Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA
Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — FY2023 Earnings Presentation
39 slides from Teknosa Ic Ve Dis Ticaret As's earnings presentation, March 2024
Slide 1: Investor Presentation March 2024
INVESTOR PRESENTATION MARCH 2024
Slide 2: Disclaimer Regarding IAS 29
Disclaimer Regarding IAS 29 The Company's forward looking expectations for the year-end 2023 financial results, which were previously disclosed to public on December 1, 2023, have not been subject to inflation accounting in accordance with “Financial Reporting in Hyperinflationary Economies Standard
Slide 3: Overview & Teknosa of New Generation
Overview & Teknosa of New Generation
Slide 4: Turkey's Most Widespread and Reliable Technology Partner
Turkey’s Most Widespread and Reliable Technology Partner Providing broad technology both online and in-store… 64 181 2.868 Cities Employees Stores Having successfully transformed from traditional retailer to “Phygital”… 50% 105K ~260M 500+ Offering technology-focused İklimsa Stores sqm Annual No Of
Slide 5: Reaching Millions of Customers with Value Oriented Businesses
Reaching Millions of Customers with Value Oriented Businesses 2023 5 major brands reaching our customers Turkey’s most Türkiye’ nin en Turkey’s 1.9 Million comprehensive kapsamlı teknoloji technology private End-to-end services Rapidly growing Loyalty Program virtual network Heating-Cooling & Solar
Slide 6: Strong Positioning in Main Shareholder
Strong Positioning in Main Shareholder High Free Float Well-Positioned in Supporting Liquidity Sabancı Holding Portfolio Energy & Industrials Utilities 50% 50% ✓ Ticks two strategic focus areas Financial Digital Services Businesses ✓ Hacı Ömer Sabancı Holding Free Float Free Float: %49.98 6
Slide 7: Our Vision "Teknosa of New Generation" Was Established in 2019
Our Vision “Teknosa of New Generation” Was Established in 2019 Average financial An omnichannel A digital-first, omnichannel performance retailer with retailer with a strong traditional retailer healthy financials physical presence Omnichannel retailing Store-focused retailing Omnichannel retailing
Slide 8: The First Three Transformation Programs Have Been Successfully Completed
In This Journey, The First Three Transformation Programs Have Been Successfully Completed! Teknosa’s Strategy House Protect & Grow the Core Grow into Adjacencies Transform 1 2 3 4 Financial & Operational Service & Private Label Marketplace Digital-First Transformation Transformation Transformation C
Slide 9: Transformation Journey
Transformation Journey
Slide 10: With End-to-end Efforts, a Much Stronger & Sustainable Teknosa
1 1st Transformation Program With End-to-end Efforts, a Much Stronger & Sustainable Teknosa! Category Sales Stock Cost HQ Transformation Transformation Management Management Transformation Price and Stock Target Setting Store Network Rent Promotion Management & Incentive Optimization Optimization Ma
Slide 11: Teknosa Prevails With Its Service and Private Label
2 2nd Transformation Program Teknosa Prevails With Its Service and Private Label! Turkey's Most Comprehensive Electronic Service Portfolio Technology Exclusive Brand with Turkey's Widest Product Portfolio Service Membership TeknoGaranti Rental Repair Packages Personal Care SDA TV & Tablet Other Cate
Slide 12: Turkey's First Technology-Focused Marketplace
3 3rd Transformation Program Teknosa: Turkey’s First Technology-Focused Marketplace! Owns the Leveraging all “technology customers as an Features only the Supports its concept” with a influencer highest quality sellers through wide product through merchants Partner Solutions and service «Social rang
Slide 13: Teknosa's 4th Transformation Program Consists of 6 Main Layers
4 4th Transformation Program Teknosa's 4th Transformation Program Consists of 6 Main Layers 1 2 3 Elevate our customer service to superstar status Transformation E-Commerce Omnichannel of the Store Development Excellence Network 4 5 6 Increase company performance by making our operations more Supply
Slide 14: Renewing Our Store Network As Part of the Transformation Program
