Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA

Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — Q3 2016 Earnings Presentation

21 slides from Teknosa Ic Ve Dis Ticaret As's earnings presentation, Oct 31, 2016

  1. Slide 1: Teknosa 3Q16 Results Investor Presentation

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Investor Teknosa İç ve Dış Ticaret A.Ş. Presentation 3Q16 Results «Turkey’s Leading Electronics Retailer» Ümit Kocagil, CFO Erman Tütüncüoğlu, Head of IR October 31, 2016

  2. Slide 2: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Financial Overview Year-end Guidance 2

  3. Slide 3: Main messages

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION A new Teknosa in the  Based on our new profitability focused strategy, Main making… drastic steps have been taken in 3Q16  54 stores closed in order to cleanse the network messages of loss making stores  Inventories have been deflated by TL 145m

  4. Slide 4: CCI recorded a modest QoQ improvement

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  The consumer confidence index recorded a QoQ improvement to an CCI recorded a average of 71.9 in 3Q16 from 68.9 in the previous quarter. Despite a slight modest QoQ MoM decline in July, the index recovered rapidly in August and September. improve

  5. Slide 5: 3Q16 Results

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Cleansing of loss 3Q16 making stores from Net Sales Area 173 the network Results (‘000 m2) 134 resulted in 31K sqm QoQ reduction in the net sales area 3Q15 3Q16  Efforts to deflate the inventories of closed Net Sales stores led to Total 813 disc

  6. Slide 6: Like-for-Like Sales Growth Trend

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Quarterly Like-for-Like Trend Like-for-Like Sales Growth Despite the restructuring Trend 20% 19% efforts in 3Q16, LfL remained in the 6% 6% positive territory -3% -2% -1% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 TSS Market Share (exc. Kliksa) Restructuri

  7. Slide 7: Strong growth in e-commerce revenues

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION teknosa.com Revenues (TLmn) Strong growth in e-commerce +23% revenues… -17% 102 35 83 30 3Q15 3Q16 9M15 9M16  Decline in 3Q16 is attributable to discount sales to deflate inventory  Growth in e-commerce is expected to maintain the high pace going

  8. Slide 8: Main OPEX Items are Under Strict Control

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Minimum Wage TKNSA Personnel Costs Main OPEX Items are +29% +4% Under Strict TL TL Control 1,647 TL 124mn TL 119mn 1,274 9M15 9M16 9M15 9M16 TKNSA FX Basket TKNSA Rent Costs +10% +6% 3.11 TL TL 132mn 2.82 125mn 8 9M15 9M16 9M15 9M16

  9. Slide 9: Working Capital and Cash Position

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Capital Requirement (TL mn) Working TL -227mn TL -171mn TL -111mn WCR increased by TL Capital and 488 486 60mn QoQ, as no 340 Cash Position 37 71 61 new inventories purchased in order 513 752 728 to move old ones, deflating both inventories

  10. Slide 10: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Financial Overview Year-end Guidance 10

  11. Slide 11: Income Statement Summary

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Income (TL mn ) 3Q15 2Q16 3Q16 YoY (%) QoQ (%) 9M15 9M16 YoY (%) Statement Net Sales 813 803 691 -15% -14% 2,202 2,269 3% Gross Profit 151 126 67 -55% -47% 405 332 -18% Summary Gross Profit Margin 18.6% 15.7% 9.7% -8.9pp -6.0pp 18.4% 14.6% -3.8pp E

  12. Slide 12: Income Statement Summary (Adjusted)

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION (TL mn ) 3Q15 2Q16 3Q16 YoY (%) QoQ (%) 9M15 9M16 YoY (%) Income Statement Net Sales Gross Profit 813 151 803 126 691 67 -15% -55% -14% -47% 2,202 405 2,269 332 3% -18% Summary Adj. Gross Profit Adj. Gross Profit Margin 151 18.6% 132 16.4% 102 14.7

  13. Slide 13: Balance Sheet Summary

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Assets (in TL mn) Sep-15 Jun-16 Sep-16 Balance Current Assets Cash and Cash Equivalents 766 220 671 82 435 9 Sheet Due From Related Parties Trade Receivables 3 35 3 68 2 59 Summary Inventories Other Current Assets 488 20 486 33 340 25 Non-current A

  14. Slide 14: Working Capital

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Working Capital Days Capital -24 -22 -21 Days of NWC 100 93 89 Days of TR 69 64 60 Days of Inventory Days of TP 5 8 9 3Q15 2Q16 3Q16  Negative working capital allows Teknosa to generate positive cash flow in tandem with growth  Cash cycle

  15. Slide 15: Key Performance Indicators

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Key 3Q15 2Q16 3Q16 YoY (%) QoQ (%) 9M15 9M16 YoY (%) Performance Net Sales Area (‘000 sqm ) 173 165 134 -22% -19% 173 134 -22% Number of Stores 287 260 209 -27% -20% 287 209 -27% Indicators Number of Visitors (mn) 22 17 16 -25% -4% 67 54 -19% Numbe

  16. Slide 16: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Financial Overview Year-end Guidance 16

  17. Slide 17: New Chairman, New Strategy

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION New  Following the appointment of our new chairman Mr. Zafer Kurtul as of June 1st, our strategy has become more focused on profitability rather than Chairman, profitability + market share New Strategy  This new approach entails trade-off in all

  18. Slide 18: Macroeconomic Indicators

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Macroeconomic Indicators 2014 2015 2016E GDP growth 3.0% 4.0% 3.5% Private Consumption 1.3% 4.5% 4.6% CPI Inflation 8.2% 8.8% 7.9% USD/TL rate (avg.) 2.19 2.73 2.95 EUR/TL rate (avg.) 2.90 3.02 3.29 18

  19. Slide 19: 2016 Full Year Financial Guidance

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 2016 Full Year Financial 2015 2016E OLD 2016E NEW Guidance YE Net Sales Area (km2) 172 170 125 Net Sales (TL mn) 3,167 3,300 3,100 LFL Growth (%) 0% 10% 15% teknosa.com (%) 47% 45.0% 15% EBITDA(*) (%) 2.1% ~3.5% 0% CAPEX (TL mn) 48 35 - 40 35 - 40

  20. Slide 20: 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 20

  21. Slide 21: 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

Teknosa İç ve Dış Ticaret A.Ş. — Q3 2016 Earnings Presentation on 6ix