Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA
Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — Q4 2012 Earnings Presentation
41 slides from Teknosa Ic Ve Dis Ticaret As's earnings presentation, Feb 13, 2013
Slide 1: Q4-2012 Results & 2013 Guidance
Teknosa İç ve Dış Ticaret A.Ş. Q4-2012 Results & 2013 Guidance Haluk Dinçer, Chairman of the Board Mehmet Nane, General Manager Nevgül Bilsel Safkan, CFO 13 February 2013
Slide 2: Agenda
Agenda Haluk Dinçer, Chairman of the Board Macroeconomic Outlook Market Potential and Long Term Trends Strategy and 2023 Vision Consolidation Opportunity E-commerce Initiatives Mehmet Nane, General Manager Nevgül Bilsel Safkan, CFO Q4-2012 Results at a Glance Market at a Glance Financial Overview 20
Slide 3: Macroeconomic Outlook
Macroeconomic Outlook Turkey: 16th largest economy 2012: Soft landing GDP growth ~3% Growth led by exports Slowing of credit growth CA deficit declined, inflation down to 6% Fitch rating upgrate in 4Q 2013: Positive outlook Monetary easing and higher risk appetite in global financi
Slide 4: Market Potential: Electronics Spending Increases In line With GDP
Market Potential: Electronics Spending Increases In line With GDP Electronics Spending per capita vs. GDP per capita in Europe - 2011 GDP per capita (€) 80.000 R² = 0.9 70.000 NO 60.000 CH 50.000 SE 40.000 DK IR NL FI DE BE AT 30.000 FR ES UK GR IT 20.000 PT CZ 10.000 HU PO TR 0 0 200 400 600 800 1.
Slide 5: Market Potential: Expected to Be The 5th Largest Market In EU
Market Potential: Expected to Be The 5th Largest Market In EU Young and dynamic population exceeding 75 million Expected to surpass Spain, ranking among the top 5 markets in EU Electronics Retail Market (Bn €) Germany 34 France 31 UK 25 Italy 22 Turkey-'15 15 Spain 13 Turkey-'12 11 5 Note: The f
Slide 6: Category Trends: Share of CE/IT Is Expected to Grow Further
Category Trends: Share of CE/IT Is Expected to Grow Further Shares of Major Categories In EU Markets & Turkey (%) 6% 5% 3% 4% 24% 27% Telecom 27% 31% 31% 39% 37% 41% MDA/SDA 70% 63% 64% 57% 39% 31% CE/IT DE FR UK IT ES TR 6 Source: Mintel, GfK, Eurostat, UK National Statistics
Slide 7: Channel Trends: Share of TSS Is Expected to Grow Further
Channel Trends: Share of TSS Is Expected to Grow Further Electronics Retail Market Channel Shares and Trends (2007–2015F) 8% 10% 14% 12% 13% 12% Mass Merchants 12% 10% 6% Computer Super Stores 9% 7% 10% 31% 28% 36% 37% Telecom dealers 29% 35% Exclusive & Independent 25% 17% 10% 14% 14% Dealers 29% 3
Slide 8: Teknosa: The Best Positioned Electronics Retailer
Teknosa: The Best Positioned Electronics Retailer Undisputed market leader: 42% share in TSS, 54% in CE category Multi format strategy and nationwide store network Proven track record of strong growth Strong brand: Top of Mind technology products retailer Trainings provided to employees in
Slide 9: Teknosa: Our Strategies
Teknosa: Our Strategies Rapid growth with multi format store network Increasing geographic penetration Value added products and services (Tekno Assist, Tekno Guarantee) Efficient utilization of loyalty program Synergies with Group companies Partnership with Euronics (largest buying group
Slide 10: Teknosa 2012: Successful Results
Teknosa 2012: Successful Results Surpassed our targets 2,3bn TL Net Sales (+40% YoY growth) 50M TL Net Profit (+52% YoY comparable growth) Strenghtened undisputed leadership 2023 vision set as: Becoming one of the top 3 players in Europe 10
