The Index — Index Group — Investor Presentation (April 2012)
78 slides from The Index's investor presentation, Apr 4, 2012
Slide 1: Analyst Meeting
Analyst Meeting Erol Bilecik Index Group CEO 4 April 2012 Divan Hotel, Istanbul
Slide 2: Disclaimer
Disclaimer This presentation contains information and analysis on financial statements as well as forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the information and analysis are correct and expectatio
Slide 3: Agenda
Agenda • IT Sector in Turkey and the World • Index Group Companies 2010 Review • Indeks Computer Inc. • Datagate Computer ınc. • Despec Computer Inc. • Index Group Companies 2011 Review • Index Group Targets for 2015
Slide 4: IT Sector in Turkey & the World
IT Sector in Turkey & the World
Slide 5: Changes in the Market Share of End Users
Changes in the Market Share of End Users 2012 T 18% 11% 15% 14% 42% 2011 18% 11% 15% 14% 42% 2010 17% 13% 16% 14% 40% 2009 18% 14% 16% 14% 38% 2008 20% 15% 18% 12% 35% 2005 22% 25% 25% 10% 18% 2000 25% 35% 23% 7% 10% 1995 38% 30% 20% 5% 7% 1995 2000 2005 2008 2009 2010 2011 2012 T Public Institution
Slide 6: Trends in PC & Internet Penetration
Trends in PC & Internet Penetration 40% 40% 36% 60% 55% 50% 32% 50% 42% 30% 27% 37% 40% 20% 30% 25% 15% 12% 15% 20% 10% 10% 0% 0% 2000 2005 2010 2011 2012T 2013T 2000 2005 2010 2011 2012T 2013T PC Penetration Internet Penetration Source: İndex Group
Slide 7: Turkish IT Market 2009 - 2015
Turkish IT Market 2009 - 2015 (x m $) Source: IDC WW Black Book
Slide 8: Turkish IT Market 2010-2015
Turkish IT Market 2010-2015 (x m $) Source :IDC WW Black Book
Slide 9: Turkish PC Market / 2010-2011 Analysis
Turkish PC Market / 2010-2011 Analysis (Quantity) 2011 29% 25% 20% 26% 1Q 2Q 3Q 4Q 2010 21% 20% 24% 35% Source :IDC
Slide 10: Turkish PC Market / Desktop - Mobile Rates
Turkish PC Market / Desktop - Mobile Rates (Quantity) 2010 2011 Total PC Market Total PC Market 3.579.406 (Quant.) 3.340.326 (Quant.) Desktop PC 34% Desktop PC 32% Mobil PC Mobil PC 66% 68% Source : IDC
Slide 11: Multifarious Countries PC Market
Multifarious Countries PC Market (x 1.000 Quantity) 14.000 12.000 10.000 2010 2011 8.000 6.000 4.000 2.000 0 Source:IDC
Slide 12: Developing Countries IT Market 2011
Developing Countries IT Market 2011 (x m $) 100% 10% 90% 22% 19% 20% 19% 5% 27% 32% 80% 11% 13% 10% 12% 70% 13% 60% 21% Servis 50% Yazılım 40% 85% Donanım 69% 70% 68% 68% 30% 61% 48% 20% 10% 0% Çin Hindistan Endonezya Rusya Brezilya Meksika Türkiye Hardware 119.760 $ 25.571 $ 10.995 $ 21.747 $ 29.92
Slide 13: Developed Countries IT Market 2011
