Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA

Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — Q2 2016 Earnings Presentation

26 slides from Teknosa Ic Ve Dis Ticaret As's earnings presentation, Aug 5, 2016

  1. Slide 1: Teknosa 2Q16 Results Investor Presentation

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Investor Teknosa İç ve Dış Ticaret A.Ş. Presentation 2Q16 Results «Turkey’s Leading Electronics Retailer» Korhan Bilek, CFO Erman Tütüncüoğlu, Head of IR August 05, 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 Double digit LfL maintained  19% LfL in 2Q16 leading to 11% top-line growth, in 2Q16… despite the down-sizing of Kliksa Main messages Market share gains  TSS market share (exc. Kliksa) improved by 5pps YoY & 1pp QoQ to 35% in 2Q16 continued… Robu

  4. Slide 4: CCI maintained a sluggish performance in 2Q16

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  The consumer confidence index recorded a very slight improvement to an CCI maintained average of 68.9 in 2Q16 from 68.4 in the previous quarter. However, the a sluggish failed coup attempt that took place on July 15th may cause some deterioration

  5. Slide 5: 2Q16 Results

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Small change in net 2Q16 sales area Net Sales Area 172  12 stores opened Results (‘000 m2) 165 while 23 stores closed in 2Q16 2Q15 2Q16  11% YoY revenue growth thanks to the Net Sales Total 803 success in structural (TL mn) Revenues 723 changes

  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 Trend 20% 19% 6% -3% -2% -1% 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 TSS Market Share (exc. Kliksa) 34% 35% 30% 2Q15 1Q16 Apr-May16 6 Source: GfK

  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 revenues… +53% +57% 73 38 47 24 2Q15 2Q16 1H15 1H16  Growth in e-commerce is expected to maintain the high pace  Further investments in order to improve omni-channel model for teknosa.com 

  8. Slide 8: Main OPEX Items are Under Control

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Minimum Wage TKNSA Personnel Costs Main OPEX Items are +11% +37% Under TL TL Control 1,647 TL 87mn TL 78mn 1,202 1H15 1H16 1H15 1H16 TKNSA FX Basket TKNSA Rent Costs +13% +14% TL 3.08 TL 92mn 2.72 81mn 8 1H15 1H16 1H15 1H16

  9. Slide 9: Working Capital and Cash Position Improvement

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Capital Requirement (TL mn) Working TL -111mn TL -145mn TL -171mn Capital and 558 486 454 Cash Position 47 67 71 Improvement 613 770 728 2Q15 1Q16 2Q16 T.Receivables Inventories T.Payables Net Cash (TL mn) 111 70 82 9 2Q15 1Q16 2Q16

  10. Slide 10: Pioneer services & products launched since 2H14

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION  Teknosa will continue to differentiate itself from the competition, carrying on Pioneer its evolution into a «service provider» from a «classical box mover» services &  As the first step towards this goal, «TeknoFinans» was launched in June 2014

  11. Slide 11: Continuous improvement in value added services & products

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Continous improvement in value added • ~230K loans granted since • 37% YoY increase in 1H16 services & launch • Share in revenues reached 3.3% • Share reached ~8% of sales products… • Preo P2 & Pwatch 2 launched in • # of subscribers reached 80K la

  12. Slide 12: Disney Collection now only available in Teknosa Stores in Turkey

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Disney Collection now only available in Teknosa Stores in Turkey…  The agreement with Walt Disney is to sell Disney Collection products with a shop-in-shop model, allocating 100-150 m2 in designated stores  Teknosa will be the first retailer in E

  13. Slide 13: Notable contribution to the P&L with extra benefits on store traffic

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Notable  The products will hit the shelves on the 2nd half of August 2016 contribution to  The project’s annual contribution to the top-line is expected to be around TL the P&L with 100mn  Due to the shop-in-shop concept, the product line will o

  14. Slide 14: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Financial Overview Year-end Guidance 14

  15. Slide 15: Income Statement Summary

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Income (TL mn ) 2Q15 1Q16 2Q16 YoY (%) QoQ (%) 1H15 1H16 YoY (%) Statement Net Sales 723 775 803 11% 4% 1,389 1,578 14% Gross Profit 131 138 126 -3% -9% 254 265 4% Summary Gross Profit Margin 18.1% 17.9% 15.7% -2.4pp -2.2pp 18.3% 16.8% -1.5pp EBITD

  16. Slide 16: Income Statement Summary (Adjusted)

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION (TL mn ) 2Q15 1Q16 2Q16 YoY (%) QoQ (%) 1H15 1H16 YoY (%) Income Statement Net Sales Gross Profit 723 131 775 138 803 126 11% -3% 4% -9% 1,389 254 1,578 265 14% 4% Summary Adj. Gross Profit Adj. Gross Profit Margin 131 18.1% 138 17.9% 132 16.4% 1%

  17. Slide 17: Balance Sheet Summary

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Assets (in TL mn) Jun-15 Mar-16 Jun-16 Balance Current Assets Cash and Cash Equivalents 639 111 723 70 671 82 Sheet Due From Related Parties Trade Receivables 7 40 2 65 3 68 Summary Inventories Other Current Assets 454 26 558 27 486 33 Non-current

  18. Slide 18: Working Capital

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Working Capital Days Capital -7 -36 -22 Days of NWC 116 100 Days of TR 80 73 69 Days of Inventory 68 Days of TP 5 7 8 2Q15 1Q16 2Q16  Negative working capital allows Teknosa to generate positive cash flow in tandem with growth  Cash cycle

  19. Slide 19: Key Performance Indicators

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Key 2Q15 1Q16 2Q16 YoY (%) QoQ (%) 1H15 1H16 YoY (%) Performance Net Sales Area (‘000 sqm ) 172 168 165 -4% -1% 172 165 -4% Number of Stores 288 271 260 -10% -4% 288 260 -10% Indicators Number of Visitors (mn) 21 20 17 -19% -15% 45 37 -16% Number o

  20. Slide 20: Agenda

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Financial Overview Year-end Guidance 20

  21. Slide 21: 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 profitability + Chairman, market share New Strategy  Our studies regarding the reviews of the cu

  22. Slide 22: Focus Points: Store Network

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 1. Store Network: Focus Points Focus:  To clean the store network of the loss making locations with a zero tolerance in order to improve profitability in general Expected Impact:  The costs and provisions regarding the operation is expected to ma

  23. Slide 23: Focus Points: Product Portfolio & Assortment

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 2. Product Portfolio & Assortment: Focus Points Focus:  To exit from certain segments in order to optimize product portfolio  To offer a more intensive before and after sales services to the customers  Optimizing product assortment  Deploying a

  24. Slide 24: Focus Points: Destocking and Gross Margin

    TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 3. Destocking of the Old Aged Inventory: Focus Points Focus:  Clean-up the inventory from 180 days or older products  Move the stock from the closed stores Impact:  Gross margin is expected to remain under pressure in 3Q16  Improvement in finan

  25. Slide 25: 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 25

  26. Slide 26: 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. — Q2 2016 Earnings Presentation on 6ix