Dogus Otomotiv Servis ve Ticaret AS

IST:DOAS.E

Earnings Call Transcript 2022-Q4

[Operator]

Good afternoon, and welcome to Dogus Otomotiv's Fourth Quarter 2022 Results Conference Call.

I will now hand over to the Dogus team to begin the presentation.

[Kerem Talih, executive]

Thank you very much, Tim. This is Kerem Talih speaking. As you know, I'm the CFO of Dogus Otomotiv. We are all welcoming you to the year-end Investor Relations presentation relating to year 2022. I'm here with my colleagues who is physically with me, our Investor Relations Manager, Mr. [indiscernible], Mr. Yavuz Arda and our consultation team and Ms. Damla Cobanoglu. And also our finance manager -- budget manager and accounting manager is also online. Welcome to our meeting again.

At the beginning of the meeting, in the name of Dogus Otomotiv, we would like to express our deepest sadness relating to the unfortunate earthquake effect, which has taken place a couple of weeks ago in the eastern part of Turkey, within which, a group of dealers that has been spread to -- sent to 10 cities in this region has also been a influence. And unfortunately, amongst them, 4 of our colleagues has died, unfortunately. We are also sharing our deepest condolences with their families as well.

Coming to the year-end results, both in terms of market and also from a financial perspective. In this meeting, we will slightly follow up a different path, considering that last week, our financials have been announced publicly. And most of the analysts reports have been revealed to the market. So we are all aware of that. You are quite familiar with the year-end financial results.

In this respect, considering that the presentation has already been revealed beforehand, I'm going to make it quite smooth. And I will try to put as much as time for your probable questions at the end of the presentation in [indiscernible]. And also, we will, of course, be informing you relating to the recent share purchase of Dogus Gayrimenkul real estate company, the purchase of which [indiscernible] by Dogus Otomotiv that we have recently made its public disclosure announcements. We will also be explaining to you the strategy behind this important purchase transaction.

As we have always been doing so, at the beginning, I would like to inform you relating to the new launches of the year. As it has been the case in year 2022, 2023 is also going to be very, very big year in terms of the launches of the models that are represented in Turkey. So the fancy models are namely the electric vehicle of Audi e-tron, its new versions in SUV segment is going to be launched within the end of this quarter. And also, as you can see in the presentation, we have almost more than 20 new launches [indiscernible] Audi models, which is going to be introduced to the Turkish market, in line with the strategy of imports by [indiscernible] itself.

Then we have a glance at the development of the total market. As we have always been trying to describe to you, the developments are somehow under the shadow of the remaining part of the pandemic situation, the supply obstacles, the challenges in the logistics sector and also mainly the chip supply crisis that are adversely -- that have adversely affected the automotive sector. At the end, the Turkish automotive sector has reached a volume of more than 800,000 units, with an expansion 7%.

Coming to our performance. As it has almost been the same picture at the end of third quarter, we have -- our performance is slightly lower than the performance of the market itself, considering the vehicles available through our Volkswagen Group. But at the end, we were able to succeed to reach to a level of more than 1,000 units of sales.

Amongst the market share equation, as you can see in the page, at the end, we have ended up the year with a market share of 13.3%, which is 3% lower than the previous year. Within which, Dogus Otomotiv is just following Tofas and Renault Group, respectively. So this -- I'm just going skip the developments in the details of the market. And just to inform you, that is also a very satisfactory market results relating to the performance of year 2023.

As you can see in this presentation -- sorry. I'm trying to come to the right page. Yes. At the end of February, our performance is still much beyond that we have budgeted at the moment. As of now, I can easily say that we have already sold more than budgeted sales volume of the first quarter of the year, considering that we are already in the first week of March. So both in terms of sales volume and both in terms of profitability, the performance of the new year is also following the tendency that we have experienced last year. And beyond the expectations, as you can see, the market has increased to a level of more than 50% and almost passed 140,000 units. And our performance this year, which is definitely much better than the performance and the tendency of the -- as compared to previous year. We are just performing even better than the market itself. And we have increased our sales almost to a level of 20,000 units at the end of February. Within which, our sales performance as compared to previous year has just increased tremendously.

