Slide 1: Analyst Meeting 2015-2016 View
ANALYST MEETING 2015-2016 VIEW EROL BİLECİK INDEX GRUP CEO Twitter ErolBilecik
Slide 2: Disclaimer
Disclaimer This presentation contains information and analysis 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 expectatio
Slide 3: Agenda
Agenda • BAŞLIK 1. IT Sector in Turkey and the World 2. Index Group Companies Review • Index Group Companies 2014 Review, • Index Computer Inc. Financial and Operational Results • Datagate Computer Inc. Financial and Operational Results • Index Group 2015 Developments
Slide 4: IT Sector in Turkey and the World
IT Sector in Turkey and the World
Slide 5: Changes in End User Market Shares
Changes in End User Market Shares 2016 E 15% 8% 11% 16% 50% 2015 16% 8% 11% 15% 50% 2014 16% 9% 12% 15% 48% 2013 18% 9% 13% 14% 46% 2012 17% 11% 14% 14% 44% 2011 18% 11% 15% 14% 42% 2010 17% 13% 16% 14% 40% 2009 18% 14% 16% 14% 38% 2005 22% 25% 25% 10% 18% 2000 25% 35% 23% 7% 10% 1995 38% 30% 20% 5%
Slide 6: PC & Internet Penetration
PC & Internet Penetration 80% 75% 70% 68% 60% 70% 65% 60% 57% 60% 53% 58% 50% 60% 50% 46% 52% 50% 40% 44% 40% 34% 40% 30% 30% 25% 20% 15% 20% 10% 10% 0% 0% 2005 2011 2012 2013 2014 2015 2016 E 2017 E 2005 2011 2012 2013 2014 2015 2016 E 2017 E Internet Penetration PC / Tablet Penetration
Slide 7: Turkish IT Market
Turkish IT Market 2012 - 2019 (x m $) CAGR(12-19F): % 2,4 8000 10% 7000 6.544 6.721 8% 6.447 6.261 6.352 5.946 6.112 6000 5.541 6% 5000 4% (mio USD) 4000 2% 3000 0% 2000 -2% 1000 -4% 0 -6% 2012 2013 2014 2015 F 2016 F 2017 F 2018 F 2019 F IT Sector Business Volume % Growth Kaynak: IDC Worldwide Blac
Slide 8: Turkish Information Technology Market
Turkish Information Technology Market 2012 - 2019 (x m $) IT Sector Segments (x m $) 2012 2013 2014 2015 E 2016 E 2017 T 2018 E 2019 E Total IT 5,541 $ 5,946 $ 6,447 $ 6,112 $ 6,261 $ 6,352 $ 6,544 $ 6,721 $ Service 1,038 $ 1,180 $ 1,361 $ 1,358 $ 1,396 $ 1,483 $ 1,610 $ 1,720 $ Software 592 $ 636 $
Slide 9: Turkish Information Technology Market
Turkish Information Technology Market 2012 - 2019 (x m $) IT Sector Segments (x m $) 2012 2013 2014 2015 E 2016 E 2017 E 2018 E 2019 E Servis 3,911 $ 4,130 $ 4,397 $ 4,042 $ 4,119 $ 4,079 $ 4,092 $ 4,098 $ Software 592 $ 636 $ 689 $ 713 $ 746 $ 789 $ 842 $ 904 $ Service 1,038 $ 1,180 $ 1,361 $ 1,358
Slide 10: Turkey PC Market / Desktop & Mobile
Turkey PC Market / Desktop & Mobile Mobile 67% 70% PC 2014 Desktop 33% 30% 2015 Desktop Mobile PC Total 2014 927,382 1,895,739 2,823,121 2015 547,602 1,289,145 1,836,747 Growth -41% -32% -35% Kaynak : IDC Worldwide Black Book
Slide 11: European Countries PC Market
European Countries PC Market (x 1.000 Unit) 15.000 10.000 2014 2015 5.000 0 Czech Germany UK France Italy Spain Poland Holland Turkey Switzerland Belqium Norway Austria Romania Portugal Greece Ireland Rep. 2014 12,946 10,908 9,376 4,542 3,616 3,063 2,896 2,823 1,653 1,593 1,191 1,265 1,036 781 772 7
Slide 12: Regional Countries PC Market
Regional Countries PC Market (x 1.000 Unit) 10.000 2014 5.000 2015 0 South Russia Turkey Saudi Arabia Africa UAE Israel Ukraine Egypt Croatia Slovenia 2014 7,907 2,823 1,841 1,707 1,623 773 1,117 674 259 176 2015 4,851 1,836 1,604 1,549 1,395 812 731 467 231 158 Growth % -39% -35% -13% -9% -14% 5% -