1 Transformation of the Store Network Renewing Our Store Network As Part of the Transformation Program In 2023, 17 stores have been transformed into new digital concept Investing in the Future of Retail with New Concept Stores As Teknosa, we embrace the globally rising trend of ‘Experience-focused r
Slide 15: The Development of E-Commerce Will Continue To Strengthen
2 E-Commerce Development The Development of E-Commerce Will Continue To Strengthen We are expanding our online channel with new ..We will continue to expand with the same focus developments every day… in the upcoming period. Marketplace Improvement Elevating the online customer and “Teknosa Partner
Slide 16: Ensuring Best Omnichannel Customer Journey Across All Channels
3 Omnichannel Excellence Ensuring Best Omnichannel Customer Journey Across All Channels Experience Spaces Creating an "omnichannel focused" mobile app Online sales from stores Digital labeling Detailed review of CUSTOMER EXPERIENCE Video sales capabilities leading product specifications at info the
Slide 17: Transforming Our Supply Chain End-to-end
4 Supply Chain Transformation Transforming Our Supply Chain End-to-end to Provide the Best-in-class Service to Our Customers Structural Improvements Diversification of in Warehouse and Delivery Options Logistics Operations Delivery time, efficiency and variety of options All critical for customer St
Slide 18: Teknosa Will Transform into 'Digital-First' Company
5 In the Coming Years, Teknosa Will Next Generation Digital Applications Transform into 'Digital-First’ Company 1 2 3 4 AI and Initiated Initiated Digitalization are Digital Enabled Digitally Enabled Localized Assortment Dynamic FBN Salesforce Management Pricing Critical in Retail, Particularly in D
Slide 19: Information Technology and Data Transformation
6 Information Technology and Data Transformation To Prepare Teknosa for the Future, We Are Elevating Our Business Information ERP Architectural Transformation Technology and Transformation Data Competencies to the Level of Global Best Practices Data Management Transformation 19
Slide 20: Growing & Sustainable Profitability (w/o IAS 29)
With Transformation Programs, We Have Achieved a Growing & Sustainable Profitability (w/o IAS 29) Revenues (Mn TL) EBITDA (Mn TL) Net Profit (Mn TL) CAGR: 75% CAGR: 81% CAGR: 117% 122% 138% 127% 109% 64% 132% 38,696 299% 46% 34% 3,438 50% 54% 36% 863 17,441 1,447 525 7,520 691 4,137 5,607 475 317 85
Slide 21: Significant and Robust Improvement in Performance in All Metrics
With This, We Have Achieved Significant and Robust Improvement in Our Performance in All Metrics From 2019 to 2023... Accelerating Gross Merchandise Value (GMV) 1.7x 10X 18X 16.4% 10,053 Retail Net Revenue E-Commerce NMV E-Commerce Share 2.5x Growth Growth in Total Retail vs. 8x Panel Market Growth
Slide 22: Sustainability Focus
Sustainability Focus 22
Slide 23: Sustainability & B2B Business Through Synergy Between İklimsa & Teknosa
Enhancing Sustainability & B2B Business Through the Synergy Between İklimsa & Teknosa Operating under the umbrella of Teknosa, İklimSA, the leading brand in the HVAC sector , provides services with the assurance 70 500+ 39 of Sabancı across Turkey through a network of over 500 sales Cities Sales& Ye
Slide 24: We Add Value to Our World, Society and Employees
We Add Value to Our World, Society and Employees Through Our Business We aim to achieve Net Zero We continue to increase We are placing sustainability at across all our operations by the women empoverment in the the center of our business year 2050 business life processes ✓ 175,000 kWh capacity SEPP
Slide 25: FY23 Market Overview & Financial Results & Outlook
FY23 Market Overview & Financial Results & Outlook
Slide 26: Distribution Channel Structure in the Panel Market
Distribution Channel Structure in the Panel Market Technical Super Traditional Computer Shops Telecom Dealers MASS Stores Channel (CSS) (TCR) (TSS) ‣ Hyper/Super Markets, ‣ Consumer ‣ Mixed Computer ‣ Mobile Phone Dealers home improvement Electronics Stores stores ‣ White Goods & Small ‣ Cash & Carr
Slide 27: Strong Market Growth Continued Despite Macro Uncertainties
