Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA

Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — Q3 2014 Earnings Presentation

33 slides from Teknosa Ic Ve Dis Ticaret As's earnings presentation, Nov 3, 2014

  1. Slide 1: Teknosa 3Q14 Results: Leader of A Growing Market

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Investor Teknosa İç ve Dış Ticaret A.Ş. Presentation 3Q14 Results «Leader of A Growing Market» Korhan Bilek, CFO Erman Tütüncüoğlu, Head of IR November 3, 2014

  2. Slide 2: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 2

  3. Slide 3: Main messages

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Now in every city of Turkey…  The sole electronics retailer present in all 81 cities of Turkey Main Higher focus on profitability  With strong market share gains in June and messages in 3Q14 … July, focus diverted back to profitability, leading t

  4. Slide 4: CCI remained flat in the 3rd quarter

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Amidst the political tensions in the region, the Consumer Confidence Index CCI remained failed to display any improvement in the third quarter, remaining below flat in the 3rd pre-election levels quarter… Consumer Confidence Index 85 2014 2011 20

  5. Slide 5: Consumers are still adjusting to the new law

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Consumer electronics spending via credit cards displayed 11% YoY growth in Consumers are August, following 6 months of consecutive contractions for the first time still adjusting after the law came into effect and a further 6% improvement in Sept

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

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  The monthly balance of single payments via personal credit cards grew Consumers are 15pps YtD, increasing their share in total to 55% from ~40% levels prior to the law. still adjusting  The consistent decline in monthly balance for personal cred

  7. Slide 7: TeknoFinans is to display faster growth

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION TeknoFinans is to display  After its launch on June in collaboration with ING Bank, consumer financing faster growth business saw a rapid increase in the number of applicants. with Akbank on  Akbank also entered into picture in October with its w

  8. Slide 8: 3Q14 Results

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 180 177 163  +8% YoY growth 3Q14  15 new stores Net Sales Area opened while 21 Results (‘000 m2) low performing stores closed in 3Q13 2Q14 3Q14 3Q14 786 776 707  Store closures limited top-line Net Sales growth in the third Total quarter (M TL)

  9. Slide 9: Revenues by activity

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa operations are composed of Retail, Retail Operations Revenues by Dealership and e-commerce activities activity Revenue Breakdown as of 9M14 Revenue Breakdown by Product Groups as of 9M14 E-Commerce 10% Other* 10% Dealership CE & Group 3% IT

  10. Slide 10: 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 208 72 in e-commerce +33% +73% 54 revenues… 120 3Q13 3Q14 9M13 9M14  Growth in e-commerce is expected to maintain the high pace  E-commerce revenues expected at TL 300mn, implyin

  11. Slide 11: Key Performance Indicators

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa Key Performance Indicators (Retail Operations) Key 3Q13 2Q14 3Q14 YoY (%) QoQ (%) 9M13 9M14 YoY (%) Performance Indicators Number of Provinces 77 77 81 5% 5% 77 81 5% (Retail Net Sales Area (‘000 sqm ) 163 180 177 8% -2% 163 177 8% Operatio

  12. Slide 12: Retail Operations Revenue Growth Analysis

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 31% Retail 7%  3Q14 LfL growth: -9% 4% due to strong base and Operations 24% -3% weak consumer confidence Revenue 7% -3% 6% -9% Growth Analysis 3Q13 2Q14 3Q14 27%  9M14 LfL growth: -5% 7% 2% 20% 6% -5% 9M13 9M14 12 Like for Like Growth Net Expans

  13. Slide 13: Quarterly OPEX Breakdown

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Reduction of the operational expenses goes in line with our plan Quarterly  Rent/Sales ratio continued to improve from the peak in 1Q14; additional OPEX improvement is expected in the final quarter of the year  Further improvement in personnel

  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 Sales Channels of Technical Consumer Goods Market Electronics Retail Market Hypermarkets / Supermarkets & Consumer Electronics Stores Computer Shops & System Houses Telecom Specialists (TCR) Technical Super Stores (TSS) Department Stores in Turkey

  16. Slide 16: Channel Development

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Technical Super Stores (TSS) grew below the market for the first time this year due Channel to their disadvantage in consumer financing  The new law offered Telecom Retailers (TCR) an advantage, as they are able to apply Development up to 24 mon

