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Operasyonel kiralama kurumsal araç kiralama

Investor Relations

Aytekin YıldırcıMessage from the Board of Directors

Aytekin Yıldırıcı

In addition to its strong financial structure, by implementing innovative steps towards growth DRD maintains its leading role in the sector, displaying increases above the country and sector growth averages. We believe that companies are important locomotives of national economies. Strong and dynamic companies give driving power to national economy by providing momentum effect with their own activities. Transforming its nearly half a century of corporate experience into powerful energy through recent visionary steps, DRD acts with the awareness that its sustainable growth will also provide momentum to the sector.

Global economic developments

As the measures that were taken to recover from the crisis by developed countries affected by the world-shaking mortgage crisis since 2008 are being slowly pulled back, the side effects of these measures also put developing countries in difficult positions. Even the only one interest rate hike in 2016 implemented by Fed adversely affected the capital movements and domestic currencies of many developing countries. The US Dollar Index gained around 3.96 percent value all over the World, finishing the year at 102.4 level. Turkey was the second-most affected country from these conditions after Mexico. Turkish Lira lost value by 17 percent against the US dollar in 2016.

In addition to Fed’s efforts to increase interest rates, demand contraction and slowing economic activities all over the world, especially in Europe, affected export-oriented countries like Turkey adversely. Moreover, some geopolitical difficulties brought by Turkey’s geographical position also increased the country risk, thereby putting pressure on Turkish Lira. The political, economic, and social difficulties generated by the continuing war conditions close to our borders are among the factors that affected country risk score. Besides all these, the effects of the coup attempt in July 15 on our country were minimized by the common-sense movement of our citizens.

In this difficult environment, at a time when the depreciation of Turkish Lira was accelerating (on November 24, 2016), the Central Bank (CBRT) increased one-week repo rate (policy rate) from 7.50 percent to 8.00 and overnight lending rate from 8.25 to 8.50, thereby lessening the pressure on currency at that time. However, the effect of interest rate increase was limited due to the continuation of structural problems. Accordingly, the anticipation of economic agents in Turkey is that the political uncertainties are lifted as soon as possible and structural reforms are implemented.

Both the effects of international developments and consequences of domestic politics prevented the economy growing at the desired rate in 2016. The World Bank forecasted economic growth rate in Turkey to be 2.5 percent in 2016 and 3 percent in 2017. These rates undoubtedly did not satisfy adequately economic actors of a country like Turkey, who were accustomed to high growth rates especially in the last 15 years. Holding several elections successively as part of the political process in our country brought together the postponement of economic activity. At this point, however, along with the guidance of political powers, the efforts of Turkish banks under these tough conditions to reduce interest rates in favour of consumers in order to support economic activity were reflected positively, albeit partially, on the real sector.

Notwithstanding all these difficulties, Turkey proceeds on its way with the determination of maintaining its upward growth potential, thanks to the dynamism of predominantly young population and the advantages of strategic geographical location. We maintain our belief that Turkish economy, which has survived with growth - even though at decreasing rates- difficult times of the last 8 years, where many major economies in the world contracted or made no progress, will gain greater momentum with the new paths strong companies will open up.

As DRD, we aim to bring our business arm of private leasing to a significant size in our total sales in the coming years.

DRD growing beyond its targets

Thus, in 2016, a year in which the economic slowdown in the world became so evident and fragilities increased, we as DRD maintained our growth rhythm without interruption by protecting our strong position in the sector. As a company, we managed to display performance beyond our targets under all these challenging conditions with the new investments we continued. Being “Turkey’s biggest operational leasing brand with entirely domestic capital”, we also accelerated our activities in the field of private leasing as well as the operational fleet leasing services.

In 2016, we increased the number of our vehicles by 21 percent, reaching 33,273 units. With the responsibility of being the pioneer of the sector, we adopted a principle of increasing both our position in the sector and the customer satisfaction by further strengthening our vehicle fleet and service network every year. As of 2016, we enlarged our market share to 10 percent.

As DRD, we aim to bring our business arm of private leasing to a significant size in our total sales in the coming years. With our technological infrastructure which is customer satisfaction oriented and geared towards providing high quality services, we serve 9,007 corporate and private customers.

Thanks to DRD's technological infrastructure and services that made a difference to provide unlimited customer satisfaction, in the previous year, DRD was selected as the ‘Leasing Company of the Year 2016’ in the TopGear Awards organized by British BBC TopGear magazine. Additionally, we were among the ‘Most Digital Companies of Turkey’ within the scope of Accenture Digitization Index evaluation, and we were deemed worthy of the ‘Award for the Pioneer of the Sector in Digitization’.