Slide 11: Teknosa 2012: Solid Steps Taken for 2023 Vision
Teknosa 2012: Solid Steps Taken for 2023 Vision IPO in May 2012 Established strategic partnership with Euronics Mandated advisor for M&A opportunities Solid balance sheet and strong cash position Consolidation opportunities in Turkey European players also regarded as acquisition targets
Slide 12: Teknosa's 2023 Vision: Becoming One of The Top Players In Europe
Teknosa’s 2023 Vision: Becoming One of The Top 3 Players In Europe Top 10 Electronics Retailers' in EU (2011 Sales, bn €) Player 1 20,6 Player 2 9,7 Teknosa-2023: ~5bn € (#3) Player 3 4,1 Player 4 4,0 Player 5 2,4 Player 6 1,5 Player 7 1,4 Teknosa-2012: 1,0bn € (#8) Player 8 0,8 Teknosa-2011: 0,7bn
Slide 13: Consolidation Opportunity: Number of TSS Players and Shares In EU
Consolidation Opportunity: Number of TSS Players and Shares In EU There is a limited mumber of TSS players in EU markets One to three players dominate the TSS channel Number of Mayor Total Share TSS Players Germany 1 Player 94% France 3 Players 100% UK 2 Players 88% Italy 2 Players 90% Spain 2 P
Slide 14: Consolidation Opportunity: Seven TSS Chains Operate in Turkish Market
Consolidation Opportunity: Seven TSS Chains Operate in Turkish Market Teknosa vs. TSS Competitors - 2012 Store Sales Area Net Sales Sales Index Company Count (k m2) (M TL) (TSA=100) Teknosa 283 141 2.184 100 Competitor 1 28 108 1.200 55 Competitor 2 64 64 800 37 Competitor 3 32 69 450 21 Competitor
Slide 15: E-Commerce Trends: Shares of Online Electronics Retail In Europe
E-Commerce Trends: Shares of Online Electronics Retail In Europe The Share of Online Electronics Retail in Europe (2009) 27% 12% 11% 9% 7% UK France Germany Spain Italy 15 Source: Ecorys report,Euromonitor 2009
Slide 16: E-Commerce Trends: Growing Faster Than Internet Usage in Turkey
E-Commerce Trends: Growing Faster Than Internet Usage in Turkey Share of Internet and e-commerce users in Turkish population (%) CAGR (07-12) 47 10% 45 42 6 33% 38 5 36 4 2 30 3 2 38 40 41 33 36 28 '07 '08 '09 '10 '11 '12 Internet users who made an online purchase in last 3 months e-commerce volum
Slide 17: Teknosa in E-Commerce: We Have Established Two Platforms
Teknosa in E-Commerce: We Have Established Two Platforms Kliksa.com Teknosa.com The target is to become the leading Teknosa.com is the critical player in B2C e-commerce component of Teknosa’s multi By providing a wider assortment channel strategy compared to Teknosa stores, with Sets the web
Slide 18: Teknosa in E-Commerce: Multi-Channel Model Complementing The Stores
Teknosa in E-Commerce: Multi-Channel Model Complementing The Stores Teknosa has full multi-channel capabilities thanks to its strong store network as well as two e-commerce platforms Teknosa Stores Multi channel experience Multi-channel structures that add value for the consumer: Teknosa.com Kliks
Slide 19: Agenda
Agenda Haluk Dinçer, Chairman of the Board Macroeconomic Outlook Market Potential and Long Term Trends Strategy and 2023 Vision Consolidation Opportunity E-commerce Initiatives Mehmet Nane, General Manager Nevgül Bilsel Safkan, CFO Q4-2012 Results at a Glance Market at a Glance Financial Overview 20
Slide 20: 2012 Main messages
2012 Main messages Initial Public Offering 10% of shares were listed on ISE in May 2012 Strong revenue growth Net Sales up 40% YoY (LfL: 26%), exceeding the market growth of 23% Robust and growing profits Net Income up 52% YoY (excluding one-offs in ‘11) Strong cash flow generation +171M TL,
