Netas Telekomunikasyon A.s. · BIST:NETAS
Netas Telekomunikasyon A.s — Non-Deal Roadshow (September 2017)
40 slides from Netas Telekomunikasyon A.s's roadshow presentation, Sep 27, 2017
Slide 1: Investor Presentation
Architect of the Digital Future Investor Presentation netas.com.tr Vienna- Budapest Roadshow September 27-28, 2017
Slide 2: Company Overview
Company Overview
Slide 3: Netas at a glance
Netas at a glance Turkey’s #1 Strong Solid R&D System experience in service Regional Accelerating Integrator IT sector capacity Hub Footprint $500M software Ability to deliver Poised to act as International markets 2015 & 2016 Top 500 including Technology exports within last 10 services to all «Regi
Slide 4: Operational History
History Software export International expansion Operational First and biggest private champion of Turkey with over USD 100mn in telecoms R&D center in New home-grown solutions orders booked Turkey from Netas R&D – Nortel’s global R&D center 4G LTE (ULAK), NOVA Cyber Security New strategic plan to de
Slide 5: Ownership Structure
Ownership Structure Turkish Armed Forces Foundation ZTE OEP Cooperatief Turkey Tech U.A.* B.V. TAAF (TAFF) 48.04% 48.04% 15.00% 15.00% Public Public NETAŞ 36.96% 36.96% Probil Bilgi İşlem Destek Netas Telecom Limited Netaş Telecommunications Kron Telekomünikasyon ve Danışmanlık San. ve Liability Par
Slide 6: About ZTE
About ZTE ZTE Provides Products and Services in 160+ Countries • 81K total resources- c. 30K in R&D. • 107 global branches • 8+1 global logistics centers, 15 global training centers • 1 global customer center, 6 regional customer centers, 46 local customer centers • More than 10K+ post sales resourc
Slide 7: ZTE as NETAŞ' Shareholder
ZTE as NETAŞ’ Shareholder One of the biggest technology development investments in Turkey This transaction will; strengthen Netas’ product and service capabilities and support growth in Turkey and in international markets enhance ZTE’s service capabilities to customers in Turkey as well as sev
Slide 8: Business Overview
Business Overview PowerPoint Timesaver 8
Slide 9: Business Focus Area
Business Focus Area End to end SI Services Innovation Manufacturing Own Products & Solutions Telco hardware – Full solution sales with Managed Services Custom Software & firmware – software services attached Deployment and I&C Application production in niche Technology consultancy Su
Slide 10: Strong R&D Technology Know-how
Strong R&D Technology Know-how Commercial and Academic R&D Technology Know-how National and International Partnerships Output Cyber Security Vice Chairman of the Board of Celtic Plus 220 Internet of Things European Union Networld 2020 Board Member patent Multimedia ETSI membership / oneM2M studies a
Slide 11: Recently Commercialized R&D Products
Strong R&D Technology Know-how Recently Commercialized R&D Products Video Communications Platform Smart Grid Solutions Field Management Solutions Cyber Security Solutions Mobile Test Automation Next Generation IoT Solutions 11
Slide 12: Technology Ecosystem and Strategic Partnerships
Technology Ecosystem and Strategic Partnerships 100 + partnerships with marquee vendors… 12
Slide 13: International Markets
International Markets Technology Exports to 50 customers in 70 cities Reputable and trusted brand in the region Main Territories North Africa, Turkic Republics and Asia Pacific Major Projects - Significant projects with government entities, mobile operators and enterprises in Algeria - Optic infrast
Slide 14: Selected Smart Projects
aii Selected Smart Projects me ia a NW’ , hy
Slide 15: Vertical Sector Focus
Vertical Sector Focus Sports and Retail & Energy Telco Public Finance Entertainment FMCG Providing services Preferred ICT Addressing majority Executed the first Designing and 70% share within the to major telecom provider to the of the IT smart stadium delivering ICT ICT infrastructure of service pr
Slide 16: Sector Focused Smart Solutions
Sector Focused Smart Solutions Public Sector Disaster and Emergency Digital Transformation in the Audio - Visual Management Educational System Unified Solutions Managing multiple decision Increasing the effectiveness Empowering the Ministry support mechanisms of the and efficiency of the Turkish of
Slide 17: Sector Focused Smart Solutions
Sector Focused Smart Solutions Finance Aviation and Transportation Energy & Utilities Unified Communication ICT Infrastructure at Energy Solutions Solutions Istanbul New Airport Turkey’s biggest cloud Establishment and operation Automatic counter reading based unified of all information and systems,
Slide 18: Sector Focused Smart Solutions
Sector Focused Smart Solutions Sports & Entertainment Telecommunications Energy Smart Stadiums Network Optimization Cloud Technologies and Services Services Project Smart stadium projects Next-generation data center Network optimization project solutions and related covering WiFi systems, with the l
Slide 19: Financial Review
* _ e % Financial Review.
