54 slides from Indeks Bilgisayar Sistemleri Muhendislik Sanayi Ve Ticaret A.s's earnings presentation, Mar 9, 2010
Slide 1: Indeks Computer Inc. 2009 FY Financial and Operational Results
Indeks Computer Inc. (INDES TI / Bloomberg, INDES.IS / Reuters) 2009’FY 2009 FY Financial and Operational Results Analyst y Meeting g Presentation Index Park Istanbul, 9 Mart 2010
Slide 2: Disclaimer
Disclaimer This presentation contains information and analysis anal sis on financial statements as well as forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the information and analysis are correct and e
Slide 3: Contents
Contents • IT Sector in Turkey • Index I d Group G C Companies i 2009, 2009 Overview O i • Datagate Computer • Indeks Computer • Index Group 2009, 2009 Financial Performance • Expectations of Index Grup Companies for 2010
Slide 4: IT Sector, Turkey
a” INDEX: GRUP IT Sector, Turkey INDEX Pee DESPE Netex "neotech JEKLOS
Slide 5: Turkey
Turkey • Population : 70,5 mio (2007) • Student Population : 20 mio • Total Education Budget g : 16 B. US$ • Literacy : %90 + • Computer Literacy : %25 • Mobile Phone Subscribers : 60 mio • Unemployment Rate : %14 • Average Age : 28 • Population • Under Age of 28 :%50 • Under Age of 5 :+%30 • SME’s
Slide 6: Changes in the Market Share of End Users
Changes in the Market Share of End Users Source: Index Group
Slide 7: Trends in Market Shares of Desktops & Notebooks
Trends in Market Shares of Desktops & Notebooks Quantity Value (US$) Source: IDC
Slide 8: Trends in Computer Market Shares of Consumer & Commercial
Trends in Computer Market Shares of Consumer & Commercial Quantity (Units) Value (US$) PC (Unit) 2007 2008 2009 2010 F 2011 F Value 2007 2008 2009 2010 F 2011 F Consumer 1.357.957 1.547.374 2.348.280 2.767.617 3.414.053 Consumer 1.205.740 1.300.980 1.831.220 2.073.640 2.447.410 Commercial 1.248.943
Slide 9: Trends in Internet & PC Penetrations
Trends in Internet & PC Penetrations Source: Index Group
Slide 10: Turkish IT Market 1998 - 2012
Turkish IT Market 1998 - 2012 (mio US$) Credit Crunch Source: IDC (Telecom Network tools were taken into consideration.)
Slide 11: Regional Based IT Market Analysis in the World
Regional Based IT Market Analysis in the World (mio US$) BT Market 524.292 436.028 302.313 59.276 43.437 35.338 31.529 1.432.213 Share 37% 30% 21% 4% 3% 2% 2% Hardware Market 150.005 132.456 165.382 33.141 24.765 21.151 24.422 551.321 Share 27% 24% 30% 6% 4% 4% 4% Software Market 147.444 88.511 43.1
Slide 12: Country Based IT Market Analysis
Country Based IT Market Analysis (mio $) IT Market 3.244 5.207 5.345 5.699 10.335 13.684 16.403 18.082 28.948 30.902 World % 0,23% 0,36% 0,37% 0,40% 0,72% 0,96% 1,15% 1,26% 2,02% 2,16% Hardware Market 2.146 2.392 2.147 4.218 5.651 8.264 8.002 12.201 10.240 15.615 World % 0 39% 0,39% 0 43% 0,43% 0 39
Slide 13: Developments in Turkish IT Sector for 2009
