A.Ş. (“D Marin Göcek”) Marina operation Turkey
Antur Turizm A.Ş. (“Antur”) Hospitality and travel agency Turkey
Argos Bağcılık ve Şarapçılık San.Tic. A.Ş. (“Argos Bağcılık”) Viticulture Turkey
Argos Turizm Yatırım ve Ticaret A.Ş. (“Argos”) Hotel management Turkey
Bal Turizm ve Gıda Pazarlama A.Ş. (“Bal Turizm”) Restaurant establishment Turkey
Bangolare S.L. Investment company Spain
BMK Turizm ve Otelcilik Hizmetleri A.Ş. (“BMK”) Hotel management Turkey
Boğaziçi Borsa Lokantacılık İşl. San. ve Tic. A.Ş.(“Borsa”) Restaurant establishment Turkey
1 Reporting entity (continued)
The subsidiaries, the joint ventures, joint operations and the associates included in the consolidation scope of Doğuş Holding, their country of incorporation, nature of business and their respective operating segments are as follows:
1.1 Entities in construction segment
Below entities are first consolidated under Doğuş İnşaat ve Ticaret A.Ş. (“Doğuş İnşaat”); then consolidated under the Group.
Subsidiaries Nature of business Country of incorporationAlperen Gayrimenkul Yatırım ve İşletme A.Ş. (“Alperen”) Real estate development Turkey
Doğuş EOOD Construction Bulgaria
Doğuş İnşaat Construction Turkey
Doğuş İnşaat Limited (Kazakistan) (“Doğuş İnşaat (Kazakistan)”) Non-operating company Kazakhistan
Doğuş İnşaat Limited (Ukraine) (“Doğuş İnşaat (Ukrayna)”) Construction Ukraine
Doğus Maroc SARL Construction Morocco
Dogus Oman LLC Construction Oman
Doğuş - (Onur) Construction Qatar
Teknik Mühendislik ve Müşavirlik A.Ş. (“Teknik Mühendislik”) Construciton engineering Turkey
Vitapark Spor Turizm Hizmet İnşaat ve Ticaret A.Ş. (“Vitapark”) Golf resort Turkey
Joint operations Nature of business Country of incorporation
Doğuş Alarko YDA İnşaat (“Doğuş Alarko”) Construction Turkey
Doğuş – Dusa Adi Ortaklığı Construction Turkey
Doğuş – ES Adi Ortaklığı Construction Turkey
Doğuş Gülsan Adi Ortaklığı (“Kazakistan”) Construction Kazakhistan
Doğuş Gülsan Adi Ortaklığı (“Kömürhan”) Construction Turkey
Doğuş – Soma Adi Ortaklığı Construction Hindistan
Doguş – Sukot Adi Ortaklığı Construction Turkey
Doğuş – Tekfen Adi Ortaklığı Construction Turkey
Doğuş – VIA – Ultrastroy Adi Ortaklığı Construction Bulgaria
Doğuş YDA Adi Ortaklığı (“Doğuş YDA”) Construction Turkey
Doğuş – Yapı Merkezi – Özaltın Adi Ortaklığı Construction Turkey
Gülermak-Doğuş Adi Ortaklığı (“Gülermak Doğuş”) Construction Turkey
Yapı Merkezi-Doğuş-Yüksel-Yenigün-Belen Adi Ortaklığı (“YMDYYB”) Construction Turkey
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
134 135
1 Reporting entity (continued)
1.3 Entities in hospitality and retail segment (continued)
Subsidiaries Nature of business Country of incorporation
Doğuş Zhenfa Kozmetik Ticaret A.Ş. (“Doğuş Zhenfa”) Investment company Turkey
Dream Global B.V. Investment company The Netherlands
Dream International B.V. Investment company The Netherlands
Dream International Coöperatif U.A. Investment company The Netherlands
Nahita Global Ltd. (formerly named as “Dream IP Limited”) Investment company The Netherlands
Dream Management Services LLC Investment and management company U.A.E.
Etiler Kebapçılık Restoran A.Ş. (“Etiler Kebapçılık”) Restaurant establishment Turkey
Etiler Turistik Tesisler İşletmeciliği Ticaret A.Ş. (“Etiler Turistik”) Establishment and management of restaurants and cafes Turkey
Garanti Turizm Yatırım ve İşletme A.Ş. (“Garanti Turizm”) Investment company Turkey
Gouvia Marina S.A. Marina operation Greece
Göktrans Turizm ve Ticaret A.Ş. (“Göktrans Turizm”) Hospitality Turkey
Günaydın Çamlıca Restoran Gıda Turizm Ticaret A.Ş. Restaurant establishment Turkey
Günaydın Et Sanayi ve Ticaret A.Ş. (“Günaydın Et”) Establishment and management of restaurants and cafes Turkey
Günaydın International Holding B.V. (“Günaydın Int. B.V”) Investment Company The Netherlands
Günaydın International Holding Coöperatief U.A. (“Günaydın Int. Coop”) Investment Company The Netherlands
Günaydın Restaurant LLC (“Günaydın Restaurant”) Restaurant establishment U.A.E.
Gunaydın Restaurants LLC Restaurant establishment U.S.A.
Gunaydın US Inc. Non-operating company U.S.A.
Gunaydın UK Ltd. Non-operating company United Kingdom
Günaydın Üretim ve Lojistik A.Ş. Restaurant, food and beverage production Turkey
Havana Yayıncılık Turizm ve Gıda Pazarlama Ticaret A.Ş. ("Havana Yayıncılık") Restaurant, food and beverage production Turkey
Hospitality d.o.o (“Hospitality”) Investment company Crotia
Il Riccio Miami LLC Non-operating company U.S.A.
King of the Rib Investment company Spain
Kivahan Turizm Ticaret A.Ş. (“Kivahan”) Restaurant establishment Turkey
Lacivert Turizm A.Ş. (“Lacivert”) Restaurant establishment Turkey
Lefkas Marina S.A. Marina operation Greece
Liquid Art Boston LLC Restaurant establishment U.S.A.
Liquid Art Holding LLC Investment company U.S.A.
London Doors Restaurant Group Ltd Investment company United Kingdom
Luxury Food Restaurant LLC (“Nusret Katar”) Restaurant establishment Katar
Marina Borik d.o.o (“Marina Borik”) Marina operation Crotia
Marina Dalmacija d.o.o (“Marina Dalmacija”) Marina operation Crotia
Marina Sibenik d.o.o. (“Marina Sibenik”) Marina operation Crotia
Marinas TR BV Investment company The Netherlands
Meng Unlu Mamüller Gıda Sanayi ve Ticaret A.Ş. Management of patisserie and cafes Turkey
Mercati S.p.A Hospitality Italy
Meto Turizm İşletmeciliği ve Tasarım Dekorasyon Ticaret A.Ş. (“Meto Turizm”) Establishment and management of restaurants and cafes Turkey
Mezzaluna Gıda İşletmecilik Sanayi ve Ticaret A.Ş. (“Mezzaluna”) Restaurant establishment Turkey
MK Holding A.Ş. (“MK Holding”) Investment company Turkey
Nahita Dallas Restaurant establishment U.S.A.
1 Reporting entity (continued)
1.3 Entities in hospitality and retail segment (continued)
Subsidiaries Nature of business Country of incorporation
Bomonti Kültür ve Eğlence Merkezi Yönetimi A.Ş. (“Bomonti”) Entertainment and organization Turkey
Coya Inc. Investment company U.S.A.
Coya Abu Dhabi Limited (“Coya Abu Dhabi”) Restaurant establishment U.A.E.
Coya Angel Limited Restaurant establishment United Kingdom
Coya Limited Investment company U.A.E.
Coya Paris SAS Restaurant establishment France
Coya (Restaurant) Limited (“Coya London”) Restaurant establishment United Kingdom
Coya Restaurant LLC (“Coya Dubai”) Restaurant establishment U.A.E.
D Eğlence Bar Restoran İşletmeciliği ve Yatırım A.Ş. (“D Eğlence”) Establishment and management of restaurants and cafes Turkey
D Et ve Et Ürünleri Gıda Pazarlama Ticaret A.Ş. (“D Et”) Establishment and management of restaurants and cafes Turkey
D Marina İşletmeciliği Turizm ve Yönetim Hizmetleri A.Ş. (“D Marina”) Marina management Turkey
D Hospitality BV Investment company The Netherlands
D Marinas Hellas S.A. Marina management Greece
D Nusret International Holding BV Investment company The Netherlands
D Nusret International B.V. Investment company The Netherlands
D Otel Göcek Turizm Yatırımları ve İşletmeciliği Ticaret A.Ş. (“D Otel Göcek”) Hospitality Turkey
D Otel Marmaris Turizm İşletmeciliği Ticaret ve Sanayi A.Ş. (“D Otel”) Hospitality Turkey
Dogus Avenue BV (“Doğuş Avenue BV”) Investment company The Netherlands
Dogus Avenue Holding Coöperatief U.A. (“Doğuş Avenue Coop”) Investment company The Netherlands
Dogus Avenue LLC (“Dogus Avenue LLC”) Non-operating company Russia
Dogus Croatia d.o.o. (“Doğuş Croatia”) Investment Company Crotia
Doğuş Dalaman Marina İşletmeciliği Turizm Ticaret A.Ş. (“Doğuş Dalaman”) (1) Non-operating company Turkey
Doğuş Didim Marina İşletmeleri ve Ticaret A.Ş. (“Doğuş Didim”) Marina operation Turkey
Doğuş Health & Wellness AG Hospitality Switzerland
Dogus Hellas SA. (“Dogus Hellas”) Investment and management company Greece
Dogus International Coöperatief U.A. Investment company The Netherlands
Dogus Leisure and Entertainment Investment Limited (“Dogus Leisure”) Investment company United Kingdom
Dogus Mercado Inc. Investment company U.S.A.
Doğuş Marina Hoteli d.o.o. (“D Resort Sibenik”) Hospitality Crotia
Doğuş Marina Upravljanje d.o.o (“Marina Upravljanje”) Non-operating company Crotia
D Marinas BV Investment company The Netherlands
Doğuş Otel İşletmeciliği ve Yönetim Hizmetleri A.Ş. (“Doğuş Otel İşletmeciliği”) Hotel management Turkey
Doğuş Otel Yatırımları ve Turizm İşletme A.Ş. (“Doğuş Otel”) Investment Company Turkey
Doğuş Perakende Satış, Giyim ve Aksesuar Ticaret A.Ş. (“Doğuş Perakende”) Retail sale services Turkey
Doğuş Razvitak I Upravljanje d.o.o. (“Doğuş Razvitak”) Non-operating company Crotia
Dogus TRG Inc Investment company U.S.A.
Doğuş Turgutreis Marina İşletmeciliği Turizm ve Ticaret A.Ş (“Doğuş Turgutreis”) Marina operation Turkey
Dogus Upravljanje d.o.o (“Sibenik Upravljanje”) Non-operating company Crotia
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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Joint ventures Nature of business Country of incorporation
Azumi Limited Establishment and management of restaurant and cafes United Kingdom
Azumi LLC Restaurant establishment U.S.A.
Azumi Management Services Ltd. Management company United Kingdom
Bahia (UK) Limited Non operating company United Kingdom
Beach-Chu Hallandale LLC Restaurant establishment U.S.A.
Beach-Chu Inc. Investment company U.S.A.
Beach-Chu Las Olas LLC Restaurant establishment U.S.A.
Bodyfood Limited (“Bodyfood”) Non operating company United Kingdom
Bodyism Global Holdings Limited (“Bodyism Global Holdings”) Investment company United Kingdom
Bodyism Global Limited Healthy life consultancy United Kingdom
Bodywear Limited (“Bodywear”) Non operating company United Kingdom
Chenot S.R.L. Cosmetics retail Italy
Corpera Turizm Yatırımları A.Ş. (“Corpera”) Hospitality Turkey
D Marin Dubai LLC Management company U.A.E.
HC Biontis S.R.L. Healthy life consultancy Italy
HC International A.G. Investment company Switzerland
Inko Nito Garey St. LLC Restaurant establishment U.S.A.
Inko Nito Inc. Investment company U.S.A.
Inko Nito West 3rd Street LLC Restaurant establishment U.S.A.
Inko Nito Broadwick Street Ltd. Restaurant establishment United Kingdom
Inko Nito Limited Restaurant establishment United Kingdom
Mad Atelier International B.V. (“Mad Atelier”) Investment company Nederland
Mad Atelier S.A.S (“L’Atelier”) Restaurant establishment France
Lamda Dogus Marina Invesments S.A. (“Lamda Dogus”) Investment company Greece
Lamda Flisvos Holding A.E.(“Lamda Flisvos”) Investment company Greece
Lamda Flisvos Marina A.E. (“Lamda Marina”) Marina operation Greece
Robata Holding USA LLC Investment company U.S.A.
Robata Rest Ltd Restaurant establishment United Kingdom
Roka Aldwych Ltd Restaurant establishment United Kingdom
Roka Limited (Roka Dubai) Restaurant establishment U.A.E.
Roka Restaurant LLC Restaurant establishment U.S.A.
Roka Mayfair Ltd Restaurant establishment United Kingdom
Taddeo Trading Ltd Investment company British Virgin Island
Taraneete International Ltd Restaurant establishment Hong Kong
Tasfiye Halinde Kanlıca Turizm Sanayi A.Ş. (“Kanlıca Turizm”) Non operating company Turkey
1 Reporting entity (continued)
1.3 Entities in hospitality and retail segment (continued)
Subsidiaries Nature of business Country of incorporation
Zuma Turizm ve Gıda Pazarlama Ticaret A.Ş. (“Zuma Turizm”) Restaurant establishment Turkey
Wrap Around LLC Non-operating company U.A.E.
1 Reporting entity (continued)
1.3 Entities in hospitality and retail segment (continued)
Subsidiaries Nature of business Country of incorporation
Nahita International Inc. Investment company U.S.A.
Nahita International Limited Investment company United Kingdom
Nahita Restoran İşletmeciliği ve Yatırım A.Ş. (“Nahita”) Investment company Turkey
Nusret BH LLC Restaurant establishment U.S.A.
Nusret Boston LLC Restaurant establishment U.S.A.
Nusret Dallas LLC Restaurant establishment U.S.A.
Nusret Galleria Restaurant Limited (“Nusret Galleria”) Restaurant establishment U.A.E.
Nusret Holdings USA LLC Investment company U.S.A.
Nusret Las Vegas LLC Restaurant establishment U.S.A.
Nusret Miami LLC Restaurant establishment U.S.A.
Nusret Mykonos Restaurant Bar SA Restaurant establishment Greece
Nusret South Beach LLC Restaurant establishment U.S.A.
Nusret New York LLC Restaurant establishment U.S.A.
Nusret Restaurant L.L.C. (“Nusret Dubai”) Restaurant establishment B.A.E
Nusret FH NY LLC Restaurant establishment U.S.A.
Nusret UK Limited Investment company United Kingdom
Nusret US Inc. Investment company U.S.A.
Panther Marina Limited (“Panther Marina”) Investment company British Virgin Islands
Popülist Yiyecek İçecek Sanayi ve Ticaret A.Ş. (“Popülist”) Restaurant establishment Turkey
Restaurant Craft Limited (“Rüya Londra”) Restaurant establishment United Kingdom
Ruya Restaurant LLC (“Ruya Restoran”) Restaurant establishment U.A.E.
Sait Restoran Turizm İşletmeciliği İnş. Emlak ve Tic.A.Ş. (“Sait”) Restaurant establishment Turkey
Saltbae LA LLC (“Saltbea LA”) Restaurant establishment U.S.A.
Saltbae Restoran İşletmeciliği Turizm Perakende Tekstil ve Yat. A.Ş. Retail sale services Turkey
Saltbae Restaurant Limited Restaurant establishment U.A.E.
Saltbae NY LLC Restaurant establishment U.S.A.
Soya Restoran İşletmeciliği ve Ticaret A.Ş. (“Soya”) Restaurant establishment Turkey
Şahintur Şahinler Otelcilik Turizm Yatırım İşletmeciliği A.Ş. (“Şahintur”) Hospitality Turkey
The Tom Aikens Group Ltd Non-operating company United Kingdom
Tiendes Turizm İşletmeleri A.Ş. (“Tiendes”) Restaurant establishment Turkey
Tom Aikens Ltd Non-operating company United Kingdom
Toms Kitchen Restaurant Holdings Limited Non-operating company United Kingdom
Villa Dubrovnik d.d. Hospitality Crotia
West Mediteranean Holding Limited (“West Mediternean”) Investment company Malta
Zadar Residences d.o.o Non-operating company Crotia
Zadar Resort d.o.o Investment company Crotia
Zea Marina S.A. Marina operation Greece
Zeytin Dallas LLC Restaurant establishment U.S.A.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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Subsidiaries Nature of business Country of incorporation
Doğuş Dijital Hizmetler A.Ş. (“Doğuş Dijital”) Media Turkey
Doğuş Media Group GmbH (“Doğuş Media”) Media Germany
Doğuş Yayın Grubu A.Ş. (“Doğuş Yayın Grubu”) Media Turkey
Kral Müzik Medya Hizmetleri A.Ş. (“Kral Müzik Medya”) Media Turkey
Kral Pop Avrupa Radyo ve Televizyon Yayıncılığı A.Ş. (“Kral Pop Avrupa”) Media Turkey
Kral Pop İnternet Televizyon Yayıncılığı A.Ş. Media Turkey
Kral Pop Medya Hizmetleri A.Ş. (“Kral Pop”) Media Turkey
Kral Platform İşletmeciliği A.Ş. Media Turkey
NTV Radyo ve Televizyon Yayıncılığı A.Ş. (“NTV Radyo”) Media Turkey
NTVSPOR İnternet Yayıncılığı A.Ş. (“NTVSPOR”) Media Turkey
Sekiz Prodüksiyon ve Reklam A.Ş. (“Sekiz Prodüksiyon”) Media Turkey
Star Avrupa Radyo ve Televizyon Yayıncılığı A.Ş. (“Star Avrupa”) Media Turkey
StarTV Medya Hizmetleri A.Ş. Media Turkey
Associates Nature of business Country of incorporation
MNG Medya ve TV Yayıncılık A.Ş. (“MNG Medya”) Media Turkey
MNG Reklam Pazarlama ve Prodüksiyon A.Ş. (“MNG Reklam”) Media Turkey
MNG TV Yayıncılık A.Ş. (“MNG TV”) Media Turkey
Onsekiz Reklam Prodüksiyon Medya Yapımevi (“Onsekiz Reklam”) Media Turkey
Sekiz Televizyon Yayıncılık A.Ş. (“Sekiz Televizyon”) Media Turkey
1.5 Entities in energy segment
Subsidiaries Nature of business Country of incorporation
D Enerji Üretim ve Yatırım A.Ş. (“D Enerji”) Investment company Turkey
Doğuş Enerji Üretim ve Ticaret A.Ş. (“Doğuş Enerji”) Electricity generation Turkey
Joint ventures Nature of business Country of incorporation
Aslancık Elektrik Üretim A.Ş. (“Aslancık”) Electricity generation Turkey
Boyabat Elektrik Üretim ve Ticaret A.Ş. (“Boyabat”) Electricity generation Turkey
1.6 Entities in other segment
Subsidiaries Nature of business Country of incorporation
Altın Mecralar İnteraktif Medya ve Pazarlama ve Teknoloji Hizmetleri Ticaret Limited Şirketi (“Altın Mecralar”)
E-mail marketing Turkey
Ara Güler Doğuş Sanat ve Müzecilik A.Ş. Photography Turkey
Darüşşafaka Sportif Yatırımlar ve Ticaret A.Ş. (“Darüşşafaka Sportif”) Non operating company Turkey
Dogus Doha LLC Management company Qatar
Doğuş Bilgi İşlem ve Teknoloji Hizmetleri A.Ş. (“Doğuş Bilgi İşlem”)Software development /
technologyTurkey
Doğuş Gayrimenkul Yatırım Ortaklığı A.Ş. (“Doğuş GYO”) Real estate investment company Turkey
1 Reporting entity (continued)
1.4 Entities in media segment
Joint ventures Nature of business Country of incorporation
Time Result Investments Ltd Restaurant establishment British Virgin Island
TRG International IP Co Limited Non operating company United Kingdom
TRG US IP Co Limited Non operating company United Kingdom
Wildfire Entertainment Ltd Restaurant establishment United Kingdom
Wildfire Holdings USA LLC Investment company U.S.A.
Zuma Bangkok Ltd Restaurant establishment Thailand
Zuma Club LLC Restaurant establishment U.A.E.
Zuma Holdings USA LLC Investment company U.S.A.
Zuma Japanese Restaurant INC Investment company U.S.A.
Zuma Japanese Restaurant Miami LLC Restaurant establishment U.S.A.
Zuma Las Vegas LLC Restaurant establishment U.S.A.
Zuma NY LLC Restaurant establishment U.S.A.
Zuma Restaurant LTD, Abu Dhabi Restaurant establishment U.A.E.
Zuma Rome Restaurant establishment Italy
Zuma USA LLC Investment company U.S.A.
Associates Nature of business Country of incorporation
Afternoon Tea SCI Hospitality St Barths Island
Amazonico Restaurants Ltd. Restaurant establishment U.A.E.
Amazonica UK Limited Restaurant establishment United Kingdom
Apollo Investment Holdco SARL Investment company Luxembourg
Astir Marina Vouliagmenis S.A. Marina operation Greece
Astir Palace Vouliagmenis S.A. Hospitality Greece
Central Asturcova S.L.U. Restaurant management Spain
DÔA Miami Beach LLC Non operating company U.S.A.
Eden Rock SARL Hospitality St Barths Island
Eden Rock Villa Rental SAS Hospitality St Barths Island
El Gourmet de Jorge Juan S.L.U. Restaurant establishment Spain
IPE Velázquez 18, S.L.U (Chia) Restaurant establishment Spain
Jermyn Street Real Estate Fund IV L.P. Investment company Cayman Island
Kiko Kozmetik Ürünleri Ticaret A.Ş. (“Kiko”) Cosmetics retail Turkey
LPM Miami Restaurant establishment U.S.A.
Mosela Investments S.L.U. Investment company Spain
Puerta de Alcala 10. S.L.U Restaurant establishment Spain
Restauradores Asturcova S.L.U. (“Paraguas”) Restaurant establishment Spain
Secosilva Empresarial S.L.U. Restaurant establishment Spain
Solid Rock Property SAS Hospitality St Barths Island
Ultramarinos Quintin S.L.U. Restaurant establishment Spain
1 Reporting entity (continued)
1.3 Entities in hospitality and retail segment (continued)
(1) Doğuş Dalaman was established to build and operate yachting marina in seaside resort towns in Mediterranean coasts of Turkey. However, Doğuş Dalaman has not yet started its operations and accordingly was noted as non-operating.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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2 Basis of accounting
Statement of compliance
Doğuş Group entities operating in Turkey maintain their books of account and prepare their statutory financial statements in Turkish
Lira (“TL”) in accordance with the accounting principles per Turkish Uniform Chart of Accounts, Turkish Commercial Code and per
Capital Market Board of Turkey.
Doğuş Group’s foreign entities maintain their books of account and prepare their statutory financial statements in accordance with
the generally accepted accounting principles and the related legislation applicable in the countries they operate.
The accompanying consolidated financial statements have been prepared in accordance with International Financial Reporting
Standards (“IFRSs”).
The consolidated financial statements were authorised for issue by Doğuş Holding’s management on 10 March 2020. The Doğuş
Holding’s General Assembly and the other reporting bodies have the power to amend the consolidated financial statements after
their issue.
3 Functional and presentation currency
These consolidated financial statements are presented in TL which is Doğuş Holding’s functional currency. All financial information
presented in TL has been rounded to the nearest thousand, except when otherwise indicated.
4 Use of estimates and judgments
The preparation of consolidated financial statements in conformity with IFRSs requires management to make judgments, estimates
and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and
expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimates are revised and in any future periods affected.
Management discusses the development, selection and disclosure of the Group’s critical accounting policies and estimates, and the
application of these policies and estimates.
Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment within
the next financial year are included in the following notes:
1. Group amortises and depreciates its intangible assets and property and equipment over useful lives that are disclosed in note
41 (d) and (e),
2. Assumptions are used in projections of discounted cash flow method and impairment test of non-financial assets, see note 21,
3. Fair value of derivative instruments are estimated through market price or use of discounted cash flow method, see note 33 (b),
4. Liabilities that may occur due to ongoing cases and probability of loss from cases are estimated by Group Management
considering the view of legal counsel and experts. Group Management assesses lawsuit provision thereon, see note 27,
5. The data in the discounted price list are used to calculate inventory impairment. If expected net realizable value is less than
cost, the Group allocates provisions for inventory impairment, see note 17,
1 Reporting entity (continued)
1.6 Entities in other segment (continued)
Subsidiaries Nature of business Country of incorporation
Doğuş Gayrimenkul Yatırım ve İşletme A.Ş. (“Doğuş Gayrimenkul”) Real estate development Turkey
Dogus International Limited (“Dogus International”) Management company United Kingdom
Dogus Management Services Limited (“Dogus Management”) Business and financial investments U.A.E.
Doğuş Spor Kompleksi Yatırım ve İşletme A.Ş. (“Doğuş Spor”) Sport Services Turkey
Doğuş Tarımsal Projeler Araştırma Geliştirme A.Ş. (“Doğuş Tarım”) Agricultural research and development activities Turkey
Doğuş Turizm Sağlık Yatırımları ve İşletmeciliği Sanayi ve Ticaret A.Ş. (“Doğuş Turizm”) Real estate development Turkey
Doğuş Yeni Girişimler ve Projeler A.Ş. Consultancy Turkey
Doğuş Yönetim Danışmanlığı A.Ş. Investment company Turkey
Euromessage Deutschland GmbH (“Euromessage Deutschland”) E-mail marketing Germany
Galataport İstanbul Liman İşletmeciliği ve Yatırımları A.Ş. (“Salıpazarı”) Real estate development Turkey
Hedef Medya Tanıtım Interaktif Medya Pazarlama A.Ş. (“Hedef Medya”) E-mail marketing Turkey
Körfez Havacılık Turizm ve Ticaret A.Ş. (“Körfez Hava”) Air transportation Turkey
Mobilet Dijital Hizmetleri A.Ş. Non-operating company Turkey
Omni Kanal Dijital Teknoloji ve Arge Yazılım Hizmetleri A.Ş. (“Omni Kanal”) E-mail marketing Turkey
Portakal Yazılım Danışmanlık Reklamcılık ve Yayıncılık San. ve Tic A.Ş. (“Portakal Yazılım”) E-mail marketing Turkey
Pozitif Arena Konser Salon İşletmeleri A.Ş. (“Pozitif Arena”) Entertainment and organization Turkey
Pozitif Müzik A.Ş. (“Pozitif Müzik”) Entertainment and organization Turkey
Pozitif Müzik Yapım A.Ş. (“Pozitif Yapım”) Entertainment and organization Turkey
Related Digital Marketing B.V. Investment company The Netherlands
Related Digital Marketing Coöperatief U.A. Investment company The Netherlands
Related Digital Marketing Limited Digital marketing United Kingdom
Semanticum Bilişim Sanayi ve Ticaret A.Ş. (“Semanticum”) Social media information Turkey
Sititur Turizm Yatırım ve Danışmanlık Hizmetleri A.Ş. (“Sititur”) Investment company Turkey
Tansaş Gıda ve Sanayi Turizm A.Ş. (“Tansaş Gıda”) Non-operating company Turkey
Joint ventures Nature of business Country of incorporation
Doğuş Planet Elektronik Ticaret ve Bilişim Hizmetleri A.Ş. (“Doğuş Planet”) E-commerce Turkey
Doğuş SK Girişim Sermayesi Yatırım Ortaklığı A.Ş. (“Doğuş SK Girişim”) Financial investments Turkey
Ege Turizm ve Gayrimenkul Yatırımları A.Ş. (“Ege Turizm”) Real estate development Turkey
PIT İstanbul Otel İşletmeciliği A.Ş. (“PIT Istanbul”) Hospitality Turkey
TDB Kalibrasyon Hizmetleri A.Ş. (“TDB Kalibrasyon”) Calibration services Turkey
Associates Nature of business Country of incorporation
DG Limited Investment company Jersey Island
DG Holdings Limited Investment company Jersey Island
Dome Group Financial Advisers Limited Investment banking United Kingdom
İstinye Yönetim Hizmetleri A.Ş. (“İstinye Yönetim Hizmetleri”) Shopping mall management Turkey
Reidin FZ-LLC (“Reidin”) Real estate research U.A.E
Reidin Bilgi ve Data Teknolojileri Ticaret A.Ş. Real estate research Turkey
Zingat Gayrimenkul Bilgi Sistemleri A.Ş. (“Zingat”) Real estate development Turkey
Zingat Freezone LLC Real estate development U.A.E.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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4 Use of estimates and judgments (continued)
(c) Investment property (continued)
In the absence of current prices in an active market, the valuations are prepared by considering the aggregate of the estimated cash
flows expected to be received from renting out the property. A yield that reflects the specific risks inherent in the net cash flows then
is applied to the net annual cash flows to arrive at the property valuation.
Valuations reflect, when appropriate; the type of tenants actually in occupation or responsible for meeting lease commitments or
likely to be in occupation after letting vacant accommodation, the allocation of maintenance and insurance responsibilities between
the Group and the lessee; and the remaining economic life of the property. When rent reviews or lease renewals are pending with
anticipated reversionary increases, it is assumed that all notices and when appropriate counter-notices have been served validly and
within the appropriate time.
(d) InventoriesThe fair value of inventories acquired in a business combination is determined based on its estimated selling price in the ordinary
course of business less the estimated costs of completion and sale, and a reasonable profit margin based on the effort required to
complete and sell the inventories.
(e) Investments in equity and debt securitiesThe fair value of financial assets at fair value through profit or loss, debt securities at amortised cost and financial assets at fair value
through other comprehensive income is determined by reference to their quoted bid price at the reporting date. The fair value of
debt securities and amortised cost is determined for disclosure purposes only.
(f) Trade and other receivablesThe fair value of trade and other receivables, excluding construction work in progress, is estimated as the present value of future
cash flows, discounted at the market rate of interest at the reporting date. The fair value is determined for disclosure purposes or
when such assets are acquired through a business combination.
(g) DerivativesThe fair values of forward exchange contracts, options and other derivative contracts are based on their listed market prices, if
available. If a listed market price is not available, then fair value is estimated by discounting the difference between the contractual
forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate (based on
government bonds).
The fair value of interest rate swaps is based on broker quotes. Those quotes are tested for reasonableness by discounting estimated
future cash flows based on the terms and maturity of each contract and using market interest rates for a similar instrument at the
measurement date.
Fair values reflect the credit risk of the instrument and include adjustments to take account of the credit risk of the Group entity
and counterparty when appropriate.
(h) Contingent considerationThe fair value of contingent consideration is measured based on discounted cash flow model. The valuation model considers
the present value of expected payment, discounted using a risk-adjusted discount rate. The expected payment is determined by
considering the possible scenarios of forecast EBITDA or other variables defined on the share purchase agreement, the amount to
be paid under each scenario and the probability of each scenario.
(i) Non-derivative financial liabilitiesFair value, which is determined for disclosure purposes, is calculated based on the present value of future principal and interest cash
flows, discounted at the market rate of interest at the reporting date. For finance leases, the market rate of interest is determined
by reference to similar lease agreements.
6. The warranties on automobiles sold by the Group are issued by the original equipment manufacturers (“OEM”). The Group acts as
an intermediary between the customers and OEM. The claims of customers from the Group are recognised as warranty expense.
The Group recognises the amount claimed from the OEM’s as warranty income and offset against warranty expense. The Group
incurs the cost that is not paid by the manufacturers. Accordingly, the Group recognises the estimated liability for the difference
between possible warranty claims of customers and possible warranty claims based on historical service statistics, see note 27,
7. Deferred tax asset is recognised to the extent that taxable profit will be available against which the deductible temporary
differences can be utilised. When taxable profit is probable, deferred tax assets is recognised for all temporary differences. For
the year ended 31 December 2019, to the extent that the assumptions related to the Group’s future taxable profit generation are
considered adequate, deferred tax asset is recognised, see note 22,
8. In the calculations of provision for employee benefits, actuarial assumptions related to turnover ratio, discount rate and salary
increase are used. Calculation details are disclosed in note 27.2,
9. Investment property is measured at fair value, which is appraised by independent third party appraisers. Investment property
under construction is carried at cost. For assumptions used in the appraisals see note 18,
10. Group monitors recoverability of its accounts receivable considering the past experience and recognise allowance for doubtful
receivables for probable losses. Subsequently, if the allowance for doubtful receivable is recovered fully or partially, the amount
is reversed from allowance and recognised in profit or loss, see note 16.
Determination of fair values
A number of the Group’s accounting policies and disclosures require the determination of fair value, for both financial and non-
financial assets and liabilities. Fair values have been determined for measurement and/or disclosure purposes based on the following
methods. Where applicable, further information about the assumptions made in determining fair values is disclosed in the notes
specific to that asset or liability.
(a) Property and equipmentThe fair value of property and equipment recognised as a result of a business combination is the estimated amount for which a
property could be exchanged based on market values. The fair value of property is the estimated amount for which a property could
be exchanged on the date of valuation between market participants in an orderly transaction where the participants act in their best
economic interest and are knowledgeable.
The Group reflects land and buildings at their fair values as appraised by independent third party appraisers. The fair values of land
and buildings are determined based on the discounted cash flow method, depreciable replacement cost or market prices for similar
items.
(b) Intangible assets
The fair values of intangible assets, which comprise the broadcasting rights, concession rights, customer relationship, content library,
franchise network, sponsorship contracts and brand names acquired in business combinations, are based on the discounted cash
flows expected to be derived from the use and eventual sale of the assets.
(c) Investment propertyExternal, independent valuation companies, having appropriate recognised professional qualifications and recent experience in the
location and category of property being valued, values the Group’s investment property portfolio every year.
4 Use of estimates and judgments (continued)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
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Ş G
RO
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144 145
5 Operating segments (continued)
5.1 Geographical segments (continued)
31 December 2019 Total assets Total liabilities Capital expenditure
Turkey 29.292.862 30.587.806 1.192.969
United Kingdom 1.142.196 745.934 7.187
Croatia 1.918.884 612.399 54.756
Spain 618.089 90 --
Italy 742.959 85.667 1.045
Others 6.661.504 4.392.708 587.043
40.376.494 36.424.604 1.843.000
31 December 2018 Total assets Total liabilities Capital expenditure
Turkey 28.244.141 27.544.266 1.247.974
United Kingdom 970.729 624.211 37.727
Croatia 1.658.975 582.088 51.956
Spain 1.385.039 498.014 112.341
Italy 1.317.018 247.600 20.715
Others 6.045.497 5.361.658 197.433
39.621.399 34.857.837 1.668.146
5.2 Major customers
As at 31 December 2019 and 2018, there is not any single external customer which comprises more than 10 percent of the Group’s
consolidated revenue.
