Teknosa İç ve Dış Ticaret A.Ş.

35 

Loading....

Loading....

Loading....

Loading....

Loading....

Full text

(1)

Teknosa İç ve Dış Ticaret A.Ş.

IPO SUSTAINABLE GROWTH CUSTOMER ORIENTED PROCESS MANAGEMENT LEADERSHIP EMPLOYEE PARTICIPATION

STRONG RELATIONS WITH SUPPLIERS

CONTINUOUS IMPROVEMENT

HIGH QUALITY SERVICE

(2)

Agenda

Introduction

Teknosa at a Glance

Financial Overview

(3)

Introduction

Teknosa at a Glance

Financial Overview

(4)

Teknosa At a Glance

Market Leader in Technical Super Stores Channel with 44% market share

85 million store visitors in 2011, more than 25 million visitors in the first quarter of 2012

Highest penetration among Turkish Technical Super Stores with 271 stores in 72

provinces and 129,592 sqm net sales area as of 31 March 2012

Sustainable growth on the back of cash generation due to strong financial structure

Strong and well-known brand, leveraging Sabancı Holding reputation

Pioneer in the market in employee training (Teknosa Academy), customer assistance

(Tekno Assist) and loyalty program (Orange Card)

2011 revenues reaching TL 1.7 billion with 29% y.o.y growth and EBITDA margin of 6.4%

Q1-12 revenues reaching TL457 million with 18% y.o.y growth and EBITDA margin of 5.5%

(5)

2000

2006

2007

 Commenced operations with 5 stores

 Number of stores reached 152

 Operational efficiency and infrastructure projects for “Scientific Retailing Program”  Dealership operations organised under Iklimsa brand

 E-learning application launched

2012  Kliksa.com (e-commerce website) launched

 IPO of Teknosa at 17 May 2012

2005  Teknosa Academy established

2009  “Exxtra” format stores introduced

 ISO 27001 (information security management) certification received

2011

 Acquired Best Buy operations in Turkey

 Revenues reached TL 1.7 billion with 6.4% EBITDA margin  Orange Card holders reached 2.3 million

 ISO 10002 (customer satisfaction) certification received

2008  Received an award for best human resources practice

 Loyalty card program (Orange Card) launched

5

Milestones

 Number of stores exceeded 200

 Gebze Logistics Center (Istanbul) started operations with 30,000 sqm closed area

 All 5 stores of Germany-based consumer electronics retailer, Electronic Partner, acquired  2 Uzelli Music Market stores acquired

 Teknosa Assist launched as the first after-sale and refund service program in Turkey  ISO 9001 (quality management system for operational excellence) certification received

(6)

Enhance Quality of Service

 Differentiation through diverse after sales services in the high competition market

 Customer Assistance  Tekno Guarantee  On-site services

 Increasing efficiency of employees in stores by intense training programs at Teknosa Academy

 Increasing customer loyalty through various promotional and marketing campaigns, focusing on customer retention, repetitive purchasing

 Utilization of online media (Twitter, Facebook etc.) as a corporate/brand communication/marketing venue

Corporate Strategy

Increasing Market Share While Sustaining Profitability

 Increasing the number of provinces penetrated to 81, encompassing all Turkey;

 Securing premium locations for new store openings,

 Organic growth in malls as well as high-traffic streets enabled by multi format strategy

 Acceleration in large format store openings

 Achieving leadership position in fast growing e-commerce with Kliksa

 Evaluation of attractive acquisition opportunities, despite the priority of organic growth

Solidify Market Leadership Sustainable Profitability

 Constantly improving operating effiencies to allow Teknosa to sustain and improve profitability

 Success in the execution of multi-format store strategy due to strong IT infrastructure, management experience and logistics infrastructure

 Increasing purchasing power with suppliers due to increasing economies of scale

 Improvement in inventory management and control;

 “Scientific Retailing” integrating sales and inventory management  Pricing and diversification of

(7)

Shareholders Pre - IPO

Post - IPO

Nominal Value (TL) Ratio (%) Nominal Value (TL) Ratio (%)

