Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA
Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — Q2 2015 Earnings Presentation
44 slides from Teknosa Ic Ve Dis Ticaret As's earnings presentation, Aug 3, 2015
Slide 1: Investor Presentation 2Q15 Results
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Investor Teknosa İç ve Dış Ticaret A.Ş. Presentation 2Q15 Results «Turkey’s Leading Electronics Retailer» Korhan Bilek, CFO Erman Tütüncüoğlu, Head of IR August 03, 2015
Slide 2: Leading the market with pioneer services & products
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Young population with higher tendency for Strong Growth Potential • Leading the 1 electronics spending in the Market • Turkey’s CE retail is under-penetrated, market with growing strongly with favorable demographics and rising per capita income pio
Slide 3: The evolution towards a Service Provider continues
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION The evolution towards a «Service Traditional Electronics Provider» Dealer Retailer continues… • • Mono brand Narrow product spectrum • • Multi brand Wide product spectrum • • Pioneer services Bundled private label products • No aftersales services
Slide 4: Pioneer services & products launched over the last year
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa will continue to differentiate itself from the competition in 2015, Pioneer carrying on its evolution into a «service provider» from a «classical box services & mover» As the first step towards this goal, «TeknoFinans» was launched in J
Slide 5: TeknoFinans: ~90,000 loans, ~8% share in sales
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION TeknoFinans: ~90,000 loans After its launch in June 2014 in collaboration with ING Bank, consumer ~8% share in financing business saw a rapid increase in the number of applicants. sales... Akbank also entered into picture in October 2014 with i
Slide 6: Teknosa Mobil is to support growth in Telecom segment
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa Mobil The First & Only Electronic Retailer in Turkey Offering Complete is to support Telecom Services under its Own Brand growth in Telecom segment… Creating synergies with the existing product line, while also turning the business to a p
Slide 7: Benefits of the MVNO
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION To offer a «one-stop-shop» experience for the customers where the Benefits of product and the related services are offered under one roof the MVNO… The lack of GSM contract options in the TSS channel prevents it to be the #1 address in customer
Slide 8: Telecom customers are responsive to new offers
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION As of 1Q15, there are 72mn subscribers in the sector Telecom Mobile penetration stands at 92.7% in Turkey as of 1Q15, indicating further customers are growth potential compared to 135% average in major EU countries responsive to Since the law
Slide 9: Higher value post paid customers are increasing
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION The share of post-paid subscribers increased by 9.1pps since 1Q12, reaching Higher value 46% in 1Q15, supporting our strategy of offering post-paid contracts initially post paid The share of post-paid contracts in Turkey points out to further g
Slide 10: First private label product offered by a Turkish Electronics Retailer
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa launched its own private label products (Preo smartphone, smart First private watch and phone case) in the telecom category – the largest category in the label product electronics market offered by a This initiative not only aims to inc
Slide 11: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 11
Slide 12: Main messages
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Strong e-commerce E-commerce has been the growth engine with 29% YoY increase in 2Q15 to TL 94mn Main performance maintained… 13% of Net Sales in 2Q15; from 10% in 2Q14 messages Weak consumer confidence Fragility of TL coupled with uncertaint
Slide 13: CCI anchored to the trough point of last six years
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Outlook in the global economy was volatile amidst the declining oil prices CCI anchored and stronger US$ in 2014, and the Consumer Confidence Index hit the trough point of the last 4 years in December. With macro and political to the trough uncer
Slide 14: Consumer Electronics spending via Credit Cards is improving
