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TEKNOSA İÇ VE DIŞ TİCARET A.Ş INVESTOR PRESENTATION

Teknosa İç ve Dış Ticaret A.Ş. Investor Presentation

«Turkey’s Leading Electronics Retailer»

Korhan Bilek, CFO Erman Tütüncüoğlu, Head of IR

Investor Presentation


Teknosa at a Glance

3Q15 Results

Electronics Retail Market

Financial Overview

Year-end Guidance

2

Agenda


Financial Strength

Omni-channel Business Model

Strong Growth Potential in the Market

Leading the market with pioneer services & products...

3

• Young population with higher tendency for electronics spending

• Turkey’s CE retail is under-penetrated, growing strongly with favorable demographics and rising per capita income

• Having the first-mover advantage, Teknosa

is the by far market leader amongst

electronics retailers

• Our mission is to evolve to a «service

provider» from a «classical box mover»

• Unique services & products are being

launched since 2H14

• Strong & debt free balance sheet

• Strong cash flow generation supported

by the negative working capital cycle

• Targeted marketing via advanced ERP and

CRM programs

• Teknosa Akademi, the first and only

training program in electronics retail

• State of the art logistics infrastructure

Undisputed Market Leader

1

2

Differentiation Through Pioneer Services & Products

3

4

Strong Operational and Technical Infrastructure

6

5

• Emphasizing growth both as an omni-channel player through teknosa.com and as a pure player through kliksa.com


ShareholderStructure <TKNSA TI>

4

Sabancı Holding <SAHOL TI> is the major shareholder of Teknosa with a 60.3% stake.

Among one of the leading & most respected conglomerates in Turkey, Sabancı Holding is active on financial services (Akbank, Aksigorta , Avivasa), energy (Enerjisa), retail (Teknosa, Carrefoursa ), cement (Akcansa, Cimsa) and automotive and tire reinforcement materials (Brisa, Kordsa, Temsa) sectors.

11.7% of Teknosa shares are free floated and the company is listed on the BIST since May 17, 2012.

Sabancı Holding 60.3%

Sabancı Family 28.1%

Other 11.7%


Retail Operations Store Formats

5

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

203 stores in 78 cities <750 m2 store area

39 stores in 14 cities >1,200 m2 store area

45 stores in 26 cities 750-1,200 m2 store area

Standard

Teknosa operates 287 stores in all 81 cities of Turkey, with a total net sales area of 173K m2 as of

30 September 2015


6

The evolution towards a «Service Provider» continues…

Traditional Dealer

Electronics Retailer

• Mono brand • Narrow product spectrum • No aftersales services

• Multi brand • Wide product spectrum • Aftersales services

• Pioneer services • Bundled private label products • 7/24 tailored customer solutions


7

Teknosa will continue to differentiate itself from the competition, carrying

on its evolution into a «service provider» from a «classical box mover»

As the first step towards this goal, «TeknoFinans» was launched in June

2014, offering new financing options to our customers

Aftersales services rebranded under «Dr. Teknolog» in 1Q15

«Teknosa Mobil launched in February 2015, rendering Teknosa as the first

& only Electronics Retailer in Turkey offering complete telecom services

under its own brand

«Teknosa Preo» branded smartphone and smartwatch was launched in July

2015 as the first private label product by an electronic retailer in Turkey

Pioneer services & products launched over the last year…


8

TeknoFinans: ~115K loans ~8% share in sales...

After its launch in June 2014 in collaboration with ING Bank, consumer

financing business saw a rapid increase in the number of applicants.

Akbank also entered into picture in October 2014 with its wide network,

which makes a positive impact on growth figures.

Consumers are benefitting from installments up to 36 months on every

product, with interest rates rivalling mortgages and without bearing any

additional fees.

Unlike the competition, Teknosa is partnering with larger scale banks with

better IT structures for its consumer financing program, helping the

procedures to run smoothly and without a glitch.