5.3 Information about the segments
The financial information of the joint ventures was included in the segment results, prepared within the reporting framework of
the Group’s managerial approach, by combined method (as 100%). The below information about the segments was prepared as
“combined financial information” and before consolidation adjustments and eliminations.
31 December 2019 Construction AutomotiveHospitality
and RetailMedia Energy Others Total
Revenue 2.662.076 15.289.164 6.658.733 924.803 878.249 1.678.655 28.091.680
Gross profit 83.025 2.226.177 2.700.385 117.266 491.165 1.087.993 6.706.011
Operating profit / (loss) (198.510) 999.089 231.415 (136.407) 462.588 404.676 1.762.851
Operating profit / (loss) before net finance cost
(177.757) 1.049.819 1.870.951 (130.593) 462.588 541.455 3.616.463
Profit / (loss) for the period attributable to the owners of the Company excluding non-controlling interests
(384.630) 309.468 277.101 (543.171) (386.905) 108.030 (620.107)
Other information
Total assets 4.101.546 13.693.392 30.157.278 1.469.222 8.166.288 35.895.376 93.483.102
Total liabilities 3.730.199 11.394.294 15.579.823 1.893.027 7.059.147 18.075.095 57.731.585
5 Operating segments
The Group has reportable segments, as described below, which are largely organised and managed separately according to nature of
products and services provided, distribution channels and profile of customers.
Almost each entity included in the Group operates in one specific industry. Accordingly, all the financial statement components of an
entity concerned are considered related only to its specific industry.
The Group’s main segments are as follows:
Construction: Entities operating in the construction segment are mainly involved in the constructions of buildings, infrastructure and
related civil engineering businesses.
Automotive: Entities operating in the automotive segment are exclusively involved in the importation, distribution and retailing of
Volkswagen, Audi, Seat, Skoda, Porsche, Bentley, Scania and Lamborghini brand motor vehicles and spare parts and after sales services,
and vehicle inspection services in Turkey.
Hospitality and Retail: Entities operating in the hospitality and retail segment are involved in establishment and management of
restaurants and cafes, hotel and marina investments, hotel management, retail services, ticket sales, hotel reservation, and tour/
conference organisation services.
Media: Entities operating in media segment are involved in broadcasting through TV channels, radios, digital and printed media.
Energy: : Entities operating in energy segment are mainly involved in energy investments, electricity generation and hydroelectric
power plant operation.
Others: Entities operating in other operations segment are mainly involved in real estate and several service businesses. Doğuş Holding
is included in the other segment.
5.1 Geographical segments
The Group operates principally in Turkey, but also has operations in the Netherlands, Russia, Turkish Republic of Northern Cyprus,
Malta, Luxembourg, Switzerland, Germany, Morocco, Ukraine, Bulgaria, Libya, Italy, Greece, United Kingdom, Hong Kong, United States,
Oman, Qatar, Dubai, Saudi Arabia, Thailand, Iraq, Spain and Croatia. In presenting information on the basis of geographical segments,
segment revenue is based on the geographical location of customers. Segment assets are based on the geographical location of the
assets.
As at and for the years ended 31 December, total geographical sector risk concentrations, both on and off statement of financial
position, are presented below:
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
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SOLI
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FIN
AN
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L ST
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NTS
2019
DO
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146 147
5 Operating segments (continued)
5.3 Information about the segments (continued)
d) Profit before net finance cost
2019 2018
Combined 3.616.463 5.235.379
Joint ventures and associates (696.633) (402.118)
Consolidation elimination and adjustments (1.258.121) (3.704.384)
Consolidated 1.661.709 1.128.877
e) Loss for the period attributable to the owners of the Company excluding non-controlling interests
2019 2018
Combined (620.107) (1.336.469)
Joint ventures and associates 118.863 796.373
Consolidation elimination and adjustments (388.232) (2.404.147)
Consolidated (889.476) (2.944.243)
f) Total assets 31 December 2019 31 December 2018
Combined 93.483.102 92.459.587
Joint ventures and associates (20.159.838) (23.407.031)
Consolidation elimination and adjustments (32.946.770) (29.431.157)
Consolidated 40.376.494 39.621.399
g) Total liabilities31 December 2019 31 December 2018
Combined 57.731.585 60.037.123
Joint ventures and associates (17.148.382) (20.853.950)
Consolidation elimination and adjustments (4.158.599) (4.325.336)
Consolidated 36.424.604 34.857.837
5 Operating segments (continued)
5.3 Information about the segments (continued)
31 December 2018 (*) Construction AutomotiveHospitality
and RetailMedia Energy Others Total
Revenue 3.348.871 15.729.485 5.681.947 1.026.452 690.902 1.343.035 27.820.692
Gross profit 262.354 2.003.334 1.976.287 171.183 291.728 792.099 5.496.985
Operating profit / (loss) 133.721 788.825 400.116 (184.705) 257.235 321.251 1.716.443
Operating profit / (loss) before net finance cost
145.615 842.264 1.976.091 (209.739) 257.235 2.223.913 5.235.379
Profit / (loss) for the period attributable to the owners of the Company excluding non-controlling interests
(290.704) 276.701 555.265 (748.744) (1.352.798) 223.811 (1.336.469)
Other information
Total assets 4.010.777 17.576.289 30.978.736 1.530.829 6.307.629 32.055.327 92.459.587
Total liabilities 4.131.879 15.393.920 14.763.689 2.002.419 8.523.954 15.221.262 60.037.123
(*) With an innovative approach and vision to do better, Doğuş Group gathered food and beverage, hotels, retail and travel & event management companies under one roof in order to utilize maximum synergy between various sectors and to offer above-the-standard solutions for the consumers. After this change, operations of food and beverages which was previously classified under “Others” segment has been reclassified as “Hospitality and retail” segments. As at 31 December 2018, the figures related to segment information has been updated.
The reconciliations of the combined financial information to the amounts reported in the accompanying consolidated financial statements for the years ended 31 December were presented separately as follows:
a) Revenue2019 2018
Combined 28.091.680 27.820.692
Joint ventures and associates (9.436.345) (7.921.389)
Consolidation elimination and adjustments (814.424) (604.694)
Consolidated 17.840.911 19.294.609
b) Gross profit2019 2018
Combined 6.706.011 5.496.985
Joint ventures and associates (3.075.208) (2.018.497)
Consolidation elimination and adjustments (470.385) (351.904)
Consolidated 3.160.418 3.126.584
c) Operating profit 2019 2018
Combined 1.762.851 1.716.443
Joint ventures and associates (696.100) (413.920)
Consolidation elimination and adjustments 248.064 (184.465)
Consolidated 1.314.815 1.118.058
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
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L ST
ATE
ME
NTS
149
2019
DO
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RO
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AN
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148
5 Operating segments (continued)
5.4 Non-cash (income) / expenses other than depreciation
Non-cash (income)/expenses other than depreciation for the year ended 31 December 2019 were as follows:
Construction AutomotiveHospitality
and RetailMedia Energy Others Total
Warranty provision -- 139.023 -- -- -- -- 139.023
Accrued interest and other accruals 159.576 (75.883) 17.298 (19.916) (18.602) 308.411 370.884
Loss on written-off of property and equipment -- -- 39.597 -- -- -- 39.597
Provision for and reversal of employee severance indemnity
705 7.141 6.432 8.810 261 (3.324) 20.025
Provision for doubtful receivables -- 1.136 1.568 6.448 -- 522 9.674
Impairment of intangible asset (brand name) -- -- 37.813 -- -- -- 37.813
Fair value change in investment property -- -- (8.535) -- -- (309.187) (317.722)
Loss from construction business segment 191.293 -- -- -- -- -- 191.293
Legal provisions -- -- (4.170) (6.268) -- (70.154) (80.592)
Recoveries of doubtful receivables 46.071 8.060 3.583 879 -- -- 58.593
Recoveries of doubtful receivables -- (21) (361) (1.007) -- -- (1.389)
Others -- 8.167 (9.126) (756) (104) 3.455 1.636
Total 397.645 87.623 84.099 (11.810) (18.445) (70.277) 468.835
Non-cash (income)/expenses other than depreciation for the year ended 31 December 2018 were as follows:
Construction AutomotiveHospitality
and RetailMedia Energy Others Total
Warranty provision -- 117.264 -- -- -- -- 117.264
Accrued interest and other accruals 33.977 (44.591) 25.714 9.936 2.957 19.213 47.206
Loss on write-off of property and equipment -- -- 9.663 -- -- -- 9.663
Provision for and reversal of employee severance indemnity
307 7.151 7.415 (3.687) 144 4.710 16.040
Provision for doubtful receivables -- 429 4.133 11.617 -- 2.769 18.948
Reversal of impairment in property and equipment -- -- (13.756) -- -- 862 (12.894)
Impairment of intangible asset (brand name) -- -- 19.286 24.271 -- -- 43.557
Impairment of intangible asset (goodwill) -- -- 151.040 1.747 -- 28.860 181.647
Fair value adjustment resulting from control change -- -- -- -- -- (22.165) (22.165)
Fair value change in investment property -- -- (124.497) -- -- (518.959) (643.456)
Loss from construction business segment 51.253 -- -- -- -- -- 51.253
Impairment of long term trade receivable -- -- 26.456 -- 7.053 2.090 35.599
Losses on financial assets at fair value through profit or loss
-- -- -- -- -- 112.542 112.542
Impairment of associates -- -- 137.197 -- -- -- 137.197
Impairment of short term trade receivable -- -- 24.428 -- -- -- 24.428
Recoveries of doubtful receivables -- (32) (437) (358) -- (156) (983)
Others (183) 14.960 11.198 (5.393) (47) (6.364) 14.171
Total 85.354 95.181 277.840 38.133 10.107 (376.598) 130.017
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1.58
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ital
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134
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66
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5.15
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6
De
pre
ciat
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(*) In
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DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
150 151
8 Administrative, selling, marketing and distribution expenses (continued)For the years ended 31 December, selling, marketing and distribution expenses comprised the following:
2019 2018
Personnel expenses 170.183 189.530
Warranty provision expense 139.023 117.264
Advertising and promotion expenses 97.582 121.760
Distribution expenses 62.300 98.985
Depreciation and amortisation 17.239 16.409
Customer service expenses 14.768 13.788
Rent expenses 13.114 63.920
Commission expense 3.481 13.300
Others 89.070 126.229
606.760 761.185
9 Gains and losses from investing activities
For the years ended 31 December, gains from investing activities comprised the following:
2019 2018
Gain on sales of subsidiary (*) 302.532 256.653
Gain on sales of property and equipment 105.206 160.730
Gain on sales of associate / joint venture (**) 50.635 675
Gain on sales of investment property -- 98.373
Other(***) 80.592 22.165
538.965 538.596
(*) In 2019, gain on sale of subsidiary consists of sale of shares of Voyager Mediterranean Turizm Endüstrisi ve Ticareti A.Ş., Arena Otel Lokanta ve Eğlence Yerleri İşletmeciliği ve Turizm Yatırım A.Ş. and Marina Barcelona 92 S.A. On 23 November 2018 and 27 November 2018, the Group has sold of its shares held in Hotel Villa Magna and Doğuş Auto Switzerland, respectively. (**)Gain on sale of associates consists of sale of shares of Gestin Turizm Yatırım İşletmeleri İnşaat ve Ticaret A.Ş. and Ionian Hotel Enterprises S.A.(***) Other is consist of dividend income from Charme Capital Partners SGR S.p.A. and result of the changes of shares held by the Group entities in Zingat Gayrimenkul Bilgi Sistemleri A.Ş representing from 51% to 31.14%.
For the years ended 31 December, losses from investing activities comprised the following:
2019 2018
Loss on sales of property and equipment (68.918) (4.277)
Loss on written-off of property and equipment (Note 19) (39.597) --
Impairment of brand name (Note 21) (37.813) (43.557)
Loss on sale of subsidiary and loss on liquidation of subsidiary (18.990) (851)
Loss on sale of associate (*) (10.457) (19.170)
Losses on financial assets at fair value through profit or loss (1.784) (112.542)
Impairment of goodwill (Note 21) -- (181.647)
Impairment of associates (Note 15) -- (137.197)
Loss on sale of investment property -- (4.108)
Other (14.512) (24.428)
(192.071) (527.777)
(*) As at 31 December 2019, loss on sale of Raleigh Hotel Miami held by Group’s joint venture Elmira Miami LLC in 2019. As at 31 December 2018, The Group has sold its 33,33 % shares held in MD Health and Welness LLC.
6 Revenue
For the years ended 31 December, revenue comprised the following:
2019 2018
Domestic sales 14.201.503 14.835.923
Foreign sales 3.639.408 4.458.686
17.840.911 19.294.609
7 Cost of sales
For the years ended 31 December, cost of sales comprised the following:
2019 2018
Cost of merchandise sold 8.784.804 9.644.325
Cost of construction 2.423.265 2.932.939
Personnel expenses 793.181 791.341
Amortisation and depreciation expense 542.543 461.495
Broadcasting costs 284.092 407.945
Cost of electricity sold 36.697 131.090
Others 1.815.911 1.798.890
14.680.493 16.168.025
8 Administrative, selling, marketing and distribution expenses
For the years ended 31 December, general and administrative expenses comprised the following:
2019 2018
Personnel expenses 758.730 726.258
Depreciation and amortisation 297.151 236.605
Audit and consultancy expenses 85.529 77.272
Maintenance and repair expenses 67.034 88.281
Rent expenses 63.835 79.332
Taxes and duties other than taxes on income 50.711 49.528
Insurance expenses 25.824 21.084
Provision for employee severance indemnity 20.025 16.040
Electronic data processing expenses 19.194 23.241
Grant and donation expenses 16.919 18.335
Executive expenses 16.619 17.729
Litigation expenses 14.708 11.244
Travel expenses 13.286 11.616
Utility expenses 9.931 14.039
Telecommunication expenses 6.048 6.523
Cleaning expenses 5.872 6.328
Stationery expenses 2.169 1.964
Gasoline expenses 1.398 707
Others 148.071 203.661
1.623.054 1.609.787
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
152 153
12 Other operating income and expenses (continued)For the years ended 31 December, other operating expenses comprised the following:
2019 2018
Loss from construction business segment 191.293 51.253
Construction expense 83.374 49.065
Legal provision expenses 58.593 14.915
Commission expense 47.952 37.511
After sales services expense 24.680 18.671
Idle capacity expenses losses 18.648 13.837
Impairment loss 17.404 55.624
Service expenses 9.469 13.663
Foreign exchange losses on trade receivables and payables 8.134 17.419
Compensation expenses 6.121 9.767
Provision expenses 3.812 4.489
Insurance claim expenses 2.622 3.723
Others 70.493 181.906
542.595 471.843
13 Cash and cash equivalents
At 31 December, cash and cash equivalents comprised the following:
2019 2018
Cash at banks 1.630.584 2.074.243
Time deposits (*) 945.978 649.924
Demand deposits 631.462 1.353.138
Credit card receivables (**) 53.144 71.181
Other liquid assets and cheques 29.830 13.422
Cash on hand 8.568 23.739
1.668.982 2.111.404
For the years ended 31 December, cash and cash equivalents disclosed in the consolidated statement of cash flows comprised
the following:
2019 2018
Cash at banks 1.630.584 2.074.243
Other liquid assets and cheques 29.830 13.422
Cash on hand 8.568 23.739
Blocked deposits (14.304) --
Cash and cash equivalents in the statement of cash flows 1.654.678 2.111.404
(*) As at 31 December 2019, the average effective interest rates of time deposits for TL, USD and Euro are 14,56%, 2,27% and 1,17% respectively (31 December 2018: average effec-tive interest rates are 16,49%, 2,94% and 1,31%, respectively).(**) Credit card receivables’ due dates are less than three months.
There are blocked deposits amounting to TL 14.304 as at 31 December 2019 (31 December 2018: None). Foreign currency risk
exposure of cash and cash equivalents are presented under Note 33.
10 Finance income
For the years ended 31 December, finance income comprised the following:
2019 2018
Foreign exchange gains 1.193.207 1.709.148
Interest income on bank deposits 191.543 56.061
Other interest and similar items 62.121 85.901
1.446.871 1.851.110
11 Finance cost
For the years ended 31 December, finance cost comprised the following:
2019 2018
Foreign exchange losses (669.846) (3.754.352)
Interest expense on borrowings (2.748.342) (2.029.661)
Other interest and similar items (236.975) (181.361)
Interest expense on leases (76.190) --
(3.731.353) (5.965.374)
12 Other operating income and expenses
For the years ended 31 December, other operating income comprised the following:
2019 2018
Fair value gain on investment property (Note 18) 317.722 643.456
Construction income 101.804 43.928
Commission income 47.504 43.883
Service income 40.714 42.926
Rental income 32.588 30.395
Foreign exchange gains on trade receivables and payables 13.508 15.428
Insurance claim income 5.894 5.360
Reversal of provision for litigation 1.407 895
Others 161.679 142.112
722.820 968.383
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
154 155
15 Investments in equity accounted investees
Investments in equity-accounted associates and joint ventures and the Group’s share of investment are as follows:
31 December 2019 31 December 2018
Associates-equity accounted Carrying value % of ownership Carrying value % of ownership
Jermyn Street (Astir Palace) 1.162.854 33,00 912.142 33,00
Paraguas Restaurant Group 453.484 40,00 375.332 40,00
Solid Rock 418.958 33,33 366.291 33,33
MNG TV 216.337 30,00 244.773 30,00
VDF Tüketici 115.434 49,00 141.046 49,00
VDF Servis 143.020 49,00 109.990 49,00
Other 36.748 33.003
Joint ventures-equity accounted
Azumi Limited 737.368 50,01 659.903 50,01
Corpera 314.688 50,00 281.838 50,00
PIT İstanbul 203.064 50,00 121.122 50,00
HC International AG 132.630 51,00 127.040 51,00
TÜVTURK Kuzey–Güney 131.278 33,33 91.391 33,33
Ege Turizm 119.778 50,00 131.207 50,00
Doğuş Planet 81.488 50,00 59.179 50,00
Mad Atelier 66.612 60,00 66.612 60,00
Bodyism Global Holding 3.434 50,01 3.706 50,01
Raleigh Hotel -- -- 169.927 61,47
Ionian Hotel Enterprises S.A. -- -- 132.319 50,00
Gestin Turizm -- -- 21.907 50,00
Boyabat (1) -- 34,00 -- 34,00
Aslancık (2) -- 33,33 -- 33,33
Other 83.356 82.200
Total 4.420.531 4.130.928
(1) The Amendment Agreements were signed on 21 June 2019 and the credit agreements were concluded between Boyabat and the banks on 26 June 2013 and 26 June 2015 were amended. The entry into force of the Amendment Agreements is subject to the payment of interest accrued under the Main Loan Agreement and the inclusion of the interet accrued under the Consecutive Credit Agreement and the BSMV to the principal amount. It is accepted that the effective date of the contracts is 8 July 2019. The first interest payment after the effective date will be made on 21 June 2020 and the second will be made on 31 December 2020, and the each of the following payments will be made within twelve-month periods after 31 December 2020. Effective interest rate until 21 June 2020 will be 4,25% and after it will be 5,25%. As a result of these developments, the aforementioned provision has been reversed due to the disappearance of the uncertainties mentioned above. In addition, the Group, as a guarantor, made the payment of interest accrued for existing loans but not yet paid by Boyabat amounting USD 8.868.945 (exact) and EUR 2.544.929 (exact) in full and in cash which was on its own share within 11 business days following the date of the Amendment Agreements were signed. This amount includes 2.897.774 (exact) USD and 831.511 (exact) EUR which belongs to the share of one of the shareholders and which cannot be paid and corresponds to the Group’s share, in addition expense accrual is accounted in the consolidated financial statements as of the balance sheet date for these amount. (2) The Group’s share of losses in Aslancık, a joint venture of the Group, exceeds its interest in Aslancık, the carrying amount of the investment is reduced to zero and the total carrying value of the investment and share of losses in Aslancık has been reclassified as other non-current liability amounting to TL 2.528 thousand as at 31 December 2019 (31 December 2018: TL 54.714 thousand).
14 Other investments, including derivatives
As at 31 December, other investments including derivatives comprised the following:
2019
Short-term Long-term Total
Financial assets carried at fair value through profit or loss (*) 194.634 25.460 220.094
Financial assets carried at fair value through other comprehensive income 23.625 -- 23.625
218.259 25.460 243.719
2018
Short-term Long-term Total
Financial assets carried at fair value through profit or loss (*) 178.861 -- 178.861
Financial assets carried at fair value through other comprehensive income 67.783 -- 67.783
246.644 -- 246.644
(*) As of 31 December 2019, the portion of TL 194.601 thousand (31 December 2018: TL 178.828 thousand) of financial investments at fair value through profit or loss comprise investment funds.
Financial assets carried at fair value through other comprehensive income
As at 31 December, financial assets carried at fair value through other comprehensive income comprised the following:
2019 2018
Equity securities 23.621 67.779
Debt securities 4 4
23.625 67.783
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
156 157
DO
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15 In
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15 Investments in equity accounted investees (continued)
The movements in investments in equity accounted investees were as follows:
2019 2018
Balance at 1 January 4.130.928 3.613.764
Share of (loss) / profit of equity accounted investees 203.986 (134.094)
Share of other comprehensive income 438.430 700.432
Dividend (121.572) (94.104)
Transfer to assets held for sale (1) (17.291) --
Transfer to subsidiaries, net -- (1.223)
Disposals (2) (324.153) (140.447)
Transfer from non-current assets -- 5.514
Loss making joint venture classified as non-current liability (65.919) 236.991
Purchase of joint ventures and additional share purchase payments (3) 23.278 3.277
Differences from changes of shares of associates (4) 20.382 --
Impairment of associates (5) -- (137.197)
Profit margin elimination (15.488) 4.287
Increase in paid-in capital 147.950 73.728
Balance at 31 December 4.420.531 4.130.928
(1) The shares of Lamda Dogus Marina Invesments S.A. has been transferred to assets held for sale. The share transfer has been finalised on 20 February 2020.(2) In the current period, the Group has sold its real estate “Raleigh Hotel Miami” owned by its joint venture Elmira Miami LLC, which has 61,47% of its shares. The Group also transferred its 50% shares of Ionian Hotel Enterprises S.A. and Gestin Turizm. The Group has sold its shares held in MD Health and Welness LLC in 2018.(3) Consists of share transfer prices referred to Group’s share purchase agreements of associates acquired in previous years by acquisition. (4) Change consists of the shares held by the Group entities in Zingat Gayrimenkul Bilgi Sistemleri A.Ş representing from 51% to 31.14%.(5) In 2018, impairment of associates includes impairment of Raleigh Hotel, Bodyism Global Holding and Il Riccio Dubai.
Share of profit / (loss) of equity accounted investeesFor the years ended 31 December, share of profit/(loss) of investments in equity accounted investees comprised the following:
2019 2018
TÜVTURK Kuzey-Güney Consolidated 122.959 44.984
Azumi Limited 62.634 42.748
VDF Servis 33.032 31.900
Boyabat 13.723 (196.184)
Astir Palace (13.043) (13.471)
Aslancık (16.024) (40.811)
VDF Tüketici (25.611) (17.545)
Other 26.316 14.285
Total 203.986 (134.094)
Share of other comprehensive income / (expense) of equity accounted investeesFor the years ended 31 December, share of other comprehensive income / (expense) of investments in equity accounted investees
comprised the following:
2019 2018
Astir Palace 263.755 234.438
Azumi Limited 45.464 88.267
Paraguas Restaurant Group 36.287 88.153
Solid Rock 31.989 77.711
Other (*) 60.935 211.863
Total 438.430 700.432
(*) Other is mainly attributable to the foreign currency translation effect of foreign associates and joint ventures.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
158 159
16 Trade receivables and trade payables
Short-term trade receivablesAs at 31 December, short-term trade receivables comprised the following:
2019 2018
Account receivables 1.670.434 1.185.072
Contracts receivable 274.968 755.549
Due from customers for contract work (Note 24) 526.053 504.060
Doubtful receivables 116.462 96.959
Allowance for doubtful receivables (-) (116.462) (96.959)
Post dated cheques 86.909 82.929
Notes receivables 8.560 5.523
Other receivables 29.106 48.051
2.596.030 2.581.184
Long-term trade receivables
As at 31 December, long-term trade receivables comprised the following:
2019 2018
Due from customers for contract work (Note 24) -- 163.543
Contracts receivable -- 181.110
Doubtful receivables 12.881 365.150
Allowance for doubtful receivables (-) (12.881) (365.150)
-- 344.653
As at 31 December 2019, the Group held letters of guarantee amounting to TL 78.892 thousand (31 December 2018: TL 95.655
thousand) as collateral against its receivables.
15 Investments in equity accounted investees (continued)
The following table summarizes cash and cash equivalents, depreciation and amortisation expenses, interest income and interest
expenses of significant joint ventures before the consolidation of eliminations and adjustments:
31 December 2019
Cash and cash equivalents Depreciation and amortisation Interest income Interest expense
Azumi Limited 137.310 56.381 -- 19.978
VDF Tüketici 241.727 6.818 940.692 889.467
31 December 2018
Cash and cash equivalents Depreciation and amortisation Interest income Interest expense
Azumi Limited 89.753 41.084 361 12.634
VDF Tüketici 820.793 13.446 991.155 902.323
Financial Information regarding Azumi Limited and its subsidiaries The following table summarizes the reconciliation of investments in equity of Azumi Limited and its subsidiaries:
2019 2018
Total equity attributable to equity holders of Azumi Limited 1.108.257 966.525
Total equity attributable to equity holders of Azumi Limited
basedon the equity interest of the Group (50,01%)554.239 483.359
Goodwill 183.129 176.544
Investment in equity accounted investees 737.368 659.903
Financial information regarding VDF Tüketici The following table summarizes the reconciliation of investments in equity of VDF Tüketici:
2019 2018
Total equity attributable to equity holders of VDF Tüketici 223.180 275.450
Total equity attributable to equity holders of VDF Tüketici
based on the equity interest of the Group (49,00%)109.358 134.970
Goodwill 6.076 6.076
Investment in equity accounted investees 115.434 141.046
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
160 161
17 Inventories (continued)
For the years ended 31 December, movement of provision for diminution in the carrying value of inventories is as follows:
2019 2018
Balance at the beginning of the year 10.476 9.326
Increase during the period 1.499 1.077
Currency translation differences (254) 73
Reversal of provisions (5.189) --
End of the period 6.532 10.476
18 Investment property
As at 31 December, investment properties comprised the following:
2019 2018
Investment property 4.396.896 4.445.754
Investment property under construction 6.272.936 4.763.160
10.669.832 9.208.914
18.1 Investment property
For the years ended 31 December, the movements of investment property under construction were as follows:
2019 2018
Balance at the beginning of the year 4.445.754 3.991.786
Fair value changes recognised in profit or loss (Note 12) 317.722 643.456
Additions 5.336 54.076
Disposals (122.405) (311.112)
Transfer to trading property (1.601) --
Transfer from property and equipment (Note 19) 279.654 67.548
Transfer to property and equipment (Note 19) (527.564) --
End of the period 4.396.896 4.445.754
16 Trade receivables and trade payables (continued)
Movements in the allowance for doubtful receivables during the years ended 31 December were as follows:
2019 2018
Balance at the beginning of the year 462.109 338.467
IFRS 9 effect -- 31.493
Provision for the year 9.674 18.948
Written-off assets (344.642) --
Recoveries (1.389) (983)
Written-off provisions (1.983) (932)
Exchange rate differences on foreign currency balances 5.574 75.116
Balance at the end of the year 129.343 462.109
Short-term trade payables
As at 31 December, short-term trade payables comprised the following:
2019 2018
Account payables 2.017.106 1.656.943
Due to customers for contract work (Note 24) 108.958 459.401
Payables related to employee benefits 31.283 30.794
Notes payable 1.102 2.125
Other payables 44.195 154.787
2.202.644 2.304.050
17 Inventories
As at 31 December, inventories comprised the following:
2019 2018
Trading goods (**) 356.286 979.100
Goods in transit (**) 586.949 370.764
Spare parts 150.815 173.777
Raw materials (*) 198.498 159.097
Trading property, net of impairment provisions 3.502 1.901
Other inventory 59.119 70.193
Provision for impairment in the value of inventories (-) (6.532) (10.476)
1.348.637 1.744.356
(*) As at 31 December 2019 and 2018, raw materials are mainly composed of construction materials in various construction projects of Doğuş İnşaat and food and beverage inventories of the companies of hospitality and retail segment.(**) Trading goods and goods in transit are mainly composed of automotive segment.
The Group has provided provision for damaged and slow-moving items in inventories. The current year inventory provision is included in “cost of sales”.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
162 163
18 Investment property (continued)
18.2 Investment property under construction (continued)
Peer comparison method (Level 2) determines recently listed or sold properties in market and takes into consideration of other
factors for the adjustment of value based on size of land of property with current condition and location. For current market
outlook, the appraisers contact with the property sale intermediaries.
The following table shows the cost method and discounted cash flow valuation technique (Level 3) used in measuring the fair value
of investment property, as well as the significant unobservable inputs used.
Valuation technique Significant unobservable inputs
Discounted cash flows: The valuation model considers the present value of net cash flows to be generated from the property, taking into account expected rental growth rate, void periods, occupancy rate, lease incentive costs such as rent-free periods and other costs not paid by tenants. The expected net cash flows are discounted using risk-adjusted discount rates. Among other factors, the discount rate estimation considers the quality of a building and its location (prime vs secondary), tenant credit quality and lease terms
- Expected market rental growth, 9-15%
- Occupancy rate (90-99,9%)
- Risk-adjusted discount rates (16-18%).
18 Investment property (continued)
18.2 Investment property under construction
For the years ended 31 December, the movements of investment property under construction were as follows:
2019 2018
Balance at the beginning of the year 4.763.160 3.683.280
Additions 855.035 419.442
Capitalised interest expense 264.349 262.096
Capitalised foreign currency differences 390.392 507.864
Disposals -- (109.522)
End of the period 6.272.936 4.763.160
Investment property under construction is mainly composed of Salıpazarı Cruise Harbor. On 16 May 2013, Doğuş Holding won the
tender for privatization of Salıpazarı Port Area. On 18 July 2013, Competition Board decided that Doğuş Holding's acquisition of
the Salıpazarı Cruise Harbor, which was previously owned by Turkey Denizcilik İşletmeleri Anonim Şirketi, within the scope of its
privatization via the "transfer of operating rights" method for a period of 30 years was not subject to authorisation of the Board.
Total amount of the tender was paid on 13 February 2014 as TL 1.539.169 thousand (equivalent of USD 702 million).
The Group obtained independent appraisal reports for each item of investment properties and stated them at their fair values. All
investment property within the scope of IFRS 13 on the fair value hierarchy are as follows:
2019 Level 1 Level 2 Level 3 Total
Investment property -- 1.232.480 3.164.416 4.396.896
Total -- 1.232.480 3.164.416 4.396.896
2018 Level 1 Level 2 Level 3 TotalInvestment property -- 1.512.845 2.932.909 4.445.754
Total -- 1.512.845 2.932.909 4.445.754
As at 31 December 2019, fair value of the investment properties is calculated by using the discounted cash flow method and a peer
comparison by independent appraisal.
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
164 165
DO
ĞU
Ş H
OLD
İNG
AN
ON
İM Ş
İRK
ET
İ AN
D IT
S S
UB
SID
IAR
IES
Not
es t
o Co
nsol
idat
ed F
inan
cial
Sta
tem
ents
A
s at
and
for t
he Y
ear E
nded
31
Dec
embe
r 201
9(A
mo
un
ts e
xpre
ssed
in t
ho
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nd
s o
f Tu
rkis
h L
ira
(“TL
”) u
nle
ss o
ther
wis
e st
ated
.)
19 P
rop
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y a
nd
eq
uip
me
nt
(con
tin
ued
)
Mo
vem
ents
of p
rop
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an
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qu
ipm
ent
and
rel
ate
d a
ccu
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late
d d
epre
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du
rin
g t
he
year
en
de
d
31 D
ece
mb
er 2
018
wer
e as
fo
llow
s:
Co
st1
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ua
ryA
dd
itio
ns
Acq
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th
rou
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bin
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(**)
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po
sals
Tr
an
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Eff
ec
ts o
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rate
s
Ne
t re
va
lua
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(***
)
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vest
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for
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W
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en
off
31
De
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(*)
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--(7
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6.6
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(1.3
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(32
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itu
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eq
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me
nt
2.3
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00
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2.6
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--(1
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(174
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54.4
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----
----
(11.1
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----
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Less
: Acc
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1 Ja
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Eff
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Sa
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31
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t b
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10.7
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(*)Th
e fa
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of la
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uild
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hav
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en c
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a p
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s by
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pend
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tion
com
pani
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sing
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r com
paris
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nd in
com
e di
scou
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(**) I
nclu
des
purc
hase
of l
and
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ntin
g to
TL
27.9
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nd b
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to L
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rt w
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is a
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nted
as
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t pur
chas
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*) In
clud
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el V
illa
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hich
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ansf
erre
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20
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The
Gro
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’s la
nd
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d b
uild
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s ar
e re
valu
ed
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r th
e p
urp
ose
of
the
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solid
ate
d fi
nan
cial
sta
tem
en
ts. I
nd
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nd
en
t th
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par
ty a
pp
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co
nd
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th
e ap
pra
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ly o
n t
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f fa
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arke
t va
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. As
at 3
1 D
ece
mb
er
2019
, th
e re
valu
atio
n s
urp
lus,
net
of
no
n-c
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am
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ng
to
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2.9
25.
550
th
ou
san
d in
clu
din
g t
he
fair
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iffe
ren
ces
of
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pro
pe
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s ti
ll th
e d
ate
of
the
use
of
pro
pe
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chan
ge
fro
m o
wn
use
an
d t
he
fair
val
ue
dif
fere
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s o
f la
nd
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d b
uild
ing
s u
nti
l re
clas
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as a
sset
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ld f
or
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(31
De
cem
be
r 20
18: T
L 2
.86
8.8
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tho
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) was
re
cog
nis
ed
in o
the
r co
mp
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en
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me
, an
d p
rese
nte
d in
“rev
alu
atio
n s
urp
lus”
acc
ou
nt
wit
hin
th
e e
qu
ity.
DO
ĞU
Ş H
OLD
İNG
AN
ON
İM Ş
İRK
ET
İ AN
D IT
S S
UB
SID
IAR
IES
Not
es t
o Co
nsol
idat
ed F
inan
cial
Sta
tem
ents
A
s at
and
for t
he Y
ear E
nded
31
Dec
embe
r 201
9(A
mo
un
ts e
xpre
ssed
in t
ho
usa
nd
s o
f Tu
rkis
h L
ira
(“TL
”) u
nle
ss o
ther
wis
e st
ated
.)
