Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA

Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — Q2 2014 Earnings Presentation

32 slides from Teknosa Ic Ve Dis Ticaret As's earnings presentation, Aug 4, 2014

  1. Slide 1: Teknosa 2Q14 Results: Leader of A Growing Market

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Investor Teknosa İç ve Dış Ticaret A.Ş. Presentation 2Q14 Results «Leader of A Growing Market» Korhan Bilek, CFO Erman Tütüncüoğlu, Head of IR August 4, 2014

  2. Slide 2: Investment Theme

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION • Young population with higher tendency for 1 Strong Growth Potential Investment in the Market electronics spending • Turkey’s CE retail is under-penetrated and Theme growing strongly with favorable demographics and rising per capita income Having

  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 slowed to a  Demand negatively impacted by Main single digit level due to lower retreating consumer confidence, while demand… growth sustained via online sales and new messages store openings  2% Net Sales growth in 2Q14 (+5% YoY

  5. Slide 5: Post-election improvement in CCI was short-lived

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  +5.8p improvement in CCI in April following the elections was short-lived, as Post-election the index plummeted by -2.5p in May and -2.3p in June following the mining accident in Soma and the political instability in the region, curbing improveme

  6. Slide 6: Consumers are still adjusting to the new law

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

  7. Slide 7: Consumers are still adjusting to the new law

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Consumers are still adjusting to the new law on credit cards, while the Consumers are growth in the balance of installment payments slipped to red for the first time in April and maintained a downward trend afterwards, contracting by still adjust

  8. Slide 8: TeknoKredi fully launched in June as a remedy for the new law

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION TeknoKredi fully launched  In order to offer its customers a new way for financing their needs, in June as a TeknoKredi was fully launched in June, in cooperation with ING Bank, remedy for becoming available in all our stores by the end of the mon

  9. Slide 9: 2Q14 Results

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 180  +17% YoY growth 2Q14 154  Dynamic portfolio Net Sales Area Results (k m2) management: 27 stores opened, 15 closed 2Q13 2Q14  Excluding the one- 22 off wholesale in 2Q13, revenues are Net Sales Total 672 707 up by 5% YoY (M TL) Revenues  Gr

  10. Slide 10: 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 1H14 Revenue Breakdown by Product Groups as of 1H14 E-Commerce  Consumer Electronics & Photo: 37% Operations 10% (

  11. Slide 11: Rapid Expansion Through Different Store Formats

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Net Sales Area (k m2) Rapid 1H14 YoY Expansion Growth 17% Through Different 128 141 166 154 180 Store Formats 56 67 80 101 22 33 12 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 1H13 1H14 Number of Stores 283 294 291 306 244 256 269 232 218 152

  12. Slide 12: Proven Growth Track

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Net Sales (M TL) Proven Growth Track Dealership sales Retail sales 2.957 117 2.337 ‘10 – ‘13 117 CAGR 33% 1H14 Growth 1.672 1,355 1,389 97 3% 1.294 2,840 43 1.148 58 -26% 80 1.020 65 945 2,216 94 740 138 1,575 93 1,296 1,346 4% 467 1,083 1,214 340

  13. Slide 13: 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 136 revenues… 73 2.1x 1.9x 66 39 2Q13 2Q14 1H13 1H14  Strong growth in e-commerce is expected to maintain the high pace  The share of e-commerce is expected to reac

  14. Slide 14: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 14

  15. Slide 15: Electronics Retail Market in Turkey

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Electronics Sales Channels of Technical Consumer Goods Market Retail Market in Turkey Points of Sale: Points of Sale: Points of Sale: Points of Sale: Points of Sale: ~3K ~18K ~6K ~17K ~600 Media Markt, Bimeks, Gold Bilgisayar, Vatan 15 Source: GfK

  16. Slide 16: Electronics Retail Market and Teknosa (5M14)

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  As of 5M14, total market (CE, IT, Telecom, MDA, SDA) grew by 17% YoY, reaching Electronics TL 13.1bn  Technical Super Stores (TSS) channel recorded 10% YoY growth in the same period Retail Market to TL 3.4bn in the 5 major categories and Teknosa