Slide 20: Continued Order Booking Momentum
Continued Order Booking Momentum CAGR 15% (ml TL) 1.075 989 879 835 767 567 2012 2013 2014 2015 2016 2017 LTM Well diversified customer portfolio enabling order booking momentum 20
Slide 21: Order Booking Breakdown
Order Booking Breakdown (ml TL) LTM 2017 YE2016 Technology BDH Technology 7% 4% 7% BDH 3% Public 34% Public 26% Enterprise Enterprise 39% 28% International International 28% 24% Consolidated order booking grew by 11% in 1H2017 vs YE2016 with the support of; - IGA Project (€10.8 million) - installa
Slide 22: Strong Revenue Growth
Strong Revenue Growth CAGR 16% (ml TL) 1,009 1,010 970 741 631 550 2012 2013 2014 2015 2016 2017 LTM Strong brand recognition Diversified business structure Strong backlog 22
Slide 23: Revenue Breakdown
Revenue Breakdown (ml TL) LTM 2017 YE2016 BDH Technology BDH Technology 4% 7% 4% 8% Enterprise Enterprise 42% 28% Public 44% Public 39% International 17% International 7% Major projects Increasing revenue performance in Enterprise and International segments Improvement in International’s revenue
Slide 24: Sustainable EBITDA Growth
Sustainable EBITDA Growth (ml TL) 9.4% 8.6% 7.3% 91.1 24.0% 86.4 5.3% 73.5 5.0% 3.9% 88.4% 58.3% (9.7%) 39.0 27.3 24.6 2012 2013 2014 2015 2016 2017 LTM EBITDA EBITDA Margin Substantial EBITDA margin increase by 211 bps as of YE2016 24
Slide 25: Strong Balance Sheet
Strong Balance Sheet Balance Sheet (ml TL) Net Working Capital (ml TL) 49.8% 48.3% 1H2017 2016 2015 Cash & Cash Equivalents 63.9 115.6 226.1 43.6% Trade Receivables 791.5 786.3 705.7 31.9% Property, Plant and Equipment 36.8 40.2 40.2 22.4% Financial Investments 2.2 1.9 0.9 Intangible Assets 100.5 10
Slide 26: 1Q2017 Results
1Q2017 Results Order Booking Performance Sales Revenue EBITDA (ml TL) (ml TL) (ml TL) 200 204 167 168 9 5 1Q2016 1Q2017 1Q2016 1Q2017 1Q2016 1Q2017 Orders booked TL167.3 million (USD 45 million) Order booking performance of international segment up by 79.7%, enterprise segment up by 49.0% 26
Slide 27: 2Q2017 Results
2Q2017 Results Order Booking Performance Sales Revenue EBITDA (ml TL) (ml TL) (ml TL) 325.4 277.3 248.6 134.0 19.2 18.8 2Q2016 2Q2017 2Q2016 2Q2017 2Q2016 2Q2017 Orders booked doubled and reached TL 277 million Revenue grew by 31% due to; • the project for Algerian Ministry of Defense, • Sonatra
Slide 28: 1H2017 Results
1H2017 Results Order Booking Performance Sales Revenue EBITDA (ml TL) (ml TL) (ml TL) 493.3 444.6 453.1 28.6 334.3 23.9 1H2016 1H2017 1H2016 1H2017 1H2016 1H2017 Orders booked TL 445 million in 1H2017, y-o-y increase by 33% Consolidated sales revenue reached TL 493 million with 9% increase over
Slide 29: Net Debt
Net Debt (TL million) Gross Debt Cash & Cash Eq. Net Debt 1H2017 TL USD 2017/6 311.1 63.9 247.2 Short Term Debt 305.6 87.2 Interest Expense Accruals for Borrowings 5.5 1.6 2016/12 354.9 115.6 239.2 Total Debt 311.1 88.7 Total Debt Breakdown Total Debt Breakdown 1H2017 YE2016 TL TL USD 82% 66% 34% US