19 P
rop
ert
y a
nd
eq
uip
me
nt
Mo
vem
ents
of p
rop
erty
an
d e
qu
ipm
ent
and
rel
ate
d a
ccu
mu
late
d d
epre
ciat
ion
du
rin
g t
he
year
en
de
d
31 D
ece
mb
er 2
019
wer
e as
fo
llow
s:
Co
st1
Jan
ua
ryA
dd
itio
ns
Tra
nsf
er
fro
m
inve
stm
en
t p
rop
ert
y D
isp
osa
ls
Tra
nsf
ers
Eff
ec
ts o
f m
ove
me
nts
in
exc
ha
ng
e r
ate
s
Ne
t re
va
lua
tio
n
ch
an
ge
Sa
le o
f su
bsi
dia
ry (
**)
Tra
nsf
ers
to
in
vest
me
nt
pro
pe
rty
Tra
nsf
ers
to
ass
ets
he
ld
for
sale
(**
*)
Wri
tte
n o
ff3
1 D
ece
mb
er
Lan
d a
nd
bu
ildin
gs
(*)
8.2
12.5
65
20.9
3452
7.56
4(3
08
.34
6)29
.111
178
.20
626
3.12
2(1
.125.
723)
(28
4.2
31)
(50
2.0
80
)--
7.0
11.12
2
Furn
itu
re a
nd
eq
uip
me
nt
2.7
26.9
7016
6.6
42--
(27
1.0
17)
20.15
415
5.8
25
--(2
01.
494)
--(8
1.49
0)
(11.
541)
2.5
04
.049
Lea
seh
old
imp
rove
me
nts
3.58
3.9
2712
4.9
06
--(6
7.45
5)6
.831
362
.411
--(1
3.8
18)
--(1
10.11
3)(4
6.3
36)
3.8
40
.353
Mo
tor
veh
icle
s55
9.3
23
44
.111
--(1
37.9
99)
3.2
537.
100
--(6
.775
)--
(7.3
08
)--
46
1.70
5
Co
nst
ruct
ion
in p
rog
ress
505.
80
549
3.2
37--
(5.7
29)
(58
.211
)30
.77
1--
(154
.88
3)--
(2.8
66)
--8
08
.124
Oth
ers
103.
761
415
--(1
.215
)58
43.
221
--(6
1.142
)--
(4.8
39)
--4
0.7
85
Tota
l co
st15
.69
2.3
518
50.2
4552
7.56
4(7
91.7
61)
1.72
273
7.53
426
3.12
2(1
.56
3.8
35)
(28
4.2
31)
(70
8.6
96)
(57.
877
)14
.66
6.13
8
Less
: Acc
um
ula
ted
d
ep
rec
iati
on
1 Ja
nu
ary
Cu
rre
nt
ye
ar
de
pre
cia
tio
n
Tra
nsf
er
fro
m
inve
stm
en
t p
rop
ert
y D
isp
osa
ls
Tra
nsf
ers
Eff
ec
ts o
f m
ove
me
nts
in
exc
ha
ng
e r
ate
s
Ne
t re
va
lua
tio
n
ch
an
ge
Sa
le o
f su
bsi
dia
ry
Tra
nsf
ers
to
in
vest
me
nt
pro
pe
rty
Tra
nsf
ers
to
ass
ets
he
ld
for
sale
W
ritt
en
off
31
De
cem
be
r
Bu
ildin
gs
(1.19
5.0
60
)(1
19.2
18)
--8
8.5
66
(7.9
16)
(12
.40
8)
(38
.80
7)19
0.2
60
4.5
7718
4.7
65
--(9
05.
241)
Furn
itu
re a
nd
eq
uip
me
nt
(1.5
26.3
75)
(26
0.3
83)
--12
4.0
66
11.5
06
(55.
842
)--
145.
314
--6
5.58
64
.89
8(1
.49
1.2
30)
Lea
seh
old
imp
rove
me
nts
(66
4.4
77)
(139
.336
)--
35.8
274
.430
(29
.942
)--
13.7
12--
34.2
1213
.38
2(7
32.19
2)
Mo
tor
veh
icle
s(1
71.
293)
(49
.39
4)--
50.5
53(8
.62
5)(2
.620
)--
3.39
2--
4.2
28--
(1
73.7
59)
Oth
ers
(70
.62
2)(2
.121)
--1.
076
(3.3
92)
(2.7
08
)--
40
.451
--2
.554
--(3
4.7
62)
Tota
l acc
um
ula
ted
d
ep
reci
atio
n(3
.627
.827
)(5
70.4
52)
--30
0.0
88
(3.9
97)
(10
3.52
0)
(38
.80
7)39
3.12
94
.577
291.
345
18.2
80
(3.3
37.18
4)
Ne
t b
oo
k va
lue
12.0
64
.524
527.
564
(49
1.6
73)
(2.2
75)
634
.014
224
.315
(1.17
0.7
06)
(279
.654
)(4
17.3
51)
(39
.59
7)11
.328
.954
Less
: Im
pai
rme
nt
in v
alu
e(1
.70
4)--
----
----
--
--
--
(1
.70
4)
Ne
t ca
rryi
ng
val
ue
12.0
62
.820
527.
564
(49
1.6
73)
(2.2
75)
634
.014
224
.315
(1.17
0.7
06)
(279
.654
)(4
17.3
51)
(39
.59
7)11
.327
.250
(*) T
he fa
ir va
lue
of la
nd a
nd b
uild
ings
hav
e be
en c
alcu
late
d on
a p
erio
dic
basi
s by
inde
pend
ent v
alua
tion
com
pani
es u
sing
pee
r com
paris
on a
nd in
com
e di
scou
ntin
g m
etho
ds.
(**) I
n 20
19, t
he G
roup
has
tran
sfer
red
its s
hare
s of
Acr
opol
is S
.p.A
., Are
na O
tel L
okan
ta v
e Eğ
lenc
e Ye
rleri
İşle
tmec
iliği
ve
Turiz
m Y
atırı
m A
.Ş. a
nd M
arin
a B
arce
lona
92
S.A
.(**
*) In
clud
es tr
ansf
ers
to a
sset
s he
ld fo
r sal
e as
dis
clos
ed in
Not
e 23
.
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
166 167
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
21 Intangible assets (continued)
21.1 Goodwill
As at 31 December, the movements in goodwill were as follows:
2019 2018
Balance at the beginning of the year 1.233.194 1.316.943
Adjustment of goodwill previously recognised as provisional (*) -- 16.152
Coya -- 16.152
Sale of subsidiary (199.546) (53.302)
Acropolis S.p.A. (43.789) --
CW Finance SAS (155.757) --
Villa Magna -- (53.302)
Impairment of goodwill -- (181.647)
Star TV (formerly named as Kapital Radyo) -- (1.747)
Pozitif Group Companies -- (28.860)
Aresta -- (1.825)
Doors Holding -- (149.215)
Adjustments for currency translation 42.834 135.048
Balance at the end of the year 1.076.482 1.233.194
(*) Based on revision works on the valuation regarding the fair value of intangible assets of Coya Companies during the current period, the goodwill amount has increased by TL 16.152 thousand respectively.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
19 Property and equipment (continued)
Had there been no revaluation on land and buildings, the balances of land and buildings as at 31 December would have been as
follows:
Historical cost Accumulated depreciation Net Book Value
31 December 2019 4.529.727 (563.457) 3.966.270
31 December 2018 5.460.036 (784.898) 4.675.138
20 Rights of us assests
At 31 December 2019 and 31 December 2018, rights of use assets comprised the following:
IFRS 16 Openning effects Additions Transfers(*) Translation Effect 31 December 2019
Cost
Real estates 633.511 297.826 7.748 1.193 940.278
Vehicles 44.110 3.743 -- -- 47.853
677.621 301.569 7.748 1.193 988.131
Accumulated depreciation
Real estates -- (134.245) (519) (247) (135.011)
Vehicles -- (18.856) -- -- (18.856)
-- (153.101) (519) (247) (153.867)
Net book value 677.621 148.468 7.229 946 834.264
(*) During the period, TL 7.229 thousand was transferred to right-of-use assets from intangible assets (Note:21).
21 Intangible assets
As at 31 December, intangible assets and goodwill comprised the following:
2019 2018
Goodwill 1.076.482 1.233.194
Intangible assets except goodwill 1.234.181 1.867.636
2.310.663 3.100.830
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
168 169
21 Intangible assets (continued)
21.1 Goodwill (continued)
Impairment testing for goodwill
The Group performs annual impairment tests for goodwill and other intangible assets that have indefinite useful life, together
in each entity.
The recoverable amount of goodwill related with DOAŞ are determined based on their quoted share prices.
The valuations of the fair value of equities of NTV Radyo is performed by the Group. The peer comparison approach and similar
transactions approaches are used to determine the fair value of equities.
The valuation of the fair value of equity for Doğuş İnşaat is performed by by the Group. The income approach (discounted cash
flow method) is used to determine the fair value of equity of Doğuş İnşaat. 6-year business plan prepared by management is
used for valuation. The Group considers business plans developed during the life of the construction contracts in progress is
more appropriate for valuation.
The valuation of the fair value of equity for Star TV is performed by the Group. The peer comparison approach and similar
transactions approaches are used to determine the fair value of equity of Star TV.
The valuations of the fair value of equities of Kivahan, Mezzaluna, Lacivert, Sait Balıkçılık, Etiler Turistik, Meto Turizm, Sele
Restaurant Group and LPM are performed by the Group.The peer comparison approach, similar transactions approaches and
EBITDA multiplier method which is commonly used in food & beverage sectorare used to determine the fair value of equities of
Kivahan, Mezzaluna, Lacivert, Sait Balıkçılık, Etiler, Meto, Sele Restaurant Group and LPM.
The valuation of the fair value of equity for Günaydın companies is performed by the Group. The peer comparison approach,
similar transactions approaches and EBITDA multiplier method which is commonly used in food & beverage sector are used to
determine the fair value of equity of Günaydın.
The valuation of the fair value of equity for Villa Dubrovnik, Maça Kızı and Argos in Cappadocia are performed by the Group.
The income approach (discounted cash flow method) is used to determine the fair value of equity of Villa Dubrovnik and
Maça Kızı. 6-year (Maça Kızı) and 10 year business plan (Villa Dubrovnik) prepared by management is used for valuation. Similar
transactions approaches is used to determine the fair value of equity of Argos in Cappacodia.
The valuation of the fair value of equity for Hedef Medya is performed by the Group. The income approach (discounted cash flow
method) and similar transactions approaches are used to determine the fair value of equity of Hedef Medya 6-year business plan
prepared by management is used for valuation.
The valuation of the fair value of equity for Mercati S.p.A. companies is performed by an independent valuation company. The
income approach (discounted cash flow method) is used to determine the fair value of equity of Mercati S.p.A 5-year business
plan prepared by management is used for valuation.
The valuation of the fair value of equity for D-Et and Coya Restaurant Group is performed by the Group. In order to determine
the fair value of the equity of these companies, the method used to multiply the profit before interest, tax, and depreciation is
frequently used in the food and beverage sector.
DO
ĞU
Ş H
OLD
İNG
AN
ON
İM Ş
İRK
ET
İ AN
D IT
S S
UB
SID
IAR
IES
Not
es t
o Co
nsol
idat
ed F
inan
cial
Sta
tem
ents
As
at a
nd fo
r the
Yea
r End
ed 3
1 D
ecem
ber 2
019
(Am
ou
nts
exp
ress
ed in
th
ou
san
ds
of
Turk
ish
Lir
a (“
TL”)
un
less
oth
erw
ise
stat
ed.)
21
Inta
ng
ible
ass
ets
an
d g
oo
dw
ill (c
ontin
ued)
21.
1 G
oo
dw
ill (
con
tin
ued
)
As
at 3
1 D
ece
mb
er, g
oo
dw
ill c
om
pri
sed
th
e fo
llow
ing
:
En
tity
Acq
uis
itio
n
cost
Ne
t a
sse
t fa
ir v
alu
eP
urc
ha
se
da
teS
ha
res
acq
uir
ed
%G
rou
p
sha
re
Cu
mu
lati
ve
ad
just
me
nt
for
curr
en
cy
tra
nsl
ati
on
Sa
le o
f su
bsi
dia
ry
31
De
cem
be
r 2
019
ne
t a
mo
un
t
31
De
cem
be
r 2
018
n
et
am
ou
nt
Gü
nay
dın
316
.88
49
4.9
41A
ug
ust
20
1470
,00
66
.459
----
250
.42
52
50.4
25
Co
ya14
7.6
3232
.36
2Ja
nu
ary
2017
76,0
0-7
2,0
014
0.7
149
8.7
36--
239
.450
218
.543
Sta
r T
V
596
.234
40
5.11
0N
ove
mb
er
2011
99
,93
40
4.8
10--
--19
1.42
419
1.42
4
Me
rcat
i S.p
.A27
0.6
5920
9.5
91
Jan
uar
y 20
1610
0,0
020
9.5
91
44
.42
2--
105.
490
96
.08
8
NT
V R
ad
yo9
8.8
7712
.08
1A
pri
l 20
04
97,
00
11.7
19--
--8
7.15
88
7.15
8
Ma
ça K
ızı
58.2
3615
.926
No
vem
be
r 20
136
0,0
09
.556
----
48
.68
04
8.6
80
Se
le R
est
au
ran
t G
rou
p54
.62
524
.06
1A
pri
l 20
156
7,0
016
.121
----
38.5
04
38.5
04
Do
ğu
ş İn
şaat
89
.076
1.49
1.8
94
De
cem
be
r 20
06
4,0
96
1.0
93
----
27.9
83
27.9
83
Eti
ler
Turi
stik
28.11
215
.182
Au
gu
st 2
013
75,0
011
.38
6--
--16
.726
16.7
26
D E
t 21
.859
15.17
9A
pri
l 20
1251
,00
7.74
1--
--14
.118
14.11
8
Za
dar
Re
sort
67.
657
55.8
45M
ay 2
014
100
,00
55.8
45--
--11
.812
11.8
12
He
de
f M
ed
ya43
.26
755
.010
Mar
ch 2
015
60
,00
33.0
06
----
10.2
61
10.2
61
Vill
a D
ub
rovn
ik8
0.4
25
82
.78
0A
pri
l 20
148
8,17
72.9
87
----
7.43
77.
437
Sai
t B
alık
çılık
8.0
61
5.0
62
De
cem
be
r 20
136
0,0
03.
037
----
5.0
245.
024
Me
to T
uri
zm8
.38
54
.89
7A
ug
ust
20
1375
,00
3.6
73--
--4
.712
4.7
12
Laci
vert
9.14
55.
97
1M
ay 2
013
75,0
04
.478
----
4.6
67
4.6
67
LPM
(**
)1.
46
1(1
.413
)Fe
bru
ary
2015
100
,00
(1.4
13)
----
2.8
742
.874
Kiv
ahan
3.
619
1.50
9A
pri
l 20
1251
,00
770
----
2.8
492
.849
DO
AŞ
2.7
35--
De
cem
be
r 20
06
50,0
0--
----
2.7
352
.735
Sta
r T
V (
*) (f
orm
erl
y, n
ame
d a
s K
apit
al
Ra
dyo
)9
.24
672
De
cem
be
r 20
07
97,
00
70--
--2
.38
82
.38
8
Se
man
ticu
m1.
649
60
9Fe
bru
ary
2016
60
,00
365
----
1.28
41.
284
Po
rtak
al Y
azılı
m
1.52
51.7
41D
ece
mb
er
2014
60
,00
1.0
44
----
48
14
81
CW
Fin
ance
SA
S13
2.5
112
5.21
8O
cto
be
r 20
1775
,00
25.
218
48
.46
4(1
55.7
57)
--14
3.2
32
Acr
op
olis
S.p
.A.
285.
701
257
.46
7M
ay 2
016
100
,00
257
.46
715
.555
(43.
789)
--43
.78
9
20
7.17
7(1
99
.54
6)
1.0
76.4
82
1.2
33
.19
4
(*) K
apita
l Rad
yo m
erge
d w
ith S
tar T
V on
29
June
20
12.
(**) L
PM m
erge
d w
ith L
aciv
ert o
n 31
Oct
ober
20
19
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
170 171
21 Intangible assets (continued)
21.1 Goodwill (continued)
21.2 Other intangible assets
Movements of other intangible assets and related accumulated amortisation during the year ended 31 December 2019 were as
follows:
Cost1
January Additions Disposals Transfers
Effects of movements in exchange
rates Impairment
Transfers to asset held for
saleSale of
subsidiary31
December
Concession rights 855.869 -- -- (7.748) 67.201 -- (399.929) (415.321) 100.072
D Marin Göcek (a) 42.700 -- -- (7.748) -- -- -- -- 34.952
Didim Marina (l) 33.084 -- -- -- -- -- -- -- 33.084
Turgutreis Marina (l) 18.212 -- -- -- -- -- -- -- 18.212
Dalmacija and Borik(c)
315.089 -- -- -- 28.881 -- (343.970) -- --
Pozitif Arena (h) 13.824 -- -- -- -- -- -- -- 13.824
K&G 53.315 -- -- -- 1.983 -- (55.298) -- --
Marina Sibenik 650 -- -- -- 11 -- (661) -- --
MB 92 378.995 -- -- -- 36.326 -- -- (415.321) --
Customer relationship 69.247 -- -- -- 996 -- (10.638) -- 59.605
D Marin Göcek (a) 1.890 -- -- -- -- -- -- -- 1.890
Dalmacija and Borik (c)
9.642 -- -- -- 996 -- (10.638) -- --
Maça Kızı 734 -- -- -- -- -- -- -- 734
Hedef Medya 56.981 -- -- -- -- -- -- -- 56.981
Brand name 642.899 -- -- -- 5.859 (37.813) -- (23.684) 587.261
Star TV 232.429 -- -- -- -- -- -- -- 232.429
Nusr-et (d) 17.207 -- -- -- -- -- -- -- 17.207
Kivahan (e) 1.677 -- -- -- -- -- -- -- 1.677
Kitchenette (f) 60.443 -- -- -- -- (37.813) -- -- 22.630
Da Mario (f) 13.804 -- -- -- -- -- -- -- 13.804
Gina (f) 11.341 -- -- -- -- -- -- -- 11.341
Vogue (f) 11.483 -- -- -- -- -- -- -- 11.483
Mezzaluna 5.887 -- -- -- -- -- -- -- 5.887
Lacivert 7.385 -- -- -- -- -- -- -- 7.385
Ulus 29 (i) 12.976 -- -- -- -- -- -- -- 12.976
Çubuklu 29 (i) 4.217 -- -- -- -- -- -- -- 4.217
21 Intangible assets (continued)
21.1 Goodwill (continued)
Impairment testing for goodwill (continued)
Key assumptions used in discounted cash flow projectionsKey assumptions used in calculation of recoverable amounts about goodwill and other intangible assets that have indefinite useful
life are discount rates and terminal growth rates. Discount rates were determined by currency used in discounted cash flow. These
assumptions are as follows:
Currency Discount rate Terminal growth rate
Doğuş İnşaat USD percent 14,8 percent 1,60
Villa Dubrovnik EUR percent 9,00 percent 2,00
Hedef Medya TL percent 21,4 percent 7,60
CurrencyComparable companies
multiplesSimilar transactions
multiples
Star TV TL 1,37 (Revenue) 2,99 – 3,29 (Revenue)
Kivahan TL 9,00 (EBITDA) 10,10 (EBITDA)
Mezzaluna TL 9,00 (EBITDA) 10,10 (EBITDA)
Lacivert TL 9,00 (EBITDA) 10,10 (EBITDA)
Sait Balıkçılık TL 9,00 (EBITDA) 10,10 (EBITDA)
Etiler Turistik ve Meto Turizm TL 9,00 (EBITDA) 10,10 (EBITDA)
Günaydın TL 11,95 (EBITDA) 15,30 (EBITDA)
Sele Restaurant Group TL 9,00 (EBITDA) 10,10 (EBITDA)
LPM TL 9,00 (EBITDA) 10,10 (EBITDA)
Discount rates used in discounted cash flows are the weighted average cost of capital (“WACC”) of the relevant entities. As a result
of the impairment testing on entity basis, no impairment loss is recognised during the year ended 31 December 2019 (31 December
2018: TL 181.647 thousand).
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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172 173
21 Intangible assets (continued)
21.2 Other intangible assets (continued)
Less: Accumulated amortisation 1 January
Current year
amortisation Disposals Transfers
Effects of movements in exchange
rates Impairment
Transfers to asset held for
saleSale of
subsidiary31
December
Concession rights 167.773 45.223 -- (519) 13.146 -- (105.331) (106.184) 14.108
D Marin Göcek (a) 6.097 1.484 -- (519) -- -- -- -- 7.062
Didim Marina -- 2.205 -- -- -- -- -- -- 2.205
Turgutreis Marina -- 1.213 -- -- -- -- -- -- 1.213
Dalmacija and Borik (c)
54.914 31.301 -- -- 2.657 -- (88.872) -- --
Pozitif Arena (h) 3.628 -- -- -- -- -- -- -- 3.628
K&G 12.439 4.020 -- -- -- -- (16.459) -- --
MB 92 90.695 5.000 -- -- 10.489 -- -- (106.184) --
Customer relationship 27.896 6.544 -- -- 461 -- (4.758) -- 30.143
D Marin Göcek (a) 685 86 -- -- -- -- -- -- 771
Dalmacija and Borik (c)
3.684 613 -- -- 461 -- (4.758) -- --
Maça Kızı 735 147 -- -- -- -- -- -- 882
Hedef Medya 22.792 5.698 -- -- -- -- -- -- 28.490
Franchise network - Kitchenette (f)
4.208 701 -- -- -- -- -- -- 4.909
Sponsorship contracts (f) 44.563 8.267 -- -- -- -- -- -- 52.830
Other intangible assets 254.542 72.645 (7.753) (3.319) 1.553 -- 7.910 (9.201) 316.377
Total accumulated amortisation
498.982 133.380 (7.753) (3.838) 15.160 -- (102.179) (115.385) 418.367
Net carrying value 1.867.636 -- (13.222) (5.475) 69.796 (37.813) (301.917) (343.827) 1.234.181
Cost 1 January Additions Disposals Transfers
Effects of movements in exchange
rates Impairment
Transfers to asset held for
saleSale of
subsidiary31
December
Maça Kızı 2.955 -- -- -- -- -- -- -- 2.955
Sait 4.053 -- -- -- -- -- -- -- 4.053
Villa Dubrovnik 7.332 -- -- -- -- -- -- -- 7.332
Argos in Cappadocia 3.121 -- -- -- -- -- -- -- 3.121
Günaydın 92.292 -- -- -- -- -- -- -- 92.292
Pozitif (h) 17.256 -- -- -- -- -- -- -- 17.256
Sele Restaurant Group)(k)
33.536 -- -- -- -- -- -- -- 33.536
Capri 23.684 -- -- -- -- -- -- (23.684) --
Aldrovandi 36.901 -- -- -- 3.811 -- -- -- 40.712
Coya 42.920 -- -- -- 2.048 -- -- -- 44.968
Broadcasting rights 172.668 -- -- -- -- -- -- -- 172.668
A Yapım (b) 40.453 -- -- -- -- -- -- -- 40.453
Star TV 132.215 -- -- -- -- -- -- -- 132.215
Content library (movies and series) - Puhu TV
-- 1.369 -- -- -- -- -- -- 1.369
Franchise network - Kitchenette (f)
6.913 -- -- -- -- -- -- -- 6.913
Sponsorship contract (f) 74.887 -- -- -- -- -- -- -- 74.887
Other intangible assets 544.135 131.014 (20.975) (1.565) 10.900 -- 6.471 (20.207) 649.773
Total cost 2.366.618 132.383 (20.975) (9.313) 84.956 (37.813) (404.096) (459.212) 1.652.548
21 Intangible assets (continued)
21.1 Goodwill (continued)
21.2 Other intangible assets (continued)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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Cost1
January Additions
Acquired through
business combinations (*) Disposals Transfers
Effects of movements in
exchange rates ImpairmentSale of
subsidiary 31 December
Ulus 29 (i) 12.976 -- -- -- -- -- -- -- 12.976
Çubuklu 29 (i) 4.217 -- -- -- -- -- -- -- 4.217
Maki 29, Alaçatı 29 (i)
2.839 -- -- -- -- -- (2.839) -- --
Maça Kızı 2.955 -- -- -- -- -- -- -- 2.955
Sait 4.053 -- -- -- -- -- -- -- 4.053
Villa Dubrovnik 7.332 -- -- -- -- -- -- -- 7.332
Argos in Cappadocia
3.121 -- -- -- -- -- -- -- 3.121
Günaydın 92.292 -- -- -- -- -- -- -- 92.292
Pozitif (h) 17.256 -- -- -- -- -- -- -- 17.256
Sele Restaurant Group) (k)
33.536 -- -- -- -- -- -- -- 33.536
Capri 17.741 -- -- -- -- 5.943 -- -- 23.684
Villa Magna 47.746 -- -- -- -- 15.993 -- (63.739) --
Aldrovandi 27.642 -- -- -- -- 9.259 -- -- 36.901
Coya 30.167 -- -- -- -- 12.753 -- -- 42.920
Broadcasting rights
196.939 -- -- -- -- -- (24.271) -- 172.668
A Yapım (b) 64.724 -- -- -- -- -- (24.271) -- 40.453
Star TV 132.215 -- -- -- -- -- -- -- 132.215
Content library (movies and series) - Star TV
20.365 -- -- (20.365) -- -- -- -- --
Franchise network - Kitchenette (f)
6.913 -- -- -- -- -- -- -- 6.913
Sponsorship contract (f)
74.887 -- -- -- -- -- -- -- 74.887
Other intangible assets
497.040 100.634 3.733 (48.636) (10.220) 29.394 (54) (27.756) 544.135
Total cost 2.165.645 159.678 3.733 (69.001) (4.693) 246.308 (43.557) (91.495) 2.366.618
21 Intangible assets (continued)
21.2 Other intangible assets (continued)
21 Intangible assets (continued)
21.2 Other intangible assets (continued)
Movements of other intangible assets and related accumulated amortisation during the year ended 31 December
2018 were as follows:
Cost1
January Additions
Acquired through
business combinations (*) Disposals Transfers
Effects of movements in exchange
rates ImpairmentSale of
subsidiary 31 December
Concession rights 620.751 59.044 -- -- 5.527 170.547 -- -- 855.869
D Marin Göcek (a)
34.952 7.748 -- -- -- -- -- -- 42.700
Didim Marina (l) -- 33.084 -- -- -- -- -- -- 33.084
Turgutreis Marina (l)
-- 18.212 -- -- -- -- -- -- 18.212
Dalmacija and Borik (c)
236.552 -- -- -- -- 78.537 -- -- 315.089
Pozitif Arena (h) 13.824 -- -- -- -- -- -- -- 13.824
K&G 48.497 -- -- -- -- 4.818 -- -- 53.315
Marina Sibenik 639 -- -- -- -- 11 -- -- 650
MB 92 286.287 -- -- -- 5.527 87.181 -- -- 378.995
Customer relationship
66.828 -- -- -- -- 2.419 -- -- 69.247
D Marin Göcek (a)
1.890 -- -- -- -- -- -- -- 1.890
Dalmacija and Borik (c)
7.223 -- -- -- -- 2.419 -- -- 9.642
Maça Kızı 734 -- -- -- -- -- -- -- 734
Hedef Medya 56.981 -- -- -- -- -- -- -- 56.981
Brand name 681.922 -- -- -- -- 43.948 (19.232) (63.739) 642.899
Star TV 232.429 -- -- -- -- -- -- -- 232.429
Nusr-et (d) 17.207 -- -- -- -- -- -- -- 17.207
Kivahan (e) 1.677 -- -- -- -- -- -- -- 1.677
Go Mongo (g) 6.509 -- -- -- -- -- (6.509) -- --
Kitchenette (f) 60.443 -- -- -- -- -- -- -- 60.443
Da Mario (f) 13.804 -- -- -- -- -- -- -- 13.804
Gina (f) 11.341 -- -- -- -- -- -- -- 11.341
Vogue (f) 11.483 -- -- -- -- -- -- -- 11.483
Tom's Kitchen (f)
9.884 -- -- -- -- -- (9.884) -- --
Mezzaluna 5.887 -- -- -- -- -- -- -- 5.887
Lacivert 7.385 -- -- -- -- -- -- -- 7.385
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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21 Intangible assets (continued)21.2 Other intangible assets (continued)
According to IFRS 3, customer relationship by TL 3.733 thousand and concession rights amounting to TL 43.246 thousand were
recognised as intangible assets arising at the date of acquisition with purchase. During the year 2015, TL 89.509 thousand which
was previously classified as goodwill has been reclassified as other intangible assets. On 21 December 2019, Doğuş Holding A.Ş.
has signed a share transferred agreement between with Venilia Investments SARL and Mistral Marina Turizm Yat. A.Ş. to sales of
shares of Marina Borik d.o.o, Marina Dalmacija d.o.o and Marina Sibenik d.o.o. Intangible assets belongs to those companies have
transferred to assets held for sale.
d) With the share transfer agreement dated 17 April 2012, the Group purchased 51 percent of shares of D Et from CNG Turizm Gıda
İthalat İhracat Limited Şirketi and the Group obtained control and 51 percent voting rights in D Et. According to IFRS 3, brand name,
amounting to TL 17.207 thousand has been recognised as an intangible asset at the acquisition date..
e) With the share transfer agreement dated 13 April 2012, the Group has decided to purchase 51 percent of shares at Kivahan. On
17 April 2012, the share transfer was finalised and the Group obtained control by acquiring 51 percent of shares and voting rights
in Kivahan. According to IFRS 3, brand name, amounting to TL 1.677 thousand has been recognised as an intangible asset at the
acquisition date.
f) On 14 November 2012, the Group signed a share purchase agreement to acquire 74.25 percent shares of Doors Holding A.Ş. On 26
December 2012, the share transfer was finalised and the Group obtained control and 74.25 percent voting rights in Doors Holding
A.Ş. According to IFRS 3, TL 186.743 thousand worth of Kitchenette, Da Mario, Gina, Vogue and Tom's Kitchen brands, sponsorship
contracts and Kitchenette franchise network values at the acquisition date have been recognized as intangible asset. Impairment
loss amounting to TL 37.813 thousand recognised in profit or loss as at 31 December 2019.
g) On 16 October 2012, the Group signed a share purchase agreement to purchase 60 percent of shares in Aresta Gıda. On 5
December 2012, the share transfer was finalised and the Group obtained control and 60 percent voting rights in Aresta Gıda.
According to IFRS 3, brand name, amounting to TL 6.509 thousand has been recognised as an intangible asset at the acquisition
date. Impairment loss amounting to TL 6.509 thousand recognised in profit or loss as at 31 December 2018..
h) On 28 August 2013, the Group signed a share purchase agreement to purchase 80 percent of shares in Pozitif Müzik, Pozitif Yapım
ve Pozitif Arena. According to IFRS 3, Babylon brand name, amounting to TL 17.256 thousand, sponsorship contract, amounting to
TL 12.140 thousand and concession right Arena (VW Arena), amounting to TL 13.824 thousand has been recognised as an intangible
asset at the acquisition date.
i) On 2 August 2013, the Group signed a share purchase agreement to purchase 75 percent of shares in Meto Turizm, Etiler Turistik ve
Afiyet Olsun. According to IFRS 3, brand name, amounting to TL 20.032 thousand has been recognised as an intangible asset at the
acquisition date. On 27 December 2017, Afiyet Olsun Turizm İşletmeleri A.Ş. has merged with Meto Turizm İşletmeciliği ve Tasarım
Dekorasyon Ticaret A.Ş. under Meto Turizm İşletmeciliği ve Tasarım Dekorasyon Ticaret A.Ş. Impairment loss amounting to TL 2.839
thousand recognised in profit or loss as at 31 December 2018.
j) With the share transfer agreement dated August 2014, Group purchased 70 percent of share of Günaydın Group companies.
According to IFRS 3, brand name, amounting to TL 92.292 thousand has been recognised as an intangible asset at the acquisition
date.
k) With the share transfer agreement dated April 2015, Group purchased 67 percent of share of Sele Restaurant Group companies.
According to IFRS 3, brand name, amounting to TL 33.536 thousand has been recognised as an intangible asset at the acquisition
date.
Less: Accumulated amortisation
1 January
Current year
amortisation
Acquired through
business combinations (*) Disposals Transfers
Effects of movements in
exchange rates ImpairmentSale of
subsidiary31
December
Concession rights 106.227 38.138 -- -- 1.810 21.598 -- -- 167.773
D Marin Göcek (a)
3.188 1.099 -- -- 1.810 -- -- -- 6.097
Dalmacija and Borik (c)
26.239 23.749 -- -- -- 4.926 -- -- 54.914
Pozitif Arena (h)
2.937 691 -- -- -- -- -- -- 3.628
K&G 8.834 3.605 -- -- -- -- -- -- 12.439
MB 92 65.029 8.994 -- -- -- 16.672 -- -- 90.695
Customer relationship
22.329 6.500 -- -- (1.810) 877 -- -- 27.896
D Marin Göcek (a)
2.388 107 -- -- (1.810) -- -- -- 685
Dalmacija and Borik (c)
2.259 548 -- -- -- 877 -- -- 3.684
Maça Kızı 588 147 -- -- -- -- -- -- 735
Hedef Medya 17.094 5.698 -- -- -- -- -- -- 22.792
Content library (movies and series) - Star TV
20.365 -- -- (20.365) -- -- -- -- --
Franchise network - Kitchenette (f)
3.507 701 -- -- -- -- -- -- 4.208
Sponsorship contracts (f)
36.987 7.576 -- -- -- -- -- -- 44.563
Other intangible assets
216.929 69.732 373 (42.370) 3.296 9.498 -- (2.916) 254.542
Total accumulated amortisation
406.344 122.647 373 (62.735) 3.296 31.973 -- (2.916) 498.982
Net carrying value 1.759.301 -- 3.360 (6.266) (7.989) 214.335 (43.557) (88.579) 1.867.636
(*) Includes amounts of Liquid Art which is accounted as asset purchase.
a) On 7 December 2010, the share transfer was finalised with a closing agreement and the Group obtained control by acquiring 100
percent of shares and voting rights in D Marin Göcek. Under IFRS 3, customer relationships amounting to TL 1.890 thousand and
concession rights amounting to TL 20.454 thousand were recognised as intangible assets arising from the acquisition of D Marin
Göcek at the date of acquisition. During the year 2015, TL 14.498 thousand which was previously classified as goodwill has been
reclassified as other intangible assets.
b) Following the tender organised by Saving Deposits Insurance Fund on 18 June 2008; the transfer of the commercial and
economic assets of Kral TV and Kral FM to A Yapım Televizyon Programcılık A.Ş. (“A Yapım”), a consolidated entity operating in
media business, was started and Competition Authority approvals were obtained. Radio Television Supreme Council approved the
process and A Yapım took over Kral TV and Kral FM on 16 October 2008 and recognised the amounts paid as broadcasting rights
under intangible assets.
c) With the share purchase agreement dated 20 April 2012, the Group has decided to purchase 100 percent of shares in Marina
Dalmacija d.o.o. and Marina Borik d.o.o. from International Seaport AG. On 30 April 2012, the share transfer was finalised.