  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 ) 2Q13 1Q14 2Q14 YoY (%) QoQ (%) 1H13 1H14 YoY (%) Highlights Net Sales 694 682 707 2% 4% 1,355 1,389 3% Gross Profit 132 130 127 -4% -3% 248 257 3% Gross Profit Margin 19.0% 19.1% 17.9

  19. Slide 19: Retail Operations Revenue Growth Analysis

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 21%  Store revenues, which Retail account for ~90% of 7% Operations the total, posted 4% YoY growth in 2Q14. 5% 4% Revenue 14%  2Q14 LfL growth: -3% Growth 7% -2% 7% -3% due to strong base and declining CCI in May Analysis and June, negatively 2Q

  20. Slide 20: Quarterly OPEX Breakdown

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Personnel expenses, which were back to historic levels, stood out as the Quarterly major item in 2Q14, paving the way for the improvement in the OPEX/Net Sales Ratio. OPEX  Although rent expenses were positively affected by a slightly stronger T

  21. Slide 21: Rent Costs Stand Out as the Major Item Inflating OPEX

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  The persistent hike in FX rates since 3Q13 elevated rent costs, which are Rent Costs comprised of ~40% € contracts and ~30% US$ contracts Stand Out as  Rent costs increased by 17% YoY in 1Q14 (US$/TL +24%, €/TL +29% YoY) and by 8% YoY in 2Q14 (U

  22. Slide 22: Key Performance Indicators (Retail Operations)

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Key Teknosa Key Performance Indicators (Retail Operations) Performance 2Q13 1Q14 2Q14 YoY (%) QoQ (%) 1H13 1H14 YoY (%) Indicators Number of Provinces (@ period end) 77 77 78 1% 1% 77 78 1% (Retail Net Sales Area (k m2 @ period end) Number of Store

  23. Slide 23: Balance Sheet

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Assets (in M TL) Jun.13 Mar.13 Jun.14 Current Assets 720 685 807 Cash and Cash Equivalents 168 113 124 Balance Due From Related Parties Trade Receivables 0 62 1 27 2 32 Sheet Inventories Other Current Assets 461 28 520 24 626 22 Non-current Assets

  24. Slide 24: Working Capital

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Working Capital Days Capital -13 -20 -9 Days of NWC 108 102 90 89 84 Days of TR 71 Days of Inventory Days of TP 6 4 4 2Q13 1Q14 2Q14  Negative working capital allows Teknosa to generate positive cash flow in tandem with growth  2Q14 NWC i

  25. Slide 25: Capital Expenditures

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Total CAPEX (M TL) Capital Expenditures 29.8 26.2 18.3 16.4 2Q13 2Q14 1H13 1H14  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

  26. Slide 26: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 26

  27. Slide 27: Macroeconomic Indicators

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Macroeconomic Indicators Indicator 2012 2013 2014E GDP growth 2.1% 4.0% 2.5% Private Consumption -0.5% 4.6% 0.7% CPI Inflation 6.2% 7.4% 8.5% USD/TL rate (y.e.) 1.78 2.13 2.19 USD/TL rate (avg) 1.80 1.92 2.16 27

  28. Slide 28: 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

  29. Slide 29: 2014 Targets Checklist

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Growth over the market;  Net store space up by 17% YoY in 1H14 2014 Targets stores&online  On-line sales doubled YoY to TL 136mn Checklist… Aftersales services  Aftersales services increased to 2.6x of 1H13 level, nearly tripling YoY in TL terms

  30. Slide 30: 2014 Full Year Financial Guidance

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 2014 Full Year Financial 2013 2013 2014E 2014E FORECAST ACTUAL OLD NEW Guidance YE Net Sales Area (km2) 165-170 166 190-195 175-180 Net Sales (TL mn) 2,900 – 3,000 2,957 3,500-3,850 3,200-3,300 Growth (%) 25%-30% 27% 20%-30% 8%-12% LFL Growth (%) 1

  31. 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

  32. Slide 32: 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 August 4, 2014) 3

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