Developments in Turkish IT Sector for 2009 • Best B t Buy B - Media M di Markt M kt have h come andd crossed d first fi t time ti iin the th World, W ld • VAT Decrease, • 3G Implementations I l t ti / Telecom T l C Campaigns i & Netbook, N tb k • Leadership of Mobile Computers, • Individual Users ar
Slide 14: Index Group Companies 2009 Evaluation
Index Group Companies 2009 Evaluation
Slide 15: Index Group Companies Structure
Index Group Companies Structure Company Name Business Distribution Model % Indeks Inc. * Broadliner Dist. 100 Datagate Inc. ** OEM Components Dist. 59 Despec Inc. Consumables Dist. - Neteks Inc. *** Network Products Dist. 50 Neotech Inc. Cons. & Home Elec. Dist. 80 T kl Inc. Teklos I IT Logistics L
Slide 16: Regions
Regions Mobil e Channel Sales Teams
Slide 17: Business Model
Business Model Distribution of over 200 Worldwide IT Brands One Stop Shopping 7.400 40.000m2 Regular Logistic Business Centre Partners Nerworks Leader IT Group of Turkey
Slide 18: Strategy Formulation for Entering the Market
Strategy Formulation for Entering the Market
Slide 19: Human Resources
Human Resources Total: 336 Employees
Slide 20: Major Vendors
INDEX=GRUP Major Vendors | @D | t= aay (intel) TOSHIBA [icresoft’ “& invent DOLL El acer ¢.©'* RYO ASUS rujisu Canon 'skingston {iisip Maxtor EPSON’ APrC Western SONY OKI seac€ ‘We turn on ideas, e NORTEL [J iomega (symantec. tppngPont ‘an EMC company \ — e & \. AirTies = NEC @server iSeries @server
Slide 21: New Contracts in 2009
New Contracts in 2009 PC OEM Products Network (Monitor Consumer Elec. (CE) TV)
Slide 22: Group Companies Sole Revenues 2008-2009
Group Companies Sole Revenues* 2008-2009 (Mio) 2009 2009 2008-2009 2008 2009 Companies 2008 Targets Actual % Growth (%) Indeks $556 $540 $615 14% 11% Datagate $163 $172 $191 11% 17% Despec $88 $89 $86 -3% -2% Neteks $68 $76 $65 -14% -4% Neotech $81 $75 $69 -8% -15% T t l Total $956 $952 $1 026 $1.02
Slide 23: Main Product Groups
Main Product Groups Storage & PC Software OEM Printers & Network Home Elec. Medium- Products Products Peripherals Products SizeSystems Acer Alps APC 3Com IBM Airties HP Apple Intel Canon Alied Tl Lotus Apple IBM Asus I-omega Epson Checkp. Microsoft Hitachi I-omega Dell g Kingston HP Cisco Novell LG
Slide 24: Index Group Companies 2008 - 2009 Product Categories
Index Group Companies 2008 - 2009 “Main Product Categories Based Distribution”
Slide 25: Distribution of Sales on Vendor's Country Basis
Index Group Companies 2008 - 2009 “Distribution of Sales on Vendor’s Country Based # Country 2008 2009 1 USA 66,58% 58,73% 2 Japan 13,61% 16,91% 3 Taiwan 9,43% 10,45% 4 Korea 3,64% 6,12% 5 China 3,85% 6,62% 6 Turkey 2,91% 1,46% 7 Israel 0,29% 0,27%
Slide 26: Business Partners Breakdown
Business Partners Breakdown Total Number of Business Partners: 7.400 Traditional Dealer Channels 5 815 5.815 Authorized Seller Channels 600 Network Channels 400 Retail Channels 225 Corporate Channels 150 Sub Dealers Channels 80 Local Producers Channels 70 Medium Sized Systems Channels 60
Slide 27: Datagate Computer Inc.