Sabancı Holding 77,310,510 70.28% 66,310,510 60.28%

Sabancı Family 32,689,490 29.72% 32,689,490 29.72%

Free Float - - 11,000,000 10.00%

TOTAL 110,000,000 100.00% 110,000,000 100.00%

Pre-IPO Post - IPO

Shareholding Structure

(„TKNSA‟)

Sabancı Holding 70.28% Sabancı Family Members 29.72% Sabancı Holding 60.28% Sabancı Family Members 29.72% Free Float 10.00% Sabancı Holding 58.78% Sabancı Family Members 29.72% Free Float 11.50% Sabancı Holding 60.28% Sabancı Family Members 29.72% Free Float 10.00%

Allocation of the shares issued Allocation percentage

 Domestic Indiviual Investors %55

 Domestic Corporate Investors %15

(8)

Sabancı Holding

 Enerjisa Industrials Retail Cement Banking Insurance  Kordsa Global  Brisa  Sasa  Yünsa  Olmuksa  Temsa  Akbank  Teknosa  Carrefoursa  Diasa  Çimsa  Akcansa  Aksigorta  Avivasa Energy (TL million) 2011 Consolidated Sales 22,409 Consolidated Assets 151,114 Market Cap* 15,017 Shareholding Structure

Source: Sabancı Holding 39.6% 60.4%

Free Float Sabancı Family

(9)

Introduction

Teknosa at a Glance

Financial Overview

(10)

Operations

Dealership Group

Product Groups:

 Consumer Electronics & Photo  Information Technology  Telecom

Product Groups:

 Air Conditioners  Refrigerators  Cash registers

*Consists of Tekno Guarantee warranty sales, small domestic appliances and white goods

Revenue Breakdown as of 2011

Teknosa operations are composed of Retail and Dealership activities

Retail Operations

Breakdown of 2011 Revenues Breakdown of 2011 Revenues Dealership Group 6% Retail Operations 94% Consumer Electronics & Photo 44 % Telecom 18 % Information Technology 31 % Other 7 %* Air Conditioners 89% Refrigerators 9% Cash Registers 2% Other >1 %

(11)

291 400 647 807,431 926,090 1,080 1,212 1,572 373,213 443,416 49 67 93 138,238 94,389 65,077 79,786 97,448 12,130 13,094 2004 2005 2006 2007 2008 2009 2010 2011 Q1-11 Q1-12

Proven Growth

56 67 80 101 128 # of Stores Sales Area (m2 ’000) 232 218 244 256 269 Retail Sales (TL mn) 946 1,020 1,146 1,292 1,670 Dealership Sales (TL mn) 11 740 467 339 33 152 22 96 12 56

Source: Teknosa Source: Teknosa

Number of Provinces with Teknosa Stores Number of Stores, Net Sales Area

and Net Sales

252 271 104 130 385 455 9 23 43 56 61 65 68 72 72 2004 2005 2006 2007 2008 2009 2010 2011 Q112

(12)

 212 stores in 72 cities  <750 sqm store area  25 stores in 10 cities  >1,200 sqm store area  41 stores in 21cities  Between 750-1,200 sqm store area

 Teknosa retail operations are carried out in 3 different store formats to increase market penetration.

Number of Stores as of Q2 2012

Retail Operations

Store Formats

Source: Teknosa Provinces with Teknosa stores

(13)

Retail Operations

Net Sales and Net Sales Area

Net Sales Area Breakdown by Store Format

Revenue Breakdown by Province Revenue Breakdown by Store

Format

Net Sales Area Breakdown by Province

Revenue Breakdown by Product Category Source: Teknosa 13 71% 64% 51% 62% 52% 18% 21% 23% 20% 23% 11% 15% 26% 18% 25% 2009 2010 2011 Q1-11 Q1-12