Slide 13: 2016 - 2017 Technology Trends
2016 - 2017 Technology Trends 1 The Device Mesh 2 Ambient User Experience 3 3D-printing Materials 4 Information of Everything 5 Advanced Machine Learning 6 Autonomous Agents and Things 7 Adaptive Security Architecture 8 Advanced Customer Architecture 9 Mesh App and Service Architecture 10 Internet o
Slide 14: Index Group Companies 2015 Review
Index Group Companies 2015 Review
Slide 15: Index Group Companies and Its Subsidiaries
Index Group Companies and Its Subsidiaries BIST Listed Market Company Name Business Model % % Cap (TRL) * Index A.Ş. * Broadliner Dist. 100 41 386.400.000 Datagate A.Ş. ** Telco Dist. 59 38 189.800.000 Despec A.Ş. *** Comsumables Dist. - 39 88.100.000 Neteks A.Ş. **** Network Products Dist. 50 - - H
Slide 16: Our Regions
Our Regions Samsun İstanbul- İstanbul- 8 Cities Anatolia Europe 399 4152 2060 Dealers Trabzon Dealers Dealers Kocaeli 6 Cities 210 6 Cities, Dealers 530 Dealers Erzurum 6 Cities Tekirdağ Ankara 190 Dealers 5 Cities, 6 Cities 521 Bursa 1881 Dealers 3 Cities, Dealers Elazığ 416 Kayseri 7 Şehir Dealers
Slide 17: Business Model
INDEX:GRUP Business Model TECHNOLOGY | LocisTic | BUSINESS | LEADER ONE STOP TECHNOLOGY RA TRE | PARTNERS SHOPPING CONTRACT | CEN GROUP Ec Producer INDEX datagate pEspee’ Netex artin@« JEKLOS
Slide 18: Human Resource
Human Resource # of Dept. Name Employees % Logistic 180 35,2% Sales 140 27,4% Product Management 66 12,9% Administrative & Security 31 6,1% Risk Management 17 3,3% Accounting 16 3,1% Foreign Trade 13 2,5% IT & Software 13 2,5% Management 11 2,2% Finance 10 2,0% 180 Audit 5 1,0% 35,2% HR 5 1,0% Legal
Slide 19: Group Companies 2014-2015 Revenues (Solo)
Group Companies 2014-2015 Revenues (Solo) (x m TRL) Companies 2014 2015 % 2015 Index Datagate Despec 1,731 467 167 2,245 1,113 179 30% 138% 7% %49 3,994 Neteks 242 324 34% 2014 Artım 63 103 64% Teklos Total 16 2,686 29 3,994 81% 49% 2,686
Slide 20: Major Producers
Major Producers . @ Hewle pacha ~ Tt lenovo Canon’ (iste) ils mE vicosot = =9/BUS' acer TOSHIBA samsunc = FUJITSU) Sewer «= 3 @LG OKI og ATC EPSON’ JUNIPeEl SONY CEs ZTE AN ekingtor =Alrust AOC kt LEXMARK VESTEL Casper Arties AVAYA JARGcus ft G, Panasonec HECK POINT ee ed e “Optoma = fatermec’ @DATA
Slide 21: Main Product Groups
Main Product Groups Data Printers Telecom Smart Network Software Consumer Storage & PC Tablet and Consumables OEM Accessories Products Phones Products Products Electronics Med. Size Peripherals Sys. Acer A.Tel.Ür. Apple A10 Adobe Acer APC Canon Airties Canon HP Lenovo Apple Modem Gen.Mobile Avaya HP
Slide 22: Breakdown of Sales in Main Product Groups
Index Group Companies 2014-2015 “Breakdown of Sales in Main Product Groups” Data Storage & Telecom Smart Network Software Printers & Med. Size Wearable Products PC Phones Products Products Peripherals OEM Consumables Consumables Tablet Sys. Accessories Tech. 2014 11.6% 31.9% 13.8% 7.8% 6.0% 6.2% 5.5
Slide 23: Breakdown of Sales in Producers' Origin
Index Group Companies 2014-2015 “Breakdown of Sales in Producers’ Origin” Country 2014 % 2015 % USA 62.6% 62.4% Japan 17.5% 12.9% China 6.0% 9.0% 2014 Yılı Korea 2.8% 6.2% 2015 Yılı Turkey 3.2% 4.8% Taiwan 7.9% 4.7%