D t Datagate t CComputer t IInc. (DGATE TI / Bloomberg, DGATE.IS / Reuters) 2009 2010 2009-2010
Slide 28: Company Profile & Our Regions
Company Profile & Our Regions Name of the Company Datagate Computer Inc. Establisment 1992 Company p y Profile Legal Status Public Company – (ISE) Chairman Erol BILECIK General Manager Salih BAS Head Establisment Number of Office / Branch Date City Employees Head Office June 92 Istanbul 34 Branch Fe
Slide 29: Datagate Computer Yearly Revenues
Datagate Computer Yearly Revenues (mio TRL)
Slide 30: 2008-2009 Monthly Revenues
2008-2009 Monthly Revenues (mio TRL)
Slide 31: Results of 2009
Results of 2009 Net Sales EBITDA Growth % 39,12 Growth %148,51 295,08 , mio TRL 212,10 mio TRL 2,7 mio TRL 6,8 mio TRL Sales 2008 2009 Operational Expenses Net Growth Improvement %37,19 Growth %1520 %1 1,93 93 % 1,22 0 26 mio 0,26 i TRL 4,3 mio TRL Operational Expenses Net Profit 2008 2009 2008 2009
Slide 32: Indeks Computer Inc.
Indeks Computer Inc. (INDES TI / Bloomberg, INDES.IS / Reuters) 2009-2010 2009 2010
Slide 33: Company Profile & Our Regions
Company Profile & Our Regions Name off the N th Company C IIndeks d k Computer C t Inc. I Company Profile Establishment 1989 Legal Status Public Company – (ISE) Chairman Erol BILECIK General Manager Attila KAYALIOGLU Head Establisment Number of office / Branch Date City Employees Head office July.89
Slide 34: Indeks Computer Yearly Revenues
Indeks Computer Yearly Revenues (mio TRL)
Slide 35: 2008-2009 Monthly Revenues (Consolidated)
2008-2009 Monthly Revenues (Consolidated) (mio TRL) T
Slide 36: 2008 Interpro Results
2008 Interpro Results 2008 Top 10 ICT Companies Revenue Range (Sales Revenue) 2008 Range Company US $ (mio) 1 Turkish Telecom 7,909 2 Turkcell 6,861 3 Vodafone 2,1 4 Avea 1,639 5 KVK 1,592 6 Gen pa Gen-pa 1 395 1,395 7 Indeks Computer 720 8 Hewlett-Packard 682 9 Teknosa 598 10 Digiturk 549 Source: I
Slide 37: Indeks Computer Financial Performance, 2009
Indeks Computer Financial Performance, Performance 2009
Slide 38: Developments Affecting the Profitability in 2009
Developments Affecting the Profitability in 2009 Marketing & Operational Discipline • Sales Performance Measurement System focussing on Efficiency and Profitability Orientated Structure, Structure • Increasing Efficiency and Cost Control with effective Stock Management that conducted with the cooper
Slide 39: Indeks Consolidated – Revenue & Gross Profit
Indeks Consolidated – Revenue & Gross Profit (000) TRL 12 Months 2009 12 Months 2008 Changes (% ) Indeks - Consolidated 1.087.422 927.893 17,2 Gross Profit 64.305 50.985 26,1 Gross Profitability (% ) 5,9 5,5 7,6 I d k -S Indeks Solo l 944 499 944.499 708 190 708.190 33 4 33,4 Datagate 295.076 212.09
Slide 40: Indeks Consolidated – Summarized P/L Account, 2009
Indeks Consolidated – Summarized P/L Account, 2009 (000) TRL 12 Months 2009 12 Months 2008 Changes (% ) Net Sales 1.087.422 927.893 17,2 Gross Profit 64.305 50.985 26,1 Gross Profit Margin (%) 5,9 5,5 7,6 EBITDA 40.467 26.856 50,7 EBITDA Margin (%) 3,7 2,9 28,6 Operational Profit 39.769 26.226 51,6
Slide 41: Indeks Consolidated – Summarized Balance Sheet, 2009
