Netas Telekomunikasyon A.s. · BIST:NETAS
Netas Telekomunikasyon A.s — Non-Deal Roadshow (May 2017)
32 slides from Netas Telekomunikasyon A.s's roadshow presentation, May 17, 2017
Slide 1: NETAŞ Investor Presentation
Architect of the Digital Future NETAŞ Investor Presentation netas.com.tr Roadshow - London May 17-18, 2017
Slide 2: Company Overview
Company Overview
Slide 3: Netas at a glance
Netas at a glance Turkey’s #1 Strong Solid R&D System experience in service Regional Accelerating Integrator IT sector capacity Hub Footprint $500M software Ability to deliver Poised to act as International markets 2016 Top 500 ICT including Technology exports within last 10 services to all «Regiona
Slide 4: History
History Software export International expansion Operational First and biggest private champion of Turkey with over USD 100mn in telecoms R&D center in New home-grown solutions orders booked Turkey from Netas R&D – Nortel’s global R&D center 4G LTE (ULAK), NOVA Cyber Security New strategic plan to de
Slide 5: Ownership Structure
Ownership Structure Turkish Armed Forces Foundation OEP OEP Turkey Turkey Tech B.V. Tech B.V. TAAF (TAFF) 48.04% 48.04% 15.00% 15.00% Public Public NETAŞ 36.96% 36.96% Probil Bilgi İşlem Destek Netas Telecom Limited Kron Telekomünikasyon Netaş Telecommunications BDH Bilişim Destek ve Danışmanlık San
Slide 6: Business Focus Area
Business Focus Area End to end SI Services Innovation Manufacturing Own Products & Solutions Telco hardware – Full solution sales with Managed Services Custom Software & firmware – software services attached Deployment and I&C Application production in niche Technology consultancy Su
Slide 7: International Markets
International Markets Technology Exports to 50 customers in 70 cities Reputable and trusted brand in the region Main Territories North Africa, Turkic Republics and Asia Pacific Major Projects - Significant projects with government entities, mobile operators and enterprises in Algeria - Optic infrast
Slide 8: Strong R&D Technology Know-how
Strong R&D Technology Know-how Commercial and Academic R&D Technology Know-how National and International Partnerships Output Cyber Security Vice Chairman of the Board of Celtic Plus 368% Internet of Things European Union Networld 2020 Board Member patent Multimedia ETSI membership / oneM2M studies
Slide 9: Recently Commercialized R&D Products
Strong R&D Technology Know-how Recently Commercialized R&D Products Video Communications Platform Smart Grid Solutions Field Management Solutions Cyber Security Solutions Mobile Test Automation New Generation IoT Solutions 9
Slide 10: Technology Ecosystem and Strategic Partnerships
Technology Ecosystem and Strategic Partnerships 100 + partnerships with marquee vendors… 10
Slide 11: Selected Smart Projects
aii Selected Smart Projects me ia a NW’ , hy
Slide 12: Vertical Sector Focus
Vertical Sector Focus Sports and Retail & Energy Telco Public Finance Entertainment FMCG Providing services Preferred ICT Addressing majority Executed the first Designing and 70% share within the to major telecom provider to the of the IT smart stadium delivering ICT ICT infrastructure of service pr
Slide 13: Sector Focused Smart Solutions
Sector Focused Smart Solutions Public Sector Disaster and Emergency Digital Transformation in the Audio - Visual Management Educational System Unified Solutions Managing multiple decision Increasing the effectiveness Empowering the Ministry support mechanisms of the and efficiency of the Turkish of
Slide 14: Sector Focused Smart Solutions
Sector Focused Smart Solutions Finance Aviation and Transportation Energy & Utilities Unified Communication ICT Infrastructure at Energy Solutions Solutions Istanbul New Airport Turkey’s biggest cloud Establishment and operation Automatic counter reading based unified of all information and systems,
Slide 15: Sector Focused Smart Solutions
Sector Focused Smart Solutions Sports & Entertainment Telecommunications Energy Smart Stadiums Network Optimization Cloud Technologies and Services Services Project Smart stadium projects Next-generation data center Network optimization project solutions and related covering WiFi systems, with the l
Slide 16: Financial Review
* _ e % Financial Review.
