Message From The Chairwoman

Begümhan Doğan Faralyalı Begümhan Doğan Faralyalı

Esteemed Shareholders, Business Partners and Employees,

The year 2017 was marked by critical political, social and economic developments in Turkey and at a global level. Foremost among these were social polarization, income inequality and mass migration. As a result, the number of people who have been displaced from their homes reached 65 million across the world. Huge gaps have appeared in terms of income inequality. These aggravated problems have led to various political tendencies - sometimes populist, sometimes radical - in many countries, which have started to challenge democratic structures. Global economic collaboration and trade started to be questioned as well.

On top of these macro problems, we also observe increasing difficulty in making a difference among brands. While technology offers opportunities for spreading marketing activities, brands that cannot adapt quickly are having a harder time. In other words, we are going through a period when generating revenue and accumulating capital are more difficult than in the previous decades.

We are cognizant of these issues while shaping our operations.

Efficiency, Sustainable Growth, Synergy

At Doğan Group, in the beginning of 2017, we had mentioned that we would focus on "efficiency, sustainable growth and intra-group synergy." In line with these overall objectives, we have experienced many developments throughout the year.

First of all, we restructured the Holding and its Executive Committee. We also made important management changes in some of our Group companies. For the first time in a long while, we assigned different responsibilities at the Group to successful executives. For the purposes of efficiency, we decided to exit the business segments where we failed to achieve as much value added as we aimed, and put this decision to practice. As such, we brought our consolidated total assets up to TL 9.3 billion and total revenues to TL 10.5 billion, in a 35% increase over the prior year. Our investments in the last three years increased the compound annual growth rate of our consolidated revenues to 44%. In order to extend these achievements to international markets, we are keeping a close watch on new growth areas, important projects and opportunities. We also aim to enter business segments that we believe present future opportunities.

Growth through Values

In any business segment or market, we believe that concrete criteria and working principles are essential for success. In 2017, our Group made significant progress to this end. In a vast survey with participation from all our companies, we sought answers to the question “How can we develop our values?” Based on the results attained, we reviewed our values, and clarified them further to carry us forward under changing market conditions. We aim to associate business values with performance criteria so as to make them a part of our continuous development. The new stages of this initiative will lay the groundwork for our in-house transformation and human resources progress in 2018.

The coming years will testify to the development of artificial intelligence and robots. As these developments test companies' power to change, teamwork and synergy will gain even more importance. Therefore, we need team players and leaders with a small ego but big heart, who are conscientious and highly qualified, who decide together, share life and manage to take off together. Our aim is to enhance our Group's habit of producing together in this direction and to enrich our human resources.

From Business Values to Common Values

Our Group does not conceive “values” only in the context of commercial values. We believe that a value-centered approach is necessary in every field, in particular in the Turkish business community. We embody this belief into social responsibility activities. The common values movement initiated by us in 2016 around the motto “Let’s Discover Turkey’s ‘Common Values’ and Walk Together into the Future,” continued in 2017 as well. Doğan Group not only organized workshops bringing together distinct groups from across the country, but also voluntarily supported the “Here Are Our Values Conference” held in Istanbul. In addition, project competitions were organized to support the efforts of universities and non-governmental organizations to uphold common values against social polarization.

Towards the Future

Today, Doğan Group has brands, services, and physical spaces that touch upon the lives of at least 60% of Turkey's population every day. We also know the value of our commercial reputation and strength, as a corporation that is approaching its 60th anniversary. In our investments in Turkey as well as overseas, we never diverge from our objective of adding value to our customers, business partners, and of course stakeholders. To this end, we say, "We are here to add value to the lives of everyone whose lives we touch, as a sustainable corporation that achieves in cooperation, learns continuously, and creates an impact much larger than its own structure." In order to live up to this promise, we will continue to fully embrace our work and work with passion in the next fiscal year, as we have always done.

Best regards,

Y. Begümhan Doğan Faralyalı
© 2014 Doğan Şirketler Grubu Holding A.Ş.