Sales are en-route to our 10% target


Creating synergies with the existing product line, while also turning the business to a profit center by utilizing a revenue sharing model

Utilizing Teknosa’s strong brand image synonymous with high-tech products to attract subscribers

Wide store network reaching all cities of Turkey, visited by ~100mn people each year

~1mn mobile phones sold in 2014, which is to be further boosted with Teknosa Mobil

9

Teknosa Mobil is to support growth in Telecom segment…

The First & Only Electronic Retailer in Turkey Offering Complete

Telecom Services under its Own Brand


10

Benefits of the MVNO…

To offer a «one-stop-shop» experience for the customers where the product and the related services are offered under one roof

The lack of GSM contract options in the TSS channel prevents it to be the #1 address in customer’s mind in telecom products

Coupled with Teknosa’s wide product range, we aim to garner market share in telecom segment in all channels

To create a continuous & closer relationship with the customer via the monthly receipt

New private label products to further enhance the already sizeable product spectrum


After Sales Services

11

In order to further differentiate Teknosa from the competition and

increase customer satisfaction, after sales services were enriched and

relaunched under Dr. Teknolog brand in 1Q15.

After sales services has 2 main components:

Protection plans (sold attached to main product groups (TV,

smartphone, major domestic appliances, etc.) are the major revenue

drivers for Dr. Teknolog brand. The aim is the increase the

attachment rates of protection plans to main products.

On-site or in-shop technical services are the second category under

Dr. Teknolog. The objective is to improve the share in Dr. Teknolog

financials.


12

Teknosa launched its own private label products (Preo smartphone, smart watch and phone case) in the telecom category – the largest category in the electronics market

This initiative not only aims to increase the margins but also enhance Teknosa Mobil sales through bundled offers

As the next step, new private label categories such as accessories, complimentary products and tablets are being analyzed, while discussions with different suppliers continue

First private label product offered by a Turkish Electronics Retailer…


Our Platforms on E-commerce: kliksa.com & teknosa.com

13

Two legged strategy in e-commerce which aimed to gain share in both electronics retail market and fast developing e-commerce business:

Reached 14% of total retail sales in 3Q15 from 9% in 3Q14

Aims to gain share in fast growing e-commerce business

Combining Sabancı brand with the modern online shopping experience

Targets to become a leading player in B2C e-commerce

# of visits/month reached ~5 million

Kliksa.com will soon become an important part of total Teknosa sales

Teknosa.com is the critical component of Teknosa’s multi channel strategy

Sets the web to store link

Considered as a 4th store format which enables;

Customers in provinces with smaller store assortment to reach the whole product range

To prevent stock-outs

# of visits/month reached ~9 million


E-commerce Market in Turkey (2014)

14

Ratio of household with internet access increased from 20% to 60% in 2007-2014 period (2013: 49%).

Number of internet users increased to 54 million (2013: 49 million).

Ratio of online shoppers among internet users is 31% (2013: 24%). The category breakdown of online purchase is as follows:

52% apparel and sport equipment; 27% house goods; 25% electronics; 26% travelling & 16% books

3G users in TR reached 58 million in 2014 from 49 million in 2013

Broadband penetration is 57% (OECD average: 78%)

The main factors stimulating the growth are;

Increasing share of internet users who made a purchase online

Secure e-trade (3D secure) application,

Various incentive/discount campaigns

High credit card penetration (~75% )

Internet banking active users: +10 million

Source: TUIK


E-Commerce Global Comparison (2014)

15 Source: TUBISAD (Informatics Industry Association)

Country Online Retail / Total Retail

Internet Penetration

Mobile Broadband Penetration

Online Shoppers

Mobile Shoppers

Per Capita Income

(PPP - '000 US$)

Population (mn)

UK 12.2% 89% 86% 64% 18% 39.5 64.5

USA 8.4% 87% 87% 56% 17% 54.6 319.0

Germany 7.5% 89% 87% 63% 20% 45.9 81.1

France 6.2% 84% 67% 49% 12% 40.4 63.9

Japan 6.2% 86% 118% 40% 6% 37.4 127.1

Spain 3.1% 77% 70% 44% 17% 33.7 46.5

Italy 2.2% 60% 91% 39% 16% 35.5 60.0

6.5%

China 8.5% 47% 44% 37% 27% 12.9 1,367.8

Poland 5.8% 67% 84% 44% 14% 25.1 38.0

Brazil 3.5% 54% 76% 36% 15% 16.1 202.7

Russia 3.3% 60% 55% 30% 8% 24.8 143.7

India 1.5% 19% 8% 14% 9% 5.9 1,259.1

4.5%

TURKEY 1.6% 54% 76% 33% 19% 19.6 76.9


CRM & Customer Experience Management (CEM)

