Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA
Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — Q1 2013 Earnings Presentation
37 slides from Teknosa Ic Ve Dis Ticaret As's earnings presentation, Jun 7, 2013
Slide 1: Teknosa İç ve Dış Ticaret A.Ş. Investor Presentation
Teknosa İç ve Dış Ticaret A.Ş. Investor Presentation «Leader of A Growing Market» Nevgül Bilsel Safkan, CFO Gamze Hacaloğlu Harman, Financial Controller 1
Slide 2: Agenda
Agenda Teknosa at a Glance Electronics Retail Market Financial Overview Year-end Guidance 2
Slide 3: Teknosa At a Glance
Teknosa At a Glance Market Leader in Technical Super Stores Channel with 42% market share Highest penetration among Turkish Technical Super Stores with 289 stores in 77 provinces and 145k m2 net sales area as of 31 March 2013 2012 revenue reaching 2.3 billion TL with 40% YoY growth 2013 Q1 revenue r
Slide 4: Milestones
Milestones 2000 Commenced operations with 5 stores 2003 Teknosa.com established 2005 Teknosa Akademi established Number of stores reached 152 2006 Operational efficiency and infrastructure projects for “Scientific Retailing Program” Dealership operations organised under Iklimsa brand 200
Slide 5: Shareholding Structure ("TKNSA")
Shareholding Structure ("TKNSA") Shareholders Pre - IPO Post - IPO Nominal Value (TL) Ratio (% ) Nominal Value (TL) Ratio (% ) Sabancı Holding 77.310.510 70,28% 66.310.510 60,28% Sabancı Family 32.689.490 29,72% 32.689.490 29,72% Free Float - - 11.000.000 10,00% Total 110.000.000 100,00% 110.000.000
Slide 6: Operations
Operations Teknosa operations are composed of Retail, Retail Operations Dealership and e-commerce activities Revenue Breakdown as of Q1-2013 E-trade Breakdown as of Q1-2013 Revenues by Operations 4% (2012: 2,2%) Product Groups: Dealership Group 2% Consumer Electronics & Photo: 40% (2012:48%) (2012
Slide 7: Retail Operations
Retail Operations Store Formats Teknosa retail operations are carried out in 3 different store formats in order to increase market penetration Standard Store 217 stores in 75 cities 46 stores in 24 cities 26 stores in 10 cities <750 m2 store area 750-1,200 m2 store area >1,200 m2 store a
Slide 8: Proven Growth Track
Proven Growth Track Net Sales (M TL) 2.330 Retail sales 117 Dealership sales 1.670 97 1.292 1.146 1.020 80 946 65 2.213 740 94 659 138 1.572 467 93 457 16 339 1.212 1.081 67 926 13 807 49 647 643 400 444 291 2004 2005 2006 2007 2008 2009 2010 2011 2012 3M12 3M13 8 Source: Teknosa
Slide 9: Aggressive Expansion With Different Store Formats
Agressive Expansion With Different Store Formats Net Sales Area (k m2) 141 145 128 130 101 80 67 56 33 22 12 2004 2005 2006 2007 2008 2009 2010 2011 2012 3M12 3M13 Number of Stores 269 283 271 289 232 244 256 218 152 96 56 2004 2005 2006 2007 2008 2009 2010 2011 2012 3M12 3M13 Number of provinces wi
Slide 10: E-commerce Market In Turkey
E-commerce Market In Turkey Total e-commerce volume is estimated to reach 30 billion TL* (35% YoY) in 2012 (5 year CAGR: 41%) Online retail of consumer products is estimated as 3 billion TL** in 2012 E-commerce in Turkey is growing faster than the growth in internet usage in the last 5 years.
