Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA

Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — Q1 2014 Earnings Presentation

31 slides from Teknosa Ic Ve Dis Ticaret As's earnings presentation, May 5, 2014

  1. Slide 1: Teknosa 1Q14 Results: Leader of A Growing Market

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Investor Teknosa İç ve Dış Ticaret A.Ş. Presentation 1Q14 Results «Leader of A Growing Market» Korhan Bilek, CFO Erman Tütüncüoğlu, Head of IR May 5, 2014

  2. Slide 2: Investment Theme

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 1 Strong Having the first-mover advantage, Teknosa Investment Leadership is the market leader with almost double the sales of the second player in the market Theme Young population with higher tendency for 2 Strong growth potential electronics spen

  3. Slide 3: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 3

  4. Slide 4: Main messages

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Top-line growth maintained  Top-line growth sustained in 1Q14 via the Main despite the unfavorable macro growth in online sales and new store economic environment… openings messages  3% Net Sales growth in 1Q14 (+11% YoY excluding the one-off who

  5. Slide 5: Trough point hit in the CCI since March 2010

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Due to increased political tensions prior to the elections and the rise in FX Trough point rates, the Consumer Confidence Index hit a new trough point in February at hit in the CCI 69.2 since March 2010, exceeding the previous low point hit on Oc

  6. Slide 6: Effects of the new law on credit cards

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  The new law on credit cards, made a bigger than anticipated impact on Effects of the demand. new law on  The sharp drop in growth of installment payments after January-end & the rise in single payments after December suggest that the consumers c

  7. Slide 7: Effects of the new law on credit cards

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  In addition to curbing the credit card spending, the new law on credit cards Effects of the also made a negative impact on the demand for CE products. new law on  As may be recalled, the new law only cancelled the installments for Telecom produc

  8. Slide 8: 1Q14 Results

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 171 145  Expansion in-line 1Q14 with guidance Net Sales Area Results (k m2)  Dynamic portfolio management: 11 stores opened, 7 1Q13 1Q14 closed  Excluding the one- off wholesale in 44 1Q13, revenues are Net Sales Total up 11% YoY (M TL) Revenues

  9. Slide 9: Operations

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa operations are composed of Retail, Retail Operations Operations Dealership and e-commerce activities Revenue Breakdown as of 1Q14 Revenue Breakdown by Product Groups as of 1Q14 E-Commerce  Consumer Electronics & Photo: 37% Operations 9% (2

  10. Slide 10: Rapid Expansion Through Different Store Formats

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Net Sales Area (k m2) Rapid 1Q14 YoY Expansion Growth 17% Through Different 128 141 166 145 171 Store Formats 56 67 80 101 22 33 12 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1Q13 1Q14 Number of Stores 283 294 289 298 256 269 232 244 218 152

  11. Slide 11: Proven Growth Track

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Proven Net Sales (M TL) Growth Track Retail sales 2.957 Dealership sales 117 2.337 ’13 - ’10 117 CAGR 33% 1.672 97 1.294 2,840 1Q14 1.148 80 Growth 945 1.020 65 2,220 94 682 740 138 661 3% 1,575 93 16 18 467 1,083 1,214 15% 340 67 807 930 49 647 64

  12. Slide 12: Strong growth in e-commerce revenues

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION E-Commerce (teknosa.com + kliksa.com) Revenues (M TL) Strong growth in e-commerce 186 63 revenues… 2.3x 3.7x 27 50 1Q13 1Q14 FY12 FY13  Strong growth in e-commerce is expected to maintain the high pace  The re-launch of kliksa.com has been comple

  13. Slide 13: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 13

  14. Slide 14: Electronics Retail Market in Turkey

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Electronics Sales Channels of Technical Consumer Goods Market (48.425 Sale Points) Retail Market in Turkey Points of Sale; 588 Media Markt, Bimeks, Gold Bilgisayar, Vatan 14 Source: GfK Electronics Panel Report 2013, CSP channel sales is not includ

  15. Slide 15: Electronics Retail Market Channel & Category Development

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Channel Development (%) Category Development Electronics Growth ‘13 vs.’12 in TLmn Retail Market 9.323 12.272 15.149 19.596 9.323 12.272 15.149 19.596 29% Channel & 34% Category Development 49% 5%  2013 electronics retail market size: TL19.6 billi