21 Intangible assets (continued)
21.2 Other intangible assets (continued)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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178 179
22 Taxation (continued)
In Turkey, there is no procedure for a final and definitive agreement on tax assessments. Companies file their tax returns
within four months following the close of the accounting year to which they relate. Tax returns are open for five years from the
beginning of the year that follows the date of filing during which time the tax authorities have the right to audit tax returns, and
the related accounting records on which they are based, and may issue re-assessments based on their findings.
Tax applications for foreign subsidiaries and joint ventures of the Group
The Netherlands
In the Netherlands, corporate income tax is levied at the rate of 20 percent (31 December 2018: 20 percent) for tax profits up to
Euro 200.000 and 25 percent (31 December 2018: 25 percent) for the excess part over this amount on the worldwide income of
resident companies, which is determined by modifying accounting income for certain exclusions and allowances for tax purposes
for the related year. A unilateral decree for the avoidance of double taxation provides relief for resident companies from Dutch
tax on income, such as foreign business profits derived through a permanent establishment abroad, if no tax treaty applies. There
is an additional dividend tax of 5 percent computed only on the amounts of dividend distribution at the time of such payments.
Under the Dutch taxation system, tax losses can be carried forward for nine years to offset against future taxable income. Tax losses
can be carried back to one prior year. Companies must file their tax returns within nine months following the end of the tax year
to which they relate, unless the company applies for an extension (normally an additional nine months).
Tax returns are open for five years from the date of final assessment of the tax return during which time the tax authorities have
the right to audit tax returns, and the related accounting records on which they are based, and may issue re-assessments based
on their findings.
Iraq
As at 31 December 2019, enacted corporation tax rate is 15 percent (31 December 2018: 15 percent) for the entities registered in Iraq
according to local tax law.
Switzerland
As at 31 December 2019, enacted corporation tax rate is 22,8 percent (31 December 2018: 22,8 percent) for the subsidiaries registered
in Switzerland according to local tax law. According to the Tax Procedural Law in Switzerland, statutory losses can be carried
forward maximum for seven years.
Qatar
As at 31 December 2019, enacted corporation tax rate is 10 percent (31 December 2018: 10 percent) for the subsidiaries registered
in Qatar according to local tax law.
Morocco
The applicable corporate tax rate in Morocco is 31 percent (31 December 2018: 31 percent). Tax losses can be carried forward to
offset against future taxable income for five years. Where the loss includes a claim for depreciation, that portion can be carried
forward for indefinitely.
Saudi Arabia
As at 31 December 2019, enacted corporation tax rate is 20 percent for the entities registered in Saudi Arabia according to local tax
law (31 December 2018: 20 percent).
21 Intangible assets (continued)
21.2 Other intangible assets (continued)
l) The concession period of the Didim and Turgutreis marinas was extended to 49 years in accordance with the provisions of the
Regulation on the Extension and Sale of Tourism Investments on Real Estates as published in the Official Gazette on 4 May 2018
based on the temporary article 23 of the Law No:4706.
22 Taxation
In Turkey, corporate tax rate is 22% as of 31 December 2019 (2018: 22%). However, according to the Article 91 of the Law numbered
7061 “Legislation on Amendment of Certain Tax Legislation and Other Certain Legislation” which was published on the Official
Gazette numbered 30261 on 5 December 2017 and according to the provisional clause 10 added to the Corporate Tax Law numbered
5520; corporate tax rate for the taxation periods of 2018, 2019 and 2020 is amended to 22%, which would later be applied as 20%
at the end of these periods. During these periods, Council of Ministers is entitled to decrease the corporate tax rate of 22% to 20%.
The tax legislation provides for a temporary tax of 22% (2018: 22%) to be calculated and paid based on earnings generated for each
quarter for the period ended 31 December 2019. The amounts thus calculated and paid are offset against the final corporate tax
liability for the year. With the amendment to the Law, corporate rate is set to 22% for the years 2018, 2019 and 2020.
75% of the gains derived from the sale of preferential rights, usufruct shares and founding shares from investment equity and 50%
of the gains derived from the sale of real estate property which have remained in assets for more than two full years are exempt
from corporate tax(2018: respectively 75% and 50 %). The relevant gain is required to be held in a fund account in equity for at least
five years to gain the right to use the exemption. The amount of the sale should be collected until the end of the second calendar
year following the year of the sale.
In order to be able to benefit from the exemption, the relevant income should be kept under a fund account in the liabilities and
should not be withdrawn from the enterprise for 5 years. The sales amount should be collected by the end of the second calendar
year following the year of sale.
There is also a withholding tax on the dividends paid and is accrued only at the time of such payments. The withholding tax rate
on the dividend payments other than the ones paid to the non-resident institutions generating income in Turkey through their
operations or permanent representatives and the resident institutions is 15 percent. In applying the withholding tax rates on
dividend payments to the non-resident institutions and the individuals, the withholding tax rates covered in the related Double
Tax Treaty Agreements are taken into account. Appropriation of retained earnings to capital is not considered as profit distribution
and therefore is not subject to withholding tax.
The transfer pricing law is covered under Article 13 “disguised profit distribution via transfer pricing” of the Corporate Tax Law.
The General Communiqué on disguised profit distribution via transfer pricing dated 18 November 2007 sets details about
implementation. If a tax payer enters into transactions regarding sale or purchase of goods and services with related parties, where
the prices are not set in accordance with arm’s length basis, then related profits are considered to be distributed in a disguised
manner through transfer pricing. Such disguised profit distributions through transfer pricing are not accepted as a tax deductible
for corporate income tax purposes.
In Turkey, the tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax return. Therefore,
provision for taxes shown in the consolidated financial statements reflects the total amount of taxes calculated on each entity that
are included in the consolidation.
Under the Turkish taxation system, tax losses can be carried forward to be offset against future taxable income for up to five years.
Tax losses cannot be carried back.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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22 Taxation (continued)
22.2 Reconciliation of effective tax rate (continued)
The Group recognizes deferred tax assets and liabilities based upon temporary differences arising between their financial
statements prepared in accordance with IFRS and their statutory financial statements. These temporary differences usually result
in the recognition of revenue and expenses in different reporting periods for IFRS and tax purposes.Since the applicable tax rate
has been changed to 22% for the 3 years beginning from 1 January 2018, 22% tax rate is used in the deferred tax calculation of 31
December 2019 for the temporary differences expected to be realized within 3 years (for the years 2018, 2019 and 2020). However,
since the corporate tax rate after 2020 is 20%, 20% tax rate is used for the temporary differences expected to be realized after 2020
(31 December 2018: 20%).
22.3 Taxes payable on income
In accordance with the tax legislation in Turkey, tax payments that are made in advance during the year are being deducted from
the total final tax liability of the fiscal year. Accordingly, the taxation charge on income is not equal to the final tax liability appearing
on the consolidated statement of financial position.
Taxes payable on income as at 31 December comprised the following:
2019 2018
Total tax expense / (benefit) 8.844 (56.109)
Add: Taxes carried forward 43.408 41.004
Add: Current taxes recognised in other comprehensive income (44.023) (134.041)
Add: Deferred taxes 137.243 300.205
Less: Corporation taxes paid in advance (97.299) (107.651)
Taxes payable on income 48.173 43.408
22.4 Deferred tax assets and liabilities
Deferred tax is provided in respect of taxable temporary differences arising between the carrying amounts of assets and liabilities
for financial reporting purposes and the amounts used for taxation purposes, except for the differences relating to goodwill not
deductible for tax purposes and the initial recognition of assets and liabilities which affect neither accounting nor taxable profit.
Unrecognised deferred tax assets and liabilities
As at 31 December 2019, deferred tax assets amounting to TL 600.925 thousand (31 December 2018: TL 555.684 thousand) have not
been recognised mainly with respect to the statutory tax losses carried forward and temporary differences. Such losses carried
forward expire until 2024. Deferred tax assets have not been recognised in respect of these items because it is not probable that
future taxable profit will be available against which the Group can utilise the benefits therefrom.
22 Taxation (continued)
Tax applications for foreign subsidiaries and joint ventures of the Group (continued)
Croatia
As at 31 December 2019, enacted corporation tax rate is 18 percent for the entities registered in Croatia according to local tax law
(31 December 2018: 18 percent).
Greece
As at 31 December 2019, enacted corporation tax rate is 24 percent for the entities registered in Greece according to local tax law
(31 December 2018: 29 percent).
United Kingdom
As at 31 December 2019, enacted corporation tax rate is 20 percent for the entities registered in the United Kingdom according to local tax law (31 December 2018: 20 percent).
22.1 Tax recognised in profit or loss
Income tax benefit for the years ended 31 December comprised the following items
2019 2018
Current corporation and income taxes 146.087 244.096
Deferred tax benefit (137.243) (300.205)
Total income tax (benefit) / expense 8.844 (56.109)
22.2 Reconciliation of effective tax rate
The reported income tax benefit for the years ended 31 December are different than the amounts computed by applying statutory
tax rate to profit before tax as shown in the following reconciliation:
2019 2018
Amount % Amount %
Reported loss before taxation (622.773) (2.985.387)
Taxes on reported profit per statutory tax rate 137.010 (22,00) 656.785 (22,00)
Permanent differences:
Disallowable expenses (82.833) 13,30 (182.281) 6,11
Tax exempt income 10.129 (1,60) 7.217 (0,24)
Impairment of goodwill -- -- (39.962) 1,34
Effect of share of profit of equity-accounted investees 44.877 (7,20) (29.501) 0,99
Current-year losses for which no deferred tax asset is recognised (162.820) 26,10 (280.257) 9,39
Reversal of tax effect of previously recognised tax losses 103.847 (16,70) (2.368) 0,08
Tax rate differences 5.992 (1,00) 32.190 (1,08)
Effects of exchange rates (72.209) 1,10 (86.150) 2,89
Differences related to investment property exemption (7.088) 1,40 25.522 (0,85)
Others, net 14.251 (2,30) (45.086) 1,51
Tax (expense) / benefit (8.844) 56.109
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
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FIN
AN
CIA
L ST
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ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
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• C
ON
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DA
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FIN
AN
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182 183
22 Taxation (continued) 22.4 Deferred tax assets and liabilities (continued)
Movements in temporary differences during the yearMovements in deferred tax assets / (liabilities) were as follows:
2019 2018
1 January 446.320 (85.787)
Recognised in profit or loss 137.243 300.205
Recognised in other comprehensive income (1.963) (47.802)
- Remeasurements of defined benefit liability 4.602 2.947
- Valuation difference on financial assets and liabilities (407) 345
- Revaluation of property and equipment (6.157) (51.094)
Effect of sales of property and equipment 19.107 --
Effect of transfer to assets held for sale 31.851 --
Sale of subsidiary 147.846 199.527
IFRS 9 effect -- 6.928
Adjustments for currency translation (1.621) 73.249
31 December 778.784 446.320
23 Assets held for sale and liabilities directly associated with the assets held for sale
As at 31 December, assets held for sale comprised the following:
2019 2018
Assets held for sale (*) 1.093.081 --
Property and equipment -- 30.190
Others (**) 11.906 8.978
1.104.987 39.168
Liabilities directly associated with the assets held for sale As at 31 December, liabilities directly associated with the assets held for sale comprised the following:
2019 2018
Liabilities subject to sale of subsidiary (*) 557.063 --
557.063 --
(*) On 21 December 2019, Doğuş Holding A.Ş. has signed a share transferred agreement between with Venilia Investments SARL and Mistral Marina Turizm Yat. A.Ş. to sales of shares of D Marina İşletmeciliği Turizm ve Yönetim Hizmetleri A.Ş., D Marinas Hellas S.A. (and its subsidiaries Lefkas Marina S.A., Zea Marina S.A. and Gouvia Marina S.A.), Marina Borik d.o.o, Marina Dalmacija d.o.o, Marina Sibenik d.o.o. and Lamda Dogus Marina Invesments S.A.. On 20 February 2020, the share transfer of Lamda Dogus Marina Invesments S.A. has been finalised. Other companies share transfer has not been finalised. At the reporting date, assets and liabilities belonging to the these companies was reclassified asset held for sale in the consolidated statement of financial position.(**) Other comprised of the apartments, villas and flats obtained through barter transactions with construction companies in exchange for advertising service provided from Doğuş Yayın Grubu.
22 Taxation (continued)
22.4 Deferred tax assets and liabilities (continued)
Recognised deferred tax assets and liabilities
Deferred tax assets and deferred tax liabilities at 31 December are attributable to the items detailed in the table below:
2019 2018
Asset Liability Asset Liability
Revaluation on land and buildings -- (220.295) -- (223.335)
Provisions 60.012 -- 27.201 --
Effect of percentage of completion method 170.227 (177.169) 234.186 (174.624)
Employee severance indemnity and short term employee benefits 23.143 -- 27.836 --
Pro-rata basis depreciation expense -- (32.053) 115.365 --
Fair value gain from investment property -- (138.014) -- (149.486)
Valuation difference of financial assets and liabilities 40.612 -- 12.089 --
Differences arising on business combinations and intangible assets 28.102 (341.385) 22.462 (435.459)
Other temporary differences 236.587 (7.032) 250.382 (66.478)
Subtotal 558.683 (915.948) 689.521 (1.049.382)
Tax losses carried forward 1.136.049 -- 806.181 --
Total deferred tax assets/(liabilities) 1.694.732 (915.948) 1.495.702 (1.049.382)
Set off of tax (111.661) 111.661 (69.310) 69.310
Deferred tax assets/(liabilities), net 1.583.071 (804.287) 1.426.392 (980.072)
According to the Tax Procedural Law in Turkey, statutory losses can be carried forward maximum for five years. Consequently, 2024 is the latest year for recovering the deferred tax assets arising from such tax losses carried forward. The Group management forecasted to generate taxable income during 2020 and the years thereafter and based on this forecast, it has been assessed as probable that the deferred tax assets resulting from tax losses carried forward in the amount of TL 5.680.245 thousand (31 December 2018: TL 4.030.935 thousand) will be realisable; hence, such realisable deferred tax assets in the amount of TL 1.136.049 thousand (31 December 2018: TL 806.181 thousand) are recognised in the consolidated financial statements.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
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FIN
AN
CIA
L ST
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ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
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FIN
AN
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L ST
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ME
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184 185
25 Loans and borrowings (continued)
Long term debt securities issued
(*) Doğuş Holding A.Ş. has issued a bond with a nominal value of TL 350 million with an interest rate of the benchmark interest
TRLibor +3,75 spread and quarterly coupon payment to be sold only to qualified investors without being offered to the public on 31
July 2017 and with a maturity of 26 July 2021.
Terms and debt repayment schedule
As at 31 December, the terms and conditions of outstanding loans and borrowings were as follows:
2019
Currency Nominal interest rate Year of maturity Face value Carrying amount
Secured bank borrowings USD (Libor + 0,65 - Libor + 5,35) 2021 - 2026 2.719.308 2.716.703
Secured bank borrowings Avro (Euribor + 3,50 – Euribor+5,75)-4,5-6,5 2020 - 2030 20.392.493 20.580.733
Secured bank borrowings Other 2,65 - 30,45 2020 - 2028 932.088 938.766
Unsecured bank borrowings USD Libor+3,70 2022 89.103 89.103
Unsecured bank borrowings Avro (Euribor + 3,50 - Euribor +5,63)-4,5 - 7,0875 2020 - 2022 1.746.462 1.769.094
Unsecured bank borrowings/ factoring
Other 14,50 -30,00 2020 - 2022 2.846.397 2.933.790
Finance lease liabilities USD 6,40 2022 17.218 17.218
Finance lease liabilities Other 10,26 - 18,47 2020 2.040 2.040
Liabilities from leasing transactions USD 5,40 2020 - 2028 332.277 332.277
Liabilities from leasing transactions Avro 5,98 2020 - 2030 44.257 45.900
Liabilities from leasing transactions Other 19,95 2020 - 2058 425.669 452.848
Issued debt securities* Other TR Libor +3.75 2021 350.000 359.349
29.897.312 30.237.821
2018
Currency Nominal interest rate Year of maturity Face value Carrying amount
Secured bank borrowings USD (Libor + 0,89 - Libor + 5,50)-4,70 – 9,60 2019 - 2026 3.215.508 3.233.098
Secured bank borrowings Euro (Euribor + 0,24 - Euribor +5,75)-3,60 - 8,95 2019 - 2030 13.174.725 13.208.403
Secured bank borrowings Other 2,65 – 39,70 2019 - 2028 476.768 489.599
Unsecured bank borrowings USD (Libor + 3,85 - Libor + 5,35) 2019 - 2020 541.201 551.151
Unsecured bank borrowings Euro (Euribor + 2,94 - Euribor +5,50)-3,20 - 8,95 2019 - 2022 6.713.293 6.804.533
Unsecured bank borrowings/ factoring
Other 5,35 – 35,70 2019 - 2022 3.484.133 3.586.937
Finance lease liabilities USD 6,04 2022 21.656 21.656
Finance lease liabilities Euro 6,13 - 12,58 2019 - 2019 3.164 3.164
Finance lease liabilities Other 10,25 - 18,47 2019 - 2020 9.166 9.246
Issued debt securities* Other Gösterge tahvil oranı + 3,50 - TR Libor 3,75 2019 - 2021 700.000 725.212
28.339.614 28.632.999
24 Due from/due to customers for contract work
As at 31 December, the details of uncompleted contracts were as follows:
2019 2018
Total costs incurred on uncompleted contracts 14.025.406 14.394.333
Estimated earnings / (loss) 1.574.403 1.081.612
Total estimated revenue on uncompleted contracts 15.599.809 15.475.945
Less: Billings to date (15.182.714) (15.267.743)
Net amounts due from customers for contract work 417.095 208.202
Due from customers for contract work and due to customers for contract work were included in the accompanying consolidated
statement of financial position under the following captions:
2019 2018
Due from customers for contract work (Note 16) 526.053 667.603
Due to customers for contract work (Note 16) (108.958) (459.401)
417.095 208.202
25 Loans and borrowings
As at 31 December, loans and borrowings comprised the following:
2019 2018Non-current liabilities
Long-term bank borrowings 23.548.803 15.335.477
Finance lease liabilities 11.525 19.629
Issued debt securities(*) 299.227 269.863
Long term liabilities from leasing transactions 656.275 --
24.515.830 15.624.969
Current liabilities
Short-term portion of long term bank borrowings 3.131.003 8.687.089
Short-term bank borrowings 2.252.147 3.785.631
Finance lease liabilities 7.733 14.437
Factoring liabilities 96.236 65.524
Issued debt securities(*) 60.122 455.349
Short term liabilities from leasing transaction 174.750 --
5.721.991 13.008.030
As at 31 December, the Group’s total loans and borrowings are as follows:
2019 2018Bank borrowings 28.931.953 27.808.197
Finance lease liabilities 19.258 34.066
Factoring liabilities 96.236 65.524
Issued debt securities(*) 359.349 725.212
Liabilities from leasing transactions 831.025 --
30.237.821 28.632.999
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
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FIN
AN
CIA
L ST
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ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
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FIN
AN
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L ST
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186 187
25 Loans and borrowings (continued)
Terms and debt repayment schedule (continued)
Finance lease liabilities
As at 31 December 2019, finance lease liabilities are payable as follows:
Minimum lease payments Interest Present value of minimum lease payments
Less than one year 8.544 (811) 7.733
Between one and five years 12.090 (565) 11.525
20.634 (1.376) 19.258
As at 31 December 2018, finance lease liabilities are payable as follows:
Minimum lease payments Interest Present value of minimum lease payments
Less than one year 15.641 (1.203) 14.438
Between one and five years 20.167 (539) 19.628
35.808 (1.742) 34.066
26 Derivative instruments
As at 31 December 2019 and 2018, derivative instruments comprised the following:
31 December 2019
Fair values
Contract amount(*) Asset Liability
Cross-currency fixed rate swaps 1.482.090 -- 507.363
1.482.090 -- 507.363
31 December 2018
Fair values
Contract amount(*) Asset Liability
Cross-currency fixed rate swaps 1.832.194 -- 655.370
1.832.194 -- 655.370
(*) Refers to the aggregate contract amounts of buy and sell legs of the related derivative instruments.
25 Loans and borrowings (continued)
Terms and debt repayment schedule (continued)
Doğuş Group reached a final agreement with the banks on the refinancing process initiated by the various group companies in
order to restructure the maturity of some of its loans. Final loan agreement and other financial documents signed in April 2019
and final loan disbursement was realized in May 2019.
A significant change, in whole or in part, to the requirements of an existing financial liability in accordance with IFRS 9 indicates
that the old financial obligation is eliminated and a new financial obligation should be included in the financial statements. In
assessing the material change, it is examined whether the present value of the cash flows generated under the new conditions,
including any commissions and fees paid, is reduced by using the effective interest rate at least 10% from the reduced present
value of the remaining cash flows of the original financial liability. In the event of a material change, the difference between the
carrying amount of the financial liability and the amount paid (including fees and commissions paid or new financial obligation)
is recognized in the financial statements as profit or loss.
The refinancing process that the Group is included in has been evaluated within this scope and financial transactions, fees and
consultancy expenses are recognised respectively under the financial expenses and general administrative expenses accounts.
Redemption schedules of the Group’s total loans and borrowings according to original maturities as at 31 December are as follows:
2019 2018
2019 -- 13.008.030
2020 5.721.991 3.472.130
2021 4.089.893 2.933.646
2022 5.903.331 1.383.372
2023 and over 14.522.606 7.835.821
30.237.821 28.632.999
For the years ended 31 December, financial liabilities movement schedule is as follows:
2019 2018
Balance at the beginning of the year – 1 January 28.632.999 24.352.583
Additions 8.368.488 5.553.293
Principal payments (10.268.033) (5.716.581)
Change in exchange rates 3.117.404 4.396.498
Change in interest accruals 386.963 47.206
End of the period – 31 December 30.237.821 28.632.999
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
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FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
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PO
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FIN
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L ST
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188 189
27 Provisions, commitment and contingencies (continued)
Letter of guarantees received and suretyship
As at 31 December 2019 and 2018, the Group’s letters of guarantes received are as follows:
2019 2018
Letters of guarantees received 599.616 451.833
Letter of guarantee for bill guarantee 5.178 4.838
Others 15.694 11.694
620.488 468.365
Litigation and claims
On 27 April 2010 Alstom – Marubeni- Doğuş Consortium (Consortium) terminated the Marmaray CR1 contract signed with DLH
General Management which is connected to Ministry of Transport. Group recorded TL 15.405 thousand loss for sales expense
of mentioned contract. On 13 July 2010 Consortium carried the dispute to International Chamber of Commerce Secreteriat for
recovery of the losses related with the termination of the contract. In the Partial Award received on 19 December 2014 even if some
of the claims of consortium accepted, Tribunal founded the termination of Consortium wrongful and parties invited to calculate
their material damages in second phase (Quantum Phase) of the arbitration. By the report date Hearings of second phase of
arbitration completed and Post-Hearing Brief’s submitted, parties wait Tribunal to issue Award.
ICC Tribunal declared its decision on 6 September 2013 and distributed Final Award (ICC Award) related with the case about
the Doğuş Construction’s bridge project in Kiev. ICC Tribunal decided Respondent South West Railways (SWR) to pay Dogus
Construction USD 23.438 thousand remuneration ve USD 3.346 thousand arbitration costs in total USD 26.784 thousand. In addition
for the balance of USD 20.059 thousand Tribunal decided to impose %3 interest from the date of award until full payment. SWR
appealed this decision in Swiss Federal Court (SCC) and Swiss Federal Court approved ICC decision and dismissed SWR’s appeal.
The recognition for the ICC award is completed and enforcement process continues in Ukraine.
27.1 Commitments and contingent liabilities
As at 31 December 2019, commitment for uncalled capital of subsidiaries amounting to TL 5.114 thousand (31 December 2018: TL
90.205 thousand).
27.2 Provisions
Short-term provisions
As at 31 December, short-term provisions comprised the following items:
2019 2018
Warranty provision 8.600 16.356
Provision for litigation 104.743 62.926
Vacation pay liability 56.002 49.860
Other short-term provisions 21.024 24.757
190.369 153.899
27 Provisions, commitment and contingencies
As at 31 December 2019, the Group’s position related to collaterals, pledges, mortgages and letter of guarantees (“CPMG”) are as
follows:
31 December 2019 Original balances (TL equivalent)
USD TL Other (*) Total
A. Total amount of CPMG’s given in the name of its own legal personality 306.420 15.123.865 6.636.886 22.067.171
B. Total amount of CPMG’s given on behalf of the fully consolidated companies 2.883.699 1.447.772 8.254.417 12.585.888
C. Total amount of CPMG’s given on behalf of third parties for ordinary course of business -- 25.000 -- 25.000
D. Total amount of other CPMG’s given 339.534 241.400 49.880 630.814
i. Total amount of CPMG’s given on behalf of the majority shareholder -- -- -- --
ii. Total amount of CPMG’s given to on behalf of other group companies which are not in scope of B and C
339.534 241.400 49.880 630.814
iii. Total amount of CPMG’s given on behalf of third parties which are not in scope of C -- -- -- --
Total 3.529.653 16.838.037 14.941.183 35.308.873
(*) The other mainly consists of EUR.
As at 31 December 2018, the Group’s position related to collaterals, pledges, mortgages and letter of guarantees (“CPMG”) are as
follows:
31 December 2018 Original balances (TL equivalent)
USD TL Other (*) Total
A. Total amount of CPMG’s given in the name of its own legal personality 619.594 811.029 9.108.705 10.539.328
B. Total amount of CPMG’s given on behalf of the fully consolidated companies 1.103.058 797.628 10.381.301 12.281.987
C. Total amount of CPMG’s given on behalf of third parties for ordinary course of business -- -- -- --
D. Total amount of other CPMG’s given 205.576 241.400 178.816 625.792
i. Total amount of CPMG’s given on behalf of the majority shareholder -- -- -- --
ii. Total amount of CPMG’s given to on behalf of other group companies which are not in scope of B and C
205.576 241.400 178.816 625.792
iii. Total amount of CPMG’s given on behalf of third parties which are not in scope of C -- -- -- --
Total 1.928.228 1.850.057 19.668.822 23.447.107
(*) The other mainly consists of EUR.
Other CPMGs given by the Group as at 31 December 2019 are equivalent to 23% of the Group’s equity (31 December 2018: 17%).
Doğuş Group reached a final agreement with the banks on the refinancing process initiated by the various group companies in
order to restructure the maturity of some of its loans. The final loan agreement and other finance documents were signed in April
2019 and the final loan disbursement was realized in May 2019.
Mortgage Contract, Credit Transfer Contract, Movable Pledge Contract, Share Pledge Contract and Account Pledge Contract are
among the signed financial documents. Within the scope of these agreements, movable and immovable assets and shares of the
Group which are given to banks as pledges, mortgages and collaterals are included in the Margin, Pledge and Mortgage table
above.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
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FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
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FIN
AN
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L ST
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190 191
28 Other current assets and prepayments
As at 31 December, other current assets comprised the following:
2019 2018
Value Added Tax (“VAT”) receivables 467.777 586.127
Deposits and guarantees given 263.756 153.792
Accrued income 245.847 193.224
Warranty claims and price difference receivables (**) 107.235 297.026
Prepaid taxes 98.695 136.229
Receivables from insurance companies 14.893 14.004
Others (*) 513.853 175.222
1.712.056 1.555.624
(*) As at 31 December 2019, others comprised restricted cash and cash equivalents amounting to TL 407.106 thousand (31 December 2018: TL 107.889 thousand).(**) Warranty claims comprise the amounts to be paid by the suppliers in regards to the portion of warranty expenses of the vehicles imported by the Group, OEM’s are respon-sible for. As at 31 December 2019, other receivables which has not been billed yet is amounting to TL 38.965 (31 December 2018: TL 121.688).
As of 31 December, short-term prepayments consist of the following:
2019 2018
Prepaid expenses 90.100 93.420
Advances given for inventory 27.827 53.947
Others 9.859 19.738
127.786 167.105
29 Other non-current assets and prepayments
As at 31 December, other non-current assets comprised the following:
2019 2018
VAT receivables 185.906 243.395
Prepaid taxes 91.869 86.256
Deposits and guarantees given 3.612 7.484
Others (*) 100.904 419.352
382.291 756.487
(*) As at 31 December 2019, others comprised restricted cash and cash equivalents amounting to TL 78.711 thousand (31 December 2018: TL 389.789 thousand).
As at 31 December, long-term prepayments comprised the following:
2019 2018
Prepaid expenses 44.155 61.959
Advances given for property and equipment 412 81.107
Other advances given 1.828 1.824
46.395 144.890
27 Provisions, commitment and contingencies (continued)
27.2 Provisions (continued)
Long-term provisions
As at 31 December, long-term provisions comprised the following items:
2019 2018
Long-term provisions related to employee benefits 143.558 141.302
Reserve for severance payments 143.558 141.302
Warranty provision 26.746 24.007
Provision for litigation 2.721 2.658
Other long-term provisions (*) 153.821 18.845
326.846 186.812
(*)Other long-term provisions includes provisions related to construction project amounting to TL 139.817 thousand (31 December 2018: TL 6.250 thousand).
Reserve for severance paymentsIn accordance with the existing labour law in Turkey, the Group entities operating in Turkey are required to make lump-sum payments
to employees who have completed one year of service and whose employment is terminated without cause or who retire (age of
58 for women, age of 60 for men) or completed service years of 20 for women or 25 for men, are called up for military service or die.
According to change of regulation, dated 8 September 1999, there are additional liabilities for the integration articles.
For the years ended 31 December, the movements in the reserve for severance payments were as follows:
2019 2018
Balance at the beginning of the year 141.302 132.227
Provision for the year 20.025 16.040
Paid during the year (40.780) (21.699)
Actuarial difference 23.011 14.734
Balance at the end of the year 143.558 141.302
The reserve has been calculated by estimating the present value of future probable obligation of the Group arising from the retirement
of the employees.
Statistical valuation methods were developed to estimate the Group’s obligation under defined benefit plans. Accordingly, the
following statistical assumptions were used in the calculation of the total liability:
2019 2018
% %
Discount rate 3,42 3,69
Interest rate 8,5-12,2 6,4-12,3
Expected rate of salary/limit increase 1,5-8,0 1,5-8,0
The range of turnover rate to estimate the probability retirement 1,0-8,0 1,0-8,0
The computation of the liability is predicated upon retirement pay ceiling announced by the Government. As at 31 December 2019,
the ceiling amount was TL 6.379 (full TL) (31 December 2018: TL 5.434 (full TL)).
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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32 Capital and reserves (continued)
32.2 Restricted reserves
The details of the restricted reserves are as follows:
2019 2018
Legal reserves 375.819 380.548
Treasury share reserves 257.728 168.919
Special reserves 6.784.405 5.408.729
7.417.952 5.958.196
According to article 519 of Turkish Commercial Code, exceptions are defined for holding companies which aims to invest in other
entities regarding the legal reserves. Accordingly, the legal reserves are generated by annual appropriations amounting to 5
percent of income disclosed in the Group’s statutory accounts until it reaches 20 percent of paid-in share capital (first legal reserve).
Within the scope of the Exemption for Sale of Participation Shares, the 75% portion of gains in statutory financial statements
arising from the sale of investments held in the past at least for two years was classified under “Restricted Reserves’’.
Doğuş Otomotiv, reacquired its own shares that are traded on Borsa Istanbul A.Ş. In this context, as of 31 December 2016, Doğuş
Otomotiv reacquired its own 22.000.000 units of registered shares that are equivalent to 10% portion of its issued capital at
an amount of TL 220.274 thousand and accounted as "Treasury shares" under the equity. Additionally, “Treasury share reserve”
have been reclassified in the amount of the Group’s portion of the value of the reacquired shares under “Restricted reserves” in
accordance with the relevant communique.
32.3 Dividend
In 2018, the Company did not distribute dividends to the shareholders (2018: None)
32.4 Revaluation surplus
For the years ended 31 December, the movements of revaluation surplus were as follows:
2019 2018
Balance at the beginning of the year 2.868.803 2.456.357
Revaluation increase in land and building 370.632 502.648
Deferred taxes on revaluation surplus (4.775) (40.504)
Change in non-controlling interests in consolidated subsidiaries without a change in control, net of deferred tax -- 9.951
Sale of assets (286.311) (27.168)
Depreciation effect on revaluation surplus (22.799) (32.481)
Balance at the end of the year 2.925.550 2.868.803
30 Other current liabilities
As at 31 December, other current liabilities comprised the following:
2019 2018
Taxes and duties payable other than on income 217.110 298.307
Deposits and guarantees received 204.978 272.354
Accrued expenses 131.858 161.770
Deferred income 94.607 117.848
Employee benefit 18.648 18.813
Other 100.833 104.303
768.034 973.395
31 Other non-current liabilities
As at 31 December, other non-current liabilities comprised the following:
2019 2018
Advances received 176.418 459.653
Deffered income 29.810 52.302
Liabilities due to extention of concession period 33.163 33.212
Deposits and guarantees received 32.572 7.556
Other (*) 219.767 375.109
491.730 927.832
(*)The Group’s share of losses in Aslancık, a joint venture of the Group, exceeds its interest in Aslancık, the carrying amount of the investment is reduced below zero and the total carrying value of the investment and share of losses in Aslancık has been reclassified as other non-current liability amounting to TL 2.528 thousand (31 December 2018: 54.852 thousand).
32 Capital and reserves
32.1 Share capital
As at 31 December 2019, the share capital of Doğuş Holding amounted to TL 862.837 thousand (31 December 2018: TL 856.027
thousand).
The paid-in capital of Doğuş Holding comprises 862.837.305 shares (31 December 2018: 856.027.050 shares) of TL 1 each.
At 31 December, the shareholding structure of Doğuş Holding based on the number of shares is presented below:
2019 2018
Thousands of shares % Thousands of shares %Ferit Şahenk 279.230 32,36 278.383 32,52
Filiz Şahenk 261.381 30,29 260.534 30,44
Deniz Şahenk 148.053 17,16 148.053 17,30
Doğuş Holding A.Ş.(*) 87.883 10,19 -- --
Others 86.290 10,00 169.057 19,74
862.837 100,00 856.027 100,00
(*) On 30 December 2019, Doğuş Araştırma Geliştirme ve Müşavirlik Hizmetleri A.Ş. and Doğuş Holding A.Ş. have merged under Doğuş Holding A.Ş. The paid-in capital of Doğuş Holding has been increased by TL 6.810 thousand and those shares were given to shareholders of Doğuş Araştırma Geliştirme ve Müşavirlik Hizmetleri A.Ş. other than Doğuş Holding A.Ş.. Accordingly, D Otel Göcek which was one of the shareholders of Doğuş Araştırma Geliştirme ve Müşavirlik Hizmetleri A.Ş. has become a shareholder of Doğuş Holding A.Ş. In addition, the shares of the Company which were previously held by Doğuş Araştırma Geliştirme ve Müşavirlik Hizmetleri A.Ş. started to be accounted as ”treasury shares” under the equity in the consolidated financial statements at the nominal value. As a result of the merger transaction, the composition of the Company’s shareholding structure is presented at the above table.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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33 Financial instruments – Fair values and risk management
(a) Financial risk management
Overview
The Group has exposure to the following risks from its use of financial instruments:
• credit risk
• liquidity risk
• market risk
This note presents information about the Group’s exposure to each of the above risks, the Group’s objectives, policies and processes
for measuring and managing risks, and the Group’s management of capital. Further quantitative disclosures are included
throughout these consolidated financial statements.