Coming to the sales allocation of 2023. At the end, as you can see, Skoda and Volkswagen passenger cars have almost sold 7,000, 6,000 units, which is followed by light commercial vehicles in our Audi brand. And at the end, with an expansion of almost 100%, we have sold almost 21,000 units at the end of February.

Coming to the financial highlights of this market development and sales performance. I just would like to brief you briefly relating to the financial performance. As a development of the increase in the sales units, our consolidated turnover has touched to a level of TRY [ 70 47 ] billion, which is more than 90% than the previous year. And our EBITDA and net profit has increased tremendously and in line with -- despite the adverse effects of the high inflation level and the Turkish lira volatility and devaluation of Turkish lira. Despite the high increase in our operational costs, we were able to acquire a net profit, which is [ 206% ] more than the previous year, to a level of a TRY 7.8 billion. This is a net profit figure. And the important message that I would like to put here is that we have increased the working capital of the company to a level of TRY 11 billion and TRY 12.6 billion, respectively. And considering that our net sales have doubled itself and has -- our net profit has increased almost to a level of 250%, we have maintained a high working capital management very successfully. Within which, total assets and working capital has just increased even 111% and 72%, respectively.

[Foreign Language]. Okay. Relating to the margins, as we have always been discussing during the quarterly Investor Relations presentations, margins was -- were always under discussion whether we would be able to maintain them. As you can see, gross profit margin at the end of the year has had already been sustained in line with the development of the first 3 quarters of the year and has reached to a level of 22.5%. As you all know, this is a consolidation of new vehicle sales, plus spare part sales, together with all those car activities. Considering that the turnover has increased to a level of more than TRY 46 billion, OpEx over sales is definitely within the range of our historical -- our ceiling at a level of 5.6% and, respectively, in line with our disciplined financing cost management, together with the disciplined control of our -- all operated marketing and general and administrative expenditures. EBITDA and EBIT margins are definitely even 5% to 4% higher than the previous year. And at the end, we had sales performance of 86,000 units, we have acquired a net profit margin of [ 16.88% ] successfully.

Coming to the P&L performance of the year. In the page, you can see -- so I'm just going to go through the yearly comparison page at #15. So despite the fact that our sales performance is like 10% in terms of units is less than the previous year at a level of almost 86,000 units, we have almost doubled our turnover, and our EBIT has just increased more than 150% to a level of TRY 7.9 billion. At this point, our income from investment -- investing activities and also income from associates is quite important. As you can see, those figures has more than doubled [indiscernible] in a positive manner.

And relating to the financial costs. At the right side of the below part of the table, you can see the explanation considering that the average cost of funding, which used to be 18.6% in terms of our internal cost structure, which is mainly completed by Turkish lira-denominated borrowings, which has increased from 18.6% to 22.6% in year '22. And with that, our financing cost has just increased slightly. And at the end, we have ended up the year with a profit margin of TRY 7.8 billion.

Since this is the consolidated financial statement, the performance of our associates and subsidiaries are definitely very important for us. As you can see, our subsidiary that we have a joint venture company with Yüce Group. The Skoda distributor has really increased its performance very successfully. And our 50% profit is represented at a low level of TRY 430 million, which is followed by vdf service and TÜVTÜRK. Within the body of vdf service, as you know, we are performing consumer financing -- dealer financing, insurance broker services and operational [indiscernible] activities. Under difficult market conditions and within the obstacles of vehicle availability, those associates are also trying to perform as much as they can do so. And at the end, as you can see, TRY 1 billion out of this more than TRY 7 billion net profit has been gathered out of the performance of our associates.

Coming to the balance sheet. As I have tried to explain you in the caption of margins -- financial margins, as you can see, we have doubled the size of the assets of the company, more than 100%. And then we just consider its internal allocation. The working capital, as it has always been the case, is the most important component of it, together with the caption of our financial investments that represents the share of those holding shares that we are keeping in our balance sheet, plus our investments and associates. As you can see, we are still continuing and strengthening our liquidity position, considering that at the end of the year, we have a liquidity at a level of almost TRY 3.5 billion, which is almost at the same level compared to previous year.

