Teknosa Ic Ve Dis Ticaret As · BIST:TKNSA
Teknosa Ic Ve Dis Ticaret As — Teknosa İç ve Dış Ticaret A.Ş. — Q4 2014 Earnings Presentation
39 slides from Teknosa Ic Ve Dis Ticaret As's earnings presentation, Feb 16, 2015
Slide 1: Teknosa 4Q14 Results Investor Presentation
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Investor Teknosa İç ve Dış Ticaret A.Ş. Presentation 4Q14 Results «Turkey’s Leading Electronic Retailer» Korhan Bilek, CFO Erman Tütüncüoğlu, Head of IR February 16, 2015
Slide 2: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 2
Slide 3: Main messages
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION LfL trend reversed to flat in Despite low consumer confidence, -0.6% LfL Main 4Q14... achieved in 4Q14, following -9% in 3Q14 messages Strong e-commerce E-commerce sales maintained strong growth performance maintained… trend with 41% YoY increa
Slide 4: CCI slumped to a new low in 4Q14
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Outlook in the global economy was volatile amidst the declining oil prices CCI slumped and stronger US$, and the Consumer Confidence Index hit the trough point to a new low of the last 4 years in December, negatively affecting demand in 4Q14… Con
Slide 5: Consumer adjustment to the new law
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Consumer electronics spending via credit cards displayed 6% YoY growth in Consumer 4Q14, following the lackluster performance between February and July adjustment to Average monthly CE spending via credit cards stood nearly flat on a yearly the
Slide 6: Consumer adjustment to the new law
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION The monthly balance of single payments via personal credit cards grew Consumer 15pps YtD, increasing their share in total to 55% from ~40% levels prior to adjustment to the law the new law The consistent decline in monthly balance for personal
Slide 7: Offering pioneer services
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa will continue to differentiate itself from the competition in 2015, Offering carrying on its evolution into a «service provider» from a «classical box pioneer mover» services… As the first step towards this goal, TeknoFinans was launche
Slide 8: MVNO project is here
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION MVNO The First & Only Electronic Retailer in Turkey Offering Complete Telecom Services under its Own Brand project is here… Creating synergies with the existing product line, while also turning the business to a profit center by utilizing a reven
Slide 9: 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 10: Value Creation for Customers
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION BASIC TELECOM OFFERS Value Simple & advantageous tariffs Creation for Emphasis on data packages to support Customers Basic Telecom Offers the use of social media on portable devices Complementary Offers COMPLEMENTARY OFFERS Value Add Products B
Slide 11: Telecom customers are responsive to new offers
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION As of 9M14, there are 71.9mn subscribers in the sector Telecom Mobile penetration stands at 94% in Turkey as of 3Q14, indicating further customers are growth potential compared to 136% average in major EU countries responsive to Since the law
Slide 12: Higher value post paid customers are increasing
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION The share of post-paid subscribers increased by 6.5pps since 1Q12, reaching Higher value 43% in 3Q14, supporting our strategy of only offering post-paid contracts post paid The share of post-paid contracts in Turkey points out to further growth
Slide 13: TeknoFinans is to display faster growth
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION TeknoFinans is to display After its launch on June in collaboration with ING Bank, consumer financing faster growth business saw a rapid increase in the number of applicants. with Akbank on Akbank also entered into picture in October with its w
Slide 14: 4Q14 Results
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 177 171 166 +3% YoY growth 4Q14 7 new stores Net Sales Area Results (‘000 m2) opened while 16 low performing stores closed in 4Q13 3Q14 4Q14 4Q14 851 816 776 +4% YoY growth Store closures Net Sales Total limited top-line (M TL) Revenues gro
Slide 15: 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 FY14 Revenue Breakdown by Product Groups as of FY14 E-Commerce 10% Other* 10% Dealership CE & Group 3% IT
Slide 16: Strong growth in e-commerce revenues
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION E-Commerce (teknosa.com + kliksa.com) Revenues (M TL) Strong growth 93 in e-commerce +41% +62% 301 revenues… 66 186 4Q13 4Q14 FY13 FY14 Growth in e-commerce is expected to maintain the high pace E-commerce revenues are anticipated to exceed TL
Slide 17: Key Performance Indicators
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa Key Performance Indicators (Retail Operations) Key Performance 4Q13 3Q14 4Q14 YoY (%) QoQ (%) FY13 FY14 YoY (%) Indicators Number of Provinces 77 81 81 5% 0% 77 81 5% (Retail Net Sales Area (‘000 sqm ) 166 177 171 3% -4% 166 171 3% Operatio
