BIM Birlesik Magazalar A.S. · BIST:BIMAS
BIM Birlesik Magazalar A.S — Birleşik Mağazalar A.Ş. (BIM) — H1 2005 Earnings Presentation
21 slides from BIM Birlesik Magazalar A.S's earnings presentation, Aug 25, 2005
Slide 1: Interim Results Presentation
Thursday, 25 August 2005 INTERIM RESULTS PRESENTATION For the Six Months to 30 June 2005 August 2005 STRICTLY CONFIDENTIAL BIM INTERIM RESULTS PRESENTATION STRICTLY PRIVATE AND CONFIDENTIAL
Slide 2: Important Notice
Thursday, 25 August 2005 IMPORTANT NOTICE The information herein contains forward-looking statements about Birleşik Mağazalar A.Ş. (“BIM”) and its business. These forward-looking statements, which include, but are not limited to, statements concerning the financial condition, results of operations a
Slide 3: Highlights of First Half
Thursday, 25 August 2005 HIGHLIGHTS OF FIRST HALF Aziz Zapsu – Chairman and Chief Executive Officer BIM INTERIM RESULTS PRESENTATION STRICTLY PRIVATE AND CONFIDENTIAL
Slide 4: Highlights of First Half
Thursday, 25 August 2005 HIGHLIGHTS OF FIRST HALF Stable macro environment and strength of New Turkish Lira Turkish retail market continues to grow rapidly Continued organic and new store growth sales grew over 15% compared to the first half of last year 79 new stores opened in first half
Slide 5: Review of Operations
Thursday, 25 August 2005 REVIEW OF OPERATIONS Jos Simons – Chief Operating Officer BIM INTERIM RESULTS PRESENTATION STRICTLY PRIVATE AND CONFIDENTIAL
Slide 6: Maturing Stores Analysis
Thursday, 25 August 2005 MATURING STORES ANALYSIS Store Openings 79 154 154 114 87 164 159 100 88 34 21 Per Year 1,000 900 881 Transactions per store per day for 1H 2005 817 825 800 741 740 700 691 688 630 600 566 500 457 400 380 389 300 362 335 200 100 0 Opening Year 2005 2004 2003 2002 2001 2000 1
Slide 7: Average Basket Size
Thursday, 25 August 2005 AVERAGE BASKET SIZE YTL 7.0 3 .8% 1.9% CAGR 6.5 CAGR 6.0 6.17 6.26 5.5 6.08 6.02 5.94 5.0 2002 2003 2004 2004 1H 2005 1H Steady growth in average basket size 7 BIM INTERIM RESULTS PRESENTATION STRICTLY PRIVATE AND CONFIDENTIAL
Slide 8: Product Mix
Thursday, 25 August 2005 PRODUCT MIX Continued growth in high-quality private label and exclusive products 1H 2004 1H 2005 PRIVATE PRIVATE BRANDED LABEL BRANDED LABEL 48.2% 41.0% 41.0% 47.5% SPOT EXCLUSIVE 5.3% SPOT EXCLUSIVE 6.1% 6.2% 4.7% 8 BIM INTERIM RESULTS PRESENTATION STRICTLY PRIVATE AND C
Slide 9: Financial Overview
Thursday, 25 August 2005 FINANCIAL OVERVIEW Eflan Yılmaz Baylan – Chief Financial Officer BIM INTERIM RESULTS PRESENTATION STRICTLY PRIVATE AND CONFIDENTIAL
Slide 10: Net Sales and Gross Profit
Thursday, 25 August 2005 NET SALES AND GROSS PROFIT Net Sales and Gross Profit Growth Drivers (YTLm) 1,500 1,438.0 NET SALES Extension of the store network GROSS PROFIT 1,200 1,161.7 Existing stores maturing 956.0 Increased basket size 900 791.5 Increased number of customers 687.4 per store
Slide 11: Like-for-Like Net Sales Growth
Thursday, 25 August 2005 LIKE-FOR-LIKE NET SALES GROWTH LFL Net Sales of Stores Operating in 2003(1) (YTLm) 680 % t h: 5.2 663 w 660 G ro 640 630 620 600 2004 1H 2005 1H ____________________ (1) Net sales generated in 1H2004 and 1H2005 by stores operating on 31 December 2003 and that were still open