16

4.9 million Orange Card owners

~70% of total sales conducted through Orange Card

Vast customer database allows for detailed monitoring of purchasing behavior and

tailored CRM applications

Recognition by mobile phone number

Pre-campaign notifications

Special discounts/campaigns for Orange Card holders

Starting the Customer Segmentation Renew Project

Via the First Phase of the Customer Experience Project Teknosa will take its first steps towards a more Customer Centric structure. Through a better CEM process, Teknosa will:

Engage existing customers as a sustainable

engine for growth,

Increase operational and marketing

efficiency,

Reduce revenue at-risk,

Reduce the costs of new customer acquisition,

Engage employees, reduce staff turnover and

cost of hiring


83% 83% 84% 85% 86% 86% 85% 83%

15% 14% 13% 13% 12% 12% 13% 16%

3% 2% 2% 2% 2% 2% 2% 2%

2007 2008 2009 2010 2011 2012 2013 2014

Human Resources

17

Teknosa employs

top-class

management with

a solid

understanding of

the Turkish market

and consumers.

3,067 3,060 3,334 2,986 3,282 3,689 4,151

Number of Employees Breakdown

Stores Headquarter Dealership

Performance assessment and training are two

principles that underpin Teknosa’s human resources

strategy.

Teknosa Akademi, the first and only training program

in the technology goods market

3,511


Warehouses and Distribution

18

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 30k m2 on a 60k m2 land, to serve all regions in Turkey. The other 4 regional

transfer points are used for cross-docking.

Suppliers of Teknosa are authorized distributors of international manufacturers.

Logistics operations between cross-docking points and stores are outsourced to third

parties.

Location Closed Area

(m2)

# of Provinces

Served

Gebze Logistics Center 30,000 All provinces

Cross-docking Points

Ankara 300 35

Adana 300 19

İzmir 300 6

Antalya 200 3

Sub-total 31,100

In-store Warehouses 20,374

Total 51,474


Expansion Through Different Store Formats

19

Net Sales Area (k m2)

Number of Stores

# of provinces: 9 23 43 56 61 65 68 72 77 77

FY14 YoY

Growth

3%

81

12 22 33 56 67

80 101

128 141

166 171

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

56 96

152

232 218 244 256 269 283 294 291

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014


291 400

647 807

930 1,083

1,214

1,575

2,216

2,840 2,922

49 67

93

138 94

65

80

97

117

117 95

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Growth Track

20

Net Sales (M TL)

Retail sales

Dealership sales FY14

Growth

2%

-19%

3%

340 467

740

945 1,020

1,148 1,294

1,672

2,957 ‘10 – ‘14

CAGR 24%

2,337

3,016


Teknosa at a Glance

3Q15 Results


Financial Overview

Year-end Guidance

21

Agenda


Main messages

22

5% YoY growth realized in 3Q15, while CCI hit 58.5 in September, the trough point since January 2009

E-commerce has been the growth engine with 53% YoY increase in 3Q15 to TL 111mn

14% of Net Sales in 3Q15; from 9% in 3Q14

Stronger EBITDA and lower financial expenses elevated net profit back to the positive territory

Net Cash position nearly doubled to TL 220mn both YoY & QoQ

WCR is down by TL 115mn QoQ

Aftersales services revenues up by +17% YoY in 9M15, despite lower growth at topline

Consumer credit gained further traction with +115k loans issued since its launch

Mobile service and private label are on track

Despite the plummeting CCI rivaling the 2008 global crisis, top-line growth achieved via solid performance displayed in e-commerce…

Bottom-line is back to black…

Improvement in existing value added services continue, while new ones are being launched...

Strict working capital management yields noteworthy results…


55

60

65

70

75

80

85

Jan

-11

Ap

r-1

1

Jul-

11

Oct

-11

Jan

-12

Ap

r-1

2

Jul-

12

Oct

-12

Jan

-13

Ap

r-1

3

Jul-

13

Oct

-13

Jan

-14

Ap

r-1

4

Jul-

14

Oct

-14

Jan

-15

Ap

r-1

5

Jul-

15

23

CCI anchored to the trough point of last six years…

Source: TUIK

Due to the macro and political uncertainties in Turkey, the downward trend in consumer confidence has been persistent since 2H14. This trend has endured in 3Q15, pushing CCI close to January 2009 level, while hitting the trough point of last 6 years at 58.5 in September.