Indeks Consolidated – Summarized Balance Sheet, 2009 (000 TRL) Changes Changes Assets 2009 (%) 2008 (%) (%) Liabilities & Capital 2009 (%) 2008 (%) (%) Current Assets 405.654 92,9% 304.633 90,7% 33,2 Short Term Liabilities 313.008 71,7% 228.448 68,0% 37,0 Cash 2.321 0,5% 9.127 2,7% (74,6) Financial
Slide 42: Indeks Consolidated – Basic Financial Ratios, 2009
Indeks Consolidated – Basic Financial Ratios, 2009 LIQUIDITY RATIOS 31.12.2009 31.12.2008 Current Ratio 1,30 1,33 Quick Ratio 0,85 0,98 THE WORKING CAPITAL RATIOS (*) 31 12 2009 31.12.2009 31 12 2008 31.12.2008 Receivables Days 61 66 Payables Days 74 74 Inventory Days 31 34 FINANCIAL STRUCTURE RATIO
Slide 43: Indeks Consolidated - Net Financial Debt
Indeks Consolidated - Net Financial Debt (000 TRL) (000 USD) 32.581 27.974 33.000 31.832 21.049 32.500 20.023 32.000 31.500 2007 30.148 31.000 2008 30.500 2009 30.000 29.500 29.000 28.500 2007 2008 2009 2007 2008 2009
Slide 44: Indeks Consolidated – Range of Loan Payment Terms
Indeks Consolidated – Range of Loan Payment Terms (000 TRL)
Slide 45: Indeks Consolidated – Range of Operational Expenses
Indeks Consolidated – Range of Operational Expenses 2009 Range of Operational Expenses - Personnel Expenses - Freight & Storage Expenses 1,68% - Depreciation Expenses 22,91% - Insurance Expenses 1,88% 54 87% 54,87% - Renting Expenses 2,43% 2,86% - Transportation Expenses 2,92% 10,45% - Auditing Expe
Slide 46: Indeks Consolidated – Net Working Capital
Indeks Consolidated – Net Working Capital Net Working Capital / Net Sales 8,52% 2009/12 8,21% 2008/12 5% 6% 7% 8% 9% 10% 11%
Slide 47: Indeks Consolidated – Summarized Cash Flow
Indeks Consolidated – Summarized Cash Flow
Slide 48: Index Group Companies Expectations for 2010
Index Group Companies Expectations for 2010
Slide 49: Group Companies 2010 Solo Revenue Targets
Group Companies 2010 Solo Revenue Targets (mio $) Growth Growth Company 2008 2009 (%) 2010 *F (%) Indeks 556 615 11% 688 12% Datagate 163 191 17% 210 10% Despec 88 86 -2% 93 8% Neteks 68 65 -4% 73 12% Neotech 81 69 -15% 71 3% Total 956 1.026 7% 1.135 11%
Slide 50: Indeks Dividend Policy
Indeks Divident Policy Our Company's Dividend Policy, with the condition of not less than the rates that Turkish Capital Markets legislation indicated, is done according to long term growth & strategies, investment & finance needs, profitability structure and shareholders’ expectations, with the exc
Slide 51: 2010 Expectations
2010 Expectations Expectations for Sector Expectations for Index Group • Global Economic Weak Recovery, • Increase ofBeklentilerimiz Market Share in Turkey, • Increase in Market Share of Mobile • 11 % Increase of Revenue– US $ Computers, p , Based, • Increasing End User (Home User) • Gross Profit Ma
Slide 52: Index Group Future Plans
Geleceğin Teknoloji Dağıtım Grubu Index Group Future Plans…. Technology Distributor of the Future IT Telecom Sector Consumer Elec. L O G I S T I C SERVICE Distribution of all operated products by electiricity that address single end user… end-user…
Slide 53: Thank you
Thank you… Think About the Environment
Slide 54: Contacts for Investor Relations
Contacts for Investor Relations Naim Sarac Halil Duman Investor Relations Manager Board Member & CFO Tel: +90 (212) 331 2115 Tel: +90 (212) 331 2111 e-mail: nsarac@index.com.tr @ e-mail: hduman@index.com.tr Onur Kara Investor Relations & Ass. CFO Tel: +90 (212) 331 21 21 /2173 e-mail: okara@index.co