Developed Countries IT Market 2011 (x m $) 100% 90% 80% 38% 38% 41% 39% 44% 46% 49% 70% 60% 17% Service 50% 19% 15% 26% 19% 24% Software 40% 19% Hardware 30% 45% 42% 20% 41% 36% 32% 35% 34% 10% 0% Japan Canada ABD UK France Germany Italy Hardware 65.141 $ 17.444 $ 215.871 $ 32.441 $ 24.159 $ 30.352
Slide 14: Index Group Companies 2011 Review
Index Group Companies 2011 Review
Slide 15: Index Group Companies and Affiliates Structure
Index Group Companies and Affiliates Structure Company Name Main Area of Distribution % Indeks Inc. * Broadliner Dist. 100 Datagate Inc. ** OEM Components Dist. 59 Despec Inc. *** Consumables Dist. - Neteks Inc. **** Network Products Dist. 50 Neotech Inc. Con. & Home Elec. Dist. 80 Homend Inc. Small
Slide 16: Our Regions
Our Regions Balıkesir Index Group Branches Mobile Channel Teams
Slide 17: Human Resource
Human Resource 2% 2% 0% 14% 38% 49 Kişi Sales 163 163 Finance & Acc. Logistic 72 Product Management Management IT HR 113 17% 27% Total 425 People
Slide 18: Group Companies 2010-2011 Revenues (Solo)
Group Companies 2010-2011 Revenues (Solo) (x m TRL) 2.000 1.968 1.900 1.800 1.713 2010 1.700 2011 1.600 1.500 2010 2011
Slide 19: Major Vendors
Major Vendors | @D | CA ren ly CD | Rid rosmen BF Micresoft? EPSON’ @2C@™ fereve Canon ggP ‘sus SONY “aga’e | ES Ged Wests" NEC @server iSeriet @server pSeries BELKIN. MSI] orccronr Hapa s-imation Breve Novell. Qpewour) gress GeJuniper CORNING = Optoma Unksys’ Crucial ™2nscer22 AVAYA ~ Sun = S Avoce
Slide 20: Main Product Groups
Main Product Groups Consumer Data Computer Printer & Network Software Electr. & Storage & : : ; Accessories I Spare Parts Products Peripherals | Products Products § Small House Medium Appliances Size-Sys. IBM Belkin HP Microsoft LG Dexim Oracle Oregon Sun Oracle Emtec Symantec Panasonic Genius Sony
Slide 21: Index Group Companies 2010-2011
Index Group Companies 2010-2011 “Distribution of Sales on Main Product Group Based” Data Computer OEM Consumer Printer & Network Software Storage & Consumables Accessories Products Products Electronic Peripherals Products Products Medium Size-Sys. 2010 43.3% 18.0% 6.8% 8.7% 8.8% 5.7% 3.7% 3.6% 1.4%
Slide 22: B2B Development
B2B Development 2010 | 2011 | 2012F se 7.800 8.200 8.500 Value over Net Sales 25 28 32 E-Orders (%) 60 62 68 INDEX pazar © dgpazar DESPE@ Pazar Teknolojiye Agilan Kap) “Torkiye’nin Bilisim Kaynagy ‘neorczcr} Netexpazar| la INDEX!GRUP INDEX Oslo psp © Netex _—*neotech Homend artim@« JENLOS
Slide 23: Seasonal Sales Breakdown
Seasonal Sales Breakdown 2012F 26% 22% 22% 30% 2011 23% 23% 23% 31% 2010 23% 20% 23% 34% 2009 18% 26% 25% 31% 1Q 2Q 2008 28% 24% 24% 24% 3Q 4Q 2007 21% 23% 23% 33% 2006 23% 21% 24% 32% 2005 21% 21% 24% 34% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Slide 24: Indeks Computer Inc.