Exxtra Extra Standard

48% 50% 51% 49% 50%

9% 9% 9% 9% 9%

13% 11% 10% 11% 10%

30% 30% 30% 31% 31%

2009 2010 2011 Q1-11 Q1-12

Istanbul Ankara Izmir Other

51% 42% 35% 40% 35% 25% 28% 27% 27% 27% 24% 30% 38% 33% 38% 2009 2010 2011 Q1-11 Q1-12

Exxtra Extra Standard

48% 50% 51% 49% 51%

9% 9% 9% 9% 9%

13% 11% 10% 11% 10%

30% 30% 30% 31% 31%

2009 2010 2011 Q1-11 Q1-12 Istanbul Ankara Izmir Other

19% 21% 18% 19% 20% 42% 32% 31% 37% 28% 34% 40% 44% 38% 45% 5% 7% 7% 6% 7% 2009 2010 2011 Q1-11 Q1-12

White Goods and Other Consumer Electronics & Visual IT

(14)

 Teknosa’s website, www.teknosa.com, was established for online retailing as well as informational and advertising purposes.

 Teknosa was not focused on online retailing until 2012 and hence online sales accounted for merely 0.6% of the total revenues in 2011.

 With the e-commerce gaining momentum in Turkey, Teknosa has decided to launch Kliksa e-commerce site, a wholly-owned subsidiary of the Company in 2012.

 Kliksa’s business model is based on offering a wider range of products at more affordable prices compared to Teknosa. Kliksa will offer products other than consumer electronics eg. books, DVDs, stationary. 140,000 SKUs are planned to be offered through Kliksa.

 Kliksa aims to create a sustainable business line leveraging the information technology and logistics infrastructure of Teknosa. Customer delivery is targeted to be the best-in class.

 With the launch of Kliksa, Teknosa’s own website will be mostly used for informational purposes.

 Teknosa targets Kliksa to become market leader of the fast growing B2C e-commerce in the next five years.

 E-commerce volume in Turkey has reached TL 22.9 billion, posting a CAGR of 43% between 2007 and 2011*. The main factors stimulating the growth are;

 increasing internet penetration (According to TurkStat data, internet penetration of Turkish households stood at 43% in 2011),

 secure e-trade (3D secure) application,

 various incentive/discount campaigns encouraging online shopping,

 Online retail sales in Turkey, estimated to be c.USD 2 billion in 2010, are forecasted to reach USD 9 billion by 2016.

*Source: The Interbank Card Center (BKM). B2B transactions are included.

Source: Teknosa & Ak Investment

Share of E-commerce in Total Retail Sales in Turkey

USD 2 bn USD 9 bn

0.6%

1.1%

2010 2016 E

Total Retail Sector Size Share of Online Retail Sales

(15)

Human Resources

Personnel Breakdown

 Teknosa had 3,341 employees as of Q1 2012. Retail Operations personnel account for 85% of the total personnel on average.

 Teknosa employs a top-class management with a solid understanding of the Turkish market and consumers. The top management has been with the Company more than eight years on average.

 Through restructuring and efficiency plans implemented in 2010, the number of retail and headquarters personnel have been reduced.

 Performance assessment and training are two principles that underpin Teknosa’s human resources strategy. Hence, Teknosa Academy, the first and only training program in the Technology Consumer Goods Market, was established in 2005 to train employees to be the most compenent personnel in the market.

 Teknosa has developed clear personnel development and incentive schemes offering attractive career opportunities to those willing to grow with the Company.

 The Assessment Center in Teknosa Academy provides career planning and performance evaluation services for Teknosa personnel throughout their careers.

Source: Teknosa 15 3,067 3,060 3,334 2,986 3,282 3,341 83% 83% 84% 85% 86% 86% 15% 14% 13% 13% 12% 12% 3% 2% 2% 2% 2% 2% 2007 2008 2009 2010 2011 Q1-12

(16)

Candidate Training Program

 Sales  Products  Systems

 Communication

 Quality Management System

Added Value of Teknosa Academy

 Increasing revenue per employee in stores  Training highly compenent sales consultants

and managers

 Increasing interaction between departments  Increasing motivation and lowering employee

turnover

Facilities

 1,200 sqm closed area at Teknosa Plaza located in Istanbul

 2 simulation rooms

 2 computerized classrooms  7 classrooms

 15 instructors

Teknosa provides personnel training and development programs within Teknosa Academy . In 2008, Teknosa received “Best Human Resources Practice” award.

