Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA
Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — Investor Presentation (May 2016)
52 slides from Teknosa Ic Ve Dis Ticaret As's investor presentation, May 2016
Slide 1: Teknosa Investor Presentation
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Investor Teknosa İç ve Dış Ticaret A.Ş. Presentation Investor Presentation «Turkey’s Leading Electronics Retailer» Korhan Bilek, CFO Erman Tütüncüoğlu, Head of IR
Slide 2: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Teknosa at a Glance 1Q16 Results Financial Overview Year-end Guidance Appendices 2
Slide 3: Leading the market with pioneer services & products
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION • Young population with higher tendency for Leading the 1 Strong Growth Potential electronics spending in the Market • Turkey’s CE retail is under-penetrated, market with growing strongly with favorable demographics and rising per capita income pio
Slide 4: Shareholder Structure
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Other Shareholder 13.6% Structure Sabanci <TKNSA TI> Family Sabanci 26.1% Holding 60.3% Sabancı Holding <SAHOL TI> is the major shareholder of Teknosa with a 60.3% stake. Among one of the leading & most respected conglomerates in Turkey, Sabanc
Slide 5: Retail Operations Store Formats
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa retail operations are carried out in 3 different store formats in order Retail to increase market penetration Operations Standard Store Formats 188 stores in 71 cities 44 stores in 28 cities 39 stores in 15 cities <750 m2 store area
Slide 6: teknosa.com: The main pillar of our omni-channel model
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION teknosa.com: A critical component of Teknosa’s omni-channel strategy, setting the web to The main pillar store link of our omni- Considered as a 4th store format, enabling customers in provinces with smaller store assortment to reach the whole
Slide 7: Pioneer services & products launched since 2H14
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa will continue to differentiate itself from the competition, carrying on Pioneer its evolution into a «service provider» from a «classical box mover» services & As the first step towards this goal, «TeknoFinans» was launched in June 2014
Slide 8: TeknoFinans: ~200K loans, ~8% share in sales
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION TeknoFinans: ~200K loans ~8% share in After its launch in June 2014 in collaboration with ING Bank, consumer sales... financing business saw a rapid increase in the number of applicants. Akbank also entered into picture in October 2014 with its
Slide 9: Teknosa Mobil is to support growth in Telecom segment
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa Mobil The First & Only Electronic Retailer in Turkey Offering Complete is to support Telecom Services under its Own Brand growth in Telecom segment… Creating synergies with the existing product line, while also turning the business to a p
Slide 10: Benefits of the MVNO
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION To offer a «one-stop-shop» experience for the customers where the Benefits of product and the related services are offered under one roof the MVNO… The lack of GSM contract options in the TSS channel prevents it to be the #1 address in customer
Slide 11: After Sales Services
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION After Sales Services In order to further differentiate Teknosa from the competition and increase customer satisfaction, after sales services were enriched and relaunched under Dr. Teknolog brand in 1Q15. After sales services has 2 main componen
Slide 12: First private label product offered by a Turkish Electronics Retailer
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa launched its own private label products (Preo smartphone, smart First private watch and phone case) in the telecom category – the largest category in the label product electronics market offered by a This initiative not only aims to inc
Slide 13: Disney Collection now only available in Teknosa Stores in Turkey
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Disney Collection now only available in Teknosa Stores in Turkey… The agreement with Walt Disney is to sell Disney Collection products with a shop-in-shop model, allocating 100-150 m2 in designated stores Teknosa will be the first retailer in E
Slide 14: Notable contribution to the P&L with extra benefits on store traffic
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Notable The products will hit the shelves on August 2016 contribution to The project’s annual contribution to the top-line is expected to be around TL 100mn the P&L with Due to the shop-in-shop concept, the product line will only be available
Slide 15: Continuous improvement in value added services & products
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Continous improvement in value added • ~200K loans granted since • 31% YoY increase in 1Q16 services & launch • Share in revenues reached 3.3% • Share exceeded 8% of sales in products… 1Q16 • Preo P2 & Pwatch 2 launched in • # of subscribers reache
Slide 16: Expansion Through Different Store Formats
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Net Sales Area (‘000 m2) Expansion Through Different Store Formats 141 166 171 172 128 101 80 56 67 22 33 12 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Number of Stores 269 283 294 291 278 232 244 256 218 152 96 56 16 2004 2005 200