At the same time, DRD attracts attention as an ascending value with the feature of being the only company since 2011 which has its ratings by international credit rating agencies like S&P and Fitch Ratings open to the public and has investment grade domestically. With DRD, we are moving forward confidently towards a strong future with the efforts of generating new values for both the sector and Turkey.

We would like to take this opportunity to express sincere thanks to our employees and business partners for their contribution to our success and for their trust in us.

Best regards,

Board of Directors

İlkay ErsoyMessage From The General Manager

İlkay Ersoy

Adding value as a reliable and respected brand thanks to its pioneering activities in recent years, DRD Fleet Leasing is moving towards its global targets set by its innovative approach to go beyond customer expectations and sector targets.

One of the best sentences summarizing DRD’s steady growth line in recent years is Albert Einstein’s phrase, "Strive not to be a successful, but rather to be valuable”. As DRD, we have been able to spread the leadership in the sector to all fields by blending the long-standing corporate experience of Derindere Group with an innovative vision focusing on customer expectations and technological developments. While attaining this, we have not just pursued annual or numerical achievements, but at the same time we have tried to produce long term, constantly renewing, and sustainable new “values” for the sector and for all of our stakeholders.

As we approach our goals step by step, we are taking advantage of being planned, making use of the power of technology that supports user-friendliness and the right choice of human resources. We are moving on our way being aware that there may be obstacles from time to time and as we take all kinds of risks into account, we continue to grow by designing solutions for them.

We are breaking the routines in the sector

Since 2008, we have initiated the process of change as DRD and significantly transformed our Company with an understanding that was absent in the sector until that time. In 2008, our top five customers constituted 72 percent of our sales and the cases of other big firms in the sector were similar.

With that transformation, we headed for untapped markets, and initially targeted firms that had smaller fleets but were large in terms of sales. Then, we added medium-sized firms all over Turkey into our portfolio. By extending the sectors that we provide service, we have acquired customer portfolio from every sector.

One of the most important steps that we, as a company, created a difference in the sector was the annual leasing model oriented at individuals. As a result of better than expected returns on the pilot study of private leasing that we started in 2015, we would continue growing with the name of OneCar starting from 2017 by making very important investments in this field. We are determined to expand further this business area where we can respond to online applications of customers within 1 minute. In the next five years, we aim to bring the share of private leasing in our total sales to 35-40 percent levels.

In order to maintain the growth performance we have achieved both in operational fleet leasing and private leasing, we have made our service quality more effective with advanced digital infrastructure, along with a strong sales and service infrastructure spread over four regional offices and 24 branches all over Turkey. As a model company in Turkey, we continue to increase our service quality beyond international standards.

DRD, sector leader in technology as well

We invest continuously in technology infrastructure with the understanding of excellent service to ensure high customer satisfaction across Turkey. As we completed ERP transformation process successfully in 2016, we saw the first reflection of the innovative approach: we were cited among the “Most Digital Companies of Turkey” by the Accenture Digitization Index Turkey assessment realized with support from Bosphorus University, Middle East Technical University, Turkish Informatics Foundation, and Vodafone, and we were considered worthy of “Award for the Pioneer of the Sector in Digitization”.

It is evident how the developing technological opportunities facilitate and change human life. In order to be ready today for the future, we continue to strengthen our technological infrastructure and put into use different digital applications.

Our online reporting module Filomatik, which provides our customers with the ease of reaching all kinds of data regarding their fleets, puts forward enormously important value by facilitating the business management of our customers.

DRDrive mobile application, which offers one-touch roadside assistance to vehicle drivers, is also one of the innovations that we have brought to the sector with its coverage and functionality. Offered free of charge to the users of IOS and Android operating system, DRDrive provides the convenience of one-touch help call by determining the location of the vehicle on GPS in the cases requiring urgent response such as breakdown or accident.

As a company, while using the most important CRM program in the world, Salesforce application, to make our sales staff all over Turkey more effective and to increase the business productivity; we also use TouchPoint application to keep customer satisfaction at the highest level at all times and to get our customers' evaluations completely and accurately.

Strong investment in human resources

As DRD, instead of a price-oriented operation approach as it is the general practice in the sector, we have a structure that is innovative, gives importance to productivity, and is open to all kinds of new ideas. Without doubt, in order to make such a structure sustainable it is important to improve the human resources continuously and to protect the synergy that employees contribute to the Company which in turn contributes to employees.

With the belief that the most valuable investment is the investment in people, we launched in 2016 DRD Academy, unprecedented in the sector. Having an important place in our human resources strategy, DRD Academy improves the skills of our employees in their specialties while also enhancing their managerial qualities.

Moreover, we also continued in 2016 with our mini MBA program, which we started for our managers in 2015 and cooperated with Koc University. In the coming years, we will increase its coverage and continue to ensure that our managers receive such training.