Personnel Training Program

 Managerial Development  Career Development  Personal Development

E-Learning

 Education Portal  Social Learning Tools  Simulations

(17)

 Teknosa operates its supply chain based on central and regional warehouses.

 In 2007, Teknosa’s central warehouse in Gebze has started its operations with a closed area of 30,000 sqm on a 60,000 sqm land to serve all regions in Turkey. The other 4 regional transfer points are used for cross-docking.

 Suppliers of Teknosa are authorised domestic distributors of international manufacturers.

 Logistics operations between cross-docking points and stores are outsourced from third parties.

Source: Teknosa

17

Warehouses and Distribution

Location Closed

Area (sqm)

# of Provinces Served

Istanbul Gebze Warehouse 30,000 All Provinces

Regional Transfer Points

Ankara 1,000 35 Adana 880 19 Izmir 770 6 Antalya 400 3 Subtotal 33,050 In-store warehouses 20,374 Total 53,424

(18)

CRM Applications

 Special discounts for Orange Card holders

 Seasonal lotteries and campaigns

 Special campaigns on customer birthdays

 Advantages received from various banks and GSM operators

 Pre-campaign notifications

 Extra discounts on maintenance and spare part fees for certain brands

 Recognition by mobile phone number eliminates the need to carry

Orange Card in order to benefit from campaigns/advantages

 Shopping bonuses earned through purchases and conversion of

points to giftcards

 Various advantages provided by cooperations / alliances to Orange Card holders in various sectors

 2.7 million Orange Card owners

 50% of total sales conducted through Orange Card

 Vast customer database allows for detailed

monitoring of purchasing behavior and tailored CRM applications

(19)

 Tekno Guarantee is the extended broad-scope warranty service on top of that provided by the manufacturer.

 24/7 support & maintenance

 On site service

 Immediate replacement

 Teknosa Assist (Customer Assistance Program), is the technology consultancy service offered by Teknosa to its customers.

 This service includes full 24/7 customer support by the call center. Free installation and free delivery are also included.

 Teknosa received ISO 9001 (quality management system for operational excellence)

with the broadest scope in the market, ISO 27001 (information security management), ISO 10002 (customer satisfaction) certificates.

 100% refund for returns in 30 days

 Extension of warranty up to 5 years

 On Site Service (Yerinde Hizmet) covers all customer services ranging from

on-site installation / setup.

19

(20)

Introduction

Teknosa at a Glance

Financial Overview

(21)

Summary Financials

Income Statement

21 Income Statement (TL'000) 2009 2010 2011 Net Sales 1.145.533 1.291.991 1.669.631 Cost of Sales -895.351 -1.009.427 -1.304.345 Gross Profit 250.182 282.564 365.286

Gross Profit Margin % 21,8% 21,9% 21,9%

Operating Expenses -225.996 -266.938 -305.880

Other Operating Income 9.970 9.781 38.288

Other Operating Expense -7.278 -5.359 -12.586

Operating Profit 26.878 20.048 85.108

Net Financial Expense -19.061 -19.757 -25.472

Profit Before Taxation on Income 7.817 291 59.636

Deferred Tax Income/Expense 0 4.284 -9.411

Net Profit 7.817 4.575 50.225 EBITDA 42.007 38.926 106.468 EBITDA Margin % 3,7% 3,0% 6,4% Income Statement (TL'000) Q1-11 Q1-12 Net Sales 385.343 456.600 Cost of Sales -301.565 -361.089 Gross Profit 83.778 95.511