But coming to financial liabilities. As you can see, we have deleveraged the balance sheet, and we have just reduced our borrowing level to a level of TRY 500 million, so from TRY 3 billion to TRY 2.5 billion. So -- which is a successful result of our effective working capital management, which is an output of effective turnovers in terms of inventory and [ trade principles ], I must say.

And as -- on the right side of the table, you can see the allocation of our equity accounted investees that I'm not going to go into the detail of it.

Relating to the financing costs. Even I have tried to explain it very slightly in the P&L page. As you can see, the deviation as compared to previous year, despite the fact that average cost of funding has increased, is only at a level of 14%. And here, the most important components are the Turkish lira-based interest to our borrowings to a level of TRY 2.5 billion, together with the commissions that we are paying to the letter of currencies [indiscernible] the 26% increase in this component is stemming from the devaluation of Turkish lira, knowing the fact that these commissions are being paid by -- in euro terms, respectively.

So I'm just going to skip the public disclosures that have been made during the year and also our strategy relating to sustainability since our mainstream of agenda, which is in line with the sustainability strategy of Volkswagen AG is still in place, and with all participants, including our employees, together with our dealers and with our suppliers and together with the Volkswagen Group and his players, we are just implementing the related strategy in line that we have put details that you can trace in detail in our annual report that you can find in the internet page of Dogus Otomotiv.

Coming to the expectations of the year to come. Our -- in fact, in general, I can say that the yearly performance is expected to be almost at the same level of previous year, and we have completed our budget in a way that we are going to sell 775,000 units. For the moment, the performance of January, February and some portion of March has shown us that in a market of certain volatility and considering that we have the coming elections and some uncertainty, which is underlying related factors, the market performance is going to be much concentrated in the first half of the year. But as I have said in the beginning of the presentation, our performance in the first caption is really much beyond our expectations. And within this market expectations are total units of sales without Skoda is going to be almost 100,000 units. And then we just consider Skoda, it is going to be added up or accumulated to a level of 130,000 units, hopefully, at the end of this year.

So this is the end of the session relating to the year-end performance. So from now on, very briefly, I would just like to inform you relating to the strategy of Dogus Group relating to the purchase of both real estate investment trust company by Dogus Otomotiv. Within this week, as you have known, we have just informed in a public disclosure platform in a way that we are going to buy its shares.

I must start by describing that. Since for the moment -- how many participants we have now in the meeting? More than -- almost...

[Unknown Executive]

[indiscernible]

[Kerem Talih, executive]

More than 50. So most of the colleagues that -- I am seeing their names. So I will try -- we will also be chatting at the end -- at the Q&A session -- in the Q&A session. Most of the participants are -- have been joining our presentations face-to-face or online meetings for many years.

So as we have always been trying to describe to you, the strong balance sheet and financial strategy of Dogus Otomotiv is not only based on the performance of the vehicle, new vehicle and spare part sales, but also we have very, very valuable financial and intangible assets in our balance sheet under 2 components, which is the investments of Dogus Otomotiv that I have just named them, vdf, consumer finance, TÜVTÜRK, Yuce Auto, Dogus Technology. So they are contributing to our consolidated performance with their equity pickup values in line with their yearly profitability.

But the other component that -- as we have always been explaining to you for many years, the very valuable fixed assets that has been acquired by Dogus Otomotiv, which is kept by their historical book values, which is, on average, TRY 1 billion. But when you just consider their market or expertise values, which is reflecting at a magnitude of more than TRY 5 billion. So for many years, we have been discussing several projects, which would enable us that the value of those valuable intangible assets, these land and buildings can be represented in the balance sheet and somehow can be used as a useful financial instrument that in the mid and long term can be utilized as a financial instrument that can create some additional liquidity for Dogus Otomotiv. This was for many years in the agenda. And after many years later, we have recently decided to buy the shares of Dogus Gayrimenkul real estate, I mean, company, which has already been publicly quoted for many years and almost 95% of being -- has been owned by Dogus holding, and 5.5% of it has been publicly traded. We have decided to buy the shares of this company.