We stand by our customers after sales

As DRD, in the framework of our desire to keep customer satisfaction at the highest level at all times, we try to provide perfect service during the period starting from vehicle leasing application to the time of receiving the vehicle back from the customer at the end of leasing period. Hence, we continuously improve our business processes.

In 2016, we reviewed all the processes in after-sale services and took actions that would both increase customer satisfaction and speed up business processes efficiently. We made all phases of operations, damage, and maintenance-repair processes more digital. We managed to incorporate all of our stakeholders from suppliers to services into the process.

From local leadership towards the goal of global player…

With the effects of political, economic, and social developments in the world and our region, we are going through a difficult process as a country. Despite all these challenging conditions, as DRD we accomplish the “organic growth” we want and we continue to develop structural solutions that will maintain this growth.

In addition, we are continuing our efforts to expand this profitable structure to a wider geographical area with new investments. At the forefront of these efforts is our goal of opening to international markets by completing the operation of opening DRD abroad. We continue our necessary investigations and preparations for this goal.

With our resource diversity and strong financial base, we are confidently moving towards our targets

The economic slowdown, caused by global economic turmoil and uncertainties that affected our country too, does not force us to change our long-term plans. As we always underline, DRD, a large and well-established organization, has the power to overcome the difficulties encountered on this long path and to continue its way. However, this does not mean that we are not taking measures for adverse scenarios. By working on many simulations from the sharp rise in exchange rate to increasing stagnation in economy, we are preparing our necessary measures.

Thanks to our position of largest player with domestic capital in the sector and strong financial structure, we are able to sustain our growth performance in such turbulent periods.

In 2016, the Turkish Operational Fleet Leasing sector grew by 19.3%, while DRD car park grew by 37% and we reached 10% market share. One of the important reasons that we received “investment grade” from two important international credit rating agencies was this strong financial position of ours.

DRD’s ratings from Standard&Poor’s and Fitch Ratings strengthen our funding power, which has vital importance. With the value added of this high financial reputation, bond markets are always a good option for funding as well.

In conclusion, DRD Fleet Leasing, which adds value as a reliable and respected brand on the back of all our plans and activities, is moving towards global goals set in this area with its innovative approach to go beyond sector targets and customer expectations.

I wish 2017 to be a fruitful year full of new achievements for our Company and all of our stakeholders.

On our way aiming to create DRD of the future, I would like to express my sincerest thanks to our employees, our customers and our business partners, who make this stability and success persistent.

Best regards,

Ilkay ERSOY

General Manager

General Information

DRD Fleet Leasing pioneering the fleet leasing sector which began to take our country in the 90s, in the operational fleet leasing business segment it started to operate with 20 vehicles in 1998, is the largest domestic-owned brand with an active fleet of 35.000 units and 9.000 customers in the portfolio.

In addition to its General Management headquarters located in Istanbul-Kağıthane, the brand, with Regional Offices in Ankara, Adana, Bursa, Izmir, Gaziantep, Konya and Kayseri provinces supports an extensive operational network with 1,400 service centers covering the entire region.

At a Glance DRD Rental Fleet

  • Turkey's largest domestically owned operational fleet leasing brand,
  • An active fleet of 35.000 units,
  • Corporate client portfolio in excess of the number 9.000
  • A widespread network of up to 1.400 units,
  • The first and largest sales network in Operational Fleet Management,
  • Strong market share,
  • Assessment scores above the sector average by Standart&Poor's Rating Services
  • Each year, at the level of 170 million Euros on stable investment,
  • The success of taking part in the "Capital 500" and "Turkey Fortune 500" list prepared in order to determine the 500 largest Turkish company,
  • Professional management structure and long-standing experience in the sector.

Financial Highlights

In parallel with the vehicle investments carried out on a regular basis in the last three years and the increase in the value of fleet, total assets amounted to TL 1 billion 900 million by the end of 2015. The sum of shareholders' equity in the balance sheet size amounted to TL 240 million. DRD, with an annual turnover reaching TL 667 million including used vehicle sales, was included among the first 500 companies in Capital and Fortune assessments.

In addition to the operating profit amounting to TL 239 million and pre-tax profit of TL 138 million obtained in 2015, the significant development in international credit rating process, are concrete indicators of financial strength of DRD.

Finansal Göstergeler
The specified values ​​are based on 2015 Annual Report.

Operational Highlights

DRD, by signing efficient business processes also in 2012, moved its financial profitability and operational efficiency to higher levels. DRD, builds its sales and marketing strategy on the basis of sustainability and in order to fulfill the objectives, using resources in the best way, acts in rational competitive conditions.

Company realized in 2015 a growth above the industry average. In 2015, DRD Fleet Leasing has achieved a growth rate of approximately 24%. Company, in this process also has added new clients to its portfolio and succeeded to increase the number of customers from 3,757 to 4,655. This growth in customer portfolio of DRD, is an important indicator of the high-quality service and customer loyalty.