Gross Profit Margin % 21,7% 20,9%

Operating Expenses -69.494 -84.848

Other Operating Income 3.640 5.707

Other Operating Expense -1.193 2.840

Operating Profit 16.731 19.211

Net Financial Expense -5.923 -8.023

Profit Before Taxation on Income 10.808 11.188

Deferred Tax Income/Expense -2.163 -2.228

Net Profit 8.645 8.960

EBITDA 21.775 25.180

EBITDA Margin % 5,7% 5,5%

(22)

Summary Financials

Balance Sheet

Assets (TL'000) 2009 2010 2011

Current Assets 252.389 292.392 498.362

Cash and Cash Equivalents 44.603 67.541 186.596 Due From Related Parties 1.515 2.119 3.302

Trade Receivables 13.285 21.925 25.338

Other Receivables 0 4 547

Inventories 178.872 182.854 260.925

Other Current Assets 14.114 17.949 21.654

Non-current Assets 65.291 96.848 106.029

Investment Property 11.368 11.241

Property,Plant and Equipment 54.022 69.909 78.681

Intangible Assets 3.927 5.576 6.128

Deferred Income Tax Assets 4.284 4.394

Other Non-current Assets 7.342 5.711 5.585

Total Assets 317.680 389.240 604.391

Liabilities (TL'000) 2009 2010 2011

Current Liabilities 226.365 293.267 457.671

Financial Liabilities 0 0 0

Due to Related Parties 1.131 1.520 2.143

Trade Payables 200.348 256.527 426.772

Other Payables 6.187 9.312 7.178

Other Current Laibilities 18.699 25.908 21.578

Non-current Liabilities 321 404 926 Total Equity 90.994 95.569 145.794

Total Liabilities 317.680 389.240 604.391

Assets (TL'000) Q1-11 Q1-12

Current Assets 355.845 422.988

Cash and Cash Equivalents 127.139 79.823 Due From Related Parties 1.497 6.438

Trade Receivables 14.136 30.739

Other Receivables 4 547

Inventories 189.065 273.307

Other Current Assets 24.004 32.134

Non-current Assets 94.813 105.825

Investment Property 11.426 11.197

Property,Plant and Equipment 70.563 82.217

Intangible Assets 5.412 6.334

Deferred Income Tax Assets 2.121 2.166 Other Non-current Assets 5.292 3.911

Total Assets 450.659 528.813

Liabilities (TL'000) Q1-11 Q1-12

Current Liabilities 345.954 373.062

Financial Liabilities 100.021 0

Due to Related Parties 1.716 3.645

Trade Payables 212.135 335.753

Other Payables 6.335 11.461

Other Current Laibilities 25.746 22.203

Non-current Liabilities 491 997 Total Equity 104.214 154.754

(23)

Revenues

Revenues (TL Million)

Revenue Breakdown

Retail Operations Revenue Growth - 2011

Source: Independent Auditor’s Report Source: Independent Auditor’s Report

Source: Teknosa

23

 Retail revenues, constituting 94% of the total revenues over the last 3 years, posted 30% growth in 2011.

 In 2011, LfL growth accounted for 15% of the total growth of the retail operations and the remaining 15% growth resulted from the net expansion effect.

*

* Growth through new store openings – effect of closed stores 15%

30% 15%

Like For Like Growth Net Expansion Effect Total Growth 1,020 1,146

1,292

1,670

385 457

2008 2009 2010 2011 Q1-11 Q1-12 Dealership Group Retail Sales

91% 94% 94% 94% %94 97%

9% 6% 6% 6% %6 3%

2008 2009 2010 2011 Q1-11 Q1-12 Dealership Group Retail Sales

(24)

41,486 39,505 107,023 21.775 25.180 2009 2010 2011 Q1-11 Q1-12

Profitability

EBITDA (TL '000)

Source: Independent Auditor's Report

Source: Independent Auditor's Report

 Starting from the second half of 2010, Teknosa switched from a growth oriented strategy to growth and profitability oriented strategy.

 The outcome of the strategy was reflected in 2011 profit margins with the adjusted EBITDA margin increasing to 5.3% in 2011 and 5.5% in Q1 2012.