Slide 11: Our Platforms On E-Commerce: Kliksa and Teknosa.com
Our Platforms On E-Commerce: Kliksa and Teknosa.com Two legged strategy in e-commerce which aimed to gain share in both electronics retail market and fast developing e-commerce business: reached 4% of total retail sales as of March 2012 Kliksa.com Teknosa.com Aims to gain share in fast growing e c
Slide 12: Human Resources
Human Resources Number of Employees Breakdown 3.067 3.060 3.334 2.986 3.282 3.689 3.816 3% 2% 2% 2% 2% 2% 2% Teknosa employs top-class management with a solid 15% 14% 13% 13% 12% 12% 12% understanding of the Turkish market and consumers. The top management has been with the Company more than eig
Slide 13: Warehouses and Distribution
Warehouses and Distribution Teknosa operates its supply chain based on central and regional warehouses. In 2007, Teknosa’s central warehouse in Gebze has started its operations with a closed area of 30k m2 on a 60k m2 land to serve all regions in Turkey. The other 4 regional transfer points are
Slide 14: Customer Relationship Management (CRM) & Customer Experience Management (CEM)
Customer Relationship Management (CRM) & Customer Experience Management (CEM) 3,2 million Orange Card owners 53% of total sales conducted through Orange Card Vast customer database allows for detailed monitoring of purchasing behavior and tailored CRM applications Recognition by mobile phone
Slide 15: Aftersales Services
Aftersales Services TeknoAssist (Customer Assistance Program), is the technology consultancy service offered by TeknoSA to its customers. This service includes full 24/7 customer support by the call center. Free installation and free delivery are also included. TeknoGaranti proposes both extended an
Slide 16: Agenda
Agenda Teknosa at a Glance Electronics Retail Market Financial Overview Year-end Guidance 16
Slide 17: Electronics Retail Market in Turkey
Electronics Retail Market in Turkey Sales Channels of Technical Consumer Goods Market (48.425 Total Points of Sale) Hypermarkets / Technical Super Consumer Electronics Computer Shops & Telecom Specialists Supermarkets & (TCR) Stores Stores System Houses Department Stores (CES) (CSS) (TSS) (MASS MERC
Slide 18: Electronics Retail Market Channel & Category Development
Electronics Retail Market Channel & Category Development Growth Channel Development (%) Category Development (%) 2012vs.2011 Total 9.323 12.272 15.149 9.323 12.272 15.149 %23 3.629 IT 35% 36% 33% 3.164 %10 13% 2,695 6.975 13% 13% Telecom 5% 9% 7% 5.445 %15 14% 12% 13% 4,050 CE+PHOTO 30% 30% 35% 4.54
Slide 19: Electronics Retail Market and Teknosa
Electronics Retail Market and Teknosa 2012 January-December electronics retail market * TL 15,1 Billion (+23%YoY) 2012 January-December Teknosa retail sales growth +38% YoY Technology Super Stores (‘TSS’) channel accounts for 35% of the total market Teknosa has 14.6% market share in the elec
Slide 20: Agenda
Agenda Teknosa at a Glance Electronics Retail Market Financial Overview Year-end Guidance 20
Slide 21: 2013 Q1 Main messages
2013 Q1 Main messages BIST 100 "TKNSA" is included in BIST 100 Index on Apr 1, 2013 Strong revenue growth YoY Net Sales growth is 44%, higher than the market. Fierce competition Pressure on margins Profit Growth YoY Net income growth is 35% (excluding one-off in Q1 2012) Strong e-commerce
Slide 22: Financial Highlights
Financial Highlights Teknosa Summary Financials - Income Statement ( M TL ) Q1-2012 Q4-2012 Q1-2013 YoY (% ) QoQ (% ) Net Sales 457 753 659 44% -12% Gross Profit 96 133 111 17% -16% Gross Profit Margin 20,9% 17,7% 17,0% Adjusted EBITDA * 22 38 24 9% -36% Adjusted EBITDA Margin * 4,9% 5,1% 3,7% (1.2p
Slide 23: Q1-2013 Results
Q1-2013 Results 12% 145 130 Dynamic portfolio management Sales Area 10 store openings, 4 store (k m2) closures (relocation purposes) Q1-12 Q1-13 659 Strong LfL trend: 22% Total 44% 457 Significant corporate sales Revenues (M TL) Q1-12 Q1-13 35% 9,0 Adjusted 6,7 9TL million net income Net I
Slide 24: Retail Operations Revenue Growth Analysis