2011 2012 2013 2014 2015

Consumer Confidence Index


6.0%

6.5%

7.0%

7.5%

8.0%

8.5%

9.0%

9.5%

Jan

11

Feb

11

Mar

11

Ap

r11

May

11

Ju

n1

1 J

ul1

1 A

ug1

1 S

ep1

1 O

ct1

1 N

ov1

1 D

ec1

1 J

an1

2 F

eb1

2 M

ar1

2 A

pr1

2 M

ay1

2 J

un

12

Ju

l12

Au

g12

Sep

12

Oct

12

No

v12

De

c12

Jan

13

Feb

13

Mar

13

Ap

r13

May

13

Ju

n1

3 J

ul1

3 A

ug1

3 S

ep1

3 O

ct1

3 N

ov1

3 D

ec1

3 J

an1

4 F

eb1

4 M

ar1

4 A

pr1

4 M

ay1

4 J

un

14

Ju

l14

Au

g14

Sep

14

Oct

14

No

v14

De

c14

Jan

15

Feb

15

Mar

15

Ap

r15

May

15

Ju

n1

5 J

ul1

5 A

ug1

5 S

ep1

5

Share of CE products in CC Spending Jan11 - Jan14 Monthly Avg.24

Share of CE Products in Total Credit Card Spending

Source: Interbank Card Center

The share of CE spending via credit cards deteriorated after the credit card

law until Jul14 then improved towards pre-law average until Dec14

The weakness since the beginning of 2015 seems to stem from low

consumer confidence due to political & macro economic uncertainties and

weak TL making a negative impact on retail prices

The wallet share of CE products in CC spending is declining… 2011 2012 2013 2014

New Regulation

2015


Total

Revenues

(M TL)

Adjusted

Net Income

(M TL)

25

Net Sales Area (‘000 m2)

Net Sales (TL mn)

Net Income (TL mn)

7 stores opened while 8 stores closed in 3Q15

3Q15 Results

5% YoY revenue growth despite lowest CCI in the last 6 years

1.4pps QoQ improvement in EBITDA margin

Non-operational expenses down by 26% QoQ

177 172 173

3Q14 2Q15 3Q15

776 723

813

3Q14 2Q15 3Q15

2

-12

1

3Q14 2Q15 3Q15


Revenues by activity

26

Teknosa operations are composed of Retail, Dealership and e-commerce activities

Revenue Breakdown as of 9M15

E-trade Operations

.com .com

Separate legal entity fully owned by Teknosa

Started operations in March 2012

Started operations in 2005

Retail Operations

Revenue Breakdown by Product Groups as of 9M15

* Consists of major and small domestic appliances and warranty sales

Dealership Group

Revenue Breakdown by Product Groups as of 9M15 Air Conditioners: 97% Refrigerators: 3%

Retail Operations

83%

Dealership Group 4%

E-Commerce

13%

CE & Photo 31%

Telecom 36%

IT 21%

Other* 12%


72

111

3Q14 3Q15

210

276

9M14 9M15

Strong growth in e-commerce revenues…

27

+53%

E-Commerce (teknosa.com + kliksa.com) Revenues (TLmn)

Growth in e-commerce is expected to maintain the high pace

E-commerce revenues are anticipated to exceed TL 400mn in 2015

The share of e-commerce is to reach 25% of revenues over the next 5 years

Further investments in order to improve omni-channel model for teknosa.com

and implement a marketplace model for kliksa.com

«Click & Collect» is fully integrated into teknosa.com (reached over 10% of sales)

700k customers are directed to stores via online site or mobile (per month)

Mobile applications are used by 1.2mn users, constituting ~15% of internet sales

+31%


-9%

-2% -1%

3Q14 2Q15 3Q15

28

Like-for-Like Sales Growth Trend

Actions to revive LfL trend is yielding results despite persisting pressure from declining consumer confidence

These actions include:

o New bonus scheme for personnel

o New personnel at selected stores

o Targeted promotional campaigns in designated cities

o Increased communication and shifting the weight to TV & digital media

TSS market share is back to 35% from 33% in 1H15


29

Working Capital and Cash Position Improvement

Working Capital Requirement (TL mn)