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Consumer Due to the high base year effect of January 2014, CE spending via credit cards remained at 5% in 1H15. However, double digit growth rates attained Electronics since February 2015, boding well for the remainder of the year spending via Yo
Slide 15: Wallet share of CE products in CC spending is declining
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION The share of CE spending via credit cards deteriorated after the credit card Yet, the wallet law until Jul14 then improved towards pre-law average until Dec14 share of CE The weakness since the beginning of 2015 seems to stem from low consumer
Slide 16: 2Q15 Results
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 180 172 8 stores opened 2Q15 while 7 stores Net Sales Area closed in 2Q15 Results (‘000 m2) 2Q14 2Q15 Revenue growth 709 723 despite: Lowest CCI in the Net Sales Total last 6 years, (TL mn) Revenues Negative FX (M TL) impact on retail 2Q14
Slide 17: 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 1H15 Revenue Breakdown by Product Groups as of 1H15 E-Commerce 12% Other* 12% Dealership CE & Group 4% IT
Slide 18: Strong growth in e-commerce revenues
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION E-Commerce (teknosa.com + kliksa.com) Revenues (TLmn) Strong growth 94 165 in e-commerce 73 +29% 137 +20% revenues… 2Q14 2Q15 1H14 1H15 Growth in e-commerce is expected to maintain the high pace E-commerce revenues are anticipated to exceed TL
Slide 19: Our Platforms on E-commerce: kliksa.com & teknosa.com
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Our Platforms Two legged strategy in e-commerce which aimed to gain share in both electronics retail market and fast developing e-commerce business: on E-commerce: Reached 13% of total retail sales in 2Q15 kliksa.com & Kliksa.com Teknosa.com teknos
Slide 20: E-commerce Market in Turkey
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Ratio of household with internet access increased from 20% to 60% in E-commerce 2007-2014 period (2013: 49%). Market in Number of internet users increased to 54 million (2013: 49 million). Turkey Ratio of online shoppers among internet users
Slide 21: E-Commerce Global Comparison
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Per Capita Mobile E-Commerce Country Online Retail Internet / Total Retail Penetration Broadband Penetration Online Mobile Income Shoppers Shoppers (PPP - '000 Population (mn) Global US$) Comparison UK USA 12.2% 8.4% 89% 87% 86% 87% 64% 56% 18% 17%
Slide 22: Key Performance Indicators (Retail Operations)
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa Key Performance Indicators (Retail Operations) Key Performance 2Q14 1Q15 2Q15 YoY (%) QoQ (%) 1H14 1H15 YoY (%) Indicators Number of Provinces 78 81 81 4% 0% 78 81 4% (Retail Net Sales Area (‘000 sqm ) 180 167 172 -4% 3% 180 172 -4% Operati
Slide 23: Retail Operations Revenue Growth Analysis
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 4% -4% -4% Retail Low consumer confidence Operations 7% continued to Revenue pressurize sales in 2Q15 Growth -3% -3% -2% -2% -1% Analysis High single digit LfL growth in May 2Q14 1Q15 2Q15 switched back to negative during the election period in
Slide 24: Quarterly OPEX Breakdown
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Despite TL depreciation, rent costs remained flat YoY in TL terms in 2Q15 Quarterly thanks to contract renegotiations held since mid-2014 Marketing expenses were up by 16% YoY in 2Q15 due to the costs related to OPEX the launch of Teknosa Mobil
Slide 25: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 25
Slide 26: Electronics Retail Market in Turkey
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Electronics Sales Channels of Technical Consumer Goods Market Retail Market Hypermarkets / Supermarkets & Consumer Electronics Stores Computer Shops & System Houses Telecom Specialists (TCR) Technical Super Stores (TSS) Department Stores in Turkey
Slide 27: Channel Development
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Technical Super Stores (TSS) grew below the market for the first time in 2014 due to Channel their disadvantage in consumer financing. Development The new law offered Telecom Retailers (TCR) an advantage, as they are able to apply up to 24 mont
Slide 28: Electronics Retail Market and Teknosa (5M15)