Slide 17: Growth Track
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Net Sales (TLmn) Growth Track FY15 Dealership sales Growth Retail sales 3,167 5% 3,018 2,957 122 29% 95 117 2,333 117 1,670 97 1,294 2,924 3,045 4% 2,840 1,148 80 1,020 945 65 2,216 94 740 138 1,572 467 93 1,214 340 1,083 67 807 930 49 647 291 400
Slide 18: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Teknosa at a Glance 1Q16 Results Financial Overview Year-end Guidance Appendices 18
Slide 19: Main messages
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION LfL improvement gears up 20% LfL in 1Q16 leading to 16% top-line growth, in 1Q16 to double digits… despite the down-sizing of Kliksa Main Market share gain… TSS market share (exc. Kliksa) improved by messages 4pps YoY & 1pp QoQ to 34% in 1Q16 R
Slide 20: Post-election recovery in CCI halted by rising political tensions
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION The completion of the elections with a single party government in Post-election November boosted the CCI to 77.2 from 62.9 in October. Yet rising tensions recovery in CCI with Russia in December and terror attacks in March made a negative impact,
Slide 21: 1Q16 Results
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Small change in net 1Q16 sales area Net Sales Area 167 168 3 stores opened Results (‘000 m2) while 10 stores closed in 1Q16 1Q15 1Q16 16% YoY revenue growth thanks to the Net Sales Total 775 success in structral (TL mn) Revenues 666 changes l
Slide 22: Like-for-Like Sales Growth Trend
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Like-for-Like Trend Like-for-Like Sales Growth Trend 20% 6% -3% -2% -1% 1Q15 2Q15 3Q15 4Q15 1Q16 TSS Market Share (exc. Kliksa) 33% 34% 30% 22 1Q15 4Q15 1Q16 Source: GfK
Slide 23: Strong growth in e-commerce revenues
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION teknosa.com Revenues (TLmn) Strong growth in e-commerce +49% revenues… +68% CAGR 35 139 23 94 66 29 1Q15 1Q16 2012 2013 2014 2015 Growth in e-commerce is expected to maintain the high pace Further investments in order to improve omni-channel mo
Slide 24: Main OPEX Items are Under Control
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Minimum Wage TKNSA Personnel Costs Main OPEX Items are +37% +17% Under TL TL Control TL 1,647 TL 45mn 1,202 38mn 1Q15 1Q16 1Q15 1Q16 TKNSA FX Basket TKNSA Rent Costs +17% +16% TL 3.09 TL 46mn 2.64 40mn 24 1Q15 1Q16 1Q15 1Q16
Slide 25: 1Q16 bottom line burdened by one-offs
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 1Q16 bottom line burdened TL -4.4mn Kliksa Solo net by one-offs TL -4.6mn income Reversal of provision TL -8.6mn (after tax) TL -17.7mn Kliksa continued to weigh down the bottom-line bottom-line in 1Q16, with a negative contribution of TL 4.4mn.
Slide 26: Working Capital and Cash Position Improvement
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Capital Requirement (TL mn) Working TL 35mn TL -339mn TL -145mn Capital and 443 481 558 Cash Position 28 436 51 67 Improvement 871 770 1Q15 4Q15 1Q16 T.Receivables Inventories T.Payables Net Cash Position (TL mn) 70 -16 26 1Q15 1Q16
Slide 27: Quarterly OPEX Breakdown
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Personnel costs were up by 17% YoY in 1Q16 vs. 37% increase in the min. Quarterly wage in the same period 16% increase in rent costs is driven by the portion tied to revenue % OPEX agreements following the strong top-line performance, while the
Slide 28: Revenues by activity
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa operations are composed of Retail Operations Revenues by Retail, Dealership and E-commerce activity Revenue Breakdown as of 1Q16 Revenue Breakdown by Product Groups as of 1Q16 E-Commerce E-commerce 6% 14% Other Dealership 12% CE Dealership
Slide 29: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Teknosa at a Glance 1Q16 Results Financial Overview Year-end Guidance Appendices 29
Slide 30: Key Performance Indicators
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Key 1Q15 4Q15 1Q16 YoY (%) QoQ (%) FY14 FY15 YoY (%) Performance Net Sales Area (‘000 sqm ) 167 172 168 1% -2% 167 168 1% Number of Stores 287 278 271 -6% -3% 287 271 -6% Indicators Number of Visitors (mn) 23 22 20 -14% -10% 101 89 -11% Number of C
Slide 31: Income Statement Summary
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION (TL mn ) 1Q15 4Q15 1Q16 YoY (%) QoQ (%) FY14 FY15 YoY (%) Income Net Sales 666 965 775 16% -20% 3,018 3,167 5% Statement Gross Profit 123 147 138 13% -6% 551 551 0% Summary Adj. Gross Profit Adj. Gross Profit Margin 123 18.5% 162 16.8% 138 17.9% 13
Slide 32: Balance Sheet Summary
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Assets (in TL mn) Mar.15 Dec.15 Mar.16 Balance Current Assets 496 856 723 Cash and Cash Equivalents 8 305 70 Sheet Due From Related Parties Trade Receivables 2 26 2 49 0 65 Summary Inventories Other Current Assets 443 17 481 19 558 29 Non-current A
Slide 33: Working Capital
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Working Capital Days Capital -9 -32 -36 Days of NWC 116 94 89 Days of TR 81 73 Days of Inventory 53 Days of TP 4 4 7 1Q15 4Q15 1Q16 Negative working capital allows Teknosa to generate positive cash flow in tandem with growth Improvement
Slide 34: Capital Expenditures
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Total CAPEX (TL mn) Capital Expenditures 62.4 8.4 47.9 6.9 1Q15 1Q16 FY14 FY15 We continue to invest in our operations even in challenging times with a focus on profitability. New store openings and store renovations account for a major part of