Strong Market Growth Continued Despite Macro Uncertainties Market Revenue Growth* Demand Growth by Categories* Billion TL YTD 2023, Y-o-y% 130% 154% 122% w/o IAS 29 w/o IAS 29 134% 124% 116% 105% 102% 103% Y-o-y 532 Y-o-y 96% 95% 100% 107% 132 77% 71% 266 64 Consumer 2022 2023 2022 2023 Home White G
Slide 28: Revenues outpaced inflation significantly as demand continues to grow
Revenues outpaced inflation significantly as demand continues to grow (Million TL) Revenues E-Commerce Revenue by Gross Merchandise Value Segments (GMV) 5% +68% +45% 10,053 +154% Retail 47,322 +122% 8,335 İklimsa 95% 38,696 32,712 5,974 Retail Net Merchandise Value (NMV) by Sales Channels 17,441 3,2
Slide 29: Better Gross Profitability & controlled OpEx improved operational profitability
Better Gross Profitability & controlled OpEx significantly improved operational profitability (Million TL) Gross Profit Margin EBITDA & EBITDA margin 57 bps +138% improvement 3,438 16.7% 17.2% 195 bps improvement 10.7% +1,086% 8.7% 1,447 8.9% 1,079 8.3% 0.3% 91 2.3% FY22 FY23 FY22 FY23 FY22 FY23 FY2
Slide 30: Strong Free Flow Generation Despite CAPEX Hike
Strong Free Flow Generation Despite CAPEX Hike Net Working Capital CAPEX (TL Mn) Free Cash Flow (TL Mn) (TL Mn) Inventories Trade Receivables Trade Payables +69% +121% +38% +2% -45% 2,739 +154% 582 2,620 2,675 487 7,803 4.095 5.169 8,363 5,659 3,265 931 344 441 727 931 496 2.511 528 1,239 4,561 264
Slide 31: 2023 Expectations Exceeded and 2024 Outlook Maintained
2023 Expectations Exceeded and 2024 Outlook Maintained Our Guidance Beklentilerimiz 2023F2023T w/o IAS 29 2023A w/o IAS 29 2024F w/o IAS 29 2024T E-Commerce GMV* 7.5 bln TL 8.3 bln TL Double 2023 Level CAPEX 500 mln TL 487 mln TL Double 2023 Level EBITDA Margin (%) High single digit 8.9% Target to m
Slide 32: Excellent Proxy to Turkey's Dynamic CE Market
Investment Theme Excellent Proxy to Turkey’s Dynamic CE Market Rising demand for technology products and favourable demographics With Its Unique Business Model Under the omnichannel strategy perfecting our unique customer experience in order to transform Teknosa from a traditional retailer to a 'dig
Slide 33: Appendix
Appendix
Slide 34: Milestones
Milestones Company shares began In line with the Teknosa Preo branded Teknosa marketplace was trading at Borsa İstanbul omnichannel strategy, new product range Teknosa mobile launched. (BIST) as of May 17th. Click & Collect was initiated. (gaming, accessories, application was Under the İklimsa revam
Slide 35: Balance Sheet w/ IAS 29
Balance Sheet w/ IAS 29 2023 2022 Assets (Mn TL) Current Assets 12,427 9,240 Cash and Cash Equivalents 2,739 2,643 Trade Receivables 931 727 Inventories 8,363 5,659 Other Current Assets 394 211 Non-current Assets 2,263 1,741 Property, Plant and Equipment 752 447 Intangible Assets 246 214 Right of Us
Slide 36: Income Statement w/ IAS 29
Income Statement w/ IAS 29 2023 2022 Change (%) Net Sales (Mn TL) 47,322 32,712 45% Gross Profit (Mn TL) 5,045 2,848 77% Gross Profit Margin (%) 10.7% 8.7% +195 bps Opex/Sales (%) 10.2% 10.6% -42 bps EBITDA (Mn TL) 1,079 91 1087% EBITDA Margin (%) 2.3% 0.3% +200 bps Other Income (Expense) (Mn TL) -1
Slide 37: FY2023: Inflation Accounting (IAS 29) Impact on Net Income
FY2023: Inflation Accounting (IAS 29) Impact on Net Income (Million TL) 863 271 748 1,619 3,388 1,162 P&L Index Impact Inventories (high monthly purchases) Fixed Asset & IFRS 16 53 Equity 398 FY23 Gross Profit Opex Other Net Financial Monetary Gain Tax FY23 Net Income Difference Difference Expenses
Slide 38: Investor Relations Contact
Investor Relations Contact Investor Relations web page http://yatirimci.teknosa.com/homepage Investor Relations e-mail yatirimciiliskileri@teknosa.com The information and opinions contained in this document have been compiled by Teknosa from sources believed to be reliable, however, no representatio
Slide 39: Disclaimer
Disclaimer The information and opinions contained in this document have been compiled by Teknosa İç ve Dış Ticaret A.Ş. (“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 correctne
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