Slide 21: Q4-2012 Results
Q4-2012 Results 10% 141 128 Dynamic portfolio management Sales Area 14 store openings, 11 store (k m2) closures in Q4 Q4-11 Q4-12 753 52% Revenues reached 753TL 495 Revenues million with 52% YoY growth (M TL) Strong LfL trend: 39% Q4-11 Q4-12 17 192% Net Income 17TL million net income (M T
Slide 22: Full Year 2012 Results
Full Year 2012 Results 10% 141 128 283 stores in 77 provinces Sales Area Highest penetration among (k m2) TSS Channel FY11 FY12 40% 2.330 1.670 FY12 revenues reached 2,3TL Revenues billion with 40% YoY growth (M TL) Strong LfL trend: 26% FY11 FY12 50 52% 33 * Improving profit despite stron
Slide 23: Retail Operations Revenue Growth Analysis
Retail Operations Revenue Growth Analysis 50% 43% 38% 38% 11% 31% 12% 12% 14% 19% 12% 39% 31% 26% 13% 24% 19% 5% Q1-2012 Q2-2012 Q3-2012 Q4-2012 FY11 FY12 Like for Like Growth Net Expansion Effect Net expansion effect = New store openings – closings Retail store revenues (excluding dealership, int
Slide 24: Agenda
Agenda Haluk Dinçer, Chairman of the Board Macroeconomic Outlook Market Potential and Long Term Trends Strategy and 2023 Vision Consolidation Opportunity E-commerce Initiatives Mehmet Nane, General Manager Nevgül Bilsel Safkan, CFO Q4-2012 Results at a Glance Market at a Glance Financial Overview 20
Slide 25: Electronics Retail Market in Turkey
Electronics Retail Market in Turkey Sales Channels of Technical Consumer Goods Market (48.425 Total Points of Sale) Hypermarkets / Technical Super Consumer Electronics Computer Shops & Telecom Specialists Supermarkets & (TCR) Stores Stores System Houses Department Stores (CES) (CSS) (TSS) (MASS MERC
Slide 26: Electronics Retail Market Channel & Category Development
Electronics Retail Market Channel & Category Development Growth Channel Development (%) Category Development (M TL) 11M12 Total 9.323 12.272 11.049 13.607 9.323 12.272 11.049 13.607 %23 IT 3,260 %14 35% 36% 37% 33% 3.164 2.852 Telecom 13% 13% 2,695 13% 13% 6,246 %26 5% 9% 7% 7% 5.445 14% 4.955 12% 1
Slide 27: Teknosa in the Market
Teknosa in the Market 11M12 electronics retail market* +23% YoY 11M12 Teknosa retail sales growth +41% YoY Technology Superstores channel (‘TSS’) accounts for 34% of the total market Teknosa has 14,4% market share in the electronics retail market and 42% channel share in TSS Electronics Reta
Slide 28: Agenda
Agenda Haluk Dinçer, Chairman of the Board Macroeconomic Outlook Market Potential and Long Term Trends Strategy and 2023 Vision Consolidation Opportunity E-commerce Initiatives Mehmet Nane, General Manager Nevgül Bilsel Safkan, CFO Q4-2012 Results at a Glance Market at a Glance Financial Overview 20
Slide 29: Financial Highlights
Financial Highlights ( M TL ) Q4-2011 Q3-2012 Q4-2012 YoY (% ) QoQ (% ) FY11 FY12 YoY (% ) Net Sales 495 586 753 52% 29% 1.670 2.330 40% Gross Profit 105 111 133 26% 20% 365 448 23% Gross Profit Margin 21,3% 19,0% 17,7% 21,9% 19,2% Adjusted EBITDA * 21 30 38 81% 27% 89 123 38% Adjusted EBITDA Margin
Slide 30: Key Performance Indicators (Retail Operations)
Key Performance Indicators (Retail Operations) Q4-2011 Q3-2012 Q4-2012 YoY (%) QoQ (%) FY11 FY12 YoY (%) Number of Provinces (@ period end) 72 75 77 7% 3% 72 77 7% Net Sales Area (k m2 @ period end) 128 136 141 10% 3% 128 141 10% Number of Stores (@ period end) 269 280 283 5% 1% 269 283 5% Number of
Slide 31: Summary Financials
