Indeks Bilgisayar Sistemleri Muhendislik Sanayi Ve Ticaret A.s · BIST:INDES
Indeks Bilgisayar Sistemleri Muhendislik Sanayi Ve Ticaret A.s — Index Bilgisayar Sistemleri Mühendislik Sanayi ve Ticaret A.Ş. — Investor Presentation (March 2018)
53 slides from Indeks Bilgisayar Sistemleri Muhendislik Sanayi Ve Ticaret A.s's investor presentation, Mar 6, 2018
Slide 1: Index Group Companies Analyst Meeting
INDEX GROUP COMPANIES ANALYST MEETING 06 March 2018 Seba Office Boulevard, 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 World & Turkey 01 Technology Market and Technologic Changes 02 Index Group Companies 2017 Review Index AŞ Datagate AŞ 03 Financial & Operational Results 04 Financial & Operational Results 05 Index Group Companies 2018 Review 06 Index Group Companies Future Road Map
Slide 4: World & Turkey Technology Market and Technologic Changes
01 World & Turkey Technology Market and Technologic Changes Atilla Kayalıoğlu Index Group Executive Committee Vice Chairman
Slide 5: World IT Market
World & Turkey 01 Technology Market and Technologic Changes World IT Market
Slide 6: World IT Expenditures Growth – Main Regions
World IT Expenditures Growth – Main Regions Growth 2016-2018 2016 2017 2018 10% 8% 6% 4% 2% 0% -2% -4% -6% Asia Pasific Canada Central & Japan Latin MEA USA Western (ex.Japan) Eastern America Europa Europa Source: IDC Predictions 2018
Slide 7: World IT Expenditures Growth – Technology Groups
World IT Expenditures Growth – Technology Groups Growth 2016-2018 2016 2017 2018 15% 10% 5% 0% -5% -10% -15% Traditional PC Tablet Smartphone Server External Storage Network Software IT Services Source IDC Predictions 2018
Slide 8: IT Expenditures on EMEA Markets
IT Expenditures on EMEA Markets… 10% 9% 8% 2% 7% $18,8B CAGR 2016-2021 % 6% 5% 2,5% 2% 2% 2% 4% $11,2B $11,1B $10,8B $10,6B 3% 4% 2% $7,7B 1,5% 1% 3% 1,75% 1,5% 9,5% $3,2B $5,4B 0% $2,5B $1,8B $1,5B Source: IDC CEMA Blackbook Q2 2017
Slide 9: Turkey Market Dynamics
World & Turkey 01 Technology Market and Technologic Changes Turkey Market Dynamics
Slide 10: Turkey Data
Turkey Data Kaynak: Economist Int. Unit, World Bank Consumer Confidence Index Index USD/TL % Source:TUIK
Slide 11: Technology Market
Technology Market World Turkey IT IT Telecom Telecom Consumer Elec. Consumer Elec. Source: GFK Butique Digital World
Slide 12: Turkish IT/ICT Market
Turkish IT/ICT Market IT Sector Segments (x m $) 2017 % 2018 F % Growth% PC 1.848 $ 8% 1.724 $ 8% -7% Printers & Peripherals 444 $ 2% 448 $ 2% 1% IT Infrastructure 1.082 $ 5% 1.107 $ 5% 2% Hardware 3.374 $ 15% 3.279 $ 15% -3% Software 991 $ 4% 1.042 $ 5% 5% IT Services 1.531 $ 7% 1.628 $ 7% 6% Servi
Slide 13: ICT Market Segments
ICT Market Segments Turkey Poland Russia Market Volume $22,5B $17,0B $37,0B Hardware 36% 31% 30% Software 5% 11% 8% IT Services 7% 21% 13% Telecom Services 52% 37% 49% Source: IDC 2018
Slide 14: Turkey Consumer Electronic Market Dynamics
World & Turkey 01 Technology Market and Technologic Changes Turkey Consumer Electronic Market Dynamics
Slide 15: Turkish Population Structure & Technology