Operasyonel Göstergeler
The specified values ​​are based on 2015 Annual Report.

DRD Fleet Leasing, the leading brand of the operational leasing industry in our country, issued its 2011 annual report which is the "first" with its scope in operational leasing industry in Turkey. Following its "first" annual report published in the sector in this context, DRD published its 2012 annual report in the first half of 2013.

With Price Waterhouse Coopers approved financial data in the Annex, DRD Annual Report offers all detailed descriptions relating to the Company's financial and operational data transparently. In addition, the report containing information on operational leasing sector in our country and the world, and the data on the first comprehensive report conducted in relation to the clear measurability of the operational leasing sector in our country in cooperation with TNS Global under the leadership of TOKKDER, also undertakes the task to be "an important guide for the evaluation of the industry and the market".

General Information

DRD, offering the business partners transparently with its financial credibility passing through independent audits for many years, is the first operational fleet brand with largest domestic capital assessed by international rating agency Standart&Poor's Rating Services in "investable" level.

Standard&Poor’s Rating Services:

Standart &Poors
Short - Term A-3
Long - Term BBB
Outlook Stable

Fitch Ratings
  Long - Term
Local Currency BBB
Outlook Stable

Sector Assessment

The volume of operational leasing sector in Turkey is gaining momentum in parallel with the rising consciousness level regarding products and services provided in addition to the increase in awareness and demand, and customer satisfaction and a high level of adoption of the technology is increasing industry-wide. In addition to large companies, SME companies to begin resolving vehicle needs by operational leasing instead of buying, opens new development opportunities for the sector ; and in this direction the outlook of the fleet leasing sector in Turkey is being assessed as "positive" by Standart&Poor's Rating Services organization.

DRD Fleet Leasing Assessment

The continuation of the progress made in the amounts of net working capital of DRD and the upward trend in customer portfolio granularity to provide significant improvements in the management of Company's liquidity; in addition, the developments in capitalization level through a remarkable improvement provided in net profitability indicators and the relative reduction in the section of the Company's assets funded by financial liabilities, led to permanent improvements in the composition of the balance sheet and has played an active role in Short-Term and Long-Term growth of the National Grades of the Company.

The immunity structure of DRD which managed to increase its sales volume by maintaining a rational pricing strategy in intense competition is quite solid in the process of stable growth trend in recent years. DRD, which has become one of the largest operational leasing companies at the local level with its constantly renewed fleet, successfully maintains its steady growth.

Since 2008, although not mandatory, every three months passing through independent audit according to IFRS standards, DRD, in addition to financial data, is subjecting to independent audit its operational indicators to make a proper analysis for the industry.

Economic Developments

    2015 2014 2013 2012 2011
Type: 1 Economic Growth
Growth Rate % 4 2,9 4,0 2,2 8,8
National Income Billion $ 720 800 820,0 790,6 776,4
 
Type: 2 Inflation
CPI % 8,8 8,2 7,4 6,2 10,5
PPI % 5,7 6,4 6,9 2,5 13,3
 
Type: 3 Exchange Rates
Dollars (year-end) TL 2,9071 2,3189 2,1343 1,7826 1,8889
Euro (year-end) TL 3,1776 2,8207 2,9365 2,3517 2,4438
 
Type: 4 Foreign Trade and Balance of Payments
Exports Billion $ 143,92 157,8 151,8 152,5 134,9
Imports Billion $ 207,061 242,3 251,6 236,5 240,8
Direct Foreign Investments Billion $ 16,8 12,5 12,9 13,2 16,2
Current Account Balance Billion $ -32,199 -45,836 -47,7 -47,5 -75,1
Current Account Balance / GDP % -4,5 -5,7 -5,8 -6,0 -9,7
Central Bank Foreign Exchange Reserves Billion $ 92,9 106,3 112,0 100,3 78,3
 
Type: 5 Central Government Budget
Expenses Billion $ 505,9 448,4 407,9 360,5 314,6
Incomes Billion $ 483,3 425,8 389,4 331,7 296,8
Budget Deficit / GDP % -1,2 -1,3 -1,2 -2,0 -1,4
Primary Balance Billion $ 30,4 27,2 31,5 19,6 24,4
Primary Balance / GDP (Budget) % 1,6 1,5 2,0 1,4 1,9
 
Type: 6 Interests
Reference Interest on Treasury Bonds (Average) % 9,7 9,3 7,4 8,4 8,8
Real Interest Rates (ex-ante) % 2,5 2,5 3 2 2,4
CBT Weekly Repo Rate % 7,5 8,25 4,5 5,5 5,75

Useful Links

Financial Management Department