35 47 37

581 454 488

660 613 752

3Q14 2Q15 3Q15

T. Receivables Inventories T. Payables

TL -45mn TL -111mn TL -227mn

Net Cash Position (TL mn)

111 111

220

3Q14 2Q15 3Q15


Main OPEX Items are Under Control

30

Minimum Wage

TL 1,134

TL 1,274

3Q14 3Q15

TL 38mn TL 41mn

3Q14 3Q15

TKNSA Personnel Costs

+12% +6%

TL 41mn

TL 44mn

3Q14 3Q15

TKNSA Rent Costs

+7%

2.619

3.230

3Q14 3Q15

TKNSA FX Basket

+23%


6.1% 5.3% 5.0% 4.6% 5.8% 5.5% 5.0%

6.1% 5.8% 5.4%

4.8%

5.9% 5.7% 5.4%

1.7% 2.0%

1.5% 1.6%

2.0% 2.4% 2.4%

18.5% 17.6%

16.5% 15.3%

18.4% 18.2% 17.2%

1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15

Personnel Expenses / Sales Rent / Sales Marketing Expenses / Sales OPEX/Sales

Quarterly OPEX Breakdown

31

Shares of Major OPEX Items in Net Sales

Despite TL depreciation, rent costs continued to remain flat YoY in TL terms in 9M15 thanks to contract renegotiations held since mid-2014

Personnel costs were up by 1% YoY in 9M15

Marketing expenses were up by 26% YoY in 9M15 due to the costs related to web related digital marketing expenses &Teknosa Mobil

TL128mn TL125mn TL128mn TL130mn TL123mn TL132mn TL140mn


32

Key Performance Indicators (Retail Operations)

Teknosa has the highest penetration among Technical Super Stores with 287 stores in all 81 provinces of Turkey and 173K m2 net sales area as of 3Q15

Conversion rate exhibited 0.1pps YoY and 0.3pps QoQ improvement in 3Q15

Average basket growth is 6% YoY in 3Q15

3Q14 2Q15 3Q15 YoY (%) QoQ (%) 9M14 9M15 YoY (%)

Number of Provinces 81 81 81 0% 0% 81 81 0%

Net Sales Area (‘000 sqm ) 177 172 173 -2% 0% 177 173 -2%

Number of Stores 300 288 287 -4% 0% 300 287 -4%

Number of Visitors (mn) 25 21 22 -11% 4% 75 67 -11%

Number of Customers (mn) 1.9 1.6 1.7 -10% 8% 5.6 5.0 -9%

Conversion Rate 7.7% 7.5% 7.8% 0.1pp 0.3pp 7.4% 7.6% 0.1pp

Average Basket Size (TL) 359 369 380 6% 3% 342 361 6%


Teknosa at a Glance

3Q15 Results


Financial Overview

Year-end Guidance

33

Agenda


Electronics Retail Market in Turkey

34 Source: GfK

Sales Channels of Technical Consumer Goods Market

Technical Super Stores (TSS)

Non-exclusive

Dealerships

Exclusive and Non- exclusive Dealerships

Hypermarkets /Supermarkets

Do It Yourself (DIY) Retailers

Department Stores

Exclusive Dealerships Mobile Phone Dealerships

Pure Online Players

Carrefour, Migros, Real, Kipa, Tesco, Beğendik

Bauhaus, Koçtaş, Tekzen

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

Escort, Casper, Apple Turkcell, Vodafone, Avea

Media Markt, Bimeks, Gold Bilgisayar, Vatan

Points of Sale:

~3K

Points of Sale:

~18K Points of Sale:

~6K

Points of Sale:

~17K

Points of Sale:

~600

Telecom Specialists (TCR)

Computer Shops & System Houses

(CSS)

Consumer Electronics Stores (CES)

Hypermarkets / Supermarkets &

Department Stores (MASS MERCHANTS)

Cash&Carry

Metro

Boyner, YKM, EVKUR

Hepsi Burada, Hızlıal, E-Reyon

Exclusive and Non- exclusive Dealerships

Ahşapsan, Alno, Arçelik, Berloni, Bianco, Demsaş, İntema (Vitra), Lineadekor, Scavolini etc.

Points of Sale:

~5K

Furniture / Kitchen Spec.