Turkish Population Structure & Technology 20-45 age between 1.3% Population: 79.8 mio 40% Last x year I am using… Penetration in Houses % 4.5 y. 43% 77% 4.2 y. Renewal Opportunities 2.9 y. 35% 73% 4 y. 82% 7.1 y. 4.5 y. 33% Source: GFK
Slide 16: Primary Sectors on Digital Transformation
Primary Sectors on Digital Transformation Sectors • Finance / Banking • Telecommunication • Production • Retail/ Wholesale • Goverment • Health Technologies • Cloud • Security • Large Data / Analytics • loT • Robotics
Slide 17: Index Group Companies 2017 Review
02 Index Group Companies 2017 Review Atilla Kayalıoğlu Index Group Executive Committee Vice Chairman
Slide 18: Index Group Companies and Subsidiaries
Index Group Companies and Subsidiaries Company Company Name Business Model % Free Float % Mcap (TL) * Index A.Ş. * Broadliner Dist. 100 42,43 904.400.000 Datagate A.Ş. ** Telco Dist. 59 34,24 460.500.000 Despec A.Ş. *** Consumables Dist. - 42,70 82.570.000 Neteks A.Ş. **** Network Products Dist. 50
Slide 19: Our Regions
Our Regions Istanbul Anatolia Istanbul 4152 dealers Europa Samsun 2060 Dealers 7 cities Trabzon Tekirdağ 399 dealers Kocaeli 6 cities 5 cities 7 cities 210 dealers 521 dealers Erzurum 530 dealers 6 cities 190 dealersayi Bursa Ankara 3 cities 7 cities 416 dealers 1881 dealers Kayseri Elazığ İzmir 7 c
Slide 20: Business Model
Business Model ONE STOP 150+ 23.500 8.000+ LEADER SHOPPING TECHNOLOGY LOGISTIC BUSINESS TECHNOLOGY CONTRACTS CENTRE PARTNERS GROUP Supplier Producer Distributor Index Group Companies System Authorised Classic Sub Channel Integrators Sellers Dealers Retail OEM Distributor Market Corporate SME End Use
Slide 21: Human Resource
Human Resource… # of Oran Fin&Acc.&Risk ; 61 Department Employees % Administrative; 30 Logistic 177 33% Product Mngt; IT; 15 Management; Sales 160 30% 78 11 HR; 6 Product Mngt. 78 14% Corporate Comm.; 3 Sales; 160 Fin&Acc.&Risk Mngt 61 11% Logistic; 177 Administrative 30 6% IT 15 3% Management 11 2%
Slide 22: Group Companies 2016-2017 Revenues
Group Companies 2016-2017 (TAX) Revenues (solo) (x m TL) %25 Companies 2016 2017 % Index 2.444 2.778 14% Datagate 1.237 1.630 32% Despec 196 265 35% 5.398 4.314 Neteks 272 330 21% Artım 141 366 160% Teklos 24 29 21% Total 4.314 5.398 25% 2016 2017
Slide 23: Major Producers
Major Producers INDEX =GRUP U a QD rept Bove Canon (inte) tlt) EE Micosot ASUS acer © Fujitsu Wnuawes @LG alcatel MTC EPSON SONY faa” = QFUDQ—s BKingsion Trust Fi lexmork VESTEL Casper AVAYA ‘Targus ijzesra \ {Check Point Honeywell Ain 0) g PulseSecure @Netvafe. I BLUECA' — | DAN TOSHIBA CORNING Arc
Slide 24: Sales on Main Product Groups 2016-2017
Index Group Companies 2016-2017 Sales on Main Product Groups Consumer Electronics Smart Printers & & White Data Wearable Years Telecom Phone PC Network Software Peripherals OEM Other Consumables Tablet Accessories Goods Storage Technology OT/VT 2016 30% 25% 21% 6% 3% 4% 3% 9% 3% 2% 1% 2% 1% 0% 1% 20
Slide 25: Sales on Producers' Origin
Index Group Companies 2016-2017 Sales on Producers’ Origin Country 2016 (%) 2017 (%) USA 67% 71% China 10% 9% Japan 7% 6% Korea 6% 8% Taiwan 5% 4% Turkey 5% 3% 2016 2017 Total 100% 100%