Slide 35: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Teknosa at a Glance 1Q16 Results Financial Overview Year-end Guidance Appendices 35
Slide 36: Macroeconomic Indicators
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Macroeconomic Indicators 2014 2015 2016E GDP growth 3.0% 4.0% 4.0% CPI Inflation 8.2% 8.8% 8.9% USD/TL rate (avg.) 2.19 2.72 3.03 EUR/TL rate (avg.) 2.90 3.01 3.34 36
Slide 37: 2016 Full Year Financial Guidance
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 2016 Full Year 2015 2016E Financial Guidance YE Net Sales Area (km2) 172 170 Net Sales (TL mn) 3,167 3,300 LFL Growth (%) 0% 10% teknosa.com Growth (%) 47% 45% EBITDA(*) (%) 2.1% ~3.5% CAPEX (TL mn) 48 35-40 (*) EBITDA excludes Other Income/Expense
Slide 38: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Teknosa at a Glance 1Q16 Results Financial Overview Year-end Guidance Appendices 38
Slide 39: Appendix: Electronics Retail Market
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Appendix 1 Electronics Retail Market 39
Slide 40: Electronics Retail Market in Turkey
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Sales Channels of Technical Consumer Goods Market Electronics Retail Market Hypermarkets / Supermarkets & Consumer Electronics Stores Computer Shops & System Houses Telecom Specialists (TCR) Technical Super Stores (TSS) Department Stores in Turkey
Slide 41: Channel Development
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Technical Super Stores (TSS) grew below the market for the first time in 2014 due to Channel their disadvantage in consumer financing. The new law offered Telecom Retailers (TCR) an advantage, as they are able to apply Development up to 24 mont
Slide 42: Electronics Retail Market and Teknosa (1Q16)
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION The market grew by 14% YoY, reaching TL 10.1bn in 1Q16 Electronics Technical Super Stores (TSS) channel recorded 6% YoY growth in the same period to TL 2.4bn in the 5 major categories Retail Market Teknosa retail sales were up by 19% YoY in 1
Slide 43: TSS Consolidation Trend
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 4 players have exited the market since 2010 TSS Regardless, the existing 4 TSS players are still too many to operate efficiently and Consolidation profitably in the Turkish electronics market Given the recent demand and channel trends outlook
Slide 44: Appendix: Effects of the Legislation Changes on the Market
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Appendix 2 Effects of the Legislation Changes on the Market 44
Slide 45: Storm is calming down but the seas are still rough
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION TSS players have been tackling restrictions imposed on consumer financing Storm is options since 2H13, favoring traditional channels over the modern calming down In addition, lowest consumer confidence levels since the 2008 global crisis but th
Slide 46: Deceleration in credit card spendings
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION October 2013 Decelaration in Legislation change: Credit card limits decreased based on average income level, credit card while the minimum payment amount increased based on the limit of the credit spendings… card. Consequence: Average monthly growt
Slide 47: Decline in wallet share of CE products in CC spending
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION February 2014 Decline in Legislation change: Installments on Telecom products via credit cards has been wallet share of cancelled, while being limited to 9 months on remaining electronic products. CE products in Consequence 1: The wallet share of C
Slide 48: Market share loss due to unfair competition
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Consequence 2: Telecom Retailers’ ability to apply up to 24 months of Market share installment on telecom products via contacts paved the way for an unfair loss due to competitive environment, causing TSS players to lose 3% market share since the l
Slide 49: Disadvantage in consumer financing
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Consequence 3: While the share of CC installments was down by 12pps in the Disadvantage in banking sector, it was more pronounced for electronic retailers due to the consumer limitation on the telecom segment - the fastest growing one - and the hig
Slide 50: 2016 will be a back to basics year for Teknosa
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 2016 kick started with one of the smaller players throwing in the 2016 will be a towel, mostly owing to an unhealthy balance sheet structure back to basics Turkish Market still host 4 players in a winner takes it all sector, where year for we b
Slide 51: Thank You
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Thank You Contact Information: Erman Tutuncuoglu – Head of Investor Relations +90 (216) 468 32 29 etutuncuoglu@teknosa.com IR web page: http://yatirimci.teknosa.com/homepage IR e-mail: yatirimciiliskileri@teknosa.com 51
Slide 52: Disclaimer
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Disclaimer The information and opinions contained in this document have been compiled or arrived at by Teknosa from sources believed to be reliable and in good faith, but no representation or warranty, expressed or implied, is made as to their accu
Teknosa İç ve Dış Ticaret A.Ş. — Investor Presentation (May 2016) on 6ix