Slide 18: Retail Operations Revenue Growth Analysis
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 4% -3% 0.5% Retail LfL trend reversed to an almost flat level Operations 7% 6% 1.1% in 4Q14, despite the lowest consumer Revenue -3% -0.6% confidence level of -9% Growth last 4 years Analysis 4Q13 3Q14 4Q14 19% 7% FY14 LfL growth: -4% 1% 13% 5%
Slide 19: Quarterly OPEX Breakdown
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Reduction of the operational expenses goes in line with our plan Quarterly Thanks to renegotiations, Rent/Sales ratio continued to improve from the OPEX peak in 1Q14; catching up the 4Q13 level in the quarter Breakdown Further improvement in
Slide 20: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 20
Slide 21: 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 22: 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 month
Slide 23: Electronics Retail Market and Teknosa (11M14)
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION As of 11M14, total market (CE, IT, Telecom, MDA, SDA) grew by 16% YoY, reaching Electronics TL 32bn Retail Market Technical Super Stores (TSS) channel recorded 6% YoY growth in the same period to TL 7.8bn in the 5 major categories and Teknosa
Slide 24: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 24
Slide 25: Income Statement Summary
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Teknosa Summary Income Statement Income ( M TL ) 4Q13 3Q14 4Q14 YoY (%) QoQ (%) FY13 FY14 YoY (%) Statement Net Sales 816 776 851 4% 10% 2,957 3,016 2% Summary Gross Profit Gross Profit Margin 152 18.6% 145 18.7% 149 17.5% -2% -1.1pp 3% -1.2pp 554
Slide 26: Balance Sheet Summary
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Assets (in M TL) Dec.13 Sep.14 Dec.14 Balance Current Assets 897 745 762 Cash and Cash Equivalents 334 111 193 Sheet Due From Related Parties Trade Receivables 0 25 3 32 4 24 Summary Inventories Other Current Assets 511 26 581 19 530 12 Non-current
Slide 27: Working Capital
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Working Working Capital Days Capital -14 -9 -12 Days of NWC 99 85 86 86 71 Days of TR 67 Days of Inventory Days of TP 4 4 3 4Q13 3Q14 4Q14 Negative working capital allows Teknosa to generate positive cash flow in tandem with growth Inventory Da
Slide 28: Capital Expenditures
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Total CAPEX (M TL) Capital Expenditures 56.2 62.4 15.9 9.8 4Q13 4Q14 FY13 FY14 New store openings and store renovations account for a major part of the Company’s capital expenditures. Capital expenditures are financed with cash generated from o
Slide 29: Agenda
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Agenda Results at a Glance Electronics Retail Market Financial Overview Year-end Guidance 29
Slide 30: Macroeconomic Indicators
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Macroeconomic Indicators Indicator 2013 2014 2015E GDP growth 4.1% 2.7% 3.0% Private Consumption 5.1% 1.3% 3.0% CPI Inflation 7.4% 8.2% 6.5% USD/TL rate (y.e.) 2.13 2.32 2.59 USD/TL rate (avg) 1.92 2.19 2.50 30
Slide 31: Teknosa's Targets in 2014
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Growth over the market; Stores; new openings and LfL Teknosa’s stores&online Maintain strong growth in e-commerce Targets in 2014 Aftersales services Develop new products & increase attachment rate Customer centricity Over 4m loyalty custom
Slide 32: 2014 Targets Checklist
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Growth over the market; On-line sales up by 62% YoY to TL 301mn 2014 Targets stores&online Net store space up by 3% YoY in FY14 Checklist… Aftersales services Aftersales services increased to 1.5x of FY13 level Customer centricity 4.4m loya
Slide 33: Teknosa's Targets in 2015
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Return to double digit growth Stores; new openings and LfL rates at the top line Maintain strong growth in e-commerce Teknosa’s Targets in 2015 Utilize Teknosa Mobil for a Increase share in telecom category Cross-selling opportunities highe
Slide 34: 2015 Full Year Financial Guidance
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION 2015 Full Year Financial 2014 2014 2015E FORECAST ACTUAL Guidance YE Net Sales Area (km2) 175 171 190 Net Sales (TL mn) 3,000 - 3,100 3,016 3,300 Growth (%) 1%-5% 2% 10% LFL Growth (%) -4% -4% 5% EBITDA (%) 2.8%-3.2% 2.7% 3.0%-3.5% CAPEX(TL mn) 55-
Slide 35: Our 5 year growth plan
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Our 5 year growth plan… 2015 2015-2020 Market Growth 15% 10%-15%/yr YE Net Sales Area (km2) 190 +20K sqm/yr TKNSA Top-line Growth (%) 10% ~20%/yr LFL Growth (%) 5% 10%-15%/yr EBITDA (%) 3.0%-3.5% 4.0%-5.0% CAPEX (TL mn) 45-50 ~60 Note: EBITDA exclu
Slide 36: Our 5 year growth plan
TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION Benefitting from the «Economic Darwinism» as the strongest player… Our 5 year - 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 37: 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 38: 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 February 16, 2015
Slide 39: 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. — Q4 2014 Earnings Presentation on 6ix