Indeks Computer Inc. 2011 Review & 2012 Targets Atilla Kayalıoğlu General Manager
Slide 25: Company Profile and Our Regions
Company Profile and Our Regions Name of the Company Indeks Computer Inc. Establisment 1989 Legal Status Public Company – ISE Chairman Erol BİLECİK General Manager Atilla KAYALIOGLU Establisment Number of Head Office / Branch Date City Employees Head Office July.89 İstanbul 210 Branch April.92 Ankara
Slide 26: Indeks Computer Yearly Revenue
Indeks Computer Yearly Revenue (million TRL) CAGR (02-11): % 14 1600 1.514 30% 1400 25% 1.228 20% 1200 1.087 1.023 15% 1000 902 928 (mn TRL) 10% 759 800 616 5% 600 457 483 0% 400 -5% 200 -10% 0 -15% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 İndeks Consolidated Net Sales % Growth
Slide 27: 2010 - 2011 Revenues
2010 - 2011 Revenues (000 TRL) 500.000 400.000 300.000 2010 200.000 2011 100.000 0 1Q 2Q 3Q 4Q 2010 301,886 248,249 290,987 387,054 2011 358,270 334,078 371,408 449,790 Growth 19% 35% 28% 16%
Slide 28: Summarized P/L Account
Summarized P/L Account (000 TRL)
Slide 29: Important Product Groups and Status
Important Product Groups and Satatus Product Name Product Group # Disty Status HP Personel Computer 4 2 Lenovo Personel Computer 3 1 Asus Personel Computer 3 2 Sony Vaio Personel Computer 1 1 Dell Personel Computer 3 2 LG Monitor 2 2 HP Printer and Peripherals 3 1/2 Canon Printer Printer and Periphe
Slide 30: 2011 – 2012 review
2011 – 2012 review… Sales Marketing Continue to increase our prevalence in Channel Numbers of Dealers and Geographical Expansion Activities of Regional Business Partners At least 2 regional meeting in a month Improving healthier alternative channels Finance Continue successful Risk Management, N
Slide 31: Datagate Computer Inc. 2011 Review 2012 Targets
Datagate Computer Inc. 2011 Review 2012 Targets Salih Baş General Manager
Slide 32: Company Profile and Our Regions
Company Profile and Our Regions Name of the Company Datagate Computer Inc. Establisment 1992 Legal Status Public Company– ISE Chairman Erol BİLECİK General Manager Salih BAŞ Establishment Number of Merkez / Şube Date City Employees Head Office June 92 İstanbul 34 Branch February 00 Ankara 2 Branch F
Slide 33: Datagate Computer Yearly Revenues
Datagate Computer Yearly Revenues (Million TRL) CAGR (04-11): % 11 350 50% 305 309 298 300 40% 255 250 30% 221 212 197 (mn TRL) 200 20% 149 150 10% 100 0% 50 -10% 0 -20% 2004 2005 2006 2007 2008 2009 2010 2011 Datagate Net Sales % Growth
Slide 34: 2010 - 2011 Revenues
2010 - 2011 Revenues (000 TRL) 120.000 100.000 80.000 60.000 2010 2011 40.000 20.000 0 1Q 2Q 3Q 4Q 2010 82,345 53,024 65,336 104,792 2011 77,318 66,445 57,800 107,149 Growth -6% 25% -12% 2%
Slide 35: 2011 Financial Results
2011 Financial Results (000) TRL 2011 Net Sales 308.712 Gross Profit 16.746 Gross Profit Margin (%) 54 EBITDA 11.807 EBITDA Margin (%) 3.8 Operational Profit 11.760 Operational Profit Margin (%) 3,8 Financial Income /(Expenses), Net (4.881) Tax Expenses (1.381) Net Profit 5.498 Net Profit Margin (%)
Slide 36: Important Product Groups and Status
Important Product Groups and Status Product Name Product Group # Disty Status Intel CPU, MBD, Server 3 2 Seagate HDD 3 1 Acer NB,Monitor, Projector 3 2 Fujitsu PC, NB Server,Storage 2 1 Belkin Aksesuar 4 1 Samsung Memory Memory 1 1 AOC Monitor 2 2 Optoma Projector 2 1 Genius Accessories 3 1 Linksys
Slide 37: Targets
Targets Contents 2012 Gross Profit Margin 5% Revenue Target 300.000.000 TRL Product Range New Product Group support profitability System Integrators, Chain Shops, Telecom, Security Growth Areas (CCTV) Sales – Marketing Structuring Reaching more customers with new Telesales Team B2B Selling all produ
Slide 38: Despec Computer Inc. 2011 Review 2012 Targets