So when you just have a glance of the real estate component of Dogus Otomotiv itself, together with Dogus Gayrimenkul Company, I just would like to inform you the innovative Dogus Gayrimenkul Company has already owned very, very valuable assets within which, Dogus Otomotiv is already maintaining some portion of his retail activities under the umbrella Dogus. For the moment, the real estate portfolio of Dogus Gayrimenkul has been completed by the shopping mall center in Gebze, the office in Maslak, Dogus Power Center in Maslak. By the way, most of the square meters of Dogus Power Center in Maslak have already been rented by [indiscernible] that we are maintaining the largest dealer organization in the heart of Istanbul. Plus, we have the Gebze Hotel Center. The Gebze Center Automotive Showroom and Services, which is, again, maintained and run by [indiscernible] in our Gebze dealer. Plus, Dogus Etiler – Sports Center with an expertise value of TRY 5 billion, which has already been reflected in the financial performance of Dogus Gayrimenkul that you can have a look at them since it is publicly quoted company. You can see their figures in their Internet page as well.

So when we -- in the page that you can see on the screen, when we just consider the asset portfolio of Dogus Otomotiv, we have the logistics center in [indiscernible] . We have the Kartal showroom in Istanbul in [indiscernible]. We have the office building in Kartal again, and we have the dealers -- dealer organizations in Mostar, in Ankara, in Shankara District and [indiscernible] District. Plus, we have the [indiscernible] facility in Gebze and also the headquarter and the main -- general management building in [indiscernible], which is amounting to a market value of almost TRY 370 million, which is in Turkish lira, almost TRY 5.2 billion. So when you just consider the balance sheet of Dogus Otomotiv, these assets, which are so valuable and the values of which has been proven by Capital Market Board certified valuation companies. Their book value is only TRY 1 billion. So we have never been able to reflect their performance in terms of the value increase in our books. But the strategy behind why we have acquired the share of Dogus Gayrimenkul Company is -- in step 1 is that they already have a very valuable inventory in terms of real estate. And within them, 2 important components of it have already been rented by Dogus Otomotiv at the consolidated level by our dealer organization Dogus [indiscernible] Anonim.

Plus, in the second step, as we have noted in the presentation, which is a plan, which is probable to take place in the mid and long term, we are -- we may plan or we are planning to demerger those assets within the body of -- from the body of Dogus Otomotiv, which has to be replaced as a capital in the body of Dogus Gayrimenkul Company at a certain point where the market conditions will be supporting this transaction. And also the book -- not the book values, but also the market prices of those real estate can be reflected in the balance sheet.

And also, there is also a taxation advantage we needed because, as you have all know, real estate companies as per the legislation are exempted from corporation income tax, so -- and at this volume, we are also -- of course, within the body of step 2, we are also planning to maintain sufficient tax planning volume out of this transaction.

So at the end, I just would like to summarize that this transaction was totally a component and part of our -- that we have been following up and analyzing for many years. And recently, we had the opportunity to make it in place. And the transaction relating to the purchase of the shares have been -- have already been started. And I think at the end of this day, the transaction will be completed. And just to note, all those transactions are totally in line with our Articles of Association -- are totally in line with the alternative limits of our Board of Directors and totally in line with the financing strategy of Dogus Group together with Dogus Otomotiv that we are definitely very keen on of our financial key price and relating to the liquidity strategy of Dogus Otomotiv.

I think this is -- those are the points that I would like to emphasize. And this is the end of my part, which is the end of presentation. So from now on, we would be more than happy to answer your questions if you have any. Thank you.

[Operator]

[Operator Instructions] So our first question comes from [indiscernible].

I think you might have left your microphone on mute. That's fine. Maybe we can come back to [ Omar ] shortly. So we've also got a question from [indiscernible].

[Unknown Analyst]

I have a question about the Dogus real estate investment company. Do you think that in the future, medium term or long term, this Dogus real estate investment company can buy some more of Dogus Holdings real estate? That's my question.