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION As of 5M15, the market grew by 16% YoY, reaching TL 15bn Electronics Technical Super Stores (TSS) channel recorded 10% YoY growth in the same period Retail Market to TL 3.7bn in the 5 major categories Teknosa retail sales were up by 5% YoY in
Slide 29: TSS Consolidation Trend
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 3 players have exited the market since 2010 TSS Regardless, the existing 5 TSS players are still too many to operate efficiently and Consolidation profitably in the Turkish electronics market Given the recent demand and channel trends outlook,
Slide 30: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 30
Slide 31: Income Statement Summary
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa Summary Financials - Income Statement Income (TL mn ) 2Q14 1Q15 2Q15 YoY (%) QoQ (%) 1H14 1H15 YoY (%) Statement Net Sales 709 666 723 2% 9% 1,391 1,389 0% Summary Gross Profit 128 123 131 2% 6% 259 254 -2% Gross Profit Margin 18.1% 18.5% 1
Slide 32: Balance Sheet Summary
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Assets (in TL mn) Jun.14 Mar.15 Jun.15 Balance Current Assets 807 496 639 Cash and Cash Equivalents 124 8 111 Sheet Due From Related Parties Trade Receivables 2 32 2 26 7 40 Summary Inventories Other Current Assets 626 22 443 17 454 26 Non-current
Slide 33: Working Capital
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Working Capital Days Capital -6 -9 -7 Days of NWC 101 91 94 81 83 Days of TR 72 Days of Inventory Days of TP 4 4 5 2Q14 1Q15 2Q15 Negative working capital allows Teknosa to generate positive cash flow in tandem with growth Working Capit
Slide 34: Working Capital: Inventories
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Inventories (TL mn) Capital 626 (-) TL 172mn 581 520 530 454 443 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 Thanks to strict management and focus, inventory levels deflated by ~30% from the peak level of 2Q14 to TL 454mn in the quarter 34
Slide 35: Capital Expenditures
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Total CAPEX (TL mn) Capital Expenditures 26.2 23.2 16.4 14.8 2Q14 2Q15 1H14 1H15 We continue to invest in our operations even in challenging times with a focus on profitability. New store openings and store renovations account for a major part
Slide 36: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 36
Slide 37: Macroeconomic Indicators
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Macroeconomic Indicators Indicator 2013 2014 2015E GDP growth 4.1% 2.9% 3.0% Private Consumption 5.1% 1.3% 2.5% CPI Inflation 7.4% 8.2% 8.0% USD/TL rate (avg.) 1.90 2.19 2.66 EUR/TL rate (avg.) 2.53 2.90 2.95 37
Slide 38: Teknosa's Targets in 2015
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Return to double digit growth Stores; new openings and LfL Teknosa’s rates at the top-line Maintain strong growth in e-commerce Targets in 2015 Utilize Teknosa Mobil for a Increase share in telecom category higher market share Cross-selling
Slide 39: Pilot projects to revive LfL
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Pilot projects With the appointment of our new CEO, Mr. Gurcan, we initiated several pilot projects to increase store traffic and conversion, therefore revive topline LfL. to revive LfL Store Conversion Basket Action Traffic Rate Size New product g
Slide 40: 2015 Full Year Financial Guidance
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 2015 Full Year Financial 2014 2015 2015 ACTUAL OLD NEW Guidance YE Net Sales Area (km2) 171 180 175 Net Sales (TL mn) 3,016 3,300 3,200 – 3,300 Growth (%) 2% 10% 5% - 10% LFL Growth (%) -4% 5% 0% - 5% EBITDA (%) 2.7% 3.0% - 3.5% 2.5% - 3.0% CAPEX(T
Slide 41: Our 5 year growth plan
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Our 5 year Benefitting from the «Economic Darwinism» as the strongest player… - Control costs in order to adopt to lower annual market growth growth plan… - Utilize debt-free strong balance sheet - Strengthen our foothold in the sector via market
Slide 42: Our 5 year growth plan
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Our 5 year Laying the foundations for new services to our clients… -Consumer financing options under TeknoFinans brand growth plan… -Telecom contract sales via Teknosa Mobil in order to provide a complete service and boost market share in telecom
Slide 43: 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 August 03, 2015)
Slide 44: 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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