Slide 24: Seasonality
Seasonality 2016E 24% 24% 23% 30% 2015 25% 24% 22% 30% 2014 22% 18% 21% 39% 2013 24% 22% 23% 31% 2012 23% 22% 22% 33% 2011 23% 23% 23% 31% 1Q 2Q 2010 23% 20% 23% 34% 3Q 2009 18% 26% 25% 31% 4Q 2008 28% 24% 24% 24% 2007 21% 23% 23% 33% 2006 23% 21% 24% 32% 2005 21% 21% 24% 34% 0% 20% 40% 60% 80% 100%
Slide 25: Index Computer Financial and Operational Results
INDEX COMPUTER Financial and Operational Results HALİL DUMAN CFO
Slide 26: Revenue & Gross Profit
Revenue & Gross Profit (000 TRL) (000) TRL 2015 2014 Changes (% ) Indeks - Consolidated 3.384.691 2.206.019 53,4 Gross Profit 152.811 102.580 49,0 Gross Profitability (% ) 4,5 4,7 (2,9) Indeks - Solo 2.211.681 1.713.876 29,0 Datagate 1.076.212 452.631 137,8 Teklos 28.299 15.778 79,4 Artım 100.809 61
Slide 27: Consolidated Summarized P/L
Consolidated Summarized P/L (000 TRL) (000) TRL 2015 2014 Changes (%) Net Sales 3.384.691 2.206.019 53,4 Gross Profit 152.811 102.580 49,0 Gross Profit Margin (%) 4,5 4,7 (2,9) EBITDA 93.493 60.878 53,6 EBITDA Margin (%) 2,8 2,8 0,1 Operational Profit 90.933 58.532 55,4 Operational Profit Margin (%)
Slide 28: Summarized Balance Sheet
Summarized Balance Sheet (000 TRL) Changes Changes Assets 31.12.2015 (%) 31.12.2014 (%) Liabilities & Capital 31.12.2015 (%) 31.12.2014 (%) (%) (%) Current Assets 1.257.204 90,7% 962.108 90,8% 30,7 Short Term Lia. 1.108.295 79,9% 843.017 79,5% 31,5 Cash 136.764 9,9% 111.965 10,6% 22,1 Financial Lia.
Slide 29: Net Financial Debt
Net Financial Debt (000 TRL & USD) (000 TRL) (000 USD) 5.000 5.000 0 0 -5.000 -5.000 2013 2014 -10.000 2015 -10.000 -15.000 -15.545 -20.000 -15.000 -33.178 -64.721 -78.008 -27.910 -26.829 -25.000 -20.000 2013 2014 2015 2013 2014 2015
Slide 30: Working Capital
Working Capital (000TRL) (000) TRL 31.12.2015 31.12.2014 Changes % (000) TRL 31.12.2015 31.12.2014 Changes % Short T. Trade Receivables 881.470 636.440 38,5 Short T. Trade Payables 719.867 683.603 5,3 Inventories 206.643 170.285 21,4 Short T. Financial Debts 255.262 91.602 178,7 Cash & Cash Equivale
Slide 31: Cash Flow
Cash Flow (000 TRL) (000) TRL 31.12.2015 31.12.2014 Beginning of Term Balance 111.959 74.358 Activity of Net Cash Flow (118.723) (25.384) Investment Activities (3.811) (8.517) Changes in Cash (122.535) (33.900) Changes in Financial Debts 147.329 71.501 End of Term Balance 136.753 111.959
Slide 32: Financial Ratios
Financial Ratios LIQUIDITY RATIOS 31.12.2015 31.12.2014 Current Ratio 1,13 1,14 Quick Ratio 0,95 0,94 THE WORKING CAPITAL RATIOS (*) 31.12.2015 31.12.2014 Receivables Days 62 72 Payables Days 67 80 Inventory Days 21 24 FINANCIAL STRUCTURE RATIOS 31.12.2015 31.12.2014 Capital / Total Liabilities & Ca
Slide 33: Datagate Computer Financial and Operational Results
DATAGATE COMPUTER Financial and Operational Results HALİL DUMAN CFO
Slide 34: Summarized P/L
Summarized P/L (000 TRL) (000) TRL 2015 2014 Changes (%) Net Sales 1.077.380 454.524 137,0 Gross Profit 37.371 17.956 108,1 Gross Profit Margin (%) 3,5 4,0 (12,2) EBITDA 25.364 12.970 95,6 EBITDA Margin (%) 2,4 2,9 (17,5) Operational Profit 25.305 12.921 95,8 Operational Profit Margin (%) 2,3 2,8 (1
Slide 35: Summarized Balance Sheet