[Kerem Talih, executive]

For the moment, we don't mind -- we don't have such a decision at the moment, which is subject to evaluation in line with the market conditions.

[Unknown Analyst]

But as I understand, in the future, this transaction -- this acquisition of Dogus real estate investment company [indiscernible] for more real estate acquisitions of Dogus Holdings, is that correct?

[Kerem Talih, executive]

No. In fact, as I tried to explain in the presentation, in the mid to long term, we have a plan to demerger the assets which is owned by Dogus Otomotiv, which are already owned by Dogus Otomotiv into the body of this real estate company. But it would not be in the form of purchasing. It would be in the form of capital increase. So we will be paying -- we will be putting those land and buildings as a kind of noncash capital contribution. But it is not going to be a kind of purchase.

[Unknown Analyst]

I understand. But I know that Dogus Holdings has some real estate other than the ones in Dogus REIT. So in the future, at least there's a possibility that Dogus REIT may buy some more of Dogus Holdings real estates, right?

[Kerem Talih, executive]

It is -- the possibility is always there. But for the moment, I can't neither say no or to yes to your question. As long as it would be financially efficient and sustainable for the financial performance of Dogus Gayrimenkul, it is theoretically possible, yes. But for the moment, I cannot say that there is such a general plan.

[Operator]

Our next question comes from [indiscernible] from Istanbul Portfoy.

[Kerem Talih, executive]

Can you hear me, Abram?

[Operator]

We can hear you, yes.

[Kerem Talih, executive]

I cannot hear Abram. Maybe we can skip to the next question. And later, we can have Abram online again.

[Operator]

So our next question comes from Cemal Demirtas from Ata Yatirim.

[Cemal Demirtas, analyst]

My first question is according to our calculations, even if we include the discount, we come up with TRY 16.46 per share price. And based on that, we calculate that the money you pay for your stake, 93.65%, we calculate $270 million versus the number you have, $250 million in your presentation. I don't know if I'm calculating something wrong.

[Kerem Talih, executive]

255 million euros, EUR 255 million.

[Cemal Demirtas, analyst]

Euros. In the presentation -- because it's got $250 million.

[Kerem Talih, executive]

It is average. It is average on the daily exchange level since it is -- it may go up and down. That's why we put a rounded figure in the presentation. The final transaction volume is EUR 255 million.

[Cemal Demirtas, analyst]

Euros. Okay. So -- okay. But -- and when you look at the -- that has been the question we are facing, although we believe in the story of Dogus, this transaction a little bit gets negative reaction from our client types so I just want to just share it. And I would like to understand, when you look at the property size in your financials for Dogus rates, we see TRY 5.1 billion portfolio, but you also include debt side. So when we -- in our calculations -- maybe again, if we are wrong, you can correct. When we look at the debt into account and we come up with net asset value of TRY 3 billion, then that shows that -- and when we look at debt, it means compared to other retailers, the rates in Turkey, it's almost 100% premium when we take the debt level into consideration. I can understand that was the value side on the asset side, but there is also liability. So when we look from that perspective, including the net debt level, then it means it looks overpriced at first look. But I just want to check with you what's your justification for that. That's my first question because hopefully you will take another.

[Kerem Talih, executive]

And let me try to explain it, later then we can have your following question. In general, we have -- I mean when a company is going to buy a new company, there are certain evaluation methods. The discounted cash flow measure can be utilized. The net book value can be utilized. Or as has been ruled and described by the Capital Market board, if the company is publicly quoted, the last 10 days discounted average share price can be used, which is definitely described in the legislation. And in that respect, since this is a publicly quoted company, already for many years, we have decided to use the average of the share price with a discount rate of 10%.