Slide 26: Seasonality
Seasonality 2018F 22% 22% 22% 34% 2017 21% 22% 22% 35% 2016 25% 23% 21% 31% 2015 25% 24% 22% 30% 2014 22% 18% 21% 39% 2013 24% 22% 23% 31% 1Q 2012 23% 22% 22% 33% 2Q 2011 23% 23% 23% 31% 3Q 2010 23% 20% 23% 34% 4Q 2009 18% 26% 25% 31% 2008 28% 24% 24% 24% 2007 21% 23% 23% 33% 2006 23% 21% 24% 32% 20
Slide 27: Index AŞ Financial & Operational Results
Index AŞ 03 Financial & Operational Results Halil Duman Index Group Board Member CFO
Slide 28: Revenue & Gross Profit (000 TL)
Revenue & Gross Profit (000 TL)
Slide 29: Summarized P/L (000 TL)
INDEX =GRUP Summarized P/L (000 TL) (000) TRL Gross Profit Margin (%' EBITDA Margin (% ional Profit Margin (% 2,59 215 Profit Before Tax Margin (%) 2,21 1,97 Tax Expenses (19.674) (15.448) Net Profit Margin (% 1,53 1,37 Total Net Profit Margin (%) 3,29 1,37 140,37 INDEX datagate DESPEC™ Netex artm@<
Slide 30: Summarized Balance Sheet (000 TL)
Summarized Balance Sheet (000 TL)
Slide 31: Net Financial Debt (000 TL & USD)
Net Financial Debt (000 TL & USD)
Slide 32: Working Capital (000 TL)
; Working Capital (000 TL) INDEXS ORO (000) TRL 31.12.2017 31.12.2016 Changes % (000) TRL 31.12.2017 31.12.2016 Changes % Short T. Trade Receivables 1.099.471 894.894 22,9 Short T. Trade Payables 1.250.748 792.735 57,8 Inventories 430.574 180.643 138.4 Short T. Financial Debts 140.012 194.630 (28,1)
Slide 33: Cash Flow (000 TL)
INDEX =GRUP Cash Flow (000 TL) (000) TRL 31.12.2017 31.12.2016 Activity of Net Cash Flow 130.987 295.593 Investment Activities (2.248) (1.933) Changes in Cash 128.739 293.660 a in Financial Debts (94.481) (180.673) INDEX datagate DESPEC™ Netex artim@< JFKLIS
Slide 34: Financial Ratios
. . . INDEX: GRUP Financial Ratios .. LIQUIDITY RATIOS 31.12.2017 31.12.2016 Current Ratio 1,20 1,14 Quick Ratio 0,92 0,99 THE WORKING CAPITAL RATIOS (*) 31.12.2017 31.12.2016 Receivables Days 60 58 Payables Days 67 62 Inventory Days 19 18 FINANCIAL STRUCTURE RATIOS 31.12.2017 31.12.2016 Capital / T
Slide 35: Real Estate Project / Seba Office Boulevard
Real Estate Project / Seba Office Boulevard 61
Slide 36: Dividend Pay Out
Dividend Pay Out 0,00 2,00 4,00 6,00 8,00 10,00 12,00 14,00 16,00 18,00 20,00 01.13 04.13 07.13 10.13 01.14 04.14 07.14 10.14 01.15 04.15 07.15 10.15 01.16 04.16 07.16 INDES Share Performance TL 10.16 01.17 04.17 07.17 10.17 01.18
Slide 37: Datagate AŞ Financial & Operational Results
04 Datagate AŞ Financial & Operational Results Halil Duman Index Group Board Member CFO
Slide 38: Income Statement (000 TL)
INDEX =GRUP Income Statement (000 TL) (000) TRL 2017 + 2016 _~— Changes (%) Gross Profit Margin (%_ EBITDA in (% tional Profit in (% 2,19 1,62 35,19 Tax Net Profit Margin (%) 1,96 1,49 31,73 INDEX datagate DESPEC™ Netex artm@< JFKLIS
Slide 39: Balance Sheet (000 TL)
= INDEXt GRUP Balance Sheet (000 TL) : Changes segs + Changes Assets 34.12.2017 (%) 31.12.2016 (%) (%) Liabilities & Capital 34.12.2017 (%) 34.12.2016 (%) (%) Cash 37.480 9% 44.072 14% (15,0) Financial Lia. 32.601 8% 74.989 24% (56,5) Trade Receivables 267.019 63% 215.148 70% 241 Trade Payables 249.