(i) Risk management framework
Enterprise Risk Management (“ERM”) efforts have been initiated by Doğuş Group since 2006 and these efforts have been executed
by Doğuş Holding Risk Management Department. Risk Management activities are conducted by a realistic organizational structure
and it is fully supported with the commitment of top level management, so that the Group is pioneer in risk management activities
in Turkish business environment.
Group acts proactively in terms of risk management in order to ensure that its business operations in different industries and
regions are not adversely affected as a result of market, liquidity and counterparty risks. Risk Management and Internal Audit
departments within each sector and at the Group level provide and maintain awareness for different types of risks, including
emerging risks, and ensure that appropriate risk management mechanisms are in place.
In 2010, by the Risk and Audit Committee decision, Group companies created their own Risk Management departments. Doğuş
Holding Risk Management Department works closely with the Group companies’ Risk Management departments to obtain
accurate information on time and to assess and evaluate the risk taking processes. In addition to establishing an independent
reporting infrastructure for Group companies, group-wide awareness for different types of risks and risk management strategies is
ensured by periodical risk roundtables, workshops, dashboards and reports throughout the organization.
Risk Committee meetings are held on regular basis and valuable and relevant risk information is generated discussed and
escalated if deemed necessary.
ERM is applied in Group companies so that risks are managed effectively within the Group in accordance with the defined risk
management framework. This framework is customised according to the needs and structure of the Group’s businesses.
ERM activities are executed in the following fields:
• Determining risk management standards and policies,
• Developing group-wide culture and capabilities,
• Conducting risk analysis of existing and potential investments,
• Determining risk levels, limits and action plans,
• Supporting the implementation of these action plans,
• Enhancing strategic and operational processes with a risk management approach.
32 Capital and reserves (continued)
32.5 Remeasurements of defined benefit liability
As a result of the adoption of IAS 19 (2011), all actuarial differences are recognised immediately in other comprehensive income.
32.6 Non-controlling interests
For the years ended 31 December, movements of the non-controlling interests were as follows:
2019 2018
Balance at the beginning of the year 1.084.817 824.174
Effect of share capital increase and new establishments 70.354 38.909
Changes of non controlling interest in consolidated subsidiaries 31.579 (74.616)
Actuarial differences (1.710) (1.802)
Release of non-controlling interests through dividend distribution (179.050) (87.641)
Sale of subsidiary (92.918) 287.274
Non-controlling interest of changes in revaluation surplus 15.977 19.879
Dividends related to reacquired shares of subsidiary (13.478) (14.290)
Foreign curreny translation effect 56.413 77.965
Non-controlling interest of profit for the year 257.860 14.965
Balance at the end of the year 1.229.844 1.084.817
32.7 Translation reserve
The translation reserve comprises all foreign exchange differences arising from the translation of the financial statements of foreign
operations into TL.
32.8 Capital stock held by subsidiaries
Capital stock held by subsidiaries is used to present share capital at the amount of statutory records of the Company due to the
purchase of shares of the Company by subsidiaries (Note 32.1).
32.9 Accounting in net investment hedge
Group, designated some portion of its EUR and CHF denominated bank borrowings as a hedging instrument in order to hedge
its foreign currency risk arising from the translation of net assets of its subsidiaries, joint ventures and joint operations operating in
foreign countries from EUR to Turkish Lira. As at 31 December 2019, bank borrowings amounting to EUR 355 million was designated
as a net investment hedging instrument.
Net foreign exchange losses before tax recognised in the statement of profit or loss and other comprehensive income for the year
ended 31 December 2019 is TL 220.117 thousand related to the net investment hedging transactions (31 December 2018 Net foreign
exchange loss: TL 670.203 thousand).
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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33 Financial instruments – Fair values and risk management (continued)
(a) Financial risk management (continued)
(i) Risk management framework (continued)
Media (continued)
The Board of Directors has overall responsibility for establishment and oversight of the Media Group’s risk management framework.
The Risk Committee is accountable to the Board on risk management, aiming to manage risks in more systematic manner and foster
risk culture. In January 2010, Internal Audit and Risk Management Department was established with the decision of the Board. Among
the responsibilities of the department;
• To ensure the development and dissemination of the “Risk Management” concept and culture in the Company,
• To determine the risk management policies and implementation procedures in line with the opinions of the Board of Directors
based on the risk management strategies, to ensure their implementation and compliance with them,
• The Company's risks include identifying, measuring, analyzing, monitoring and reporting.
The Department's Internal Audit activities include financial, operational, information technologies and regulatory compliance audits
conducted in accordance with the risk-based annual business plan. Internal Audit activities include studies to evaluate the effectiveness
and adequacy of control points, whether operational processes and financial records contain a significant error.
The Internal Audit and Risk Management Department provides information about the audit and risk management activities to the
Doğuş Publishing Group Audit Committee and the Risk Committee.
Hospitality and retail
Doğuş Hospitality and Retail Group developed a risk management process to strengthen the internal controls and focus on
risk assessment at the strategic level of the business and reports to the Risk Committee regulary. Within this perspective, Doğuş
Hospitality and Retail Group has selected an internationally accepted internal control model and built a risk management framework
to operationalise the selected model in the organisation.
The risk management framework consists of five interrelated components derived from the way management runs the business
process: control environment, risk assessment, control activities, information and communication and monitoring.
Real Estate, energy and other segment
Doğuş Holding’s Risk Management Department gives support to ensure the application of risk management processes in the Real
Estate, Energy and other businesses.
(ii) Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Group’s receivables from customers and investment securities.
Trade receivable
The Group’s exposure to credit risk is influenced mainly by the characteristics of each customer of the segments. The demographics
of the Group’s customer base, including the default risk of the industry and country in which customers operate has an influence on
credit risk. Since the Group mainly operates in construction, automotive, media, real estate, energy, entertainment and tourism
33 Financial instruments – Fair values and risk management (continued)
(a) Financial risk management (continued)
(i) Risk management framework (continued)
Risk Management Department is under the supervision of Doğuş Holding’s CEO and the Risk and Audit Committee which functions
under the Board of Directors.
The Risk and Audit Committee is responsible for assessing the risk appetite of the shareholders and the investors. Many sectors has its
own risk committee.
Furthermore, internal audit activities performed by Doğuş Holding Internal Audit Department are also planned and implemented on
a risk-based perspective.
Automotive
Corporate Risk Management, which is established to revise and assess methods of defining volatilities in a timely and adequate manner
and to take remedial measures in accordance with the objectives of the Companies’ overall code of conduct, continues to evolve into
a corporate culture that extends from the governing body to entry-level employees.
The Financial Control Department, operating under the General Directorate of the Chief Financial Officer as a consequence of the
importance attached to risks in the automotive business, was restructured in May 2015 as the Financial Control and Risk Management
Department. By addressing the complementary nature of risk and control concepts together under the same roof, the Companies
operation in automotive business maintain the goal of creating one single responsibility center and a common language. In line with
this objective, a direct, comprehensive and integrated service is provided for the Early Risk Detection Committee as the command
center for effective risk management, with full support to the oversight duty of the Committee.
The risk composition, considered on the basis of probabilities and possible effects of processes and scenarios, has been redefined and
expanded to include the growing sensitivity for health, safety, environment, business continuity, and sustainability in the recent years.
Risk measurement and assessment parameters, the use of common terminology, business continuity approach, as well as all related
reporting and shareholder information activities also continue to be reinforced accordingly.
Construction
The Board of Doğuş İnşaat has established a Risk Committee in 2009 to have a better view over risks and implement the enterprise-
wide risk management process within the construction group. The Risk Committee is accountable to the Board and advises the
Board on risk management, aiming to manage risks in a more systematic manner and foster a risk culture within the company. The
management of the company has the overall responsibility for the establishment and oversight of the risk management framework.
In January 2010, Doğuş İnşaat Risk Management Department has been established and assigned to managing risk management
processes.
Risk management vision of Doğuş İnşaat is defined as, identifying and monitoring risks and opportunities that will impact the corporate
objectives, managing risks and uncertainties in the most effective and efficient manner and in line with the shareholders’ risk appetite,
and proactively implementing the most appropriate response to risk.
Doğuş İnşaat’s risk management policies and procedures are established to identify and analyse the risks faced by the company, to set
up appropriate risk limits and controls, and to monitor risks, responses, and adherence to such limits. Risk management policies and
systems are reviewed regularly to reflect changes in market conditions and Doğuş İnşaat’s activities.
Risks are identified and managed at three levels: i) corporate level ii) business process level and iii) project level. Risks are discussed at
monthly Risk Committee meetings with management and monitored by regular reports.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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33 Financial instruments – Fair values and risk management (continued)
(a) Financial risk management (continued)
(ii) Credit risk (continued)
Exposure to credit risk (continued)
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at 31
December 2018 was:
31 December 2018Trade receivables
Related party Third party Cash at banksFinancial
investmentsDerivatives
Maximum credit risk exposure at reporting date (A+B+C+D)
531.538 2.394.299 2.087.665 -- --
- Portion of maximum risk covered by guarantees -- 95.655 -- -- --
A. Carrying value of financial assets that are neither past due nor impaired
531.538 1.988.217 2.087.665 -- --
B. Carrying value of financial assets that are past due but not impaired (*)
-- 138.915 -- -- --
C. Carrying value of impaired assets -- 267.167 -- -- --
- Past due -- 267.167 -- -- --
- Gross book value (-) -- 729.276 -- -- --
- Impairment (-) -- (462.109) -- -- --
- Guaranteed portion of net values -- -- -- -- --
- Not past due -- -- -- -- --
- Gross book value (-) -- -- -- -- --
- Impairment (-) -- -- -- -- --
- Guaranteed portion of net values -- 95.655 -- -- --
D. Off financial statement items with credit risks -- -- -- -- --
(*) As at 31 December 2019 and 31 December 2018, information regarding to aging of receivables which are past due but not impaired are indicated in the table of aging analy-sis of receivables which are past due but not impaired.
The maximum exposure to credit risk for trade receivables at the reporting date by type of customer was as follows:
2019 2018
Contract receivables 1.560.933 2.018.340
Retailers 218.332 201.915
Advertising agencies 205.198 216.724
End-users 83.647 156.451
Other 527.920 332.407
2.596.030 2.925.837
33 Financial instruments – Fair values and risk management (continued)
(a) Financial risk management (continued)
(ii) Credit risk (continued)
Trade receivable (continued)
businesses, geographically the concentration of credit risk for the Group’s entities operating in the mentioned businesses are mainly
in Turkey.
Majority of accounts receivable in the automotive business segment is due from dealers. Entities operating under automotive business
segment have set an effective control mechanism to follow up and limit the risk for each counter party and obtain letters of guarantee
from its dealers against its receivables for vehicle and spare part sales.
The companies operating under the other segments have set a credit policy under which each new customer is analysed individually
for the creditworthiness before each company’s standard payment and delivery terms and conditions are offered.
Regarding the management of counterparty risk in the construction segment, the Group targets financing projects based on reliable
sources and forms its portfolio in such projects. In addition, the Group manages this risk by diversifying its portfolio on a country and
project basis.
Guarantees
In general terms, the Group’s policy is to receive guarantees from the customers of the Group entities in terms of sureties, letters of
guarantee in the nature of the businesses that each entity operates.
Exposure to credit risk
The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at 31
December 2019 was:
31 December 2019Trade receivables
Related party Third party Cash at banksFinancial
investmentsDerivatives
Maximum credit risk exposure at reporting date (A+B+C+D)
658.478 1.937.552 1.660.414 -- --
- Portion of maximum risk covered by guarantees -- 78.892 -- -- --
A. Carrying value of financial assets that are neither past due nor impaired
658.478 1.797.937 1.660.414 -- --
B. Carrying value of financial assets that are past due but not impaired (*)
-- 123.649 -- -- --
C. Carrying value of impaired assets -- 15.966 -- -- --
- Past due -- 15.966 -- -- --
- Gross book value (-) -- 145.309 -- -- --
- Impairment (-) -- (129.343) -- -- --
- Guaranteed portion of net values -- -- -- -- --
- Not past due -- -- -- -- --
- Gross book value (-) -- -- -- -- --
- Impairment (-) -- -- -- -- --
- Guaranteed portion of net values -- 78.892 -- -- --
D. Off financial statement items with credit risks -- -- -- -- --
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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33 Financial instruments – Fair values and risk management (continued)
(a) Financial risk management (continued)
(iii) Liquidity risk (continued)
The following tables are the contractual maturities of financial liabilities, including interest payments and excluding the impact of netting agreements:
31 December 2019
Carrying amount
Contractual cash flows
6 months or less
6-12 months
1-2 years 2-5 yearsMore than
5 years
Non-derivative financial liabilities
Secured bank borrowings 24.236.202 26.262.434 1.777.229 1.319.323 3.597.181 11.012.209 8.556.492
Unsecured bank borrowings 4.791.987 5.361.387 1.647.898 1.402.542 1.460.431 566.206 284.310
Liabilities from leasing transactions 831.025 842.779 69.189 119.061 164.529 243.050 246.950
Finance lease liabilities 19.258 20.634 3.840 5.874 9.511 1.409 --
Trade payables 2.202.644 2.217.364 1.429.015 788.349 -- -- --
Notes payable 359.349 447.962 32.654 32.654 382.654 -- --
Derivative financial liabilities
Cross-currency fixed interest rate swaps(*) 507.363 (462.592) 17.173 16.895 (496.660) -- --
32.947.828 34.689.968 4.976.998 3.684.698 5.117.646 11.822.874 9.087.752
(*) The carrying value of forward transactions represents the fair value of the related contracts carried in the balance sheet. Contractual cash flows represent the net of possible cash inflows and outflows from related forward foreign exchange transactions over nominal contract amounts.
31 December 2018
Carrying amount
Contractual cash flows
6 months or less
6-12 months
1-2 years 2-5 yearsMore than
5 years
Non-derivative financial liabilities
Secured bank borrowings 16.931.100 18.161.559 1.505.349 2.910.329 3.081.241 4.898.230 5.766.410
Unsecured bank borrowings 10.942.621 11.648.841 4.088.201 4.625.840 1.486.153 1.443.026 5.621
Finance lease liabilities 34.066 35.807 11.835 7.113 15.260 1.599 --
Trade payables 2.304.050 2.313.754 1.446.886 866.868 -- -- --
Notes payable 725.212 1.023.163 424.371 55.287 110.574 432.931 --
Derivative financial liabilities
Cross-currency fixed interest rate swaps(*) 655.370 (429.822) 25.162 (92.062) 38.304 (401.226) --
31.592.419 32.753.302 7.501.804 8.373.375 4.731.532 6.374.560 5.772.031
33 Financial instruments – Fair values and risk management (continued)
(a) Financial risk management (continued)
(ii) Credit risk (continued)
Exposure to credit risk (continued)
The maximum exposure to credit risk for trade receivables at the reporting date by geographic concentration was as follows:
Carrying amount
2019 2018
Turkey 2.128.288 1.791.059
Libya -- 356.722
Ukraine 5.253 4.758
Morocco 214 192
Euro zone 3.434 97.088
Other 458.841 676.018
2.596.030 2.925.837
Impairment losses
The aging of trade receivables at the reporting date was:
2019 2018
Gross Impairment Gross Impairment
Not past due 2.456.415 -- 2.519.755 --
Past due 0-30 days 1.912 -- 17.231 --
Past due 31-120 days 53.248 -- 50.151 --
Past due 121-365 days 68.489 -- 71.533 --
More than one year 145.309 (129.343) 729.276 (462.109)
Total 2.725.373 (129.343) 3.387.946 (462.109)
Cash and cash equivalents
As of 31 December 2019 and 2018, total cash and cash equivalents are neither past due nor impaired. A significant portion of the
bank deposits that are classified under cash and cash equivalents are held in banks operating in Turkey.
(iii) Liquidity risk
Liquidity risk comprises the risks arising from the inability to fund the increase in the assets, the inability to cover the liabilities
due and the operations performed in illiquid markets. In the framework of liquidity risk management, funding sources are being
diversified and sufficient cash and cash equivalents are held. In order to meet instant cash necessities it is ensured that the level of
cash and cash equivalent assets does not fall below a predetermined portion of the short term liabilities.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
202 203
33 Financial instruments – Fair values and risk management (continued)
(a) Financial risk management (continued)
(iv) Market risk (continued)
Currency risk (continued)
The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective
functional currencies of Group entities, primarily USD, but also Euro, Swiss Francs (“CHF”), Sterling (“GBP”), Libyan Dinar (“LYD”), Japanese
Yen (“JPY”), Croatian Kuna (“HRK”), Romanian Leu (“RON”), Emirati Dirham (“AED”), Qatar Riyal (“QAR”), Kazakstani Tenge (“KZT”), Ukranian
Hryvnia (“UAH”) and Russian Rouble (“RUB”). The currencies in which these transactions primarily are denominated are TL, Euro and
USD.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to
an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances.
The Group is exposed to currency risk through the impact of rate changes on the translation of foreign currency denominated payables
and bank borrowings from financial institutions.
To minimise risk arising from foreign currency denominated statement of financial position items, the Group sometimes utilises
derivative instruments as well as keeping part of its idle cash in foreign currencies. In addition, a natural foreign currency risk
management occurs due to the Group's net investments in foreign operations. At the same time, due to the foreign currency
denominated real estate investments, which are accounted for as non-monetary items, and due to the fact that some of the foreign
currency denominated loans are part of the foreign subsidiaries whose functional currency is other than Turkish Lira, the net foreign
currency (liability) in the economic sense is lower than it appears in the tables below.
Due to its funding structure, Group aims to minimise its exposure to changes in interest rates. Derivative financial instruments are
used to manage the potential earnings impact of interest rate and foreign currency movement. Several types of derivative financial
instruments are used for this purpose, including interest rate swaps and currency swaps, options, futures, forward contracts and other
derivative instruments.
In the automotive segment, as a business with intensive import transactions, which are constantly exposed to foreign exchange
risks, forward exchange contracts were executed and planned cash has been partially kept in foreign currency to keep the payments
in check. Some additional measures were taken, including model-based agreements negotiated with manufacturers according to
product portfolio and action plans and pricing options to minimize the negative effects of currency fluctuations
33 Financial instruments – Fair values and risk management (continued)
(a) Financial risk management (continued)
(iv) Market risk
Interest rate risk
Profile
As at 31 December, the interest rate profile of the Group’s interest-bearing financial instruments was as follows:
2019 2018
Fixed rate instruments
Financial assets 945.978 643.884
Financial liabilities 20.331.486 17.024.545
Variable rate instruments
Financial assets -- 6.040
Financial liabilities 9.906.335 11.608.454
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased / (decreased) equity and profit or loss before
tax by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain constant.
This analysis is performed on the same basis for 2018.
Profit or loss Equity
100 bp 100 bp
31 December 2019 increase decrease increase decrease
Variable rate instruments (3.368) 3.368 (23.551) 23.551
Cash flow sensitivity (net) (3.368) 3.368 (23.551) 23.551
Profit or loss Equity
100 bp 100 bp
31 December 2018 increase decrease increase decrease
Variable rate instruments (68.847) 68.847 (48.505) 48.505
Cash flow sensitivity (net) (68.847) 68.847 (48.505) 48.505
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
204 205
33 Financial instruments – Fair values and risk management (continued)
(a) Financial risk management (continued)
(iv) Market risk (continued)
Currency risk (continued)
At 31 December 2018, the currency risk exposures of the Group in TL thousand equivalents are as follows:
CURRENCY POSITION ANALYSIS 31 December 2018
TL equivalent USD EURO OTHER(*)
1. Trade receivables 955.801 21.704 52.046 527.890
2a. Monetary financial assets (including cash, bank accounts) 1.680.532 35.599 169.060 474.159
2b. Non-monetary financial assets -- -- -- --
3. Other 793.745 27.160 49.348 353.388
4. Current assets (1+2+3) 3.430.078 84.463 270.454 1.355.437
5. Trade receivables -- -- -- --
6a. Monetary financial assets -- -- -- --
6b. Non-monetary financial assets -- -- -- --
7. Other 424.394 21 10.157 363.057
8. Non-current assets (5+6+7) 424.394 21 10.157 363.057
9. Total Assets (4+8) 3.854.472 84.484 280.611 1.718.494
10. Trade payables (1.366.920) (7.375) (89.729) (787.233)
11. Financial liabilities (9.321.388) (244.093) (1.331.247) (12.475)
12a. Other monetary liabilities (588.778) (5.448) (44.202) (293.671)
12b. Other non-monetary liabilities -- -- -- --
13. Short term liabilities (10+11+12) (11.277.086) (256.916) (1.465.178) (1.093.379)
14. Trade payables -- -- -- --
15. Financial liabilities (14.646.475) (479.339) (1.989.274) (133.380)
16a. Other monetary liabilities (1.023.993) (2.442) (106.497) (369.182)
16b. Other non-monetary liabilities -- -- -- --
17. Long term liabilities (14+15+16) (15.670.468) (481.781) (2.095.771) (502.562)
18. Total liabilities (13+17) (26.947.554) (738.697) (3.560.949) (1.595.941)
19. Outside of the financial statements derivatives instruments net assets / (liability) position (19a+19b)
(1.184.194) -- (196.449) --
19a. Hedged portion of assets amount -- -- -- --
19b. Hedged portion of liabilities amount (1.184.194) -- (196.449) --
20. Net foreign currencies assets / (liability) position (9+18+19) (24.277.276) (654.213) (3.476.787) 122.553
21. Monetary items Net foreign currencies assets / (liability) position (=1+2a+5+6a+10+11+12a+14+15+16a)
(24.311.221) (681.394) (3.339.843) (593.892)
(*) TL equivalents are given.
33 Financial instruments – Fair values and risk management (continued)
(a) Financial risk management (continued)
(iv) Market risk (continued)
Currency risk (continued)
At 31 December 2019, the currency risk exposures of the Group in TL thousand equivalents are as follows:
CURRENCY POSITION ANALYSIS 31 December 2019
TL equivalent USD EURO OTHER(*)
1. Trade receivables 998.027 18.142 24.345 728.351
2a. Monetary financial assets (including cash, bank accounts) 759.978 30.600 45.912 272.865
2b. Non-monetary financial assets -- -- -- --
3. Other 956.937 28.360 41.053 515.442
4. Current assets (1+2+3) 2.714.942 77.102 111.310 1.516.658
5. Trade receivables -- -- -- --
6a. Monetary financial assets -- -- -- --
6b. Non-monetary financial assets -- -- -- --
7. Other 108.136 35 10.857 35.722
8. Non-current assets (5+6+7) 108.136 35 10.857 35.722
9. Total Assets (4+8) 2.823.078 77.137 122.167 1.552.380
10. Trade payables (929.652) (9.062) (79.538) (346.843)
11. Financial liabilities (3.300.086) (54.654) (430.982) (109.144)
12a. Other monetary liabilities (295.997) (8.242) (5.120) (212.985)
12b. Other non-monetary liabilities -- -- -- --
13. Short term liabilities (10+11+12) (4.525.735) (71.958) (515.640) (668.972)
14. Trade payables -- -- -- --
15. Financial liabilities (23.049.578) (476.523) (2.936.493) (689.493)
16a. Other monetary liabilities (879.788) (4.267) (114.879) (90.426)
16b. Other non-monetary liabilities -- -- -- --
17. Long term liabilities (14+15+16) (23.929.366) (480.790) (3.051.372) (779.919)
18. Total liabilities (13+17) (28.455.101) (552.748) (3.567.012) (1.448.891)
19. Outside of the financial statements derivatives instruments net assets / (liability) position (19a+19b)
(997.590) -- (150.000) --
19a. Hedged portion of assets amount -- --
-- --
19b. Hedged portion of liabilities amount (997.590) -- (150.000) --
20. Net foreign currencies assets / (liability) position (9+18+19) (26.629.613) (475.611) (3.594.845) 103.489
21. Monetary items Net foreign currencies assets / (liability) position (=1+2a+5+6a+10+11+12a+14+15+16a)
(26.697.096) (504.006) (3.496.755) (447.675)
(*) TL equivalents are given.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
206 207
33 Financial instruments – Fair values and risk management (continued)
(b) Fair value information
Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other
than in a forced sale of liquidation, and is best evidenced by a quoted market price.
The estimated fair values of financial instruments have been determined using available market information by the Group, and
where it exists, using appropriate valuation methodologies. However, judgment is necessarily required to interpret market data
to determine the estimated fair value. While the management of the Group has used available market information in estimating
the fair values of financial instruments, the market information may not be fully reflective of the value that could be realised in the
current circumstances.
The following methods and assumptions are used to estimate the fair values of financial instruments.
Financial assets
Carrying values of significant portion of cash and cash equivalents and trade receivables are assumed to reflect their fair values
due to their short-term nature.
Financial liabilities
Fair values of short term borrowings and trade payables are assumed to approximate their carrying values due to their short-term
nature.
The table below analyses financial instruments carried at fair value as at 31 December, by valuation method:
2019 Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss 33 220.061 -- 220.094
Financial assets at fair value through other comprehensive income 23.625 -- -- 23.625
Financial assets at fair value 23.658 220.061 -- 243.719
Derivative financial liabilities -- 507.363 -- 507.363
Financial liabilities at fair value -- 507.363 -- 507.363
2018 Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss 33 178.828 -- 178.861
Financial assets at fair value through other comprehensive income 67.783 -- -- 67.783
Financial assets at fair value 67.816 178.828 -- 246.644
Derivative financial liabilities -- 655.390 -- 655.370
Financial liabilities at fair value -- 655.370 -- 655.370
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (as prices)
or indirectly (derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).
33 Financial instruments – Fair values and risk management (continued)
(a) Financial risk management (continued)
(iv) Market risk (continued)
Sensitivity analysis
A 10 percent weakening / strengthening of TL against the following currencies at 31 December 2019 and 2018 would have increased
/ (decreased) profit or loss before tax and equity by the amounts shown below.
31 December 2019Profit / (Loss) Equity
Strengthening of TL Weakening of TL Strengthening of TL Weakening of TL
Increase/(decrease) 10% of USD parity
1-US Dollar net asset / liability 291.248 (291.248) (8.725) 8.725
2-Hedged portion of US Dollar amounts(-) -- -- -- --
3-Net effect of US Dollar (1+2) 291.248 (291.248) (8.725) 8.725
Increase/(decrease) 10% of EUR parity
4-EUR net asset / liability 2.139.226 (2.139.226) 448.248 (448.248)
5-Hedged portion of EUR amounts(-) (196.686) 196.686 -- --
6-Net effect of EUR (4+5) 1.942.540 (1.942.540) 448.248 (448.248)
Increase/(decrease) 10% of other parities
7-Other foreign currency net asset / liability (23.411) 23.411 13.063 (13.063)
8-Hedged portion of other foreign currency amounts(-) -- -- -- --
9-Net effect of other foreign currencies (7+8) (23.411) 23.411 13.063 (13.063)
TOTAL (3+6+9) 2.210.377 (2.210.377) 452.586 (452.586)
31 December 2018Profit / (Loss) Equity
Strengthening of TL Weakening of TL Strengthening of TL Weakening of TL
Increase/(decrease) 10% of USD parity
1-US Dollar net asset / liability 346.011 (346.011) (1.835) 1.835
2-Hedged portion of US Dollar amounts(-) -- -- -- --
3-Net effect of US Dollar (1+2) 346.011 (346.011) (1.835) 1.835
Increase/(decrease) 10% of EUR parity
4-EUR net asset / liability 1.835.739 (1.835.739) 451.196 (451.196)
5-Hedged portion of EUR amounts(-) (188.677) 188.677 -- --
6-Net effect of EUR (4+5) 1.647.062 (1.647.062) 451.196 (451.196)
Increase/(decrease) 10% of other parities
7-Other foreign currency net asset / liability 16.434 (16.434) (28.689) 28.689
8-Hedged portion of other foreign currency amounts(-) -- -- -- --
9-Net effect of other foreign currencies (7+8) 16.434 (16.434) (28.689) 28.689
TOTAL (3+6+9) 2.009.507 (2.009.507) 420.672 (420.672)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
208 209
34 Group enterprises (continued)
34.1 List of subsidiaries (continued)
Direct and indirect ownership interest held by Doğuş Holding
and its subsidiaries
Ownership interest through shares held by
Şahenk Family
Proportion of ownership interest
Proportion of effective interest of Doğuş
Holding and its subsidiaries
2019 2018 2019 2018 2019 2018 2019 2018D Otel 100,00 100,00 -- -- 100,00 100,00 100.00 100.00
D Otel Göcek 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
D Resort Sibenik 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
D Saat -- 100,00 -- -- -- 100,00 -- 100,00
Dafne Yayıncılık -- 100,00 -- -- -- 100,00 -- 99,40
Darüşşafaka Sportif 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğus Doha 100,00 -- -- -- 100,00 -- 100,00 --
Doğuş Müşteri Sistemleri -- 100,00 -- -- -- 100,00 -- 100,00
DOAŞ 75,27 75,27 -- -- 75,27 75,27 75,27 74,96
Dogus Croatia 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Arge -- 99,00 -- 1,00 -- 100,00 -- 99,00
Doğuş Auto Iraq 100,00 100,00 -- -- 100,00 100,00 75,27 74,96
Dogus Avenue BV 100,00 100,00 -- -- 100,00 100,00 98,12 98,12
Dogus Avenue Coop 98,12 98,12 -- -- 98,12 98,12 98,12 98,12
Dogus Avenue LLC 100,00 100,00 -- -- 100,00 100,00 98,12 98,12
Doğuş Bilgi İşlem 100,00 100,00 -- -- 100,00 100,00 94,62 88,48
Dogus Construction LLC -- 49,00 -- -- -- 49,00 -- 49,00
Doğuş Dalaman 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Didim 100,00 100,00 -- -- 100,00 100,00 100,00 99,95
Doğuş Dijital 94,85 94,85 -- -- 94,85 94,85 94,85 94,85
Doğuş - (Onur) 55,00 55,00 -- -- 55,00 55,00 55,00 55,00
Doğuş Enerji 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Enerji Toptan -- 100,00 -- -- -- 100,00 -- 100,00
Doğuş EOOD 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Finance Ukraine -- 99,00 -- -- -- 99,00 -- 99,00
Doğuş Fotoğraf -- 100,00 -- -- -- 100,00 -- 100,00
Doğuş Gayrimenkul 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş GYO 94,98 94,98 -- -- 94,98 94,98 94,98 94,98
Doğuş Health and Wellness 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Hellas 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş İnşaat 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş İnşaat (Kazakistan) 60,00 60,00 -- -- 60,00 60,00 60,00 60,00
Doğuş İnşaat (Ukrayna) 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş International 100,00 100,00 -- -- 100,00 100,00 100,00 99,00
Dogus International Coöperatief U.A. 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Leisure 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Management 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Maroc SARL 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Media 100,00 100,00 -- -- 100,00 100,00 100,00 99,99
Dogus Oman LLC 70,00 70,00 -- -- 70,00 70,00 70,00 70,00
Doğuş Otel İşletmeciliği 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Otel Yatırımları 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Oto Pazarlama 100,00 100,00 -- -- 100,00 100,00 76,21 75,91
34 Group enterprises
34.1 List of subsidiaries
The table below sets out all consolidated subsidiaries and shows shareholding structure of the subsidiaries at 31 December:
Direct and indirect ownership interest held by Doğuş Holding
and its subsidiaries
Ownership interest through shares held by
Şahenk Family
Proportion of ownership interest
Proportion of effective interest of Doğuş
Holding and its subsidiaries
2019 2018 2019 2018 2019 2018 2019 2018Acropolis S.P.A -- 100,00 -- -- -- 100,00 -- 100,00
Acropolis USA Trading Corp. -- 100,00 -- -- -- 100,00 -- 100,00
AD Yiyecek 90,00 90,00 -- -- 90,00 90,00 90,00 89,46
A.L.E. Gıda 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Alantur 100,00 100,00 -- -- 100,00 100,00 99,99 99,96
Alperen 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Altınhan 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Altın Mecralar (1) 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Antur 99,99 99,99 -- -- 99,99 99,99 99,99 99,96
Ara Güler 60,00 60,00 -- -- 60,00 60,00 60,00 60,00
Arena -- 100,00 -- -- -- 100,00 -- 99,87
Argos 100,00 80,00 -- -- 100,00 80,00 100,00 80,00
Argos Bağcılık 100,00 100,00 -- -- 100,00 100,00 100,00 50,00
Ayson -- 70,00 -- -- -- 70,00 -- 70,00
Ayson Sondaj -- 100,00 -- -- -- 100,00 -- 70,00
Bal Turizm 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Bangolare S.L. 90,00 90,00 -- -- 90,00 90,00 90,00 90,00
Başkent -- 100,00 -- -- -- 100,00 -- 99,40
BMK (2) 100,00 100,00 -- -- 100,00 100,00 90,00 90,00
Bomonti 100,00 100,00 -- -- 100,00 100,00 99,39 98,97
Borsa 67,00 67,00 -- -- 67,00 67,00 67,00 66,60
Capritouch SRL -- 80,00 -- -- -- 80,00 -- 80,00
Coya Abu Dhabi 60,00 60,00 -- -- 60,00 60,00 49,60 49,30
Coya Angelcourt 62,50 60,00 -- -- 62,50 60,00 51,66 49,30
Coya Inc 100,00 100,00 -- -- 100,00 100,00 82,16 82,16
Coya London 72,00 72,00 -- -- 72,00 72,00 59,52 59,16
Coya Ltd, Dubai 76,00 76,00 -- -- 76,00 76,00 62,82 62,44
Coya Paris 60,00 -- -- -- 60,00 -- 49,60 --
Coya Restaurant LLC, Dubai 76,00 76,00 -- -- 76,00 76,00 62,82 62,44
CW Finance SAS (4) 75,00 75,00 -- -- 75,00 75,00 3,75 52,50
D Eğlence 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
D Enerji 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
D Et 51,00 51,00 -- -- 51,00 51,00 42,16 41,90D Nusret International Holding Coöperatief U.A
-- 99,95 -- -- -- 99,95 -- 41,91
D Nusret International Holding B.V. 100,00 100,00 -- -- 100,00 100,00 42,16 41,90
D Nusret International B.V. 100,00 100,00 -- -- 100,00 100,00 42,16 41,90
D Marina 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
D Marinas Management -- 100,00 -- -- -- 100,00 -- 100,00
D Marinas B.V. 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
D Marine Göcek 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
D Marinas Hellas S.A. 99,01 99,01 -- -- 99,01 99,01 99,01 99,01
D Hospitality B.V. 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
210 211
34 Group enterprises (continued)
34.1 List of subsidiaries (continued)
Direct and indirect ownership interest held by Doğuş Holding
and its subsidiaries
Ownership interest through shares held by
Şahenk Family
Proportion of ownership interest
Proportion of effective interest of Doğuş
Holding and its subsidiaries
2019 2018 2019 2018 2019 2018 2019 2018Kral Pop İnternet Televizyon Yayıncılığı A.Ş.