Slide 17: Continued Order Booking Momentum
Continued Order Booking Momentum CAGR 12% 1.075 (ml TL) 879 835 767 567 2012 2013 2014 2015 2016 Well diversified customer portfolio enabling order booking momentum 17
Slide 18: Order Booking Breakdown
Order Booking Breakdown 2016 (ml TL) 2015 Public 25% Ent Public 39% 47% BDH Ent 4% 37% Tech Int 8% 24% BDH Tech Int 3% 7% 6% Significant order booking performance in international segment by 220.3% 18
Slide 19: Strong Revenue Growth
Strong Revenue Growth CAGR 1.009 15% 970 (ml TL) 741 631 550 2012 2013 2014 2015 2016 Strong brand recognition Diversified business structure Strong backlog 19
Slide 20: Revenue Breakdown
Revenue Breakdown (ml TL) 2016 2016 2015 2015 Int Int Ent Int Int Ent 11% 11% 42% 7% 7% 42% Ent Ent 48% 48% Tech Tech Tech Tech 8% 8% 8% 8% Public Public BDH BDH 39% 39% BDH Public Public BDH 4% 4% 30% 30% 3% 3% Increasing revenue performance in BDH and Public segments Improvement in BDH’s reven
Slide 21: Sustainable EBITDA Growth
Sustainable EBITDA Growth 9.4% (ml TL) 7.3% 24.0% 91.1 5.3% 73.5 5.0% 3.9% 88.4% 58.3% 39.0 (9.7%) 27.3 24.6 2012 2013 2014 2015 2016 EBITDA EBITDA Margin Substantial EBITDA margin increase by 211 bps 21
Slide 22: Strong Balance Sheet
Strong Balance Sheet (ml TL) 2016 2015 Net Working Capital (mlTL) Cash & Cash Equivalents 115.6 226.1 48.3% Trade Receivables 786.3 705.7 Property, Plant and Equipment 40.2 40.2 43.6% Financial Investments 1.9 0.9 31.9% Intangible Assets 105.9 90.0 22.4% Total Assets 1,375.5 1,352.6 Trade Payables 2
Slide 23: 1Q2017 Results
1Q2017 Results Order Booking Performance Sales Revenue EBITDA (ml TL) (ml TL) (ml TL) 200 204 167 168 9 5 1Q2016 1Q2017 1Q2016 1Q2017 1Q2016 1Q2017 Orders booked TL167.3 million (USD 45 million) Order booking performance of international segment up by 79.7% , enterprise segment up by 49.0% 23
Slide 24: Net Debt
Net Debt 2016 TL USD Total Debt Breakdown Short Term Debt 349.5 99.3 Credit Interest Accruals 5.4 1.5 Total Debt 354.9 100.8 TL 82% Consolidated Gross Cash & Cash (TL million) Debt Eq. Net Debt USD 2016 354.9 115.6 239.2 18% 2015 333.1 226.1 107.0 As of YE2016; Cash and cash equivalents- TL 115.6
Slide 25: Cash Flow Statement
Cash Flow Statement 2015 2015 2016 Beginning 2016 2016 Beginning of the End of of the Period Period Period 226.1 115.6 (ml TL) 84.3 25
Slide 26: 2017 Guidance
2017 Guidance Main Focus Areas Expand vertically in services offerings, homegrown products & software development and realize higher efficiency through optimal resource utilization Managed and cloud based services through Netas Cyber Operations Center Technology Consultancy and/or solutions delive
Slide 27: Appendix
Appendix
Slide 28: Income Statement
Income Statement TL Million 2016/12 2015/12 y/y % Revenue 969.8 1009.0 (3.9%) Cost of Sales (835.4) (895.1) (6.7%) Gross Profit 134.4 113.9 18.0% Gross margin % 13.9% 11.3% 257 Sales, Marketing & Distribution Expenses (44.4) (42.6) 4.3% General Administrative Expenses (24.4) (23.8) 2.3% Research & D
Slide 29: Balance Sheet
Balance Sheet (ml TL) 2016/12 2015/12 (ml TL) 2016/12 2015/12 Cash & Cash Equivalents 115.6 226.1 Financial Liabilities 354.9 333.1 Trade Receivables 697.7 596.2 Derivative Instruments 2.7 0.0 Other Receivables 0.5 0.3 Trade Payables 240.5 350.1 Derivative Instruments 0.0 0.1 Other Payables 8.7 12.7
Slide 30: Cash Flow
Cash Flow (ml TL) 2016/12 2015/12 Profit for the year 18.7 34.3 Adjustments to reconcile income for the period 92.4 60.2 Changes in Working Capital (150.4) (5.2) Cash Flows (Used in) Generated From Operations (39.4) 89.4 Income Taxes Paid (2.0) (2.4) Payments Related with Provisions for Employee Ben
Slide 31: Market Overview- System Integrators
Market Overview- System Integrators Revenue 2015 (TL) Netas 1,008,993,097 Koçsistem 690,762,579 Havelsan 498,416,717 Innova 399,209,499 Sentim Bilisim 366,011,262 Atos 354,334,734 Data Market 271,076,698 Bilgikent 167,360,350 Bimsa 164,272,015 Teknoser Bilgisayar 156,413,277 Total Market Size (TRY):
Slide 32: Thank you
. st i> | Ht 6 \ ys | +e 7 } ° Bal _ ia ¢ } = « * 4 ag ‘f ® Ag | >. netas.com.tr i f.netastR ¥ Netas waN NetasTR in company/netas ay. blog.netas.com.tr
Netaş Telekomünikasyon A.Ş. — Non-Deal Roadshow (May 2017) on 6ix