As compared to the value of Dogus Gayrimenkul as compared to the other real estate companies in Turkey, of course, the value of their assets should be compared on a realistic method. So when we just consider the assets -- I have just tried to name them one by one during the presentation, they are really very precious. And their recent -- and even conservative expertise values has reached to a level of more than TRY 5 billion. So for the moment, what we have already paid for the 94% of the company is almost the same as the price or the market price of the assets that they own. Plus, this is a publicly traded company, since this is an ongoing organization, since -- with a huge know how and experience in the real estate market in Turkey, and we have further plans and projects, in a way, that's how we can manage and professionally manage the -- untouched, let me say, the land and building portfolio that we are keeping within the body of Dogus Otomotiv.

In that respect, as compared to the book values of other real estate companies, as you say so, it may be slightly higher. But within our perception in line with our strategy, we have just paid what the market has just quoted.

Plus, relating to the book value, normally, I mean, you are just reducing the debt of it. But when you just consider the balance sheet of Dogus Gayrimenkul, they really have a very sufficient and strong balance sheet. And their liquidity is so sufficient in a way that in the next almost 4 to 5 years, there is no liquidity problem. So their current liquidity is such sufficient to almost pay their current bank liabilities. In that respect -- in that perspective, utilizing the net book value method can also be discussed for open discussions. That's what I think.

[Cemal Demirtas, analyst]

So Kerem, could we just think that from your perspective, the values we see TRY 5.1 billion on your table, also, it has an upside. That's what I understand because we're only looking at the market value of Dogus rates could be questionable from us. But at least you -- do you see that the values you see in the book [indiscernible]

[Kerem Talih, executive]

Definitely.

[Cemal Demirtas, analyst]

[indiscernible]

[Kerem Talih, executive]

After the adjustment -- sorry, after the announcement, we already had a TRY 2 billion premium in the market cap of the company. So in line with the development of the Turkish real estate market, as on a daily basis, all the -- as we've all been discussing every day, the tendency in the market and after the adverse effects of the earthquake impact, it's reflection to the real estate valuations in the market, we still definitely see an upside potential for those valuable portfolio.

[Cemal Demirtas, analyst]

And I think you are going to fully consolidate the debt numbers, right, for the -- going forward.

[Kerem Talih, executive]

Yes. There is a preferred stock at a level of less than 1%. Just after the completion of this transaction in the weeks to come, we will also be buying this material portion of Dogus shares. And we will be consolidating Dogus Gayrimenkul within the body of Dogus Otomotiv financials, yes.

[Cemal Demirtas, analyst]

And the other question is about the TÜVTÜRK side. We see that this year, the growth was not significant despite the inflation. Is there any calculation thing going forward related to that TÜVTÜRK? Are we going to expect the stable levels in [indiscernible] or in U.S. dollar terms? What could be the direction of that business and what's the latest? I think you need to renew the agreement as far as I remember at some point, but [indiscernible]

[Kerem Talih, executive]

But [indiscernible]. We have 4 more years before the tender. But as a reflection of the financial performance of TÜVTÜRK, I must say they have also utilized the legislative possibility -- not the possibility, the revaluation of fixed assets, which has been brought into use last year. As we did in Dogus Otomotiv and Dogus [indiscernible], they have also revalued their fixed assets, which has increased their depreciation expense, which also have created some deferred tax assets. In that respect, their financial performance has been affected by the increase in their depreciation expenditures. But also, I must also say that their sales prices in terms of vehicle inspection services on a yearly basis is increased by the yearly revaluation rate, which is to be 122%. So even in the years to come, I mean, even in this year, I mean, their financial performance will continue on a sustainable platform.

[Cemal Demirtas, analyst]

And the last question is about the -- now at a high level -- actually coming to the main business. The markets in February was unbelievable [ 80,000 ] level, all-time historic and it was like November, December figures. And we are -- received -- initial signals we are receiving from the market is even signaling more than 100,000, 120,000 for now for the March. Despite the earthquake, its effect on others, we see very strong demand. Do you think this -- at least your target is conservative. But at least in the short term, how long it should continue in this trend? Or do you share the views that March will be also stronger for you also? And the availability issues maybe -- you touched in the presentation, but this question maybe, any color will be helpful for us.

[Kerem Talih, executive]

Thank you very much. Thank you very much. This is really a very valuable question. We are also very happy and satisfied out of the performance of the first quarter of this year, definitely. And as I have said so, it is beyond our expectations, frankly speaking.