100,00 -- -- -- 100,00 -- 100,00 --
Kral Platform İşletmeciliği 100,00 -- -- -- 100,00 -- 100,00 --
Lacivert 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Lefkas Marina S.A. (3) 100,00 100,00 -- -- 100,00 100,00 99,01 99,01
Liquid Art Boston 100,00 80,00 -- -- 100,00 80,00 100,00 79,52
Liquid Art Holding 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
London Doors Restaurant Group 79,00 79,00 -- -- 79,00 79,00 79,00 78,53
LPM Istanbul -- 100,00 -- -- -- 100,00 -- 99,40
Marina Barcelona 5,00 70,01 -- -- 5,00 70,01 5,00 70,01
Marina Borik 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Marina Dalmacija 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Marina Sibenik 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Marina Upravljanje 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Marinas TR BV 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
MB92 La Ciotat (4) 100,00 100,00 -- -- 100,00 100,00 5,00 52,50
Mercado 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Mercati S.p.A. 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Meto Turizm 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Mezzaluna 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Meng Unlu Mamuller 100,00 100,00 -- -- 100,00 100,00 42,16 41,90
MK Holding 90,00 90,00 -- -- 90,00 90,00 90,00 90,00
Mobilet 100,00 100,00 -- -- 100,00 100,00 95,31 98,00
Nahita 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Nahita Dallas 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Nahita Global 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Nahita International Inc 100,00 100,00 -- -- 100,00 100,00 82,66 82,16
Nahita International Limited 100,00 100,00 -- -- 100,00 100,00 82,66 82,16
NTV Radyo 100,00 100,00 -- -- 100,00 100,00 100,00 99,99
NTVSPOR 100,00 -- -- -- 100,00 -- 100,00 --
Nusret BH 100,00 -- -- -- 100,00 -- 37,94 --
Nusret Boston 100,00 -- -- -- 100,00 -- 37,94 --
Nusret Dallas 100,00 100,00 -- -- 100,00 100,00 37,94 37,71
Nusret Dubai 100,00 100,00 -- -- 100,00 100,00 42,16 41,90
Nusret FH NY 100,00 -- -- -- 100,00 -- 37,94 --
Nusret Galleria 100,00 100,00 -- -- 100,00 100,00 42,16 41,90
Nusret Holdings USA 90,00 90,00 -- -- 90,00 90,00 37,94 37,71
Nusret Katar 60,00 60,00 -- -- 60,00 60,00 25,29 25,29
Nusret Las Vegas LLC 100,00 -- -- 100,00 -- 37,94 --
Nusret Miami 100,00 100,00 -- -- 100,00 100,00 37,94 37,71
Nusret Mykonos Restaurant 100,00 -- -- -- 100,00 -- 42,16 --
Nusret New York 100,00 100,00 -- -- 100,00 100,00 37,94 37,71
Nusret South Beach 100,00 100,00 -- -- 100,00 100,00 37,94 37,71
Nusret US 100,00 100,00 -- -- 100,00 100,00 42,16 41,90
34 Group enterprises (continued)
34.1 List of subsidiaries (continued)
Direct and indirect ownership interest held by Doğuş Holding
and its subsidiaries
Ownership interest through shares held by
Şahenk Family
Proportion of ownership interest
Proportion of effective interest of Doğuş
Holding and its subsidiaries
2019 2018 2019 2018 2019 2018 2019 2018Doğuş Perakende 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Razvitak 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Sigorta 100,00 100,00 -- -- 100,00 100,00 89,61 89,49
Doğuş Spor 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Tarım 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Dogus TRG 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Turgutreis 100,00 100,00 -- -- 100,00 100,00 100,00 99,76
Doğuş Turizm 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Yayın Grubu 100,00 100,00 -- -- 100,00 100,00 100,00 99,99
Doğuş Yeni Girişimler 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Yönetim Danışmanlığı 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Doğuş Zhenfa 67,00 67,00 -- -- 67,00 67,00 67,00 67,00
Doors Akademi -- 100,00 -- -- -- 100,00 -- 99,40Dream International Coöperatif U.A.
100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Dream Global B.V. 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Dream International B.V. 82,66 82,16 -- -- 82,66 82,16 82,66 82,16
Dream Management 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Etiler Kebapçılık 75,00 75,00 -- -- 75,00 75,00 75,00 75,00
Etiler Turistik 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Euromessage Deutschland (1) 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Garanti Turizm 100,00 100,00 -- -- 100,00 100,00 100,00 99,89
Gouvia Marina S.A. (3) 100,00 100,00 -- -- 100,00 100,00 99,01 99,01
Gunaydın Int. B.V. 100,00 100,00 -- -- 100,00 100,00 70,00 69,58
Gunaydın Int. Coop 100,00 100,00 -- -- 100,00 100,00 70,00 69,58
Gunaydın Restaurant 100,00 100,00 -- -- 100,00 100,00 70,00 69,58
Gunaydın Restaurants 100,00 100,00 -- -- 100,00 100,00 70,00 69,58
Gunaydın UK 100,00 100,00 -- -- 100,00 100,00 70,00 69,58
Gunaydın US 100,00 100,00 -- -- 100,00 100,00 70,00 69,58
Günaydın Çamlıca 51,00 51,00 -- -- 51,00 51,00 35,70 35,49
Günaydın Et Sanayi 70,00 70,00 -- -- 70,00 70,00 70,00 69,58
Günaydın Üretim 70,00 70,00 -- -- 70,00 70,00 70,00 69,58
Göktrans 100,00 100,00 -- -- 100,00 100,00 100,00 99,97
Havana Yayıncılık 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Hedef Medya 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Hospitality 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Il Riccio Dubai -- 100,00 -- -- -- 100,00 -- 100,00
Il Riccio Miami LLC 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
King of the Rib 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Kivahan 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Körfez Hava 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Kral Müzik Medya 100,00 100,00 -- -- 100,00 100,00 100,00 99,99
Kral Pop 100,00 100,00 -- -- 100,00 100,00 100,00 99,99
Kral Pop Avrupa 100,00 100,00 -- -- 100,00 100,00 100,00 99,99
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
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212 213
34 Group enterprises (continued)
34.1 List of subsidiaries (continued)
Direct and indirect ownership interest held by Doğuş Holding
and its subsidiaries
Ownership interest through shares held by
Şahenk Family
Proportion of ownership interest
Proportion of effective interest of Doğuş
Holding and its subsidiaries
2019 2018 2019 2018 2019 2018 2019 2018Zadar 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Zadar Residences 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Zea Marina S.A. (3) 75,00 75,00 -- -- 75,00 75,00 74,26 74,26
Zeytin Dallas 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Zuma Turizm 90,00 90,00 -- -- 90,00 90,00 57,87 57,52
(1) Consolidated under Hedef Medya.(2) Consolidated under MK Holding.(3) Consolidated under D Marinas Hellas S.A. At the reporting date, total assets and liabilities belongs to the Company has transferred to asset held for sale.(4) Consolidated under Marina Barcelona 92. At the reporting date, shares of Marina Barcelona 92 have been transferred and accounted as a financial investment.
34.2 List of associates
The table below sets out the associates and shows the shareholding structure of the associates at 31 December:
Direct and indirect ownership interest held by Doğuş Holding
and its subsidiaries
Ownership interest through shares held by
Şahenk Family
Proportion of ownership interest
Proportion of effective interest of Doğuş
Holding and its subsidiaries
2019 2018 2019 2018 2019 2018 2019 2018Adelia Ltd -- 100,00 -- -- -- 100,00 -- 33,33
Amazonico Dubai (1) 100,00 -- -- 100,00 -- 33,06 --
Amazonico UK (1) 100,00 100,00 -- -- 100,00 100,00 33,06 32,87
Apollo Investment 100,00 100,00 -- -- 100,00 100,00 33,33 33,33
Astir Marina 100,00 100,00 -- -- 100,00 100,00 33,33 33,33
Astir Palace 100,00 100,00 -- -- 100,00 100,00 33,33 33,33
Central Asturcova (1) 100,00 100,00 -- -- 100,00 100,00 33,06 32,87
DG Holdings Limited 16,67 16,67 -- -- 16,67 16,67 16,67 16,67
DG Limited 100,00 100,00 -- -- 100,00 100,00 16,67 16,67
Dome Group Financial Advisers Limited 100,00 100,00 -- -- 100,00 100,00 16,67 16,67
DÔA Miami 32,50 32,50 -- -- 32,50 32,50 26,86 26,70
El Gourmet (1) 100,00 100,00 -- -- 100,00 100,00 33,06 32,87
Icons and Styles -- 55,00 -- -- -- 55,00 -- 34,99
IPE Velázquez (1) 100,00 100,00 -- -- 100,00 100,00 33,06 32,87
İstinye Yönetim Hizmetleri 42,00 42,00 -- -- 42,00 42,00 42,00 42,00
Jermyn Street Real Estate 33,33 33,33 -- -- 33,33 33,33 33,33 33,33
Kiko 49,00 49,00 -- -- 49,00 49,00 32,83 49,00
LPM Miami 5,00 5,00 -- -- 5,00 5,00 4,13 4,11
MNG Medya 100,00 100,00 -- -- 100,00 100,00 30,00 30,00
MNG Reklam 100,00 100,00 -- -- 100,00 100,00 30,00 30,00
MNG TV 100,00 100,00 -- -- 100,00 100,00 30,00 30,00
Mosela Investments 40,00 40,00 -- -- 40,00 40,00 33,06 32,87
Onsekiz Reklam 100,00 100,00 -- -- 100,00 100,00 30,00 30,00
Puerta de Alcalá 10 (1) 100,00 100,00 -- -- 100,00 100,00 33,06 32,87
Reidin 51,00 51,00 -- -- 51,00 51,00 51,00 51,00
Reidin Bilgi ve Data Teknolojileri 100,00 -- -- -- 100,00 -- 51,00 --
Paraguas (1) 100,00 100,00 -- -- 100,00 100,00 33,06 32,87
34 Group enterprises (continued)
34.1 List of subsidiaries (continued)
Direct and indirect ownership interest held by Doğuş Holding
and its subsidiaries
Ownership interest through shares held by
Şahenk Family
Proportion of ownership interest
Proportion of effective interest of Doğuş
Holding and its subsidiaries
2019 2018 2019 2018 2019 2018 2019 2018Nusret UK Limited 100,00 100,00 -- -- 100,00 100,00 42,16 41,90
Omni Kanal (1) 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Partnership -- 100,00 -- -- -- 100,00 -- 59,16
Panther Marina 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Populist 90,00 90,00 -- -- 90,00 90,00 90,00 89,46
Portakal Yazılım (1) 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Pozitif Arena 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Pozitif Müzik A.Ş. 87,72 80,20 -- -- 87,72 80,20 87,72 80,20
Pozitif Müzik Yapım A.Ş. 80,00 80,00 -- -- 80,00 80,00 80,00 80,00Related Digital Marketing Coöperatief U.A. (1)
100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Related Digital Marketing BV (1) 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Related Digital Marketing Limited (1) 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Ruya London 100,00 100,00 -- -- 100,00 100,00 67,00 66,60
Ruya Restaurant 67,00 67,00 -- -- 67,00 67,00 67,00 66,60
Sait 75,00 60,00 -- -- 75,00 60,00 75,00 59,64
Salıpazarı 81,00 81,00 -- -- 81,00 81,00 81,00 81,00
Saltbae LA 100,00 100,00 -- -- 100,00 100,00 37,94 37,71
Saltbae NY 100,00 100,00 -- -- 100,00 100,00 37,94 37,71
Saltbae Restoran İşletmeciliği 78,43 78,43 -- -- 78,43 78,43 33,06 32,86
Saltbae Restaurant Limited 100,00 -- -- -- 100,00 -- 42,16 --
Sekiz Prodüksiyon 100,00 100,00 -- -- 100,00 100,00 100,00 99,99
Semanticum (1) 80,00 80,00 -- -- 80,00 80,00 80,00 80,00
Sibenik Upravljanje 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Sititur 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Soya 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Star Avrupa 100,00 100,00 -- -- 100,00 100,00 100,00 99,99
Star TV 100,00 100,00 -- -- 100,00 100,00 100,00 99,99
Şahintur 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Toms Kitchen Restaurant Holdings Limited
74,00 80,00 -- -- 74,00 80,00 58,46 62,82
Tansaş Gıda 99,87 99,87 -- -- 99,87 99,87 99,87 99,87
Teknik Mühendislik 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
The Tom Aikens Group Ltd 100,00 100,00 -- -- 100,00 100,00 58,46 62,82
Tom Aikens Ltd 100,00 100,00 -- -- 100,00 100,00 58,46 62,82
Tiendes 75,00 75,00 -- -- 75,00 75,00 52,50 52,18
Wrap Around LLC 100,00 100,00 -- -- 100,00 100,00 100,00 99,40
Tom's Kitchen Ltd -- 100,00 -- -- -- 100,00 -- 62,82
Villa Dubrovnik 38,60 89,60 51,00 -- 89,60 89,60 38,60 89,60
Vitapark 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
Voyager -- 100,00 -- -- -- 100,00 -- 100,00
West Mediternean 100,00 100,00 -- -- 100,00 100,00 100,00 100,00
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
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214 215
34 Group enterprises (continued)
34.3 List of joint ventures / joint operations (continued)
Direct and indirect ownership interest held by Doğuş Holding
and its subsidiaries
Ownership interest through shares held by
Şahenk Family
Proportion of ownership interest
Proportion of effective interest of Doğuş
Holding and its subsidiaries
2019 2018 2019 2018 2019 2018 2019 2018Doğuş ES (2) 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
Doğuş Planet 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
Doğuş SK 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
Doğuş YDA (2) 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
Doğuş- DUSA(2) 60,00 60,00 -- -- 60,00 60,00 60,00 60,00
Doğuş- Sukot (2) 50,00 -- -- -- 50,00 -- 50,00 --
D Marin Dubai 50,00 -- -- -- 50,00 -- 50,00 --
Ege Turizm 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
Elmira Miami -- 100,00 -- -- -- 100,00 -- 61,47
Elmira Miami Mezz -- 100,00 -- -- -- 100,00 -- 61,47
Elmira Miami Partners -- 100,00 -- -- -- 100,00 -- 61,47
Gestin Turizm -- 50,00 -- -- -- 50,00 -- 50,00
Gülermak Doğuş (2) 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
HC Biontis S.R.L. (1) 100,00 100,00 -- -- 100,00 100,00 50,99 50,99
HC International A.G. 50,99 50,99 -- -- 50,99 50,99 50,99 50,99
Inko Nito Garey St LLC (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Inko Nito Inc. (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Inko Nito West 3rd Street LLC (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Inko Nito Broadwick Street (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Inko Nito Limited (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Ionian -- 50,00 -- -- -- 50,00 -- 50,00
Kanlıca Turizm 49,00 49,00 -- -- 49,00 49,00 49,00 48,71
Karadeniz Taşıt 100,00 -- -- -- 100,00 -- 25,09 --
Kazakistan 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
Kömürhan (2) 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
L’atelier 100,00 100,00 -- -- 100,00 100,00 60,00 59,64
Lamda Dogus 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
Lamda Flisvos (3) 83,39 83,39 -- -- 83,39 83,39 41,69 41,69
Lamda Marina (3) 77,23 77,23 -- -- 77,23 77,23 32,20 32,20
Mad Atelier 60,00 60,00 -- -- 60,00 60,00 60,00 59,64
PIT İstanbul 50,00 50,00 -- -- 50,00 50,00 40,50 40,50
Raleigh Club Management -- 61,47 -- -- -- 61,47 -- 61,47
RH Miami Employees -- 100,00 -- -- -- 100,00 -- 61,47
Robata Holdings USA (4) 80,00 80,00 -- -- 80,00 80,00 33,07 32,87
Robata Rest (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Roka Aldwych Ltd (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Roka Dubai (4) 95,00 95,00 -- -- 95,00 95,00 39,27 39,04
Roka Mayfair Ltd (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Roka Restaurants (4) 100,00 100,00 -- -- 100,00 100,00 39,27 39,04
Taddeo Trading Ltd (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Taraneete International Ltd (4) 72,80 72,80 -- -- 72,80 72,80 41,33 41,09
TDB Kalibrasyon 33,33 33,33 -- -- 33,33 33,33 33,33 33,33
TDB Sigorta 100,00 100,00 -- -- 100,00 100,00 25,09 24,99
34 Group enterprises (continued)
34.2 List of associates (continued)
SARL Eden Rock 100,00 100,00 -- -- 100,00 100,00 33,33 33,33
SAS Eden Rock Villa Rental 100,00 100,00 -- -- 100,00 100,00 33,33 33,33
SCI Afternoon Tea 100,00 100,00 -- -- 100,00 100,00 33,33 33,33
Secosilva Empresarial (1) 100,00 100,00 -- -- 100,00 100,00 33,06 32,87
Sekiz Televizyon 22,22 22,22 -- -- 22,22 22,22 22,22 22,22
Solid Rock Property SAS 33,33 33,33 -- -- 33,33 33,33 33,33 33,33
Ultramarinos Quintín (1) 100,00 100,00 -- -- 100,00 100,00 33,06 32,87
VDF Faktoring (2) 100,00 100,00 -- -- 100,00 100,00 39,55 39,44
VDF Filo Kiralama (2) 100,00 100,00 -- -- 100,00 100,00 39,55 39,44
VDF Tüketici 49,00 49,00 -- -- 49,00 49,00 37,13 36,98
VDF Servis 49,00 49,00 -- -- 49,00 49,00 39,55 39,44
VDF Sigorta (2) 100,00 100,00 -- -- 100,00 100,00 39,56 39,44
Yüce Auto 50,00 50,00 -- -- 50,00 50,00 37,63 37,48
Zingat 31,14 51,00 -- -- 31,14 51,00 31,14 51,00
Zingat Freezone LLC 100,00 -- -- -- 100,00 -- 38,61 --
(1) Consolidated under Mosela Investments.(2) Consolidated under VDF Servis Holding.
34.3 List of joint ventures / joint operations
The table below sets out the joint ventures and joint operations and shows the shareholding structure of the joint ventures and
joint operations as at 31 December:
Direct and indirect ownership interest held by Doğuş Holding
and its subsidiaries
Ownership interest through shares held by
Şahenk Family
Proportion of ownership interest
Proportion of effective interest of Doğuş
Holding and its subsidiaries
2019 2018 2019 2018 2019 2018 2019 2018Abu Dhabi (4) 95,00 95,00 -- -- 95,00 95,00 41,34 41,09
Argos Kültür -- 90,00 -- -- -- 90,00 -- 45,00
Aslancık 33,33 33,33 -- -- 33,33 33,33 33,33 33,33
Azumi Limited 50,01 50,01 -- -- 50,01 50,01 41,34 41,09
Azumi LLC (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Azumi Management Services LTD (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Bahia (UK) Limited 100,00 100,00 -- -- 100,00 100,00 60,00 59,64
Beach-Chu Hallandale (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Beach-Chu Inc. (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Beach-Chu Las Olas LLC (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Bodyism Global Holdings 50,01 50,01 -- -- 50,01 50,01 50,01 50,01
Bodyfood 100,00 100,00 -- -- 100,00 100,00 50,01 50,01
Bodyism Global Limited 100,00 100,00 -- -- 100,00 100,00 50,01 50,01
Bodywear 100,00 100,00 -- -- 100,00 100,00 50,01 50,01
Boyabat 34,00 34,00 -- -- 34,00 34,00 34,00 34,00
Chenot S.R.L. (1) 100,00 100,00 -- -- 100,00 100,00 50,99 50,99
Corpera 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
Dogus – Soma (2) 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
Doğuş – Tekfen (2) 50,00 50,00 -- -- 50,00 50,00 50,00 50,00
Doğuş – VIA – Ultrastroy (2) 60,00 60,00 -- -- 60,00 60,00 60,00 60,00
Doğuş-Yapı Merkezi-Özaltın (2) 60,00 60,00 -- -- 60,00 60,00 60,00 60,00
Doğuş Alarko (2) 37,50 37,50 -- -- 37,50 37,50 37,50 37,50
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
2019
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216 217
34 Group enterprises (continued)
34.6 Liquidation / merger of entities
• Doğuş Prestige, Kanlıca Turizm Sanayi A.Ş., TRG International IP Co Limited ve TRG US IP Co Limited, London Doors Restaurant Group Limited, The Tom Aikens Group Ltd, Tom Aikens Ltd, Toms Kitchen Restaurant Holdings Limited, Dogus Avenue LLC and Bodywear Limited under liquidation. Elmira Miami LLC, Elmira Miami Mezz LLC, Elmira Miami Partners LLC, RH Miami Employees LLC, Raleigh Club Management LLC, TH Hospitality Management LLC, THRH LLC, D Nusret International Holding Coöperatief U.A., D Marinas Management BV, Ayson Sondaj Limited Ukraine, Dogus Construction LLC, Acropolis USA Trading Corp, Capritouch SRL, Doğuş Finance Ukraine, Partnership Management Limited, Adelia Limited and Il Riccio Restaurant FZE have been liquidated.
• On 1 April 2019, Doğuş Perakende Satış, Giyim ve Aksesuar Ticaret A.Ş. has merged with D Saat ve Mücevherat Ticaret A.Ş.
under Doğuş Perakende Satış, Giyim ve Aksesuar Ticaret A.Ş.
• On 29 April 2019, Doğuş Bilgi İşlem ve Teknoloji Hizmetleri A.Ş. has merged with Doğuş Müşteri Sistemleri A.Ş. under Doğuş
Bilgi İşlem ve Teknoloji Hizmetleri A.Ş.
• On 31 July 2019, Dafne Yayıncılık Turizm ve Gıda Pazarlama Ticaret A.Ş. and Doors Akademi Eğitim ve Danışmanlık A.Ş. have
merged under Nahita Restorant İşletmeciliği ve Yatırım A.Ş.
• On 31 July 2019, Başkent Yiyecek İçecek A.Ş. and BAL Turizm ve Gıda Pazarlama A.Ş. have merged under BAL Turizm ve Gıda
Pazarlama A.Ş.
• On 31 October 2019, Doğuş Fotoğraf ve Kamera Ekipmanları A.Ş. and Doğuş Perakende Satış, Giyim ve Aksesuar Ticaret A.Ş.
have merged under Doğuş Perakende Satış, Giyim ve Aksesuar Ticaret A.Ş.
• On 31 October 2019, LPM İstanbul Restoran İşletmeleri ve Yatırım A.Ş. and Lacivert Turizm A.Ş. have merged under Lacivert
Turizm A.Ş.
• On 5 December 2019, Doğuş Enerji Toptan Elektrik Ticaret A.Ş. and D Enerji Üretim ve Yatırım A.Ş. have merged under D Enerji
Üretim ve Yatırım A.Ş.
• On 19 December 2019, Ayson Geoteknik ve Deniz İnşaat A.Ş. and Doğuş İnşaat ve Ticaret A.Ş. have merged under Doğuş İnşaat
ve Ticaret A.Ş.
• On 30 December 2019, Doğuş Araştırma Geliştirme ve Müşavirlik Hizmetleri A.Ş. and Doğuş Holding A.Ş. have merged under
Doğuş Holding A.Ş.
34.7 Change in structure/title
• K&G Medmarinas Management S.A. changed its legal name as D Marinas Hellas S.A.
• SCI Afternoon Tea changed its legal name as SAS Afternoon Tea.
• Dream Management Services LLC changed its legal name as Dream Management Ltd.
• Roka Chelsea Limited changed its legal name as Azumi Management Services Limited.
35 Significant events
• According to the sales contract dated 13 February 2019, the Group has sold its real estate “Raleigh Hotel Miami” owned by its
joint venture Elmira Miami LLC, which has 61,47% of its shares to BSD Raleigh Propco LLC.
• The Group has signed preliminary sales contract in 15 February 2019 in order to transfer its real estates located in Kemeraltı
Mahallesi, Marmaris/Muğla used for hospitality (“D Resort Grand Azur Marmaris”) and located in Armutalan Mahallesi used
for staff accommodation, brand of Grand Azur in the use of business and furniture and fixture in these real estates owned by
Garanti Turizm, which is 100% owned subsidiary of the Group, to the TT Hotels Turkey Otel Hizmetleri ve Tic. A.Ş. On 14 March
2019, the share transfer has been finalised.
• On 1 March 2019, Tüvtürk Kuzey Taşıt Muayene İstasyonları Yapım ve İşletim A.Ş. has acquired 100% shares of Karadeniz Taşıt
Muayene İstasyonları İşletim A.Ş.
• The Group has signed a share purchase and sale agreement on 27 February 2019 in order to transfer its all shares in the Arena
Otel Lokanta ve Eğlence Yerleri İşletmeciliği ve Turizm Yatırım A.Ş. On 22 March 2019, the share transfer has been finalised.
• In March 2019, the Group shares of Zingat Gayrimenkul Bilgi Sistemleri A.Ş. has decreased 51% to 31,14%.
• On 14 May 2019, the Group has transferred 100% shares of Acropolis S.p.A to European I Hospitality Holding Limited.
• On 22 May 2019, the Group has transferred its joint venture Ionian Hotel Enterprises S.A.’s
50 % shares, which is contain Atina Hilton, to Tourism Enterprises of Messinia S.A. and Fivedunes Limited.
• On 24 May 2019, the Group has acquired additional 20% shares of Argos Turizm Yatırım ve Ticaret A.Ş.
34 Group enterprises (continued)
34.3 List of joint ventures / joint operations (continued)
TH Hospitality Management -- 61,47 -- -- -- 61,47 -- 61,47
THRH -- 61,47 -- -- -- 61,47 -- 61,47
Time Result Investments Ltd (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
TRG International IP Co 61,47 61,47 -- -- 61,47 61,47 61,47 61,47
TRG US IP Co 61,47 61,47 -- -- 61,47 61,47 61,47 61,47
TÜVTURK Güney 33,33 33,33 -- -- 33,33 33,33 25,09 24,99
TÜVTURK İstanbul 100,00 100,00 -- -- 100,00 100,00 25,09 24,99
TÜVTURK Kuzey 33,33 33,33 -- -- 33,33 33,33 25,09 24,99
Tüv Süd Doğuş Ekspertiz 49,95 49,95 -- -- 49,95 49,95 49,95 49,95
Uzunetap -- 90,00 -- -- -- 90,00 -- 45,00
Wildfire Entertainment Ltd. (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,34
Wildfire Holdings USA (4) 40,00 40,00 -- -- 40,00 40,00 16,44 16,44
YMDYYB (2) 26,00 26,00 -- -- 26,00 26,00 26,00 26,00
Zuma Bangkok Ltd (4) 49,00 49,00 -- -- 49,00 49,00 20,26 20,13
Zuma Club LLC (4) 95,00 95,00 -- -- 95,00 95,00 41,34 41,09
Zuma Holdings USA (4) 90,00 100,00 -- -- 90,00 100,00 37,20 41,09
Zuma Japanese Restaurant INC (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Zuma Japanese Restaurant Miami LLC(4) 90,00 90,00 -- -- 90,00 90,00 41,34 41,09
Zuma Las Vegas LLC (4) 90,00 90,00 -- -- 90,00 90,00 37,20 36,98
Zuma NY LLC (4) 100,00 100,00 -- -- 100,00 100,00 37,20 36,98
Zuma Rome (4) 100,00 100,00 -- -- 100,00 100,00 41,34 41,09
Zuma USA LLC (4) 90,00 90,00 -- -- 90,00 90,00 37,20 36,98
(1) Consolidated under HC International AG.(2) The joint operations are proportionately consolidated under the Group in accordance with IFRS 11“Joint Arrangements”(3) Consolidated under Lamda Dogus. (4) Consolidated under Azumi Limited.
The major changes in Group enterprises for the year ended 31 December 2019 are summarised in the following paragraphs:
34.4 Establishment of new entities
• On 30 March 2019, the Group has established Reidin Bilgi ve Data Teknolojileri Ticaret A.Ş. The area of operation of the entity is real estate research.
• In 2019, the Group has established D Marin Dubai LLC. The area of operation of the entity is marina management. • In 2019, the Group has established Saltbae Restaurant Ltd., Nusret Las Vegas LLC, Nusret Boston LLC, Nusret FH NY LLC, Nusret
BH LLC, Nusret Mykonos Restaurant Bar SA. Amazonico Restaurants Ltd. and Coya Paris SAS. The area of operation of the entities are restaurant establishment.
• In 2019, the Group has established Kral Pop İnternet Televizyon Yayıncılığı A.Ş., Kral Platform İşletmeciliği A.Ş. ve NTVSPOR İnternet Yayıncılığı A.Ş. The area of operation of the entities are media.
• On 11 December 2019, the Group has established Dogus Doha LLC in Qatar.
34.5 Sale of entities
• On 22 March 2019, the shares of Arena Otel Lokanta ve Eğlence Yerleri İşletmeciliği ve Turizm Yatırım A.Ş. have been transferred. • On 8 Mayıs 2019, the shares of Gestin Turizm Yatırım İşletmeleri İnşaat ve Ticaret A.Ş., Icons and Styles Turizm A.Ş., Argos Kültür
Sanat Tanıtım Organizasyon Tic. A.Ş. and Uzunetap Tanıtım Organizasyon Tic. A.Ş. have been transferred. • On 14 May 2019, the shares of Acropolis S.p.A. have been transferred. • On 22 May 2019, the 50% shares of Ionian Hotel Enterprises S.A. have been transferred. • On 18 June 2019, the shares of Tom’s Kitchen Limited have been transferred. • On 16 October 2019, the Group have signed share transfer agreement to sold 65% shares of Marina Barcelona 92 S.A., which is
70% owned by the Group. • On 14 November 2019, the Group was signed a share sale agreement to sell 51 % shares of Villa Dubrovnik d.d. • On 15 November 2019, the Group was signed a share sale agreement with Ekopark Tur. İnş. San. ve Tic. A.Ş. to sell shares of
Voyager Mediterranean Turizm Endüstrisi ve Ticareti A.Ş.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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36 Interests in other entities (continued)
Consolidated financial information of DOAŞ before consolidation adjustments and eliminations are as follows:
Assets 31 December 2019 31 December 2018
Cash and cash equivalents 648.342 365.892
Current trade receivables 745.346 643.538
Other current assets 1.120.937 1.807.713
Non-current assets 2.150.319 1.981.519
Total assets 4.664.944 4.798.662
Short-term loans and borrowings 2.201.933 2.650.665
Current trade payables 713.263 554.172
Other current liabilities 177.974 158.308
Long-term loans and borrowings 236.119 60.000
Other non-current liabilities 83.114 67.645
Total liabilities 3.412.403 3.490.790
Total equity 1.252.541 1.307.872
Total liabilities and equity 4.664.944 4.798.662
Revenue 9.844.133 10.688.489
Cost of sales (8.574.429) (9.387.395)
Operating profit 486.103 526.668
Profit before tax 57.234 148.798
Profit for the year 76.759 134.356
37 Related party disclosures
For the purpose of the consolidated financial statements, the shareholders, key management personnel and the Board members,
and in each case, together with their families and companies controlled by/affiliated with them; and associates, investments and
joint ventures are considered and referred to as the related parties. A number of transactions are entered into with the related
parties in the normal course of business. Most of the related party activity is eliminated at consolidation and the remaining activity
is not material to the Group.
As disclosed in detail in Note 41, the Joint Ventures and Associates of the Group have been accounted for using the equity method
in the consolidated financial statements. Accordingly, the transactions of Group’s Subsidiaries with Joint Ventures and Associates
and the balances from Joint Ventures and Associates are not subject to elimination.
35 Significant events(continued)
• On 24 May 2019, the Group has acquired additional 50% shares of Argos Bağcılık ve Şarapçılık San.Tic. A.Ş..
• On 24 May 2019, the Group has transferred 50% shares of Gestin Turizm Yatırım İşletmeleri İnşaat ve Ticaret A.Ş. According to
this share transfer, the Group have also transferred respectively Gestin’s associate and subsidiaries shares of Icons and Styles
Turizm A.Ş., Argos Kültür Sanat Tanıtım Organizasyon Tic. A.Ş. and Uzunetap Tanıtım Organizasyon Tic. A.Ş.
• On 18 June 2019, the shares of Tom’s Kitchen Limited has transferred to T A Restaurant Group Ltd.
• On 26 June 2019, the Group has acquired additional 15% shares of Sait Restoran Turizm İşletmeciliği İnş. Emlak ve Tic.A.Ş.
• According to Doğuş Holding’s Board of Directors Meeting dated on 10 July 2019, the Chairman of the Board of Directors
Mr. Ferit Faik ŞAHENK will also assume the role of Chief Executive Officer and Mr. Hüsnü AKHAN will be appointed as Vice
Chairman. With the same decision, Mr. Akın TAVUZ, who is Head of Tax, Financial Affairs and Financial Reporting Department,
was appointed as Chief Operating Officer of Doğuş Group.
• On 26 July 2019, the Group have signed share transfer agreement to sold 65% shares of Marina Barcelona 92 S.A.( and its
subsidiaries MB92 La Ciotat SAS and CW Finanace SAS), which is 70% owned by the Group. The share transfer has been
finalised.
• On 14 November 2019, the Group was signed a share sale agreement to sell 51 % shares of Villa Dubrovnik d.d.
• On 15 November 2019, the Group was signed a share sale agreement with Ekopark Tur. İnş. San. ve Tic. A.Ş. to sell shares of
Voyager Mediterranean Turizm Endüstrisi ve Ticareti A.Ş.
• On 19 December 2019, Ayson Geoteknik ve Deniz İnşaat A.Ş. and Doğuş İnşaat ve Ticaret A.Ş. have merged under Doğuş İnşaat
ve Ticaret A.Ş.
• On 21 December 2019, Doğuş Holding A.Ş. has signed a share transferred agreement between with Venilia Investments
SARL and Mistral Marina Turizm Yat. A.Ş. to sales of shares of D Marina İşletmeciliği Turizm ve Yönetim Hizmetleri A.Ş., D
Marinas Hellas S.A. (and its subsidiaries Lefkas Marina S.A., Zea Marina S.A. and Gouvia Marina S.A.), Marina Borik d.o.o, Marina
Dalmacija d.o.o, Marina Sibenik d.o.o. and Lamda Dogus Marina Invesments S.A.. On 20 February 2020, the share transfer of
Lamda Dogus Marina Invesments S.A. has been finalised. Other companies share transfer has not been finalised.