Slide 40: Net Financial Debt (000 TL & USD)
Net Financial Debt (000 TL & USD)
Slide 41: Working Capital (000 TL)
; Working Capital (000 TL) INDEXS ORO (000) TRL 31.12.2017 31.12.2016 Changes % (000) TRL 31.12.2017 31.12.2016 Changes % Short T. Trade Receivables 267.019 215.148 241 Short T. Trade Payables 249.550 139.521 78,9 Inventories 80.837 31.482 156.8 Short T. Financial Debts 32.601 74.989 0,0 Cash & Cash
Slide 42: Cash Flow (000 TL)
INDEX =GRUP Cash Flow (000 TL) (000) TRL 31.12.2017 = 31.12.2016 Activity of Net Cash Flow 32.018 198.755 Investment Activities (211) (490) Changes in Cash 31.807 198.265 se in Financial Debts (38.412) (193.494) INDEX datagate DESPEC™ Netex artim@< JFKLIS
Slide 43: Financial Ratios
Financial Ratios INDEX =GRUP LIQUIDITY RATIOS 31.12.2017 31.12.2016 Current Ratio 1,24 1,27 Quick Ratio 0,98 1,13 THE WORKING CAPITAL RATIOS (*) 31.12.2017 31.12.2016 Receivables Days 39 21 Payables Days 44 29 Inventory Days 12 11 FINANCIAL STRUCTURE RATIOS 31.12.2017 31.12.2016 Capital / Total Liab
Slide 44: Index Group Companies 2018 Review
05 Index Group Companies 2018 Review Salih Baş Datagate A.Ş. General Manager
Slide 45: Group Companies 2018 Revenue Targets
Group Companies 2018 (TAX) Revenue Targets (solo) (x m TL) Companies 2017 2018F % %18 Index 2.778 3.296 18,6% Datagate 1.630 1.896 16,3% Despec 265 285 7,5% 6.358 Neteks 330 402 21,8% 5.398 Artım 366 444 21,3% Teklos 29 35 20,7% Total 5.398 6.358 18% 2017 2018F
Slide 46: Sales on Main Product Groups 2017-2018
Index Group Companies 2017-2018 Sales on Main Product Groups Consumer Smart Printers & Elec.& White Data Wearable Years Telecom Phones PC Network Software Peripherals OEM Other Consumables Goods Tablet Accessories Storage OT/VT Tech. 2017 31% 25% 19% 6% 4% 3% 3% 10% 2% 2,70% 2% 1% 0,7% 0,5% 0,6% 201
Slide 47: Index Group Companies Future Road Map
06 Index Group Companies Future Road Map Salih Baş Datagate A.Ş. General Manager
Slide 48: Index / Life started in Real Estate Project!
Index / Life started in Real Estate Project!
Slide 49: Changing Technology Re-shaped Go To Market Model!
Changing Technology Re-shaped Go To Market Model! Volume (Sizable Products Dist.) Specialised, growing , having serious targets, Value Add Leader Technology (Value Added Dist.) Group Mobile (Mobile Products Dist.)
Slide 50: Digital Transformation
Digital Transformation 2019 2018 2018 2017 2017 2017
Slide 51: Future Technology Trends
Future Technology • IOT •Smart Home Trends • Cloud • AR/VR • Robot • 3D Printing • Drone • Wearable Technologies
Slide 52: Strong, Profitable & Efficient Growing Index Group
Strong, Profitable & Efficient Growing Index Group Efficient Profitable Strong
Slide 53: Thanks
Thanks a vy in @indexgruptahayat — @indexgrup @indexgruptahayat — @index-grup.