 The acquisition of Best Buy’s operations in Turkey had a TL17.7 million direct contribution to 2011 EBITDA.

 Teknosa’s average gross profit margin is 21.8%.

 In 2011, EBITDA margin increased to 6.4%. Excluding one-off effect of the Best Buy acquisition, EBITDA margin realized at 5.3%.  The increase in adjusted EBITDA margin in

2011 and 2012 mainly stems from better operating expenses control.

21.8% 21.9% 21.9% 21,7% 20,9%

3.6% 3.1%

6.4% 5,7% 5,5%

2009 2010 2011 Q1-11 Q1-12

(25)

Operating Expenses

Personnel Expenses - Retail Operations

Source: Teknosa

Source: Independent Auditor’s Report

25

 EBITDA margin increased due to effective

cost control and improvements in

operational efficiency.

 The decrease in the personnel expenses had the highest contribution in the 2011 EBITDA margin.

 The ratio of retail operations personnel expenses to retail sales decreased from 7.8% in 2010 to 6.1% in 2011 (to 6.3% in Q1 2012).

 Personnel expenses per square meter decreased by 20% from TL784 in 2010 to TL623 in 2011.

 In 2011, as a result of improved efficiency in personnel expenses, total operating expenses to net sales decreased from 20.7% to 18.3% (18.6 in Q1 2012).

 Personnel, lease and advertising & promotion expenses accounted for 73% of the total operating expenses in 2011 (75% in Q1 2012). 840 784 623 164 154 %7,7 %7,8 %6,1 6,2% 6,0% 2009 2010 2011 Q1-11 Q1-12

Retail Personnel Expenses Per Sqm (TL) Retail Personnel Expenses / Retail Sales (%)

(TL'000) 2009 2010 2011 Q1-11 Q1-12

Personnel Expenses 89.578 101.328 102.539 24.812 28.700

Personnel Expenses / Net Sales 7,8% 7,8% 6,1% 6,4% 6,3%

Lease Expenses 61.066 75.518 95.202 21.551 27.420

Lease Expenses / Net Sales 5,3% 5,8% 5,7% 5,6% 6,0%

Advertising & Promotion Expenses 20.281 24.117 26.122 5.617 7.655

Advertising & Promotion Expenses /

Net Sales 1,8% 1,9% 1,6% 1,5% 1,7%

Other 55.071 65.975 82.017 17.514 21.073

Other / Net Sales 4,8% 5,1% 4,9% 4,5% 4,6%

Total Operating Expenses 225.996 266.938 305.880 69.494 84.848

(26)

Other Performance Indicators

Source: Teknosa

Source: Teknosa

 Teknosa’s average annual sales area posted a 25% increase both in 2010 and 2011. It has been increased 13% as of Q1 2012.

 The number of receipts posted on average 10% y-o-y growth in 2010 and 2011

 Average basket size increased by 19% in 2011, reaching TL 215. (11% increase in Q1 2012 when compared to 31 Dec 2011).

72,508 90,631 113,424 101.470 128.564 1,080,455 1,212,206 1,572,183 373.213 443.416 14,901 13,375 13,861 2009 2010 2011 Q1-11 Q1-12

Sales Area (Sqm) - Annual Average Retail Operations Sales (TL '000) Sales Performance- Sales/ Sqm

3.578 3.422 5,939 6,617 7,249 1.863 1.871 179 181 215 201 238 2009 2010 2011 Q1-11 Q1-12 # of Receipts ('000 Persons) Average Basket Size (TL)

(27)

Working Capital

 Negative working capital allows Teknosa to generate positive cash flow in tandem with growth.  Days in payables have been improving for the past three years due to strong purchasing power

with suppliers.

Source: Independent Auditor’s Report

Working Capital Breakdown (TL mn )

27 -139 - 8 -51 15 24 29 16 37 179 183 261 189 273 201 258 429 214 339 2009 2010 2011 Q1-11 Q1-12

Trade Receivables Inventories

Trade Payables Net Working Capital -9 -29 2009 2010 2011 Q1-11 Q1-12 Days Receivable 5 5 6 5 6 Days Inventory 65 65 62 55 67 Days Payable 67 83 96 70 96

(28)

Capital Expenditures

 New store openings and store renovations account for 85% of the Company’s capital expenditures.  Capital expenditures are financed with cash generated from operations.