Despec Computer Inc. 2011 Review 2012 Targets Oğuz Gülmen General Manager
Slide 39: Company Profile and Our Regions
Company Profile and Our Regions Name of the Company Despec Computer Inc. Establisment 1998 Legal Status Public Company– ISE Chairman Erol BİLECİK General Manager Oğuz Gülmen Head Establisment Number of Office/Branch Date City Employees Head Office July 89 İstanbul 19 Branch April 92 Ankara 2 Branch
Slide 40: Despec Computer Yearly Revenues
Despec Computer Yearly Revenues (Million TRL) 160 152 45% 140 131 134 40% 35% 120 110 104 30% 100 88 (mn TRL) 25% 80 70 66 63 20% 60 45 15% 40 10% 20 5% 0 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Despec Net Sales % Growth
Slide 41: 2010 - 2011 Revenues
2010 - 2011 Revenues (000 TRL) 50.000 40.000 30.000 2010 20.000 2011 10.000 0 1Q 2Q 3Q 4Q 2010 30,924 35,884 30,809 36,991 2011 39,356 35,410 33,258 44,370 Growth 27% -1% 8% 20%
Slide 42: 2011 Financial Results
2011 Financial Results Naim’ den gelecek
Slide 43: Important Product Groups and Status
Important Product Groups and Status Product Name Product Group # Disty Status HP Ink, Toner, Paper, Data Back-up 3 1 Canon Ink, Toner, Paper, Data Back-up 2 1 Oki Ink, Toner, Ribbon 3 1 Lexmark Ink, Toner, Ribbon 4 1 Trust IT Accessories 2 1 Targus IT Accessories 2 1 IBM Toner, Data Back-up, Ribbon
Slide 44: Hedefler
Hedefler Contents 2012 Gross Profit Margin 11% Revenue Target 177.000.000 TRL Revenue with % 8 Growth New Product Groups: PC Game Accessories, Product Range Photocopy Toners, Apple Accessories, Battery Internet Cafes, Stationary Channel, Game Shops, On- Alternative Channels line Websites, Apple Shop
Slide 45: Index Group Companies 2011 Financial and Operational Results
Index Group Companies 2011 Financial and Operational Results Halil Duman Index Group, CFO
Slide 46: Indeks Computer Inc. 2011 Financial and Operational Results
Indeks Computer Inc. 2011 Financial and Operational Results
Slide 47: Revenue and Gross Profit
Revenue and Gross Profit (000 TRL)
Slide 48: Summarized P/L
Summarized P/L (000 TRL) (000) TRL 2011 Net Sales 1.513.546 Gross Profit 92.743 Gross Profit Margin (%) 6,13 EBITDA 57.026 EBITDA Margin (%) 3.8 Operational Profit 55.900 Operational Profit Margin (%) 3,7 Financial Income /(Expenses), Net (27.519) Tax Expenses (7.266) Net Profit 18.448 Net Profit Ma
Slide 49: Summarized Balance Sheet
Summarized Balance Sheet (000 TRL)
Slide 50: Net Financial Debt
Net Financial Debt (000 TRL & USD)
Slide 51: Range of Loan Payment Terms
Range of Loan Payment Terms (000 TRL) Bin TL
Slide 52: Working Capital
Working Capital (000 TRL) Working Capital / Net Sales
Slide 53: Cash Flow
Cash Flow (000 TRL) INDEX ‘Tiirkiye'nin Biligim Kaynags (000) TRL 2011 2010 Activity of Net Cash Flow 23.883 49 635 Investment Activities (2.853) (1.339) Changes in Cash 21.029 48.296 Endo in Financial Debts 17.910 (24.201) INDEX?GRUP Fd =] wi & a DEsPEO. Netex “‘neotech Homend. artm@« JEKIOS por
Slide 54: Financial Ratios
Financial Ratios INDEX — Tirkiye‘nin Bilisim Kaynaga LIQUIDITY RATIOS 31.12.2011 §f§ 31.12.2010 Current Ratio 1,25 1,24 Quick Ratio 1,03 0,93 THE WORKING CAPITAL RATIOS (*) 9371. = —_ 31. = 2010 Receivables Days Payables Days $0 36 Inventory Days 34 37 FINANCIAL STRUCTURE RATIOS 31. - aus 31. - —_ C
Slide 55: Datagate Computer Inc. 2011 Financial and Operational Results
Datagate Computer Inc. 2011 Financial and Operational Results
Slide 56: Summarized P/L Account - 2011
Summarized P/L Account - 2011 (000 TRL)
Slide 57: Summarized Balance Sheet
Summarized Balance Sheet (000 TRL)
Slide 58: Net Financial Debt
Net Financial Debt (000 TRL & USD)
Slide 59: Working Capital
Working Capital (000 TRL) Working Capital / Net Sales
Slide 60: Cash Flow
