Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA
Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — Q4 2015 Earnings Presentation
31 slides from Teknosa Ic Ve Dis Ticaret As's earnings presentation, Feb 15, 2016
Slide 1: Teknosa 4Q15 Results Investor Presentation
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Investor Teknosa İç ve Dış Ticaret A.Ş. Presentation 4Q15 Results «Turkey’s Leading Electronics Retailer» Korhan Bilek, CFO Erman Tütüncüoğlu, Head of IR February 15, 2016
Slide 2: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Financial Overview 2015 in a Nut Shell & Road to Kliksa Decision Year-end Guidance 2
Slide 3: Main messages
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION LfL is back in black, leading 6% LfL in 4Q15 leading to 13% top-line growth Main to double digit revenue thanks to: growth… • +3pps market share gain in 2H15 vs. 1H15 messages • CCI improvement following the elections • 44% YoY growth in e-commer
Slide 4: Post-election recovery in CCI halted by rising tensions with Russia
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 the last month of the year triggered a 5% decline to 73.6, c
Slide 5: 4Q15 Results
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Small change in net 4Q15 sales area Net Sales Area 171 173 172 9 stores opened Results (‘000 m2) while 18 stores closed in 4Q15 4Q14 3Q15 4Q15 13% YoY revenue growth thanks to Net Sales Total 965 structural changes 851 813 implemented (TL mn)
Slide 6: FY15 bottom line heavily impacted by one-offs
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION TL +1.9mn FY15 bottom Teknosa Solo TL -30.2mn net income line heavily exc. one-offs one-offs related to Teknosa(*) impacted by TL -29.3mn Kliksa Solo TL -37mn one-offs net income TL -27.4mn Teknosa one-offs related to exc. one-offs Kliksa(**) conso
Slide 7: Teknosa Solo net income is back on a positive trend
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa Solo Net Income (TL mn) Teknosa Solo net income is back on a 7.7 positive 2.4 trend -3.0 -5.3 1Q15 2Q15 3Q15 4Q15(*) Teknosa solo bottom-line is back on a positive trend Adjusted net income remained in black in 4Q15 despite the intense
Slide 8: Like-for-Like Sales Growth Trend
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Like-for-Like Trend Like-for-Like 6% Sales Growth Trend -1% -1% -2% -2% -3% -3% -3% -9% 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 LfL growth is back in black at 6% in 4Q15, after 8 consecutive quarters of contraction, as taken contra measures
Slide 9: Working Capital and Cash Position Improvement
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Capital Requirement (TL mn) Working TL -134mn TL -227mn TL -339mn Capital and 581 488 481 27 37 51 Cash Position 660 613 752 Improvement 4Q14 3Q15 4Q15 T.Receivables Inventories T.Payables Net Cash Position (TL mn) 305 193 220 9 4Q14 3Q15 4
Slide 10: Strong growth in e-commerce revenues
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION E-Commerce (teknosa.com + kliksa.com) Revenues (TLmn) Strong growth TL 161mn TL 437mn in e-commerce +74% +44% TL 303mn revenues… TL 93mn 106 299 209 60 56 139 32 94 4Q14 4Q15 FY14 FY15 teknosa.com kliksa.com teknosa.com kliksa.com Growth in e-com
Slide 11: Main OPEX Items are Under Control
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Minimum Wage TKNSA Personnel Costs Main OPEX Items are +12% +5% Under TL TL TL Control TL 1,274 157mn 165mn 1,134 FY14 FY15 FY14 FY15 TKNSA FX Basket TKNSA Rent Costs +3% +17% 3.06 TL TL 166mn 171mn 2.62 FY14 FY15 FY14 FY15 11
Slide 12: Pioneer services & products launched over the last year
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa will continue to differentiate itself from the competition, carrying Pioneer on its evolution into a «service provider» from a «classical box mover» services & As the first step towards this goal, «TeknoFinans» was launched in June prod
Slide 13: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Financial Overview 2015 in a Nut Shell & Road to Kliksa Decision Year-end Guidance 13
Slide 14: Income Statement Summary
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION (TL mn ) 4Q14 3Q15 4Q15 YoY (%) QoQ (%) FY14 FY15 YoY (%) Income Net Sales 851 813 965 13% 19% 3,018 3,167 5% Statement Gross Profit 147 151 147 0% -3% 551 551 0% Summary Adj. Gross Profit Adj. Gross Profit Margin 147 17.3% 151 18.6% 162 16.8% 10%
Slide 15: Balance Sheet Summary
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Assets (in TL mn) Dec.14 Sep.15 Dec.15 Balance Current Assets 762 766 856 Cash and Cash Equivalents 193 220 305 Sheet Due From Related Parties Trade Receivables 4 23 3 35 2 49 Summary Inventories Other Current Assets 530 12 488 20 481 19 Non-curren
Slide 16: Working Capital
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Working Capital Days Capital -12 -24 -32 Days of NWC 93 86 89 71 Days of TR 64 Days of Inventory 53 Days of TP 3 5 4 4Q14 3Q15 4Q15 Negative working capital allows Teknosa to generate positive cash flow in tandem with growth Working Cap
Slide 17: Key Performance Indicators
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Key 4Q14 3Q15 4Q15 YoY (%) QoQ (%) FY14 FY15 YoY (%) Performance Net Sales Area (‘000 sqm ) 171 173 172 1% -1% 171 172 1% Number of Stores 291 287 278 -4% -3% 291 278 -4% Indicators Number of Visitors (mn) 26 22 22 -13% 2% 101 89 -11% Number of Cus
Slide 18: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Financial Overview 2015 in a Nut Shell & Road to Kliksa Decision Year-end Guidance 18
Slide 19: 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 20: 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 21: 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 22: Market share loss on 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 on unfair competitive environment, causing TSS players to lose 4% market share since th
Slide 23: 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 24: 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 25: Road to Kliksa decision: Global Outlook
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Pure players have been in the global market over 2 decades now, Road to Kliksa boasting strong revenue growth while sacrificing profitability often decision: accompanied by red bottom-line figures in order to push stores out of Global the competi
Slide 26: Increasing burden of Kliksa on a less friendly landscape
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Omni-channel or pure player model? This is no longer the question Increasing • Pure players seeking drop points to duplicate omni-channel model burden of Kliksa on a less Kliksa’s increasing burden on our objective to create value for our share
Slide 27: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Financial Overview 2015 in a Nut Shell & Road to Kliksa Decision Year-end Guidance 27
Slide 28: Macroeconomic Indicators
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Macroeconomic Indicators 2014 2015 2016E GDP growth 2.9% 3.8% 4.0% CPI Inflation 8.2% 8.8% 8.5% USD/TL rate (avg.) 2.19 2.72 3.07 EUR/TL rate (avg.) 2.90 3.01 3.36 28
Slide 29: 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/Expenses
Slide 30: 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 30
Slide 31: 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. — Q4 2015 Earnings Presentation on 6ix