Retail Operations Revenue Growth Analysis 50% 11% 30% 19% 7% 39% 13% 22% 5% Q1-2012 Q4-2012 Q1-2013 Like for Like Growth Net Expansion Effect Net expansion effect = New store openings – closings Retail store revenues (excluding dealership, internet and corporate revenues), which account for 94% of
Slide 25: Key Performance Indicators (Retail Operations)
Key Performance Indicators (Retail Operations) Teknosa Key Performance Indicators (Retail Operations) Q1-2012 Q4-2012 Q1-2013 YoY (%) QoQ (%) FY11 FY12 YoY (%) Number of Provinces (@ period end) 72 77 77 7% 0% 72 77 7% Net Sales Area (k m2 @ period end) 130 141 145 12% 3% 128 141 10% Number of Store
Slide 26: Summary Financials
Summary Financials Balance Sheet Assets (in M TL) Mar.12 Mar.13 Current Assets 423 669 Cash and Cash Equivalents 80 167 Due From Related Parties 6 0 Trade Receivables 31 36 Other Receivables 1 0 Inventories 273 422 Other Current Assets 32 44 Non-current Assets 106 131 Investment Property 11 11 Prope
Slide 27: Working Capital
Working Capital Negative working capital allows Teknosa to generate positive cash flow in tandem with growth Working Capital Days -9 -22 -11 Days of NWC 95 87 83 73 69 69 Days of TR Days of Inventory Days of TP 5 3 4 Q1-2012 Q4-2012 Q1-2013 Net working capital improved by 2 days YoY to 11 in Q1 20
Slide 28: Capital Expenditures
Capital Expenditures Total CAPEX (M TL) 10,5 35% 7,8 Q1-12 Q1-13 New store openings and store renovations account for a major part of the Company’s capital expenditures. Capital expenditures are financed with cash generated from operations. 28
Slide 29: Agenda
Agenda Teknosa at a Glance Electronics Retail Market Financial Overview Year-end Guidance 29
Slide 30: 2013 - Macroeconomic assumptions
2013 - Macroeconomic assumptions Macro-Economic Indicators 2011 2012 2013F Real GDP Growth 8,8% 2,2% 3,5% GDP growth higher than in 2012 Private Consumption 7,7% -0,7% 3,0% Inflation (CPI change e.o.p) 10,4% 6,2% 6,3% Re-balancing of inflation & TL US$/TL (Average) 1,67 1,80 1,82 Flat FX rates EUR/T
Slide 31: A challenging year ahead for the retail sector - 2013
A challenging year ahead for the retail sector - 2013 Sector growth exceeding GDP growth; • Market Growth: ~14% • Technical Superstores (‘‘TSS’’) Channel Growth: 15% - 20% Consolidation; • Consolidation is inevitable in the Turkish TSS Channel, as it will become harder to survive for companies lack
Slide 32: Teknosa's sustainable business model will continue to pay off
Teknosa’s sustainable business model will continue to pay off 15-20% Sales Growth in Retail Operations as a result of; Growth over • Organic growth up to +30k m² net sales area the market • 7-11% LfL growth • Expected increase in CE sales which has higher margin than other product groups Kliksa.com
Slide 33: Teknosa's sustainable business model will continue to pay off
Teknosa’s sustainable business model will continue to pay off Maintaing high EBITDA & Net profit growth with; Net Profit • Maintaining margins while generating top-line growth margins Consolidation & Online Investment Opportunities Inorganic • Due to the strong balance sheet position with no debt an
Slide 34: Enterprise Fiscal 2013 Full Year Financial Guidance
Enterprise Fiscal 2013 Full Year Financial Guidance 2012 2013 ( M TL ) ACTUAL FORECAST Year End Net Sales Area (km2) 141 165-170 Net Sales 2.330 2.700-2.800 Growth (%) 40% 15%-20% LFL Growth (%) 26% 7%-11% EBITDA (%) 5,3% over 5,0% Net Income 50 57-60 EPS 0,46 0,52-0,55 Capital Expenditures 42 40-45
Slide 35: Stock Performance
Stock Performance IMKB : 75.895 29/05/13 BGC Partners Target Price: 16,00 TL TKNSA : 11,65 (16% upside) 14,00 13,75 100.000 29/05/13 Eczacıbaşı Target Price: 17 TL 90.000 13,00 (24% upside) 12,95 80.000 12,00 03/05/13 ERSTE Group 70.000 IMKB : 57.331 Target Price: 11,90 TL (5% upside) 60.000 11,00 1
Slide 36: Disclaimer
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 accuracy, completeness or correctness. All opinions and
Slide 37: THANK YOU
THANK YOU (Published at 07.06.2013) 37
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