datagate Bilgisayar Mal. Tic. A.S. Cash Flow (000 TRL) (000) TRL 2011 2010 Activity of Net Cash Flow 20.768 10.366 Investment Activities 127 (247) Changes in Cash 20.895 10.119 Ende in Financial Debts 9.913 (6.717) wa INDEX{GRUP IBEX Ou: espe’ Netex _“neotech Homend antm@« TELM
Slide 61: Financial Ratios
Financial Ratios INDEX GRUP datagate Bilgisayar Mal. Tic. A.S. Caren! Ratio Quick Ratio to 102 Receivables Days Payables Days 3 re Inventory Days 28 24 FINANCIAL STRUCTURE RATIOS 31. Zs aus 31. = a Capital / Total Liabilities & Capital Short T. Debts / Total Liabilities & Capital 3% 7 Long T. Debts
Slide 62: Despec Computer Inc. 2011 Financial and Operational Results
Despec Computer Inc. 2011 Financial and Operational Results
Slide 63: Summarized P/L Account - 2011
Summarized P/L Account- 2011 (000 TRL)
Slide 64: Summarized Balance Sheet
Summarized Balance Sheet (000 TRL)
Slide 65: Net Financial Debt
Net Financial Debt (000 TRL & USD)
Slide 66: Working Capital
Working Capital (000 TRL) Working Capital / Net Sales
Slide 67: Cash Flow
Cash Flow (000 TRL) DESPEC (000) TRL 2011 2010 Activity of Net Cash Flow 10.152 10.568 Investment Activities (15) (45) Changes in Cash 10.137 10.523 “Ende in Financial Debts (1.773) (5.363) INDEX!GRUP INDEX Olu peep’ Netex _ “neotech Homend. artm@e MLDS
Slide 68: Financial Ratios
Financial Ratios DESPEC™ Tiirkiye Current Ratio 3,30 3.14 Quick Ratio 247 2,09 Receivables Days Payables Days 2 x Inventory Days 32 34 Capital / Total Liabilities & Capital 70, 1% Short T. Debts / Total Liabilities & Capital 29.5% a Long T. Debts / Total Liabilities & Capital 0,3% 0.5% Financial Deb
Slide 69: Index Group Companies 2012 Developments
Index Group Companies 2012 Developments Erol Bilecik Index Group CEO
Slide 70: Group Companies 2012 Revenue Targets (Solo)
Group Companies 2012 Revenue Targets (Solo) (x m TRL)
Slide 71: Index Group Companies 2011 - 2012
Index Group Companies 2011 - 2012 “Distribution of Sales on Main Product Group Based” Data Computer OEM Consumer Printer & Network Software Storage & Consumables Accessories Products Products Electronic Peripherals Products Products Medium Size-Sys. 2011 45.5% 12.6% 10.1% 8.1% 7.6% 7.5% 3.7% 3.4% 1.
Slide 72: Index Group continue investments!
Index Group continue investments! • We started attempting to acquire majority of shares of Alkım Inc., a service company which is one of our important targets to operate in IT Services. • We are intending to change the rules of the game with Alkım Inc. that is believed to bring different understandi
Slide 73: 2012 Expectations
2012 Expectations Expectations for Sector Intensive Competition will continue! Fast second half of 2012 expected! Movements of mobile products towards % 75 expected, Important gearing for Tablet world expected from Ministry of National Education, %7-8 Growth expectation in IT world, Wide
Slide 74: Technology Distribution Group of the Future
Technology Distribution GroupGeleceğin of the Future Teknoloji Dağıtım Grubu We are confidently going ahead towards future! Technology Distribution Group of the Future IT Technologies Telecom Area Consumer Electronics L O G I S T I C S SERVICE
Slide 75: Index Group Companies 2015 Targets
Index Group Companies 2015 Targets Erol Bilecik Index Group CEO
Slide 76: Index Group 2015 Targets
• Geleceğe… 2015 Yılı Index Group 2015 Targets 2015 vital! We will be outpacing Quarter Century! Our Target is 2 Billion USD in Technology Sector with a Quarter Century Experience!
Slide 77: Towards future… 2015
• Towards future… 2015 Index Group will continue its operations in Balkans, MEA Region and Turkic Republics besides Turkey! We will create 200 Mio USD Revenue in Value Added Distribution Line in Turkish IT Sector especially with cloud solutions! We will have the biggest company of Turkey in Se
Slide 78: Thanks...
Thanks... Think About the Environment!