 The increase in Company’s capital expenditures in 2010 was due to the acquisition/renovation of an office complex located in Adana for TL 21 million. The portion of this complex allocated within the context of Company’s retail operations is recorded as fixed assets, whereas the remaining leased portion of the complex is recorded as investment property (TL 11.5 million)

Source: Independent Auditor’s Report

Capital Expenditures (TL „000) 23.038 48.139 30.028 5.864 7.820 2009 2010 2011 Q1-11 Q1-12

(29)

Introduction

Teknosa at a Glance

Financial Overview

(30)

Product Categories of Technical Consumer Goods Market Consumer Electronics & Photo Information

Technology Telecom

Small Domestic Appliances White Goods

Technical Consumer Goods Market in Turkey

 Technical Consumer Goods Market consists of

5 major product categories; consumer electronics &

photo, information technology, telecom, small

domestic appliances and white goods.

 The market had displayed a 14% CAGR between the

years 2008 and 2011.

 Telecom category recorded the highest growth

between 2008 and 2011 with a 24% CAGR and increased its share in the total market from 20% in 2008 to 25% in 2011. 14,304 13,833 17,133 21,370 4,478 5,218 Market Size (TL mn) 19% 16% 16% 18% 18% 20% 32% 35% 32% 31% 27% 28% 13% 11% 12% 11% 9% 8% 17% 17% 16% 15% 19% 16% 20% 20% 24% 25% 28% 28% 2008 2009 2010 2011 Jan-March 2011 Jan-March 2012 Consumer Electronics&Photo White Goods

Small Domestic Appliances Information Technology Telecom

(31)

Sales Channels of Technical Consumer Goods Market

Technical Consumer Goods Market in Turkey – cont.‟d

Source: GfK Electronics Panel Report 2011

31 Hypermarkets /Supermarkets and Department Stores (MASS Merchants) Consumer Electronics Stores (CES)

Computer Shops & System Houses

(CSS)

Telecom Specialists Technical Super

Stores (TSS)

Non-exclusive Dealerships

Exclusive and Non- exclusive Dealerships Hypermarkets /Supermarkets Cash&Carry Do It Yourself (DIY) Retailers Department Stores

Exclusive Dealerships Mobile Phone Dealerships

Pure Online Players

Carrefour, Migros, Real, Kipa, Tesco, Beğendik

Metro

Bauhaus, Praktiker, Koçtaş

Boyner, YKM, EVKUR

Hepsi Burada

Arçelik, Beko, Bosch, Profilo, Siemens, Tefal, Samsung, LG, Regal, Vestel, Philips, İhlas, Esse

Escort, Casper, Key

Smart, Apple Turkcell, Vodafone, Avea

Media Markt, Darty, Electroworld, Bimeks, Gold Bilgisayar, Teknolojix Points of Sale: 6,898 Points of Sale: 17,628 Points of Sale: 6,041 Points of Sale: 17,261 Points of Sale: 538

(32)

50% 39%

11%

0-29 30-59 60+

Main Drivers of Market Growth in Turkey

Source: The World Bank

Source: TurkStat, EIU The second largest and the fastest growing population

in Europe (TL mn - 2011)

Consumer Confidence Index reached pre- 2008 economic crises levels

Young population with an appetite for consumer electronics

Higher GDP growth expectations compared to EU Age breakdown of 74.7 mn population

Source: CNBC-e Confidence Index

Source: TurkStat

-0.20% 1.30% 0.50% 0.70% 0.50% 0.40% 0.10% 0.40% -0.10%

Population growth rate (%)