  17. Slide 17: Electronics Retail Market and Teknosa

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  As of 7M14, total market (CE, IT, Telecom, MDA, SDA) grew by 15% YoY, reaching Electronics TL 19bn  Technical Super Stores (TSS) channel recorded 7% YoY growth in the same period to Retail Market TL 4.7bn in the 5 major categories and Teknosa 

  18. Slide 18: Teknosa Market Share trends in the TSS Channel

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Teknosa’s market share was negatively affected in February and March, due to Teknosa immediate and full compliance with new regulation Market Share  After wider compliance in the sector, a more aggressive pricing and promotional strategy was dep

  19. Slide 19: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 19

  20. Slide 20: Income Statement Summary

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa Summary Financials - Income Statement Income ( M TL ) 3Q13 2Q14 3Q14 YoY (%) QoQ (%) 9M13 9M14 YoY (%) Statement Net Sales 786 707 776 -1% 10% 2,141 2,165 1% Summary Gross Profit 154 127 145 -6% 14% 402 402 0% Gross Profit Margin 19.5% 17.9

  21. Slide 21: Balance Sheet Summary

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Assets (in M TL) Sep.13 Jun.14 Sep.14 Balance Current Assets 688 807 745 Cash and Cash Equivalents 127 124 111 Sheet Due From Related Parties Trade Receivables 1 38 2 32 3 32 Summary Inventories Other Current Assets 479 43 626 22 581 19 Non-current

  22. Slide 22: Working Capital

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Working Capital Days Capital -5 -6 -9 Days of NWC 99 99 89 86 78 Days of TR 67 Days of Inventory Days of TP 6 4 4 3Q13 2Q14 3Q14  Negative working capital allows Teknosa to generate positive cash flow in tandem with growth  NWC improved b

  23. Slide 23: Capital Expenditures

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Total CAPEX (M TL) Capital Expenditures 46,4 46.5 20.3 16,6 3Q13 3Q14 9M13 9M14  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

  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 2.1% 4.1% 3.0% Private Consumption -0.5% 5.1% 2.1% CPI Inflation 6.2% 7.4% 9.4% USD/TL rate (y.e.) 1.78 2.13 2.22 USD/TL rate (avg) 1.80 1.92 2.17 25

  26. Slide 26: 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  Maintain strong growth in e-commerce Targets in 2014 Aftersales services  Develop new products & increase attachment rate Customer centricity  Over 4m loyalty custom

  27. Slide 27: 2014 Targets Checklist

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Growth over the market;  Net store space up by 8% YoY in 9M14 stores&online  On-line sales up by 73% YoY to TL 208mn 2014 Targets Checklist… Aftersales services  Aftersales services increased to 2x of 9M13 level, nearly doubling YoY in TL terms

  28. Slide 28: 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) 165-170 166 175-180 175 Net Sales (TL mn) 2,900 – 3,000 2,957 3,200-3,300 3,000 - 3,100 Growth (%) 25%-30% 27% 8%-12% 1%-5% LFL Growth (%) 15%-2

  29. Slide 29: Our 3-5 year growth plan

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Our 3-5 year 2014E 2015-2020 growth plan… Market Growth 15% 10%-15%/yr YE Net Sales Area (km2) 175 +20K sqm/yr TKNSA Top-line Growth (%) 1%-5% ~20%/yr LFL Growth (%) -4% 10%-15%/yr EBITDA (%) 2.8%-3.2% 4.0%-5.0% CAPEX (TL mn) 55-60 ~60 Note: EBITDA

  30. Slide 30: Our 3-5 year growth plan

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Benefitting from the «Economic Darwinism» as the strongest player… Our 3-5 year - Control costs in order to adopt to 10-15% annual market growth growth plan… - Utilize debt-free strong balance sheet - Strengthen our foothold in the sector via mar

  31. Slide 31: Our 3-5 year growth plan

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Our 3-5 year  Laying the foundations for new services to our clients… -Consumer financing options under TeknoFinans brand growth plan… -Telecom contract sales in order to provide a complete service and boost market share in telecom products  ~20%

  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 November 3, 2014)

  33. Slide 33: 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

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