And also, I just would like to give an interesting information relating the performance in the earthquake and in our dealers in this -- in the earthquake region among these past weeks. After the unfortunate earthquake had taken place, in the last 2 weeks, we have sold almost 200 new vehicles in the region and even under such terrible and really very difficult circumstances.

And in the remaining part of Turkey, we just think that until the middle of the year, this pulled up demand, which is taken from the second half of the year, is going to take place in the first half of the year. So we are hoping that this tendency will be on board in the first 6 months of the year. And this also will be net, hopefully, initial [indiscernible] on a profitable manner, of course, because we are still sustaining our margins as we did in year '22.

[Cemal Demirtas, analyst]

And Kerem, just from your own long-time experience in the sector, what do you think is the main driver for this demand? The availability -- or like the product available to all pull forward demand or just we missed some opportunity in the past, even we have difficult to relive the past. But in your words, what do you think this is the driver, low interest rate or something? What's -- I know the combination, but at least from your perspective, as they are here to you today, what's your -- the main -- what's your perception about the main driver behind this strong demand?

[Kerem Talih, executive]

Thank you very much, Cemal. That's so kind of you for your complements initially. There are -- I mean you have named some of them that at the first point, I must say that as it has been for many years, buying a vehicle in Turkey is not a utility instrument, but it's an investment instrument. Considering the volatility of the Turkish lira and mainly in the -- considering the vehicle unavailability in the worldwide global market -- since the total global market has downsized to a level of more than 25%, and this year and next year, it is expected to recover. So being able to find a new car to buy is not easy, definitely.

In terms of knowing that it has been perceived as an investment instrument, and considering that after the elections, there may be some changes in the fiscal and monetary and public -- or taxation guidelines of the country, considering that there may be some interest rate increases or the depreciation of Turkish lira in the second half of the year might be more heavy or more vulnerable, people are just putting their savings in an environment in which they are earning less interest income. But when you just consider the developments in the used car market, it is unbelievable.

So when you're -- when you just go to an Internet page of any used car Internet page, you can see that vehicles, which is like 1 year or 2 years old, their used car prices are even higher than the new car price itself. So this is a very definite proof that it's a net investment instrument that you can protect your savings within which.

In that respect, for the first 6 months of the year, we want this -- we are expecting that performance will be continuing like this. These are the underlying view of Turkish citizens.

[Cemal Demirtas, analyst]

And maybe last one point related to demand side. In your products, to new products, there was a line waiting for just new cars at your door. Does it continue just -- you're even selling the cars in transit as far as I remember. So does it still continue? Or now you've met all -- almost you're meeting the demand?

[Kerem Talih, executive]

I mean the current level of supply is trying to catch up to the level of demand. For the moment, if this would be an online with camera, let's say, meeting, my room is just facing to the largest inventory area of Dogus Otomotiv, which is fully empty. But every week, we have almost, on average, 1 to 2 ships, and a couple of thousand units have already been delivered to Turkey. But within those ships, all the cars, more than 75% or 80% of them, are presold. So there is already a customer, which -- who is waiting for their vehicle to be delivered. In that respect, this supply chain will definitely continue throughout the year. But as we have observed in the first 2 months, the level of demand is still higher than what we can acquire in the market.

[Operator]

[Operator Instructions] So I'm not seeing any more questions. So perhaps I could hand back to Kerem for final remarks.

[Kerem Talih, executive]

Okay. So thank you very much. This has been one of the historical highest level of participants that we've had, even more than 50 valuable friends, investors, relations, representatives and the portfolio managers have just joined our meeting. Thank you very much for listening to us. And I'm once more thanks -- I would like to thank my team for the support in the process.

So finally, today, or at latest, after the transaction has been completed within the body of Capital Markets Board, we will be informing our investors in the way that the share purchase transaction is to be completed. Just -- I just would like to note it in my last sentence. So thank you very much for your participation, and have a nice day. Bye-bye.

[Operator]

Thank you. That concludes the call for today. Thank you, and have a nice day.