Slide 12: Selling, General and Administrative Expenses
Thursday, 25 August 2005 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 1H2004 SG&A Analysis 1H2005 SG&A Analysis (YTLm) (YTLm) 150 150 125 125 (49.6) 100 (42.5) 100 75 75 (24.5) (21.2) 136.2 119.3 (4.2) 50 (4.3) 50 (29.8) (25.9) 25 (11.6) 25 (12.5) 25.5 28.1 13.9 15.6 0 0 (1) (1) (1) (1) Gross Person
Slide 13: Quarterly Improvement
Thursday, 25 August 2005 QUARTERLY IMPROVEMENT Net Sales Gross Discretionary price reduction during the (YTLm) 17.8% margin % first 5 weeks of 2005 on all SKUs following 450 18.0% the introduction of the new Turkish Lira 16.6% 400 15.0% Prices restored to pre-reduction levels by 403.7 end of 1Q
Slide 14: EBITDA and Net Income
Thursday, 25 August 2005 EBITDA AND NET INCOME Earnings(1) Drivers (YTLm) 45 44.8 Strong top-line growth EBITDA 40 NET INCOME Flexible business model with relatively low fixed costs 35 31.9 High operating leverage 30 28.1 25.5 Strict operating cost control 25 20 In particular personnel and
Slide 15: Free Cash Flow
Thursday, 25 August 2005 FREE CASH FLOW Free Cash Flow Gross Margin (YTLm) 30.0 % Investment requirements funded 50 14 12.6 43.2 12 by cash from operations 40 36.6 31.8 10 30 29.3 8 Limited investments and negative 21.7 6 20 4.1 working capital allow a positive 4 3.3 2 cash flow generation 10 0
Slide 16: Outlook for Second Half
Thursday, 25 August 2005 OUTLOOK FOR SECOND HALF Aziz Zapsu – Chairman and Chief Executive Officer BIM INTERIM RESULTS PRESENTATION STRICTLY PRIVATE AND CONFIDENTIAL
Slide 17: Outlook for Second Half
Thursday, 25 August 2005 OUTLOOK FOR SECOND HALF Strong trading in second half, driven by seasonal spike: September back to school Ramadan in October Use growing margins to decrease prices and increase sales Continued store expansion New region in south-east 40-50 new stores across Tur
Slide 18: Appendices
Thursday, 25 August 2005 APPENDICES BIM INTERIM RESULTS PRESENTATION STRICTLY PRIVATE AND CONFIDENTIAL
Slide 19: IFRS Income Statement
Thursday, 25 August 2005 IFRS INCOME STATEMENT YTLm Fiscal year ending 31 December 6 months ending 30 June 2002 2003 2004 2004 2005 Net sales 956.0 1,161.7 1,438.0 687.4 791.5 COGS (813.5) (969.8) (1,195.7) (568.1) (655.3) Gross profit 142.5 191.9 242.3 119.4 136.2 SG&A (137.4) (160.0) (197.5) (93.9
Slide 20: IFRS Balance Sheet
Thursday, 25 August 2005 IFRS BALANCE SHEET YTLm As at 31 December As at 31 March As at 30 June 2002 2003 2004 2005 2005 Intangible assets 1.5 1.3 1.6 2.0 1.9 Tangible assets 98.7 102.5 111.2 109.6 111.1 Other non-current assets 0.7 1.1 0.5 1.5 1.5 Total fixed assets 100.9 104.9 113.3 113.2 114.5 Tr
Slide 21: IFRS Cash Flow
Thursday, 25 August 2005 IFRS CASH FLOW YTLm Fiscal year ending 31 December 6 months ending 30 June 2002 2003 2004 2004 2005 Net Income 9.7 13.8 25.0 14.7 6.2 D&A 19.6 19.1 23.7 11.6 12.5 Other non-cash items (25.3) (1.7) (2.4) 0.8 9.8 Funds from operations 4.0 31.2 46.3 27.1 28.5 Change in net work
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