• On 30 December 2019, Doğuş Araştırma Geliştirme ve Müşavirlik Hizmetleri A.Ş. and Doğuş Holding A.Ş. have merged under
Doğuş Holding A.Ş.
• The Group has purchased additional 20% shares of Liquid Art Boston LLC.
36 Interests in other entities
Information regarding the DOAŞ in which the Group has major non-controlling interests is as follows:
SubsidiaryNon-controlling
interest
Net profit attributable to
non-controlling interests
Accumulated non-controlling
interests
Dividend paid to non-controlling
interests
31 December 2019 %24,73 47.771 420.042 19.891
31 December 2018 %25,04 46.060 385.613 --
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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37 Related party disclosures (continued)
37.2 Related party transactions (continued)
2018
Joint Ventures Other (*) Total
Revenue 14.942 17.805 32.747
Cost of sales (8.341) (23) (8.364)
Administrative expenses (118) (12.702) (12.820)
Selling, marketing and distribution expenses (542) (161) (703)
Net finance income / (expenses) 6.770 (53.844) (47.074)
Other operating income 75.003 28.587 103.590
Other operating expenses (83.597) (45.662) (129.259)
(*) Mainly includes related party balances with Associates of the Group.
37.3 Transactions with key management personnel
On a consolidated basis, key management costs included in administrative expenses for the year ended 31 December 2019
amounted to TL 212.584 thousand (31 December 2018: TL 157.216 thousand).
38 Subsequent events
38.1 On 2 January 2020, Related Digital Marketing B.V. and Related Digital Marketing Coöperatief U.A. have been liquidated.
38.2 On 9 January 2020, the Group has acquired additional 40% shares of Ara Güler Doğuş Sanat ve Müzecilik A.Ş.
38.3 On 20 February 2020, the Group has transferred its own shares of Lamda Dogus Marina Invesments S.A. to the Lamda
Development S.A.
38.4 TRG International IP Co Limited and TRG US IP Co Limited have been liquidated.
38.5 Altın Mecralar İnteraktif Medya ve Pazarlama ve Teknoloji Hizmetleri Ticaret Limited Şirketi and Portakal Yazılım Danışmanlık
Reklamcılık ve Yayıncılık San. ve Tic A.Ş. have merged under Hedef Medya Tanıtım Interaktif Media Pazarlama A.Ş.
38.6 On 18 February 2020, Bodywear Limited have been liquidated.
39 Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis as adjusted for the effects of inflation that
lasted until 31 December 2004, except for the following material items in the consolidated statement of financial position:
• derivative financial instruments are measured at fair value,
• available-for-sale financial assets are measured at fair value,
• non-derivative financial instruments at fair value through profit and loss are measured at fair value,
• investment property is measured at fair value,
• certain classes of property and equipment are measured at fair value.
The methods used to measure the fair values are discussed further in note 4.
37 Related party disclosures (continued)
37.1 Related party balances
As at 31 December, the Group had the following balances outstanding from its related parties:
2019
Joint Ventures Other (*) Total
Trade receivables - due from related parties 117.471 541.007 658.478
Trade payables - due to related parties 12.883 23.726 36.609
Other non-current assets -- 290.274 290.274
2018
Joint Ventures Other (*) Total
Trade receivables - due from related parties 101.597 429.941 531.538
Trade payables - due to related parties 78.524 49.329 127.853
As at 31 December 2019, TL 536.259 thousand of trade receivables (31 December 2018: TL 380.746 thousand) is composed of balances
due to the factoring receivables of DOAŞ from VDF Factoring,
TL 22.213 thousand of trade payables (31 December 2018: TL 46.947 thousand) is composed of balances due to vehicle purchases of
DOAŞ from Yüce Oto.
No impairment losses have been recognised against balances outstanding as at 31 December 2019 (31 December 2018: None) and
no specific allowance has been made for impairment losses on balances with the related parties.
37.2 Related party transactions
For the years ended 31 December, the revenues earned and expenses incurred by the Group in relation to transactions with its
related parties as summarised below:
2019
Joint Ventures Other (*) Total
Revenue 12.840 113.872 126.712
Cost of sales -- (31) (31)
Administrative expenses (668) (6.043) (6.711)
Selling, marketing and distribution expenses (115) (168) (283)
Net finance income / (expenses) 3.998 (4.644) (646)
Other operating income 171.762 29.307 201.069
Other operating expenses (140.127) (50.286) (190.413)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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40 Changes in accounting policies and reclassifications (continued)
40.2 Changes in accounting policies (continued)
IFRS 16 Leases (continued)
The Group - as a lessee (continued)
The Group re-measure the right of use asset:
a) after netting-off depreciation and reducing impairment losses from right of use asset, b) adjusted for certain re-measurements of the lease liability recognized at the present value
The Group applies TMS16 “Property, Plant and Equipment” to amortize the right of use asset and to asses for any impairment. If the lease transfers ownership of the underlying asset to the lessee by the end of the lease term or if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the Group depreciate the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, The Group depreciate the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
The Group apply IAS 36 Impairment of Assets to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.
Lease Liability
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date. Lease liabilities are discounted to present value by using the interest rate implicit in the lease if readily determined or with the Group’s incremental borrowing rate.
Lease payments included in the measurement of the lease liability comprise the following:
a) fixed payments, including in-substance fixed payments, variable lease payments that depend on an index or a rate, initially measured using the index or rate as the commencement date andb) the exercise price of purchase option if the Group is reasonably certain to exercise that option andc) payments of penalties for terminating the lease, if the lease term reflects the Group exercising an option to terminate the lease.
After initial recognition, the lease liability is measured:a) increasing the carrying amount to reflect interest on lease liability, b) reducing the carrying amount to reflect the lease payments made and c) remeasuring the carrying amount to reflect any reassessment or lease modifications or to reflect revised in-substance fixed lease payments.
Interest on the lease liability in each period during the lease term is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability. The Group determine the revised discount rate as the interest rate implicit in the lease for the remainder of the lease term, if that rate can be readily determined, or the lessee’s incremental borrowing rate at the date of reassessment, if the interest rate implicit in the lease cannot be readily determined. After the commencement date, The Group remeasure the lease liability to reflect changes to the lease payments. The Group recognise the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset.
40 Changes in accounting policies and reclassifications
Except for the changes below, the accounting policies applied in these consolidated financial statements are the same as those
applied in the Group’s consolidated financial statements as at and for the year ended 31 December 2018.
The Group has prepared the consolidated statement of financial position as at 31 December 2019 comparatively with the
consolidated statement of financial position as at 31 December 2018, and the consolidated statement of profit or loss and other
comprehensive income, the consolidated statements of cash flows and changes in equity for the year ended 31 December 2019
comparative to the year ended 31 December 2018.
40.1 Reclassifications
Classifications made in the consolidated statement of financial position for the year ended 31 December 2018: • VAT receivables amounting to TL 33.893 thousand have been reclassified from other current assets to other non current assets.
During the preparation of the consolidated statement of cash flows, reclassifications which are explained above were taken into
consideration.
40.2 Changes in accounting policies
The Group has adopted IFRS 16 “Leases” as at 1 January 2019 for the first time, in line with the transition provisions of the standard.
Impacts of the first time adoption of IFRS 16 on the consolidated financial statements of the Group are as below:
IFRS 16 Leases
The Group - as a lessee
At inception of a contract, the Group assesses whether a contract is, or contains a lease. A contract is, or contains, a lease if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess
whether a contract conveys the right to control the use of an identified asset, The Group assess whether:
a) the contract involved the use of an identified asset - this may be specified explicitly or implicitly.
b) the asset should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier
has a substantive substitution right, the asset is not identified.
c) the Group has the right to obtain substantially all of the economic benefits from the use of an asset throughout the period of
use; and
d)the Group has the right to direct use of the asset. The Group concludes to have the right of use, when it is predetermined how and for what purpose the Group will use the asset. The Group has the right to direct use of asset if either:
i. the Group has the right to operate (or to have the right to direct others to operate) the asset over its useful life and the lessor does not have the rights to change the terms to operate or; ii. the Group designed the asset (or the specific features) in a way that predetermines how and for what purpose it is used.
At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.
Right of use asset
The right of use asset is initially recognized at cost comprising of:a) amount of the initial measurement of the lease liability; b) any lease payments made at or before the commencement date, less any lease incentives received; c) any initial direct costs incurred by the Group; and
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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40 Changes in accounting policies and reclassifications (continued)
40.2 Changes in accounting policies (continued)
IFRS 16 Leases (continued)
The Group - as a lessor (continued)
The Group sub-leases some of its properties. Under IAS 17, the head lease and sub-lease contracts were classified as operating leases. On transition to IFRS 16, the right-of-use assets recognised from the head leases are presented in investment property, and measured at fair value on transition to IFRS 16. The sub-lease contracts are classified as operating leases under IFRS 16.
First time adoption of IFRS 16 Leases
With the transition to IFRS 16 “Leases”, a “lease liability” is recognized in the consolidated financial statements for the lease contracts which were previously measured under IAS 17 as operational leases. At transition, lease liabilities are measured at the net present value of the remaining lease payments, discounted at the Group’s incremental borrowing rate on the effective transition date. The Group measured right-of-use assets at an amount equal to the lease liability (adjusted by the amount of any prepaid or accrued lease payments) under IFRS 16 simplified transition approach. As of 1 January 2019, the weighted average of the TL borrowing rates used by the Group is 19,95%, the weighted average of Euro borrowing rates is 5,98% and the weighted average of USD borrowing rates is 5,40%.
As at 31 December 2019, lease liabilities measured under IFRS 16 is as below:
31 December 2019
Discounted lease liability with alternative borrowing rate
- Short term lease liability 174.750
- Long term lease liability 656.275
The details of the right of use on the basis of assets are as follows:
31 December 2019 1 January 2019
Real estates 940.278 633.511
Vehicles 47.853 44.110
Total right of use assets 988.131 677.621
The entries related to the right of use details on the basis of asset are as follows:
31 December 2019 1 January 2019
Real estates 305.574 --
Vehicles 3.743 --
Total additions on right of use assets 309.317 --
The depreciation expense details related to the right of use assets are as follows:
31 December 2019 1 January 2019
Real estates (134.764) --
Vehicles (18.856) --
Total additions on right of use assets (153.620) --
Interest expense related to the right of use assets are shown in note 11.
40 Changes in accounting policies and reclassifications (continued)
40.2 Changes in accounting policies (continued)
IFRS 16 Leases (continued)
The Group - as a lessee (continued)
Lease Liability (continued)
The Group shall remeasure the lease liability by discounting the revised lease payments using a revised discount rate, if either:
a) There is a change in the lease term. The Group determine the revised lease payments on the basis of the revised lease term; or b) There is a change in the assessment of an option to purchase the underlying asset. The Group determine the revised lease payments to reflect the change in amounts payable under the purchase option.
The Group determine the revised discount rate as the interest rate implicit in the lease for the remainder of the lease term, if that rate can be readily determined, or the lessee’s incremental borrowing rate at the date of reassessment, if the interest rate implicit in the lease cannot be readily determined.
The Group remeasure the lease liability by discounting the revised lease payments, if either:
a) There is a change in the amounts expected to be payable under a residual value guarantee. The Group determine the revised lease payments to reflect the change in amounts expected to be payable under the residual value guarantee. b) There is a change in future lease payments resulting from a change in an index or a rate used to determine those payments. The Group remeasure the lease liability to reflect those revised lease payments only when there is a change in the cash flows.
The Group determine the revised lease payments for the remainder of the lease term based on the revised contractual payments. In that case, the Group use an unchanged discount rate. The Group determines its revised lease payments related to the remaining leasing period considering its payments related to the revised agreement. Under these circumstances, the Group uses an unadjusted interest rate.
The Group recognises the restructuring of the lease as a separate leasing if both of the following are met:
a) The restructuring extends the scope of the leasing by including the right of use of one or more underlying assets, and b) The lease payment amount increases as much as the appropriate adjustments to the price mentioned individually so that the increase in scope reflects the individual price and the terms of the relevant agreement.
Leases with a lease term of 12 months or less and leases of low-value assets determined by the Group are evaluated in scope of the exemption of IFRS 16 and payments associated with those leases are recognised on a straight-line basis as an expense in profit or loss.
The Group - as a lessor
The Group leases out its investment property, including right-of-use assets. The Group has classified these leases as operating leases
The accounting policies applicable to the Group as a lessor are not different from those under IAS 17. However, when the Group is an intermediate lessor the sub-leases are classified with reference to the right-of-use asset arising from the head lease, not with reference to the underlying asset
The Group is not required to make any adjustments on transition to IFRS 16 for leases in which it acts as a lessor. However, the Group has applied IFRS 15 Revenue from Contracts with Customers to allocate consideration in the contract to each lease and non-lease component
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(a) Basis of consolidation (continued)
(v) Acquisitions from entities under common controlBusiness combinations arising from transfers of interests in entities that are under the control of the shareholder that controls the
Group are accounted for as if the acquisition had occurred at the beginning of the earliest comparative period presented or, if later,
at the date that common control was established; for this purpose comparatives are restated. The assets and liabilities acquired
are recognised at the carrying amounts recognised previously in the controlling shareholder’s consolidated financial statements.
The components of equity of the acquired entities are added to the same components within the Group equity and any gain / loss
arising is recognised directly in equity.
(vi) Associates (Equity-accounted investees) Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies.
Significant influence is presumed to exist when the Group holds between 20 and 50 percent of the voting power of another entity.
Investments in associates are accounted for using the equity method and are initially recognised at cost.
The cost of investments includes transaction costs. The consolidated financial statements include the Group’s share of profit and
loss and other comprehensive income of associates, after adjustments to align the accounting policies with those of the Group,
from the date that significant influence commences until the date that significant influence ceases.
When the Group’s share of losses exceeds its interest in an associates, the carrying amount of that interest, including any long-term
interests that form part thereof, is reduced to zero, and the recognition of further losses is discontinued except to the extent that
the Group has an obligation or has made payments on behalf of the investee.
(vii) Joint arrangementsJoint arrangements are arrangements of which the Group has joint control, established by contracts requiring unanimous consent
for decisions about the activities that significantly affect the arrangements’ returns. They are classified and accounted for as follows:
• Joint operation – when the Group has rights to the assets, and obligations for the liabilities, relating to an arrangement, it
accounts for each of its assets, liabilities and transactions, including its share of those held or incurred jointly, in relation to the
joint operation.
• Joint venture – when the Group has rights only to the net assets of the arrangements, it accounts for its interest using the
equity method.
The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of equity-
accounted investees, after adjustments to align the accounting policies with those of the Group, from the date that significant
influence commences until the date that significant influence ceases.
When the Group’s share of losses exceeds its interest in an equity-accounted investee, the carrying amount of the investment,
including any long-term interests that form part thereof, is reduced to zero, and the recognition of further losses is discontinued
except to the extent that the Group has an obligation or has made payments on behalf of the investee.
(viii) Transactions eliminated on consolidationIntra-group balances and transactions and any unrealised income and expenses arising from intra-group transactions, are eliminated
in preparing the consolidated financial statements.
Unrealised gains arising from transactions with investments in equity accounted investees are eliminated against the investment to
the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to
the extent that there is no evidence of impairment.
40 Changes in accounting policies and reclassifications (continued)
40.2 Changes in accounting policies (continued)
IFRS 16 Leases (continued)
First time adoption of IFRS 16 Leases (continued)
Extension and termination options
In determining the lease liability, the Group considers the extension and termination options. The majority of extension and termination options held are exercisable both by the group and by the respective lessor. Extension options are included in the lease term if the lease is a reasonably certain to be extended. The group remeasures the lease term, if a significant event or a significant change in circumstances occurs which affects the initial assessment.
41 Significant accounting policies
The accounting policies set out below have been applied consistently to all periods presented in these consolidated financial
statements, and have been applied consistently by Group entities.
(a) Basis of consolidationThe accompanying consolidated financial statements include the accounts of the parent company, Doğuş Holding, its subsidiaries,
joint arrangements and associates on the basis set out in sections below. The financial statements of the entities included in the
consolidation have been prepared as at the date of the consolidated financial statements.
(i) Business combinationsThe Group accounts for business combinations using the acquisition method when control is transferred to the Group (see (a)
(iii)). The consideration transferred in the acquisition is generally measured at fair value, as are the identifiable net assets acquired.
Any goodwill that arises is tested annually for impairment (see (i)). Any gain on a bargain purchase is recognised in profit or loss
immediately. Transaction costs are expensed as incurred, except if related to the issue of debt or equity securities.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships. Such amounts are
generally recognised in profit or loss.
Any contingent consideration is measured at fair value at the date of acquisition. If an obligation to pay contingent consideration
that meets the definition of a financial instrument is classified as equity, then it is not remeasured and settlement is accounted
for within equity. Otherwise, subsequent changes in the fair value of the contingent consideration are recognised in profit or loss.
(ii) Non-controlling interests (“NCI”)Non-controlling interests are measured at their proportionate share of the acquiree’s identifiable net assets at the acquisition date.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions.
(iii) Subsidiaries Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns through its power over the entity. The financial
statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until
the date on which control ceases.
(iv) Loss of control When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the subsidiary, and any related NCI and
other components of equity. Any resulting gain or loss is recognised in profit or loss. Any interest retained in the former subsidiary
is measured at fair value when control is lost.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(b) Foreign currency (continued)
(ii) Hedge of net investment in foreign operation (continued)
Foreign currency differences arising on the retranslation of a financial liability designated as a hedge of a net investment in a
foreign operation are recognised in other comprehensive income to the extent that the hedge is effective, and are presented
within equity in the hedging reserve. To the extent that the hedge is ineffective, such differences are recognised in profit or loss.
When the hedged part of net investment is disposed of, the relevant amount in the translation reserve is transferred to profit or
loss as a part of the profit or loss on disposal.
(c) Financial instruments
(i) Recognition and measurementTrade receivables and debt securities are initially recognized when they are originated. All other financial assets and financial
liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument.
A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at
fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition or issue. A trade receivable
without a significant financing component is initially measured at the transaction price.
(ii) Classification and subsequent measurement
Financial assets On initial recognition, a financial asset is classified as measured at: amortized cost, FVOCI – debt and equity investment, or equity
investment.
Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for
managing financial assets in which case all affected financial assets are reclassified on the first day of the first reporting period
following the change in the business model
A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
A debt instrument is measured at amortized cost if it meets both of the following conditions and is not designated as at FVOCI:
- it is held within a business model whose objective is to hold assets to collect contractual cash flows and selling assets; and
- its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.
All financial assets not classified as measured at amortized cost or FVOCI as described above are measured at FVTPL. This includes
all derivative financial assets and equity investments measured at FVTPL. On initial recognition, the Group may irrevocably
designate a financial asset that otherwise meets the requirements to be measured at amortized cost or at FVOCI as at FVTPL if
doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise
Financial assets- Business model assessmentThe Group makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because
this best reflects the way the business is managed and information is provided to management. The information considered includes:
41 Significant accounting policies (continued)
(b) Foreign currency
(i) Foreign currency transactionsTransactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the
dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting date are retranslated
to the functional currency at the exchange rate at that date. The foreign currency gain or loss on monetary items is the difference
between the amortised cost in the functional currency at the beginning of the year, adjusted for effective interest and payments
during the year, and the amortised cost in foreign currency translated at the exchange rate at the end of the year. Non-monetary
assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency
at the exchange rate at the date that the fair value was determined. Non-monetary items in a foreign currency that are measured
in terms of historical cost are translated using the exchange rate at the date of the transaction. Foreign currency differences
arising on retranslation are recognised in profit or loss, except for differences arising on the retranslation of available-for-sale equity
instruments (except on impairment in which case foreign currency differences that have been recognised in other comprehensive
income are reclassified to profit or loss), a financial liability designated as a hedge of the net investment in a foreign operation to
the extent that the hedge is effective; or qualifying cash flow hedges to the extent the hedge is effective.
The foreign currency exchange rates of EURO / TL, US Dollar / TL and GBP / TL as of the related periods are as follows:
31 December 2019 31 December 2018
EURO / TL 6,6506 6,0280
US Dollar / TL 5,9402 5,2609
GBP / TL 7,7765 6,6528
(ii) Foreign operationsThe assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated
to TL at exchange rates at the reporting date. The income and expenses of foreign operations are translated to TL at average
exchange rates at the dates of the transactions.
Foreign currency differences are recognised in other comprehensive income, and presented in the foreign currency translation
reserve (translation reserve) in equity. However, if the foreign operation is a non-wholly-owned subsidiary, then the relevant
proportion of the translation difference is allocated to the non-controlling interests. When a foreign operation is disposed of such
that control, significant influence or joint control is lost, the cumulative amount in the translation reserve related to that foreign
operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of only part of its interest
in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is
reattributed to non-controlling interests.
When the Group disposes of only part of its investment in an associate or joint venture that includes a foreign operation while
retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.
When the settlement of a monetary item receivable from or payable to a foreign operations is neither planned nor likely in
the foreseeable future, foreign exchange gains and losses arising from such a monetary item are considered to form part of a
net investment in a foreign operation and are recognised in other comprehensive income, and presented within equity in the
translation reserve.
(ii) Hedge of net investment in foreign operationThe Group applies hedge accounting to foreign currency differences arising between the functional currency of the foreign
operation and the parent entity’s functional currency (TL), regardless of whether the net investment is held directly or through an
intermediate parent.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(c) Financial instruments (continued)
(ii) Classification and subsequent measurement (continued)
Financial assets- Subsequent measurement and gains and losses
Accounting policies at below is applicable for following measurement of financial assets.
Financial assets at FVTPL These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.
Equity investments at FVOCIThese assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are never reclassified to profit or loss.
Financial assets at amortized cost
These assets are subsequently measured at amortized cost using the effective interest method. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses and impairment are recognized in profit or loss. Any gain or loss on de-recognition is recognized in profit or loss.
Financial liabilities- Classification, subsequent measurement and gains and losses
Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified
as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair
value and net gains and losses, including any interest expense, are recognized in profit or loss. The Group does not have any financial
liabilities at FVTPL.
Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and
foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.
(iii) Derecognition
Financial assetsThe Group derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers
the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the
financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership
and it does not retain control of the financial asset.
The Group continues to recognize the financial asset in the statement of financial position if it retains substantially all the risks and
benefits arising from the ownership of a financial asset.
Financial liabilitiesThe Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also
derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in
which case a new financial liability based on the modified terms is recognized at fair value.
On derecognition of a financial liability, the difference between the carrying amount extinguished and the consideration paid
(including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.
(iv) OffsettingFinancial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only
when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to
realise the asset and settle the liability simultaneously.
41 Significant accounting policies (continued)
(c) Financial instruments (continued)
(ii) Classification and subsequent measurement (continued)
- the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether
management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the
duration of the financial assets to the duration of any related liabilities or expected cash outflows or realizing cash flows through
the sale of the assets;
- how the performance of the portfolio is evaluated and reported to the Group’s management;
- the risks that affect the performance of the business model (and the financial assets held within that business model) and how
those risks are managed;
- how managers of the business are compensated – e.g. whether compensation is based on the fair value of the assets managed
or the contractual cash flows collected; and
- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about
future sales activity.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales. Financial
assets that are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.
Financial assets- Assessment whether contractual cash flows are solely payments of principal and interest Principal is defined as the fair value of the financial asset on initial recognition. Interest is defined as consideration for the time value
of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other
basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.
In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual
terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the
timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Group
considers:
- contingent events that would change the amount or timing of cash flows;
- terms that may adjust the contractual coupon rate, including variable rate features;
- prepayment and extension features; and
- terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features).
A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount
substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include
reasonable additional compensation for early termination of the contract.
Additionally, for a financial asset acquired at a significant discount or premium to its contractual par amount, a feature that
permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid)
contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent
with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.
Since the principal is the present value of expected cash flows, trade receivables and other receivables meets the solely payments
of principal and interest criteria. It is managed in accordance with the business model based on collection of these receivables.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(d) Property and equipment (continued)
(i) Recognition and measurement (continued)
Cost also includes transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of property
and equipment. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that
equipment.
When parts of an item of property and equipment have different useful lives, they are accounted for as separate items (major
components) of property and equipment.
Any gain or loss on disposal of an item of property and equipment (calculated as the difference between the net proceeds from
disposals and the carrying amount of the item) is recognised, net in profit or loss in “gains from investing activities” or “losses from
investing activities”. When revalued assets are sold, the amounts included in the revaluation surplus reserve are transferred to
retained earnings.
(ii) Reclassification to investment propertyWhen the use of a property changes from owner-occupied to investment property, the property is remeasured to fair value and
reclassified as investment property. Property that is being constructed for future use as investment property is accounted for at
fair value. Any gain arising on remeasurement is recognised in profit or loss to the extent that it reverses a previous impairment loss
on the specific property, with any remaining gain recognised in other comprehensive income and presented in the revaluation
surplus in equity. Any loss is recognised immediately in profit or loss.
(iii) Subsequent expendituresSubsequent expenditure is capitalised only when it is probable that the future economic benefits associated with the expenditure
will flow to the Group. Ongoing repairs and maintenance is expensed as incurred.
(iv) DepreciationItems of property and equipment are depreciated on a straight-line basis in profit or loss over the estimated useful lives of each
component. Leased assets are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain
that the Group will obtain ownership by the end of the lease term. Land is not depreciated.
Items of property and equipment are depreciated from the date that they are installed and are ready for use, or in respect of
internally constructed assets, from the date that the assets are complete and ready for use.
The estimated useful lives for the current and comparative years of significant items of property and equipment are as follows:
Description Year
Buildings 20-50
Furniture and equipment 4-20
Motor vehicles 5-10
Leasehold improvements are amortised over shorter of useful lives or the periods of the respective leases, also on a straight-line
basis.
Depreciation methods and useful lives are reviewed at each reporting date and adjusted if appropriate.
41 Significant accounting policies (continued)
(c) Financial instruments (continued)
(v) Derivative financial instruments and hedge accountingThe Group uses derivative financial insturements for the purpose of hedging foreign currency and interest risk rate. Embedded
derivative instruments are separated from the main contract and recognized separately when the underlying contract is not a
financial asset and mets certain criteria.
Derivatives are initially recognized at fair value. Subsequent to initial recognition of derivative instruments, changes in fair value are
recognized in profit or loss.
The Group defines certain derivatives as hedging instruments in order to maintain the variability in the cash flows related to the high
probability of realization arising from the changes in exchange rates and interest rates. The Group defines certain derivatives and non-
derivative financial liabilities as hedging instruments for net investment in foreign operations.
At the beginning of the hedge relationship, the Group makes a certification regarding the risk management purpose and strategy
that causes the protection relationship and the operation of the enterprise.
The Group also documents the economic relationship between the hedged item and the hedging instrument, including whether
the changes in the cash flows of the hedged item and the protection means are expected to offset each other.
Net investment hedgeWhen derivative instruments or non-derivative financial liabilities are designated as hedging instruments in the net investment
hedge transactions, the effective portion of the change in the fair value of the derivative instruments or foreign currency gains and
losses on the non-derivative financial liability is recognized as other comprehensive income and is recognized under translation
reserve in equity. The ineffective portion of the change in the fair value of the derivative or the foreign currency gains and losses
arising from the financial liability are immediately recognized in profit or loss. The amount recognized in other comprehensive
income is reclassified to profit or loss at the time of disposal of the entity abroad.
(d) Property and equipment
(i) Recognition and measurementThe costs of items of property and equipment purchased before 31 December 2005 are restated for the effects of inflation in
TL units current at 31 December 2005 pursuant to IAS 29. Property and equipment purchased after this date are recorded at
their historical costs. Accordingly, items of property and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses, if any (see accounting policy 42(i)), except as explained below:
In 2001, the Group started to reflect the land and buildings at their fair values as appraised by independent third party appraisers.
Any increase arising on the revaluation of such land and buildings is credited to other comprehensive income, and presented in
revaluation surplus in equity, except to the extent that it reverses a impairment loss for the same asset previously recognised as an
expense, in which case the increase is credited to profit or loss to the extent of the decrease previously charged. A decrease in the
carrying amount arising on the revaluation of such land and buildings is charged as an expense to the extent that it exceeds the
balance, if any, held in the revaluation surplus relating to a previous revaluation of that asset.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-constructed assets includes
the following:
• the cost of materials and direct labour, • any other costs directly attributable to bringing the asset to a working condition for its intended use, • when the Group has an obligation to remove the asset or restore the site, an estimate of the costs of dismantling and removing
the items and restoring the site on which they are located, and • capitalised borrowing costs.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(e) Intangible assets and goodwill (continued)
(vii) Subsequent expendituresSubsequent expenditure is capitalised only when it increases the future economic benefits embodied in the specific asset to
which it relates. All other expenditure, including expenditure on internally generated goodwill and brands, is recognised in profit
or loss as incurred.
(viii) AmortisationExcept for goodwill, broadcasting rights and brand name recognised in business combinations, intangible assets are amortised on
a straight-line basis in profit or loss over their estimated useful lives, from the date that they are available for use.
Amortisation of service concession rights acquired by the Group is recognised in profit or loss on a straight line basis over their
respective concession periods.
Amortisation of content library is based on the fair value of the asset which is acquired through business combination under scope
of IFRS 3 “Business Combinations”. The amortisation period for all items in content library are five years period when content library
is ready to screen on TV. Amortisation methods and useful lives are reviewed at each reporting date and adjusted if appropriate.
Amortisation of franchise network is based on the fair value of the asset which is acquired through business combination under
scope of IFRS 3 “Business Combinations”. The amortisation period for franchise network is ten years period. Amortisation methods
and useful lives are reviewed at each reporting date and adjusted if appropriate.
Amortisation of sponsorship is based on the fair value of the asset which is acquired through business combination under scope
of IFRS 3 “Business Combinations”. The amortisation period for sponsorship is ten years period. Amortisation methods and useful
lives are reviewed at each reporting date and adjusted if appropriate.
(f) Investment property
Investment property is property held either to earn rental income or for capital appreciation or for both but not for sale in the
ordinary course of business, use in the production or supply of goods or services or for administrative purposes. Investment property
is measured at fair value with any change therein recognised in profit or loss.
Cost includes expenditure that is directly attributable to the acquisition of the investment property. The cost of self-constructed
investment property includes the cost of materials and direct labour, any other costs directly attributable to bringing the investment
property to a working condition for their intended use and capitalised borrowing costs.
Investment property under construction is measured at cost when the fair value is not reliably determined.
Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and
the carrying amount of the item) is recognised in profit or loss. When an investment property that was previously classified as
property and equipment is sold, any related amount included in the revaluation surplus is transferred to retained earnings.
When the use of a property changes such that it is reclassified as property and equipment, its fair value at the date of reclassification
becomes its cost for subsequent accounting.
41 Significant accounting policies (continued)
(e) Intangible assets and goodwill
(i) GoodwillGoodwill that arises upon the acquisition of subsidiaries is presented in intangible assets and goodwill account. For the measurement
of goodwill at initial recognition, see note 41(a)(i).
Subsequent measurement
Goodwill is measured at cost less accumulated impairment losses (see accounting policy 41(i) (ii)). In respect of associates / joint
ventures, the carrying amount of goodwill is included in the carrying amount of the investment, and any impairment loss is
allocated to the carrying amount of the associates as a whole.
(ii) Service concession arrangementsConcession rights acquired by the Group have finite useful lives of 36 years (“D Marin Göcek”) and 18 years (“Pozitif Arena”), starting
from 7 December 2010 and 28 August 2013 respectively, and are measured at cost less accumulated amortisation. In addition, the
definite allocation, definite authorization, use permit and easement period of some hotels and marinas with D Marin Göcek, Doğuş
Didim and Doğuş Turgutreis marinas by the temporary Article 23 added to the Law No. 4706 and by Article 60 of Law No. 7061,
which came into force after being published in the Official Gazette dated 5 December 2017 and in accordance with the provisions
of the Regulation on the Extension and Sale of Tourism Investments on Public Immovables, which was promulgated in the Official
Gazette dated 4 May 2018 based on this law. Cost includes borrowing costs directly attributable to the acquisition of the concession
rights. The Group capitalises the borrowing costs directly attributable to the acquisition, or construction of a qualifying asset as
part of the cost of that asset.
(iii) Broadcasting rightsBroadcasting rights represent terrestrial broadcasting licence of Kral TV and Kral FM which are the intangible assets recognised
during the acquisition of commercial and economic assets of Kral TV and Kral FM in 2008 and terrestrial broadcasting licence
of Star TV which are the intangible assets recognised during the acquisition of StarTV Medya Hizmetleri A.Ş. in 2011. Terrestrial
broadcast rights have indefinite useful lives. These rights are tested for impairment annually.
(iv) Brand nameBrand name represents brand names resulting from acquisitions or revision of valuation work of net identifiable assets provisionally
in the previous year of Aldrovandi and Coya in 2017, Capri in 2016, Masa, Borsa, Mora, Darphane in 2015, Argos in Cappadocia,
Babylon,Villa Dubrovnik and Günaydın in 2014, Mezzaluna, Lacivert, Ulus 29, Çubuklu 29, Maçakızı and Sait acquired in 2013, Da
Mario, Gina, Kivahan, Kitchenette, Nusr-et and Vogue which are related to the intangible assets recognised during the acquisitions
in 2012, and Star TV which is related to the intangible asset recognised during the acquisition in 2011. Brand names have indefinite
useful lives and are tested for impairment annually.
(v) Content libraryThe content library of series and movies are related to the intangible assets recognised during the acquisition of Star TV in 2011.
Ownership right of these items in the content library belongs to Star TV with unlimited transmission. The fair value of the content
library on the acquisition date has been determined by an independent external expert. The content library is measured at cost
less accumulated amortisation and any accumulated impairment losses. Useful lives of content library are five years from the date
the content library is ready to screen on TV starting.
(vi) Other intangible assetsOther intangible assets that are acquired by the Group, which have finite useful lives, are measured at cost less accumulated
amortisation and any accumulated impairment losses, if any (see accounting policy 41(i)).
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(i) Impairment (continued)
(i) Non-derivative financial assets (continued)
Financial instruments and contract assets (continued)
Measurement of ECL
ECLs are a probability-weighted estimate of credit losses. In other words, it is the credit losses that are measured on the present value
of all the cash deficits (for example, the difference between the cash inflows to the entity and the cash flows expected by the entity
to be collected based on the contract).
The cash deficit is the difference between the cash flows to be incurred and the cash flows expected to be received by the entity.
As the amount and timing of payments are considered in anticipated credit losses, a credit loss occurs even if the entity expects to
receive the full payment in the contract with the maturity specified in the contract. Expected credit loss are discounted over the
effective interest rate of the financial asset.
Credit-impaired financial assets
At each reporting date, the Group assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is
‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset
have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
- significant financial difficulty of the borrower or issuer;
- a breach of contract such as a default or being more than 90 days past due;
- the restructuring of a loan or advance by the Group on terms that the Group would not consider otherwise;
- it is probable that the borrower will enter bankruptcy or other financial re-organization; or
- the disappearance of an active market for a security because of financial difficulties.