(Furnkibaf)


Other 6% Other 6% Other 4% Other 5% Other 4% Other 4% Other 3% Other 3% Other 2%

MASS 8%

MASS 12%

MASS 13%

MASS 13%

MASS 14%

MASS 12%

MASS 12%

MASS 12%

MASS 12%

CES 53%

CES 48%

CES 44%

CES 42%

CES 39%

CES 34%

CES 34%

CES 35%

CES 34%

TCR 17%

TCR 16%

TCR 20%

TCR 21%

TCR 20% TCR

23%

TCR 26%

TCR 26%

TCR 28%

TSS 16%

TSS 18%

TSS 19%

TSS 20%

TSS 23%

TSS 27%

TSS 24%

TSS 24%

TSS 23%

2008 2009 2010 2011 2012 2013 2014 9M14 9M15

Channel Development

35

Channel Development (inc. MDA & SDA)

Source: GfK

Technical Super Stores (TSS) grew below the market for the first time in 2014 due to

their disadvantage in consumer financing.

The new law offered Telecom Retailers (TCR) an advantage, as they are able to apply

up to 24 months of installments on Telecom products via contracts, helping them to

raise their share by 3pps in FY14, compared to FY13. This trend continues in 2015

Consumer Electronic Stores (CES) were also able to use IOUs in order to offer their

customers installment options exceeding 9 months.


Electronics Retail Market and Teknosa (9M15)

36

As of 9M15, the market grew by 16% YoY, reaching TL 29.3bn

Technical Super Stores (TSS) channel recorded 11% YoY growth in the same period

to TL 6.8bn in the 5 major categories

Teknosa retail sales were up by 4% YoY in 9M15

TSS channel accounts for 23% of the total market

Teknosa has 34% market share in the TSS channel as of 9M15

TSS market share is back to 35% in 3Q15 from 33% in 1H15

Electronics Retail Market (CE, IT, Telecom, MDA, SDA) – 9M15

Bimeks Media Markt

Vatan Gold & Other

Source: GfK

34%

66%

Technical Super Stores 23%

Other Channels

77%


TSS Consolidation Trend

37

3 players have exited the market since 2010

Regardless, the existing 5 TSS players are still too many to operate efficiently and

profitably in the Turkish electronics market

Given the recent demand and channel trends outlook, we expect further decline in

the number of players

Source: CMB reports, TeknoSA estimates

2010

COMPANY Sales

Index (TSA=100)

TEKNOSA 100

Competitor 1 54

Competitor 2 35

Competitor 3 19

Competitor 4 19

Competitor 5 15

Competitor 6 15

Competitor 7 4

2014

COMPANY Sales

Index (TSA=100)

TEKNOSA 100

Competitor 1 73

Competitor 2 50

Competitor 3 42

Competitor 4 12


Teknosa at a Glance

3Q15 Results


Financial Overview

Year-end Guidance

38

Agenda


(TL mn )

3Q14 2Q15 3Q15 YoY (%) QoQ (%)

9M14 9M15 YoY (%)