Slide 30: Cash Flow Statement
Cash Flow Statement 2016 Beginning 2016 2017 Beginning 1H2017 1H2017 of the of the End of Period Period Period 226.1 (ml TL) 115.6 63.9 30
Slide 31: 2017 Guidance
2017 Guidance Main Focus Areas Expand vertically in services offerings, homegrown products & software development and realize higher efficiency through optimal resource utilization Managed and cloud based services through Netas Cyber Operations Center Technology Consultancy and/or solutions delive
Slide 32: Appendix
Appendix
Slide 33: 1H2017 Income Statement
1H2017- Income Statement TL Million 2017/1H 2016/1H y/y % Revenue 493.3 453.1 8.9% Cost of Sales (440.8) (401.2) 9.9% Gross Profit 52.5 51.9 1.2% Gross margin % 10.6% 11.5% -81 Sales, Marketing & Distribution Expenses (26.3) (24.8) 6.1% General Administrative Expenses (15.5) (10.4) 48.6% Other Incom
Slide 34: 1H2017 Balance Sheet
1H2017- Balance Sheet TL Million 2017/1H 2016/12 2017/1H 2016/12 Cash & Cash Equivalents 63.9 115.6 Financial Liabilities 311.1 354.9 Trade Receivables 698.6 697.7 Derivative Instruments 0.4 2.7 Other Receivables 0.6 0.5 Trade Payables 290.8 240.5 Derivative Instruments 0.0 0.0 Other Payables 9.4 8.
Slide 35: 1H2017 Cash Flow
1H2017- Cash Flow 2017/1H 2016/1H Profit for the year 7.4 3.7 Adjustments to reconcile income for the period 32.1 41.6 Changes in Working Capital (8.2) (66.1) Cash Flows (Used in) Generated From Operations 31.3 (20.9) Cash flow from investing activities (2.8) (4.1) Cash flow from financing activitie
Slide 36: YE2016 Income Statement
YE2016- Income Statement TL Million 2016/12 2015/12 y/y % Revenue 969.8 1009.0 (3.9%) Cost of Sales (835.4) (895.1) (6.7%) Gross Profit 134.4 113.9 18.0% Gross margin % 13.9% 11.3% 257 Sales, Marketing & Distribution Expenses (44.4) (42.6) 4.3% General Administrative Expenses (24.4) (23.8) 2.3% Rese
Slide 37: YE2016 Balance Sheet
YE2016- Balance Sheet (ml TL) 2016/12 2015/12 (ml TL) 2016/12 2015/12 Cash & Cash Equivalents 115.6 226.1 Financial Liabilities 354.9 333.1 Trade Receivables 697.7 596.2 Derivative Instruments 2.7 0.0 Other Receivables 0.5 0.3 Trade Payables 240.5 350.1 Derivative Instruments 0.0 0.1 Other Payables
Slide 38: YE2016 Cash Flow
YE2016- Cash Flow (ml TL) 2016/12 2015/12 Profit for the year 18.7 34.3 Adjustments to reconcile income for the period 92.4 60.2 Changes in Working Capital (150.4) (5.2) Cash Flows (Used in) Generated From Operations (39.4) 89.4 Income Taxes Paid (2.0) (2.4) Payments Related with Provisions for Empl
Slide 39: Market Overview - System Integrators
Market Overview- System Integrators Revenue 2016 (TL) Netas 969,843,424 Koç Sistem 812,343,157 Sentim Bilisim 537,406,600 Innova 458,651,645 Havelsan 424,611,609 Data Market 344,819,908 Destek Bilgisayar 195,171,400 Eks-Pa Bilgisayar 144,830,893 Artı ve Artı Teknoloji 142,735,305 Bimsa 136,034,418 T
Slide 40: Thank you
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