Presentation of impairment in the statement of financial position
Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.
For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI.
Write-off
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial
asset in its entirety or a portion thereof. For individual customers, the Group has a policy of writing off the gross carrying amount when
the financial asset is 180 days past due based on historical experience of recoveries of similar assets. For corporate customers, the
Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable
expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are
written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts
due.
41 Significant accounting policies (continued)
(g) Inventories
Inventories are measured at the lower of cost and net realisable value. Except as discussed in the following paragraphs, the cost of
inventories is mainly based on the weighted average, and includes expenditure incurred in acquiring the inventories, production or
conversion costs and other costs incurred in bringing them to their existing location and condition. Entities operating in automotive
businesses, the cost of inventories is determined on actual costing basis for trade goods, moving weighted average basis for spare
parts and other inventories. Trading properties comprise land and buildings that are held for trading purposes. Net realisable value
is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.
(h) Construction contracts in progress
Construction contracts in progress represent the gross unbilled amount expected to be collected from customers for contract
work performed to date. It is measured at cost plus profit recognised to date (see note 41 (l)(i)) less progress billings and recognised
losses. Cost includes all expenditures related directly to specific projects and an allocation of fixed and variable overheads incurred
in the Group’s contract activities based on normal operating capacity.
Construction contracts in progress is presented as part of trade receivables in the consolidated statement of financial position for
all contracts in which costs incurred plus recognised profits exceed progress billings. If progress billings exceed cost incurred plus
recognised profits, then the difference is presented as deferred income in the consolidated statement of financial position.
The asset, “Due from customers for contract work” represents revenue recognised in excess of amounts billed. The liability, “Due to
customers for contract work” represents billings in excess of revenue recognised.
(i) Impairment
(i) Non-derivative financial assets
Financial instruments and contract assets
The Group recognizes loss allowances for ECLs on:
- financial assets measured at amortized cost
The Group measures loss allowances at an amount equal to lifetime ECL, except for the following, which are measured as 12-month
ECL:
- bank balances for which credit risk has not increased significantly since initial recognition.
The Group applied lifetime ECL for calculation of loss allowances for trade receivables.
When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when
estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost
or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and
informed credit assessment and including forward-looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 90 days past due.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(j) Employee benefits (continued)
2019 2018
% %
Discount rate 3,42 3,69
Turnover rate to estimate the probability of retirement 1,0-8,00 1,0-8,00
Actuarial gains/losses are comprised of adjustment of difference between actuarial assumptions and realised and change in
actuarial assumptions. According to IAS 19, the Group recognised all actuarial differences in other comprehensive income.
(ii) Defined benefit planThe Group is obliged to transfer certain amount of benefit on behalf of employees to Social Security Foundation (Public Institution).
Except the benefit payments made by the Group, the Group does not have any other liability. These benefits are recognised directly
in profit or loss in personnel expenses as they accrue.
(iii) Vacation liabilityLiabilities from unused vacation days are recognised a liability when the right is qualified.
(k) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated
reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined
by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of
money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.
(i) WarrantiesA provision for warranties is recognised when the underlying products or services are sold. The provision is based on historical
warranty data and a weighting of all possible outcomes against their associated probabilities.
The warranties on vehicles sold by the Group are issued by the main producers where the Group acts as an intermediary between
the customers and the producer. The claims of customers to the Group are recognised as warranty expense in profit or loss. The
Group recognises the amount claims from the producers as warranty income and offset against warranty expense. The Group
incurs the cost that is not paid by the manufacturers. Accordingly, the Group recognises the estimated liability for the difference
between possible warranty claims of customers and possible warranty claims from producers based on historical service statistics.
(ii) Onerous contractsA provision for onerous contracts is recognised when the expected benefits to be derived by the Group from a contract are
lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of
the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a
provision is established, the Group recognises any impairment loss on the assets associated with that contract (see note 41 (i)(ii)).
(l) Revenue and cost recognition
General model for accounting of revenue
In accordance with IFRS 15, a five-step model is followed in recognizing revenue for all contacts with customers.
41 Significant accounting policies (continued)
(i) Impairment (continued)
(i) Non-derivative financial assets (continued)
Write-off continued)
Non financial assets
Impairment of goodwill and other non-financial assets
The carrying amounts of the Group’s non-financial assets, other than investment property, inventories and deferred tax assets, are
reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the
asset’s recoverable amount is estimated. Goodwill and intangible assets with indefinite lives are tested annually for impairment. An
impairment loss is recognised if the carrying amount of an asset or its related cash-generating unit (“CGU”) exceeds its recoverable
amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. In assessing value in
use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset or CGU. For the purpose of impairment testing, assets are
grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of
the cash inflows of other assets or CGUs. Subject to an operating segment ceiling test, CGUs to which goodwill has been allocated
are aggregated so that the level at which impairment testing is performed reflects the lowest level at which goodwill is monitored
for internal reporting purposes. Goodwill acquired in a business combination is allocated to groups of CGUs that are expected to
benefit from the synergies of the combination.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are allocated first to reduce
the carrying amount of any goodwill allocated to the CGU (group of CGUs), and then to reduce the carrying amounts of the other
assets in the CGU (group of CGUs) on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. For the non financial other assets, impairment loss is reversed when
there is a change in the estimates used in the calculation of recoverable amount. For other assets, an impairment loss is reversed
only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net
of depreciation or amortisation, if no impairment loss had been recognized.
(j) Employee benefits
(i) Reserve for employee severance indemnityReserve for employee severance indemnity represents the present value of the estimated future probable obligation of the Group
arising from the retirement of the employees and calculated in accordance with the Turkish Labour Law. It is computed and
reflected in the consolidated financial statements on an accrual basis as it is earned by serving employees.
IFRSs require actuarial valuation methods to be developed to estimate the entity’s obligation under defined benefit plans. The
principal statistical assumptions used in the calculation of the total liability in the accompanying consolidated financial statements
at 31 December were as follows:
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(l) Revenue and cost recognition (continued)
Step 5: Recognize revenue
An entity recognizes revenue over time when one of the following criterias are met:
- Customer simultaneously receives and consumes the benefits as the entity performs, or
- The entity’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or
- The entity’s performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to
payment for performance completed to date
For each performance obligation that is satisfied over time, an entity applies a single method of measuring progress toward complete
satisfaction of the obligation. The objective is to depict the transfer of control of the goods or services to the customer. To do this, an
entity selects an appropriate output or input method. It then applies that method consistently to similar performance obligations and
in similar circumstances. If a performance obligation is not fulfilled in time, then the Company recognizes revenue when the control of
goods or services is transferred to the customer.
Revenues are recognised on an accrual basis at the time the services are given and deliveries are made, the amount of revenue can be
measured reliably and it is probable that the economic benefits associated with the transaction will flow to the Group at the fair value
of considerations received or receivable. Other revenues from operations such as sponsorships and franchises are recognised on an
accrual basis at the time services are given and/or the deliveries are made in accordance with the related contracts.
The Group transfers revenue to a customer and recognizes the revenue in its consolidated financial statements as per it fulfills or when
it fulfills the performans obligation. When the control of an asset is checked (or passed to) by the customer, the assets is transferred.
The Group recognizes the revenue in the financial statements in accordance with the following basic principles:
a) Identify the contracts with customer
b) Identify the performance obligations in contracts
c) Determine the transaction price in contracts
d) Transaction price allocation to performance obligations
e) Revenue recognition when each performance obligations are met.
(i) Construction ContractsWhere the outcome of a construction contract can be estimated reliably, revenue and costs are recognized by reference to the
stage of completion of the contract activity at the end of the reporting period, measured based on the proportion of contract costs
incurred for work performed to date relative to the estimated total contract costs, except where this would not be representative of
the stage of completion. Costs incurred in the period in connection with future activity on a contract are excluded from contract costs
in determining the stage of completion. They are presented as inventories, prepayments or other assets, depending on their nature.
Variations in contract work, claims and incentive payments are included to the extent that the amount can be measured reliably and
its receipt is considered probable.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognized to the extent of contract
costs incurred that it is probable will be recoverable. Contract costs are recognized as expenses in the period in which they are
incurred. When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognized as an
expense immediately.
41 Significant accounting policies (continued)
(l) Revenue and cost recognition (continued)
Step 1: Identify the contract
A contract with a customer is in the scope of the new standard when the contract is legally enforceable and certain criteria are met. If the criteria are not met, then the contract does not exist for purposes of applying the general model of the new standard, and any consideration received from the customer is generally recognized as a deposit (liability).
Contracts entered into at or near the same time with the same customer (or a related party of the customer) are combined and
treated as a single contract when certain criteria are met.
Step 2: Identify the performance obligations
The Group defines the “performance obligations” as a unit of account for revenue recognition. The company assesses the goods
or services it has committed in a contract with the customer and determines each commitment to the customer as one of the
performan obligations as a performans obligation:
(a) good or service (or a bundle of goods or services) that is distinct; or
(b) series of distinct goods or services that are substantially the same and that have the same pattern of transfer to the customer.
An entity may define a contract or a service separately from other contractual obligations and define it as a different commodity
or service if the customer makes use of such goods or services alone or in combination with other resources available for use. A
single contract may contain promises to deliver to the customer more than one good or service. At contract inception, an entity
evaluates the promised goods or services to determine which goods or services (or bundle of goods or services) are distinct and
therefore constitute performance obligations.
Step 3: Determine the transaction price
When determining the transaction price, an entity assumes that the goods or services will be transferred to the customer based on
the terms of the existing contract. In determining the transaction price, an entity considers variables considerations and significant
financing components.
Significant financing component
To estimate the transaction price in a contract, the Group adjusts the promised amount of consideration to reflect the time value of
money if the contract contains a significant financing component. Significant financing component exists if the timing of payments
agreed to by the parties to the contract (either explicitly or implicitly) provides the customer or the Group with a significant benefit of
financing the transfer of goods or services to the customer. The Group does not have a sales transaction with a significant financiang
component.
Variable consideration
The Group identifies items such as price concessions, incentives, performance bonuses, completion bonuses, price adjustment clauses,
penalties, discounts, credits, or similar items may result in variable consideration if there is any in a customer contract.
Step 4: Allocate the transaction price
The transaction price is allocated to each performance obligation – generally each distinct good or service – to depict the amount of
consideration to which an entity expects to be entitled in exchange for transferring the promised goods or services to the customer.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(l) Revenue and cost recognition (continued)
(viii) Revenue from sales of cars and spare parts Revenue from the sales of vehicles, spare parts and services in the course of ordinary activities is measured at the fair value of the
consideration received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognized on an accrual
basis when persuasive evidence exists that goods are delivered and services are rendered, that the significant risks and rewards of
ownership have been transferred to the buyer.
In case the Group has the right to collect a price directly corresponding to the value of the customer from the customer’s completed
transaction, the Group takes the revenue to the financial statements by the amount that it has the right to invoice. The Group
considers that, at the beginning of the contract, the period between the date of transfer of the goods or services to the customer
and the date on which the customer pays the price of such goods will be one year or less, there will be no impact of an important
financing component on the price promised. Therefore, Group does not correct the accrued price.
(ix) Revenue from TourismConsisted of hotel accommodation, agency, and marina income. The hotel accommodation and agency income are recognised
once the service is provided to the client, “at a specific point in time”. Marina income is consisted of accommodation of sea vehicles
and store rent incomes. The said rent income is recorded during the rent contracts over time and based on the output method. For
the sale of hotel food and beverage products, the transfer is mostly due to the customer's receipt of the receipt. The hotel provides
hotel management as well as hotel-related services. When the services are performed in a single contract but in different reporting
periods, the price is distributed on the fair value basis between the services provided.
(x) Revenue from EnergyThe Group earns electric sales income through generating electricity from hydroelectric plants and selling it. Since electricity is a
service provided as a series that the client gets and consumes simultaneously, it is recognised as one performance, over time and
through output method.
(xi) Other businessesRevenue from the sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or
receivable, net of returns and allowances, trade discounts and volume rebates. Revenue is recognised when persuasive evidence
exists, usually in the form of an executed sales agreement, that the significant risks and rewards of ownership have been transferred
to the buyer, recovery of the consideration is probable, the associated costs and possible return of goods can be estimated reliably,
and there is no continuing management involvement with the goods and the amount of revenue can be measured reliably. If it is
probable that discounts will be granted and the amount can be measured reliably, then the discount is recognised as a reduction
of revenue as the sale is recognised.
The transfer of control varies according to the terms of each sales contract. Revenues from the services offered are recorded in
profit or loss on the date of reporting at the reporting date.
(xii) Research and development costsExpenditure on research activities is recognised in profit or loss when incurred.
(xiii) Dividend incomeDividend income is recognised on the date that the Group’s right to receive payment is established. Dividend payables are
recognised after the dividend distribution approval in the General Assembly.
41 Significant accounting policies (continued)
(l) Revenue and cost recognition (continued)
(ii) CommissionsWhen the Group acts in the capacity of an agent rather than as the principal in a transaction, the revenue recognised is the net
amount of commission made by the Group.
(iii) Rental incomeRental income from investment property is recognised as revenue on a straight-line basis over the term of the lease. Lease incentives
granted are recognised as an integral part of the total rental income, over the term of the lease. Rental income from other property
is recognised as other operating income.
(iv) Advertisement revenue under service revenue Movie revenue is recognised in profit or loss when the movies or advertisements are broadcasted. The revenue is recognised as the
fair value of the amount received or receivable for core business activity, after deduction of discounts, returns, sales premiums and
return premium given to agents.
(v) Risturn premiumAdvertising sales made in accordance with the contract signed risturn advertising agencies depend on the volume of sales premiums
covered by the advertising agency risturn premium is paid. Risturn premiums are recorded by deducting from revenue items as
incurred. Revenues are recorded at fair value can be obtained or to be obtained first amount if the amount of revenue is able to
be reliably measured and the economic benefits arising from the transactions. If the sales transaction is including a financing
transaction, the fair value of the sales price, the amount to be obtained in the receivables is calculated by discounting the effective
interest method. The interest rate used in discounting, is the interest that discounts the nominal amount of the relevant goods or
services to the cash sale price ratio.
(vi) Barter transactionsRevenue from barter transactions is recognised at the fair value of the goods or services received, adjusted for any cash involved in
the transaction. When goods or services are exchanged or swapped for goods or services which are of a similar nature and value,
the exchange is not regarded as a transaction which generates revenue. When goods are sold or services are rendered in exchange
for dissimilar goods or services, the exchange is regarded as a transaction which generates revenue.
Revenue is measured at the fair value of the consideration received or receivable. When the fair value of the services received
cannot be measured reliably, the revenue is measured at the fair value of the services provided, adjusted by the amount of any
cash or cash equivalents transferred. When the outcome of a transaction involving the rendering of services cannot be estimated
reliably (e.g. the amount of revenue cannot be measured reliably), revenue should be recognised only to the extent of the expenses
recognised that are recoverable. Revenue is recognised only to the extent of costs incurred that are expected to be recoverable
and, as the outcome of the transactions cannot be estimated reliably, no profit is recognised.
As a consequence, due to the dissimilarity among the services and goods exchanged within barter transaction and the difference
in settlement term of transaction even if they are the advertisements, these exchanges were regarded as different transactions
which generates revenue by the Group.
(vii) Revenue from magazine and book sales Revenue from the sales of magazine and books in the course of ordinary activities is measured at the fair value of the consideration
received or receivable, net of returns, trade discounts and volume rebates. Revenue is recognised on an accrual basis when
persuasive evidence exists that goods are delivered and services are rendered, that the significant risks and rewards of ownership
have been transferred to the buyer; recovery of the consideration is probable; there is no continuing management involvement
with the goods; and the amount of revenue can be measured reliably. If the discount can be measured reliably and probable, the
discount is recognised net of revenue.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(n) Leases (continued)
(i) As a lessee (continued)
The exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal
period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the
Group is reasonably certain not to terminate early.
The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in
future lease payments arising from a change in an index or rate, if there is a change in the Group’s estimate of the amount expected
to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension
or termination option or if there is a revised in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use
asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.
The Group presents right-of-use assets that do not meet the definition of investment property in ‘property, plant and equipment’
and lease liabilities in ‘loans and borrowings’ in the statement of financial position.
Short-term leases and leases of low-value assets
The Group has elected not to recognise right-of-use assets and lease liabilities for leases of low-value assets and short-term leases,
including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight-line
basis over the lease term.
(ii) As a lessor
At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the
contract to each lease component on the basis of their relative stand-alone prices.
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and
rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an
operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part
of the economic life of the asset.
When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses
the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease, not with reference to the
underlying asset. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies
the sub-lease as an operating lease.
If an arrangement contains lease and non-lease components, then the Group applies IFRS 15 to allocate the consideration in the
contract.
The Group applies the derecognition and impairment requirements in IFRS 9 to the net investment in the lease. The Group further
regularly reviews estimated unguaranteed residual values used in calculating the gross investment in the lease.
The Group recognises lease payments received under operating leases as income on a straight-line basis over the lease term as
part of ‘other revenue’.
41 Significant accounting policies (continued)
(m) Government grants
Government grants are recognised initially as deferred income at fair value when there is reasonable assurance that they will be
received and that the Group will comply with the conditions associated with the grant and are then recognised in profit or loss
as other operating income on a systematic basis over the useful life of the asset. Grants that compensate the Group for expenses
incurred are recognised in profit or loss as other operating income on a systematic basis in the same periods in which the expenses
are recognised.
(n) Leases
The Group has applied IFRS 16 using the modified retrospective approach and therefore the comparative information has not been restated and continues to be reported under IAS 17 and IFRIC 4. The details of accounting policies under IAS 17 and IFRIC 4 are disclosed separately.
Policy applicable from 1 January 2019
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16.
This policy is applied to contracts entered into, on or after 1 January 2019.
(i) As a lessee
At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the
contract to each lease component on the basis of its relative stand-alone prices. However, for the leases of property the Group has
elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.
The Group recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially
measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the
commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset
or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the end of
the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of
the right-of-use asset reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated
over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition,
the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease
liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date,
discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group’s incremental
borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.
The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and
makes certain adjustments to reflect the terms of the lease and type of the asset leased.
Lease payments included in the measurement of the lease liability comprise the following:
– fixed payments, including in-substance fixed payments;
– variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
– amounts expected to be payable under a residual value guarantee; and
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(p) Income tax (continued)
Deferred taxes related to fair value measurement of available for sale assets and cash flow hedges are charged or credited to equity
and subsequently recognised in profit or loss together with the deferred gains that are realised.
Deferred taxes related to revaluation surplus reserve are recognised in other comprehensive income in revaluation surplus in equity
on a net basis.
Deferred tax asset is recognised and only limited with below mentioned conditions are met both for taxable temporary differences
of Doğuş Holding and its subsidiaries:
• Temporary differences will reverse in a foreseable future period and
• There would be enough taxable income in order to utilise temporary differences.
Deferred tax liability is recognised except below mentioned conditions are met both for taxable temporary differences of Doğuş
Holding and its subsidiaries:
• Owners of the Company are able to control timing of reversal of temporary differences and
• Temporary differences would not be reversed probably in a foreseable future period.
(r) Assets held for sale
A discontinued operation is a component of the Group’s business that represents a separate major line of business or geographical
area of operations that has been disposed of or is held for sale, or is a subsidiary acquired exclusively with a view to resale. Classification
as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier.
When an operation is classified as a discontinued operation, the net assets of the discontinued operations are measured at fair
value less cost of sale of the operation. The profit/(loss) before tax and the profit/(loss) after the tax of the discontinued operation are
presented in the notes of the consolidated financial statements and a profit/(loss) analysis including the income and expenses is
performed. Besides, the net cash flows related to operational, investing and financing activities of the discontinued operations are
presented in the related note.
In compliance with IFRS 11 “Joint Arrangements” and IFRS 5 “Assets Classified as Held For Sale and Discontinuing Operations”, the
interests in jointly controlled entities are accounted for in accordance with IFRS 5. When an interest in a jointly controlled entity
previously classified as held for sale no longer meets the criteria to be classified, it is accounted for using proportionate consolidation
or the equity method as from the date of its classification as held for sale. Financial statements for the periods since classification
as held for sale are amended accordingly. The operations of the joint venture whose operations have been previously classified as
discontinued are classified as continued.
A group of assets is classified as asset held for sale if their carrying amount is planned to be recovered principally through a sale
transaction rather than through continuing use. The liabilities directly associated with these assets are classified similarly. Such group
of assets is accounted for at the lower of its carrying amount (being the net amount of the assets and liabilities directly associated
with them) and fair value less costs to sell.
If the Group has classified an asset (or disposal group) as held for sale, but the criteria of such classification are no longer met, the
Group ceases to classify the asset (or disposal group) as held for sale. The Group measures a non-current asset that ceases to be
classified as held for sale (or ceases to be included in a disposal group classified as held for sale) at the lower of:
41 Significant accounting policies (continued)
(n) Leases (continued)
(ii) As a lessor (continued)
Generally, the accounting policies applicable to the Group as a lessor in the comparative period were not different from IFRS
16 except for the classification of the sub-lease entered into during current reporting period that resulted in a finance lease
classification.
(o) Finance income and finance cost
Finance income comprises interest income on funds invested, foreign currency gains (excluding those on trade receivables and
payables), and gains on derivative instruments that are recognised in profit or loss. Interest income is recognised as it accrues, using
the effective interest method.
Finance cost comprise interest expense on borrowings, foreign currency losses (excluding those on trade receivables and payables),
and losses on derivative instruments that are recognised in profit or loss.
Borrowing costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are recognised
in profit or loss using the effective interest method. Borrowing costs that are directly attributable to construction of investment
property is in included in the cost base of related assets.
Foreign currency gains and losses are reported on a net basis as either finance income or finance cost depending on whether
foreign currency movements are in a net gain or net loss position.
(p) Income tax
Income tax expense comprises current tax and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the
extent that it relates to a business combination, or items recognised directly in equity or in other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively
enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary
differences: the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither
accounting nor taxable profit or loss, and differences relating to investments in subsidiaries, jointly arrangements and associates to
the extent that it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable
temporary differences arising on the initial recognition of goodwill.
Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates
enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable
right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences, to the extent that it is
probable that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax assets are
reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESNotes to Consolidated Financial Statements As at and for the Year Ended 31 December 2019(Amounts expressed in thousands of Turkish Lira (“TL”) unless otherwise stated.)
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41 Significant accounting policies (continued)
(u) Standards issued but not yet effective and not early adopted (continued)
Amendments to IFRS 3 - Definition of a Business Determining whether a transaction results in an asset or a business acquisition has long been a challenging but important area
of judgement. IASB has issued amendments to IFRS 3 Business Combinations to make it easier for companies to decide whether
activities and assets they acquire are a business or merely a group of assets. With this amendments confirmed that a business must
include inputs and a process, and clarified that the process shall be substantive and the inputs and process must together significantly
contribute to creating outputs. It narrowed the definitions of a business by focusing the definition of outputs on goods and services
provided to customers and other income from ordinary activities, rather than on providing dividends or other economic benefits
directly to investors or lowering costs and added a concentration test that makes it easier to conclude that a company has acquired a
group of assets, rather than a business, if the value of the assets acquired is substantially all concentrated in a single asset or group of
similar assets. This is a simplified assessment that results in an asset acquisition of substantially all of the fair value of the gross assets is
concentrated in a single identifiable asset or a group of similar identifiable assets. If a preparer chooses not to apply the concentration
test, or the test is failed, then the assessment focuses on the existence of a substantive process. The amendment applies to businesses
acquired in annual reporting periods beginning on or after 1 January 2020; with earlier application permitted.
The Group does not expect that application of these amendments to IFRS 3 will have significant impact on its consolidated financial
statements.
Interest Rate Benchmark Reform (Amendments to IFRS 9, IAS 39 and IFRS 7)
Interest Rate Benchmark Reform, which amended IFRS 9, IAS 39 and IFRS 7 issued in September 2019, added Section 6.8 and amended
paragraph 7.2.26. About this issue, IASB identified two groups of accounting issues that could affect financial reporting. These are:
• pre-replacement issues—issues affecting financial reporting in the period before the reform; and
• replacement issues—issues that might affect financial reporting when an existing interest rate benchmark is either reformed
or replaced.
IASB considered the pre-replacement issues to be more urgent and decided to address the following hedge accounting requirements
as a priority in the first phase of the project:
(a) The highly probable requirement;
(b) Prospective assessments;
(c) IAS 39 retrospective assessment; and
(d) Separately identifiable risk components.
All other hedge accounting requirements remain unchanged. A company shall apply the exceptions to all hedging relationships
directly affected by interest rate benchmark reform.
The Group shall apply these amendments for annual periods beginning on or after 1 January 2020 with earlier application permitted.
41 Significant accounting policies (continued)
(r) Assets held for sale (continued)
(a) Its carrying amount before the asset (or disposal group) was classified as held for sale, adjusted for any depreciation, amortization
or revaluations that would have been recognized had the asset (or disposal group) not been classified as held for sale.
(b) Its recoverable amount at the date of the subsequent decision not to sell.
The Group does not reclassify or re-present amounts presented for non-current assets or for the assets and liabilities of disposal
groups classified as held for sale in the balance sheet for prior periods to reflect the classification in the balance sheet for the latest
period presented.
(s) Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur
expenses, including revenues and expenses that relate to transactions with any of the Group’s other components. All operating
segments’ operating results are reviewed regularly by the CEO (“Chief Executive Officer”) and BOD members to make decisions
about resources to be allocated to the segment and assess its performance, and for which discrete financial information is available.
(t) De-merger/Spin off
Economically a de-merger represents a division of an entity into separate parts. The result of a de-merger is that the same
shareholders own the same group of businesses; the shareholders structure and their ownership interests are identical both before
and after the de-merger. In the absence of further guidance in IFRS, the Group has accounted the de-merger via book values.
(u) Standards issued but not yet effective and not early adopted
A number of new standards, interpretations of and amendments to existing standards are not effective at reporting date and
earlier application is permitted; however the Group has not early adopted are as follows.
The revised Conceptual Framework (Version 2018) The revised Conceptual Framework issued on 28 March 2018 by the IASB. The Conceptual Framework sets out the fundamental concepts
for financial reporting that guide the Board in developing IFRS Standards. It helps to ensure that the Standards are conceptually
consistent and that similar transactions are treated the same way, so as to provide useful information for investors, lenders and other
creditors. The Conceptual Framework also assists companies in developing accounting policies when no IFRS Standard applies to a
particular transaction, and more broadly, helps stakeholders to understand and interpret the Standards. The revised Framework is
more comprehensive than the old one its aim is to provide the Board with the full set of tools for standard setting. It covers all aspects
of standard setting from the objective of financial reporting, to presentation and disclosures. For companies that use the Conceptual
Framework to develop accounting policies when no IFRS Standard applies to a particular transaction, the revised Conceptual
Framework is effective for annual reporting periods beginning on or after 1 January 2020, with earlier application permitted.
Amendments to IAS 1 and IAS 8 - Definition of Material In October 2018, IASB issued Definition of Material (Amendments to IAS 1 and IAS 8). The amendments clarify and align the definition
of ‘material’ and provide guidance to help improve consistency in the application of that concept whenever it is used in IFRS Standards.
The amended “definition of material “was added to the important definition and it was stated that this expression could lead to similar
results by not giving and giving misstating information. In addition, with this amendment, the terminology used in its definition of
material has been aligned with the terminology used in the Conceptual Framework for Financial Reporting (Version 2018). Those
amendments are prospectively effective for annual periods beginning on or after 1 January 2020 with earlier application permitted.
The Group does not expect that application of these amendments to IAS 1 and IAS 8 will have significant impact on its consolidated
financial statements.
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31 December 2019 31 December 2018
ASSETS
Current Assets:
Cash and cash equivalents 280.964 401.339
Financial investments 36.743 46.882
Trade receivables 437.027 490.635
- Due from related parties 110.851 101.035
- Due from third parties 326.176 389.600
Inventories 227.036 331.570
Prepayments 21.512 31.764
Other current assets 288.215 295.695
Subtotal 1.291.497 1.597.885
Assets held for sale 186.018 7.445
Total current assets 1.477.515 1.605.330
Non-Current Assets:
Trade receivables -- 65.512
- Due from third parties -- 65.512
Financial investments 4.286 --
Investments in equity accounted investees 744.172 785.213
Investment property 1.796.208 1.750.445
Property and equipment 1.906.880 2.292.919
Right of use assets 140.444 --
Intangible assets 388.988 589.410
- Goodwill 181.220 234.407
- Other intangible assets 207.768 355.003
Prepayments 7.810 27.541
Deferred tax assets 266.501 271.131
Other non-current assets 64.357 143.796
Total non-current assets 5.319.646 5.925.967
TOTAL ASSETS 6.797.161 7.531.297
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESAs at 31 December 2019 Consolidated Statement of Financial Position(Amounts expressed in thousands of USD)
Appendix I.1
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESSupplementary InformationConvenience Translation to US Dollar31 December 2019Appendix I
The US Dollar ("USD") amounts shown in the consolidated statement of financial position and consolidated statement of profit
or loss and other comprehensive income on the following pages have been included solely for the convenience of the reader.
For the current year’s consolidated financial statements, USD amounts are translated from TL consolidated financial statements
using the official TL exchange rate of 5,9402 TL/USD prevailing on 31 December 2019. For the prior year’s consolidated financial
statements, USD amounts are translated from TL consolidated financial statements using the official TL exchange rate of 5.2609
TL/USD prevailing on 31 December 2018.
Such translation should not be construed as a representation that the TL amounts have been converted into USD pursuant to the
requirements of IFRSs or Generally Accepted Accounting Principles in the United States of America or in any other country.
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2019 2018
PROFIT OR LOSS
Revenue 3.003.419 3.667.549
Cost of sales (-) (2.471.380) (3.073.243)
Gross profit 532.039 594.306
Administrative expenses (-) (273.232) (305.991)
Selling, marketing and distribution expenses (-) (102.145) (144.687)
Other operating income 121.683 184.072
Other operating expenses (-) (91.343) (89.689)
Share of (loss) / profit of equity accounted investees, net of tax 34.340 (25.489)
Operating profit 221.342 212.522
Gains from investing activities 90.732 102.377
Losses from investing activities (-) (32.334) (100.321)
Profit before net finance cost 279.740 214.578
Finance income 243.573 351.862
Finance cost (-) (628.153) (1.133.908)
Loss before tax (104.840) (567.468)
Tax income / (expense) from continuing operations
- Current tax expense (24.593) (46.398)
- Deferred tax income 23.104 57.063
Loss for the year (106.329) (556.803)
Profit attributable to:
Non-controlling interests 43.409 2.843
- Şahenk family 929 1.395
- Other 42.480 1.448
Owners of the Company (149.738) (559.646)
(106.329) (556.803)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESConsolidated Statement of Profit or Loss and Other Comprehensive IncomeFor the Year Ended 31 December 2019(Amounts expressed in thousands of USD)
Appendix I.2
31 December 2019 31 December 2018LIABILITIES
Current Liabilities:
Short term loans and borrowings 396.639 734.778
Short term portion of long term loans and borrowings 537.208 1.737.809
Liabilities from leasing transactions 29.418 --
Derivative instruments -- 25.663
Trade payables 370.803 437.957
- Due to related parties 6.163 24.302
- Due to third parties 364.640 413.655
Current tax liabilities 8.110 8.251
Provisions 32.048 29.254
- Employee benefits 9.428 9.463
- Other provisions 22.620 19.791
Other current liabilities 129.293 185.024
Subtotal 1.503.519 3.158.736
Liabilities directly associated with the assets held for sale 93.778 --
Total current liabilities 1.597.297 3.158.736
Non-Current Liabilities:
Loans and borrowings 4.016.625 2.970.018
Liabilities from leasing transactions 110.480 --
Derivative instruments 85.412 98.911
Other payables 48.866 --
- Due to related party 48.866 --
Provisions 55.023 35.510
- Employee benefits 24.167 26.859
- Other provisions 30.856 8.651
Deferred tax liabilities 135.397 186.294
Other non-current liabilities 82.781 176.362
Total non-current liabilities 4.534.584 3.467.095
TOTAL LIABILITIES 6.131.881 6.625.831
EQUITY
Equity attributable to owners of the Company:
Share capital 145.254 162.715
Adjustments to share capital 254.553 287.421
Treasury shares (-) (14.795) --
Capital stock held by subsidiaries (-) (15.914) (17.969)
Share premium 28.178 31.817
Other comprehensive income items that will never be classified to profit or loss 484.201 539.110
Other comprehensive income items that are or may be classified to profit or loss (77.727) (9.402)
Restricted reserves 1.248.772 1.132.543
Accumulated losses (1.444.542) (867.327)
Loss for the year (149.738) (559.646)
Total equity attributable to owners of the Company 458.242 699.262
Non-controlling interests
Şahenk family 16.443 6.223
Other 190.595 199.981
Total non-controlling interests 207.038 206.204
TOTAL EQUITY 665.280 905.466
TOTAL LIABILITIES AND EQUITY 6.797.161 7.531.297
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESAs at 31 December 2019 Consolidated Statement of Financial Position (continued)(Amounts expressed in thousands of USD)
Appendix I.1
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
2019
DO
ĞU
Ş G
RO
UP
AN
NU
AL
RE
PO
RT
• C
ON
SOLI
DA
TED
FIN
AN
CIA
L ST
ATE
ME
NTS
254 255
2019 2018
OTHER COMPREHENSIVE INCOME
Items that will not be reclassified to profit or loss: 61.773 94.649
Revaluation of property and equipment 37.762 97.119
Remeasurements of defined benefit liability (3.874) (2.801)
Tax on items that will not be reclassified to profit or loss:
- Deferred tax (262) (9.152)
Other comprehensive income from equity accounted investees, net of tax 28.147 9.483
Items that are or may be reclassified to profit or loss: (44.045) 5.768
Foreign currency translation differences for foreign operations (62.813) (14.309)
Changes in fair value of available for sale financial assets 2.821 (1.731)
Net investment hedge for foreign operations (37.055) (127.393)
Tax on items that are or may be reclassified to profit or loss:
- Current tax 7.411 25.479
- Deferred tax (69) 66
Other comprehensive income from equity accounted investees, net of tax 45.660 123.656
OTHER COMPREHENSIVE INCOME 17.728 100.417
TOTAL COMPREHENSIVE INCOME / (LOSS) (88.601) (456.386)
Total comprehensive income / (loss) attributable to:
Non-controlling interests 55.308 21.100
- Şahenk Family 929 1.443
- Other 54.379 19.657
Owners of the Company (143.909) (477.486)
(88.601) (456.386)
DOĞUŞ HOLDİNG ANONİM ŞİRKETİ AND ITS SUBSIDIARIESConsolidated Statement of Profit or Loss and Other Comprehensive Income (continued)For the Year Ended 31 December 2019(Amounts expressed in thousands of USD)
Appendix I.2
CONTENT MANAGEMENT DESIGN
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