Net Sales 776 723 813 5% 12% 2,167 2,202 2%

Gross Profit 145 131 151 4% 16% 404 405 0%

Gross Profit Margin 18.7% 18.1% 18.6% -0.1pp 0.5pp 18.6% 18.4% -0.3pp

EBITDAR 68 52 67 -2% 30% 178 169 -5%

EBITDAR Margin 8.8% 7.1% 8.2% -0.5pp 1.1pp 8.2% 7.7% -0.6pp

EBITDA 27 10 23 -15% 124% 54 44 -18%

EBITDA Margin 3.4% 1.4% 2.8% -0.6pp 1.4pp 2.5% 2.0% -0.5pp

Other Expenses -9 -8 -6 -38% -26% -24 -20 -16%

Financial Expenses -5 -6 -5 -11% -25% -16 -17 5%

Profit Before Tax 2 -15 1 -64% n.m. -16 -27 -69%

Tax 0 3 0 -54% -108% 3 5 71%

Net Profit 2 -12 1 -66% n.m. -13 -22 -69%

Net Profit Margin 0.2% -1.7% 0.1% -0.2pp 1.7pp -0.6% -1.0% -0.4pp

Income Statement Summary

39 Source: Independent Auditor’s report


Assets (in TL mn) Sep.14 Jun.15 Sep.15

Current Assets 745 639 766

Cash and Cash Equivalents 111 111 220

Due From Related Parties 3 7 3

Trade Receivables 32 40 35

Inventories 581 454 488

Other Current Assets 19 26 20

Non-current Assets 177 198 202

Investment Property 11 11 11

Property, Plant and Equipment 122 119 121

Intangible Assets 22 30 29

Deferred Income Tax Assets 14 21 21

Other Non-current Assets 8 17 20

Total Assets 922 836 968

Liabilities (in TL mn) Sep.14 Jun.15 Sep.15

Current Liabilities 723 683 814

Financial Liabilities 0 0 0

Due to Related Parties 4 2 1

Trade Payables 656 611 751

Other Current Liabilities 63 70 62

Non-current Liabilities 4 3 3

Total Equity 195 150 151

Total Liabilities 922 836 968 40

Balance Sheet Summary

Source: Independent Auditor’s report


4 5 5

86

68 64

99

80

93

3Q14 2Q15 3Q15

41

Working Capital

Negative working capital allows Teknosa to generate positive cash flow in tandem with growth

Working Capital Requirement is down by TL 182mn to TL -227mn in 3Q15 from TL -45mn in 3Q14

Working Capital Days

Days of NWC

Days of TR

Days of Inventory

Days of TP

-24 -7 -9


Capital Expenditures

42

Total CAPEX (TL mn)

We continue to invest in our operations even in challenging times with a focus on profitability.

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 operations.

20.3

11.7

3Q14 3Q15

46.5

34.9

9M14 9M15


Teknosa at a Glance

3Q15 Results


Financial Overview

Year-end Guidance

43

Agenda


Macroeconomic Indicators

44

2013 2014 2015

GDP growth 4.1% 2.9% 2.3%

Private Consumption 5.1% 1.3% 3.3%

CPI Inflation 7.4% 8.2% 8.0%

USD/TL rate (avg.) 1.90 2.19 2.77

EUR/TL rate (avg.) 2.53 2.9 3.11


2015 Full Year Financial Guidance

45

(*) EBITDA excludes Other Income/Expenses

We expect to remain towards the lower end of our guidance band, provided that the deterioration in consumer confidence comes to a halt.

2014 2015

YE Net Sales Area (km2) 171 175

Net Sales (TL mn) 3,016 3,200 – 3,300

Growth (%) 2% 5% - 10%

LFL Growth (%) -4% 0% - 5%

EBITDA(*) (%) 2.70% 2.5% - 3.0%

CAPEX (TL mn) 62 40


46

Benefitting from the «Economic Darwinism» as the strongest player…

- Control costs in order to adopt to lower annual market growth

- Utilize debt-free strong balance sheet

- Strengthen our foothold in the sector via market share gains

E-commerce is the new frontier…

- Further benefit from the low penetrated e-commerce market of Turkey

- Carry on perfecting our omni-channel business model with teknosa.com

- Position kliksa.com as the leading pure-player in Turkey

- Derive ~25% of our revenues from our e-commerce over the next 5 years

Evolving our business model into a service provider…

- Evolve into a «service provider» from a «classical box mover»

- Improve our CRM capabilities,

- Offer new & enhanced after sales products

- Further differentiate Teknosa from the competition

Our 5 year growth plan…


47

Laying the foundations for new services to our clients…

-Consumer financing options under TeknoFinans brand

-Telecom contract sales via Teknosa Mobil in order to provide a complete

service and boost market share in telecom products

Private label products in order to gain additional market share…

-Teknosa Preo smartphone, smart watch and phone case launched in July

-New private label categories such as accessories, complimentary products

and tablets are being analyzed

Our 5 year growth plan…


Thank You

48

Contact Information:

Erman Tutuncuoglu – Head of Investor Relations +90 (216) 468 32 29

[email protected]

IR web page: http://yatirimci.teknosa.com/homepage

IR e-mail: [email protected]

mailto:[email protected]

http://yatirimci.teknosa.com/homepage

mailto:[email protected]


Disclaimer

49

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 accuracy, completeness or correctness. All opinions and estimates contained in this document constitute the Teknosa’s judgment as of the date of this document and are subject to change without notice. The information contained in this document is presented for the assistance of recipients, but is not to be relied upon as authoritative or taken in substitution for the exercise of judgment by any recipient. The Company does not accept any liability whatsoever for any direct or consequential loss arising from any use of this document or its contents.

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