  16. Slide 16: Electronics Retail Market and Teknosa

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  2013 electronics retail market * TL 19.6 Billion ( 29%YoY) Electronics  2013 electronic market inc. MDA&SDA is up by 20% YoY to TL 30bn Retail Market   Technology Super Stores (‘TSS’) channel accounts for 38% of the total market Teknosa has 14

  17. Slide 17: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 17

  18. Slide 18: Financial Highlights

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa Summary Financials - Income Statement Financial ( M TL ) 1Q13 4Q13 1Q14 YoY (%) QoQ (%) FY12 FY13 YoY (%) Highlights Net Sales 661 816 682 3% -17% 2,333 2,957 27% Gross Profit 117 152 130 12% -14% 464 554 19% Gross Profit Margin 17.6% 18.6%

  19. Slide 19: Retail Operations Revenue Growth Analysis

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 30%  Store revenues, which Retail account for ~90% of Operations 8% the total, posted 5% YoY growth in 1Q14. Revenue  1Q14 LfL growth: -2% 4% 5% Growth 22% due to strong base and deteriorating macro Analysis 7% 7% economic background -3% -2% 1Q13

  20. Slide 20: Key Performance Indicators (Retail Operations)

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Key Teknosa Key Performance Indicators (Retail Operations) 1Q13 4Q13 1Q14 YoY (%) QoQ (%) FY12 FY13 YoY (%) Performance Number of Provinces (@ period end) 77 77 77 0% 0% 77 77 0% Indicators Net Sales Area (k m2 @ period end) 145 166 171 17% 3% 145

  21. Slide 21: Balance Sheet

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Assets (in M TL) Mar.13 Dec.13 Mar.14 Current Assets 669 900 685 Cash and Cash Equivalents 167 320 113 Balance Due From Related Parties Trade Receivables 0 36 0 39 1 27 Sheet Inventories Other Current Assets 422 44 511 29 520 24 Non-current Assets

  22. Slide 22: Working Capital

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Working Capital Days Capital -29 -14 -16 Days of NWC 108 105 85 84 Days of TR 73 67 Days of Inventory Days of TP 6 4 4 1Q13 4Q13 1Q14  Negative working capital allows Teknosa to generate positive cash flow in tandem with growth  1Q14 NWC

  23. Slide 23: Capital Expenditures

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Capital Total CAPEX (M TL) Expenditures 56.4 36% 11.1 -12% 41.6 9.8 1Q13 1Q14 FY12 FY13  New store openings and store renovations account for a major part of the Company’s capital expenditures.  Capital expenditures are financed with cash generat

  24. Slide 24: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 24

  25. Slide 25: Macroeconomic Indicators

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Macroeconomic Indicators Indicator 2012 2013 2014E GDP growth 2.2% 4.0% 2.0% Private Consumption -0.6% 4.6% 1.1% CPI Inflation 6.2% 7.4% 7.8% USD/TL rate (y.e.) 1.78 2.13 2.40 USD/TL rate (avg) 1.80 1.91 2.28 25

  26. Slide 26: Sector and Teknosa in 2014

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Slower sector growth in 2014 Sector and  Macro environment and consumer confidence  Regulations in consumer financing Teknosa in 2014  On the positive side  Macro stability expected in the second half of the year  New product launches in Apr

  27. Slide 27: Teknosa's Targets in 2014

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Growth over the market;  Stores; new openings and LfL Teknosa’s stores&online  Online sales more than double, reaching TL 0.5 billion ; continue investments Targets in 2014 Aftersales services  Develop new products & increase attachment rate Cus

  28. Slide 28: 2014 Targets Checklist

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Growth over the market;  Net store space up by 17% YoY in 1Q14 2014 Targets stores&online  On-line sales up by 131% YoY Checklist… Aftersales services  The share of after-sale services in retail revenues reached 2.3% in 1Q14, quadrupling YoY in

  29. Slide 29: 2014 Full Year Financial Guidance

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 2014 Full Year Financial 2013 FORECAST 2013 ACTUAL 2014E OLD 2014E NEW Guidance YE Net Sales Area (km2) 165-170 166 190-195 190-195 Net Sales (TL mn) 2,900 – 3,000 2,957 4,000 3,500 - 3,850 Growth (%) 25%-30% 27% 30%-35% 20%-30% LFL Growth (%) 15%-

  30. Slide 30: 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

  31. Slide 31: 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 (Published on May 05, 2014) 31

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