DOHOL Visit Note December 2021

·We had a meeting with DoÄŸan Holding to evaluate operational activities. DOHOL, a company that stands out with its strong financial structure, has a net cash position of USD358 mn as of 3Q21 end, and short-term financial investments of TRY3.3 bn. mostly eurobonds. DOHOL has a wide range of subsidiaries, which helps to build a balanced portfolio and risk management. Considering its strong financials, we estimate that the Holding will may evaluate inorganic growth opportunities in the coming period. We can define the DOHOL as a defensive stock with its diversified portfolio and strong financials. The weakness in TRY may act as a trigger for the stock performance.

·Petroleum Products Retail: With the elimination of restrictions related with the pandemic and increased mobility, the fuel retail segment generated a stronger EBITDA contribution in 2021. In the first 9 months of the year, EBITDA increased by 49% y/y to TRY246-mn. in this segment.

·Electricity Generation: Considering the increase in natural gas prices and the strong demand, we believe that the high course of electricity prices in Turkey will be maintained. Galata Wind can contribute more positively to DOHOLs financials in 2022 with its 269 MW installed capacity.

·Industry Segment: In the post pandemic period the demand for industrial products have increased resulting in a strong performance in the industry segment. DOHOLs industry segment performed well due to strong demand. Industry segments revenues increased by 118% in the first 9 months compared to the same period the previous year. EBITDA margin improved by 330 bps y/y to 12.1% in 3Q21.

·In the upcoming period, DoÄŸan Holding may use the cash assets for new investments, or it may take steps to dispose some of its subsidiaries. DOHOL may focus on low debt and export oriented companies for investment purposes. We anticipate that possible news coud support the stock performance.

·New Business Investments: DOHOL, generates income mainly through the factoring company under the financing and investment segment. D Investment Bank which has established on June 2020 with a capital of TRY200 mn, received an approval for debt insturement issuance ceiling up to TRY 1.2 bn in October 2021. With the Board of Directors decision dated September 2021, Öncü GiriÅŸim, one of the subsidiaries of the Holding, approved the establishment of DoÄŸan Trend Sigorta with a capital of TRY120 mn. to operate in insurance segment. Insurance company is planned focus on digital insurance with a small number of branches and employees, and the start operations will be in the first quarter of 2022.