82 75 65 61 60 46 38 11 10 G er m an y Tu rk ey Fr an ce UK Italy Sp ai n Po la nd Cz ec h Re p. Hu ng ar y 117,0 97,0 96,0 62,0 90,0 114,0 90,0 4190001900r 4l 9% 8.5% 2.3% 3.2% 4.0% 4.3% 4.5% 05% 1.9% 1.4% -0.3% 0.9% 1.4% 1.6% 1.7% 02%

2010 2011 2012E 2013E 2014E 2015E 2016E 2017E

(33)

554 547 547 538 457 433 425 342 276 240 193 160 159 120 87 59 U A E B e lg iu m N e th e rl a n d s G e rm a n y A u s tr ia F ra n c e S p a in It a ly G re e c e P o rt u g a l S a u d i A ra b ia R u s s ia S lo v a ki a T u rk e y U kr a in e R o m a n ia

Main Drivers of Market Growth in Turkey –

cont.’d

Source: GfK Temax

33

Share of instalment payments in total credit card payments

Number of credit cards owned (mn)

Source: The Association of Real Estate Investment Companies (2005-2009), TurkStat (2010,2011)

Source: Central Bank of the Republic of Turkey

Source: The Interbank Card Center (BKM)

The boosting effect of credit card instalment payments on consumer spending

Stimulating effect of booming housing projects on consumer electronics demand

Lower per-capita spending on technical consumer goods in Turkey compared to EU (€ - 2010)

Stimulating effect of the increase in number of shopping malls on retail sector growth

Source: Trade Council of Shopping Centers & Retailers (AMPD)

EU Average: 366

Houses with Construction Permits ('000)

98 125 160 216 244 267 296 2005 2006 2007 2008 2009 2010 2011 545 597 581 501 508 823 916 2005 2006 2007 2008 2009 2010 2011

Number of Shopping Malls

36% 42% 41% 36% 41% 44% 47% 47% 2005 2006 2007 2008 2009 2010 2011 Q1-12 30 32 37 43 44 47 51 2005 2006 2007 2008 2009 2010 2011

(34)

Technical Super Stores Channel (TSS)

 Technical Super Stores and MASS Merchants channels

comprise the organized sales channels of the Technical Consumer Goods Market.

 Turkish Technical Consumer Goods Market is

underconsolidated with Technical Super Stores accounting for only 30% of the market in 2011.

 Teknosa is the market leader of the Technical Super Stores channel with 45% market share* as of March 2012. Teknosa’s market share in the total Technical Consumer Goods Market was 13%* as of March 2012.

 The competition in the TSS channel has become fierce since

2006 with the entrance of international players. However, Teknosa has succesfully maintained its leading position and increased its market share in times of economic downturns due to its strong brand name.

*Excluding white goods and small domestic appliances product groups.

Market Shares of Teknosa and Other TSS Players **

Source: GfK Electronics Panel Report

Teknosa solidified its lead position in TSS channel by acquiring some of the leading international TSS players‟ operations and assets in Turkey Company

Start of Operations in

Turkey

Exit from

Turkey Origin Notes

Electronic Partner 2005 2007 Germany

All 5 stores in Turkey acquired

by Teknosa via asset sale

Best Buy 2009 2011 USA Acquired by

Teknosa Other Technical Super

Stores

(Bimeks, Gold, Media Markt, Electro World, Saturn, Darty and etc.)

Source: Company websites *As of May, 2012

Technical Super Stores Operating in Turkey

Company

Incorporation/Start of Operations in

Turkey

Origin # of Stores # of Provinces *

2000 Turkey 272* 72

Gold 1991 Turkey 57 29

Bimeks 1990 Turkey 62 39

Vatan 1983 Turkey 52 25

Darty 2006 UK 27 11

Media Markt 2007 Germany 25 9

Electro Word 2007 UK 30 19

**Excluding white goods and small domestic appliances product groups

44% 47% 42% 43% 45% 14190001900r2l

56% 53% 58% 57% 55% 24190001900r2l

2008 2009 2010 2011 Jan-March

(35)

35

Figure

Updating...

References

Updating...

Related subjects :