Summarized Balance Sheet (000 TRL) Changes Changes Assets 31.12.2015 (%) 31.12.2014 (%) Liabilities & Capital 31.12.2015 (%) 31.12.2014 (%) (%) (%) Current Assets 361.809 82,8% 179.919 79,5% 101,1 Short Term Lia. 308.595 70,6% 146.827 64,9% 110,2 Cash 39.296 9,0% 29.671 13,1% 32,4 Financial Lia. 196
Slide 36: Net Financial Debt
Net Financial Debt (000 TRL & USD) (000 TL) (000 USD) 10.000 10.000 5.000 5.000 0 0 -5.000 -5.000 -7.971 -12.795 -13.515 2013 -10.000 -17.013 -10.000 2014 -15.000 -15.000 2015 -20.000 -20.000 -25.000 -29.671 -25.000 -30.000 -39.296 -30.000 -35.000 -35.000 2013 2014 2015 2013 2014 2015
Slide 37: Working Capital
Working Capital (000 TRL) (000) TRL 31.12.2015 31.12.2014 Changes % (000) TRL 31.12.2015 31.12.2014 Changes % Short T. Trade Receivables 271.911 113.108 140,4 Short T. Trade Payables 91.971 87.661 4,9 Inventories 45.923 29.303 56,7 Short T. Financial Debts 196.581 46.115 0,0 Cash & Cash Equivalents
Slide 38: Cash Flow
Cash Flow (000 TRL) (000) TRL 31.12.2015 31.12.2014 Beginning of Term Balance 29.668 17.013 Activity of Net Cash Flow (166.931) (71.947) Investment Activities (212) (68) Changes in Cash (167.143) (72.015) Changes in Financial Debts 176.764 84.670 End of Term Balance 39.289 29.668
Slide 39: Financial Ratios
Financial Ratios LIQUIDITY RATIOS 31.12.2015 31.12.2014 Current Ratio 1,17 1,23 Quick Ratio 1,02 1,03 THE WORKING CAPITAL RATIOS (*) 31.12.2015 31.12.2014 Receivables Days 24 51 Payables Days 30 49 Inventory Days 12 17 FINANCIAL STRUCTURE RATIOS 31.12.2015 31.12.2014 Capital / Total Liabilities & Ca
Slide 40: Index Group Companies 2016 Developments
INDEX GRUP COMPANIES 2016 DEVELOPMENTS EROL BİLECİK INDEX GRUP CEO Twitter ErolBilecik
Slide 41: Group Companies 2016 Targets
Group Companies 2016 Targets (Solo) (x m TRL) Companies 2015 2016 % 2016 Index Datagate Despec 2,245 1,113 179 2,616 17% 1,239 11% 200 11% %14 4,570 Neteks 324 354 9% 2015 Artım 103 137 32% Teklos Total 29 3,994 25 -15,5% 4,570 14% 3,994
Slide 42: Breakdown of Sales in Main Product Groups 2015-2016
Index Group Companies 2015-2016 “Breakdown of Sales in Main Product Groups” Data Printers Storage & Telecom Smart Network Software and Consumer Med. Size Wearable Products PC Phone Products Products Peripherals OEM Consumables Electronic Tablet Sys. Accessories Tech. 2015 28.2% 24.3% 17.2% 6.9% 4.8%
Slide 43: Strong Investments and Results
Strong Investments and Results
Slide 44: We are proud to be leader in all lanes in Technology World!
We are proud to be leader in all lanes in Technology World! VALUE ADD VOLUME MOBILE
Slide 45: Datagate is Prominent Power of Index Group in Telecom World
Datagate is Prominent Power of Index Group in Telecom World.
Slide 46: In Real Estate Project Getting Closer to Pleasent End
In Real Estate Project Getting Closer to Pleasent End IndexPark Real Estate Project
Slide 47: Strong, Profitable and Productive growing Index Group
Strong, Profitable and Productive growing Index Group Between 2000-2015, sales volume increased With B2B strategy, from 144 milion TL to 3.994 million TL. siwtching to online system and effective study Verimli Güçlü We are stepping confidence In 15 years, 28 times growth, %25 yearly average
Slide 48: Thanks...
“ INDEX:GRUP Thanks... | INDEX datagate oesec’ Netex artim@< IMIS =.