Summary Financials Balance Sheet Assets (in M TL) Dec.11 Dec.12 Current Assets 498 888 Cash and Cash Equivalents 187 358 Strong cash position: Due From Related Parties 3 6 171M TL cash generated in Trade Receivables 25 26 2012, thanks to operational Other Receivables 1 0 profits and NWC management I
Slide 32: Working Capital
Working Capital Negative working capital allows Teknosa to generate positive cash flow in tandem with growth Working Capital Days -20 -23 -14 -13 -22 Days of NWC 96 98 93 91 81 79 71 67 65 Days of TR 57 Days of Inventory Days of TP 4 6 7 6 4 Q4-2011 Q1-2012 Q2-2012 Q3-2012 Q4-2012 Net working capi
Slide 33: Capital Expenditures
Capital Expenditures Total CAPEX (M TL) 42,0 47% 28,5 FY11 FY12 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 operations. 33
Slide 34: 'TKNSA' Stock Price Performance
‘‘TKNSA’’ Stock Price Performance IMKB : 78.684 100.000 9,50 TKNSA : 9,34 90.000 80.000 9,00 14/01/13 HSBC Hedef Fiyat: 12,0 TL 70.000 (44% upside) IMKB : 57.331 60.000 8,50 TKNSA : 7,75 26/11/12 BGC Partners 8,34 9/8/12 Hedef Fiyat 14/11/12 Ak Yatırım 50.000 Hedef Fiyat: 11,11 TL Deutsche Bank: 11,
Slide 35: Agenda
Agenda Haluk Dinçer, Chairman of the Board Macroeconomic Outlook Market Potential and Long Term Trends Strategy and 2023 Vision Consolidation Opportunity E-commerce Initiatives Mehmet Nane, General Manager Nevgül Bilsel Safkan, CFO Q4-2012 Results at a Glance Market at a Glance Financial Overview 20
Slide 36: 2013 - Macroeconomic assumptions
2013 - Macroeconomic assumptions Macro-Economic Indicators 2011 2012 2013F Real GDP Growth 8,5% 2,8% 3,5% GDP growth higher than in 2012 Private Consumption 7,8% -0,3% 2,7% Inflation (CPI change e.o.p) 10,4% 6,2% 7,0% Re-balancing of inflation & TL US$/TL (Average) 1,67 1,80 1,84 Flat FX rates EUR/T
Slide 37: A challenging year ahead for the retail sector - 2013
A challenging year ahead for the retail sector - 2013 Sector growth exceeding GDP growth; • Market Growth: ~14% • Technical Superstores (‘‘TSS’’) Channel Growth: 15% - 20% Consolidation; • Consolidation is inevitable in the Turkish TSS Channel, as it will become harder to survive for companies lack
Slide 38: Teknosa's sustainable business model will continue to pay off
Teknosa’s sustainable business model will continue to pay off 15-20% Sales Growth in Retail Operations as a result of; Growth over • Organic growth up to +30k m² net sales area the market • 8-12% LfL growth • Expected increase in CE sales which has higher margin than other product groups Kliksa.com
Slide 39: Teknosa's sustainable business model will continue to pay off
Teknosa’s sustainable business model will continue to pay off Maintaing high EBITDA & Net profit growth with; Net Profit • Maintaining margins while generating top-line growth margins Consolidation & Online Investment Opportunities Inorganic • Due to the strong balance sheet position with no debt an
Slide 40: Enterprise Fiscal 2013 Full Year Financial Guidance
Enterprise Fiscal 2013 Full Year Financial Guidance 2012 2013 ( M TL ) ACTUAL FORECAST Year End Net Sales Area (km2) 141 165-170 Net Sales 2.330 2.700-2.800 Growth (%) 40% 15%-20% LFL Growth (%) 26% 7%-11% EBITDA (%) 5,3% over 5,0% Net Income 50 57-60 EPS 0,46 0,52-0,55 Capital Expenditures 42 40-45
Slide 41: Disclaimer
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 accuracy, completeness or correctness. All opinions and
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