Teknosa İç ve Dış Ticaret A.Ş.

Transcription

1 IPO SUSTAINABLE GROWTH CUSTOMER ORIENTED PROCESS MANAGEMENT LEADERSHIP EMPLOYEE PARTICIPATION STRONG RELATIONS WITH SUPPLIERS CONTINUOUS IMPROVEMENT HIGH QUALITY SERVICE Teknosa İç ve Dış Ticaret A.Ş. EMPIRICAL DECISION MECHANISM

2 Agenda Introduction Teknosa at a Glance Financial Overview Appendix: Sector at a Glance 2

3 Introduction Teknosa at a Glance Financial Overview Appendix: Sector at a Glance

4 Teknosa At a Glance Market Leader in Technical Super Stores Channel with 44% market share Highest penetration among Turkish Technical Super Stores with 271 stores in 72 provinces and 129,592 sqm net sales area as of 31 March 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% Sustainable growth on the back of cash generation due to strong financial structure Flexible business model with 3 different store formats to maximize penetration 85 million store visitors in 2011, more than 25 million visitors in the first quarter of 2012 Pioneer in the market in employee training (Teknosa Academy), customer assistance (Tekno Assist) and loyalty program (Orange Card) Strong and well-known brand, leveraging Sabancı Holding reputation 4

5 Milestones 2000 Commenced operations with 5 stores 2005 Teknosa Academy established 2006 Number of stores reached 152 Operational efficiency and infrastructure projects for Scientific Retailing Program Dealership operations organised under Iklimsa brand E-learning application launched 2007 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 Received an award for best human resources practice Loyalty card program (Orange Card) launched Exxtra format stores introduced ISO (information security management) certification received 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 (customer satisfaction) certification received Kliksa.com (e-commerce website) launched IPO of Teknosa at 17 May

6 6 Corporate Strategy Increasing Market Share While Sustaining Profitability Solidify Market Leadership 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 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 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 product portfolio by store/region

7 Shareholding Structure ( TKNSA ) Shareholders Pre - IPO Post - IPO Nominal Value (TL) Ratio (%) Nominal Value (TL) Ratio (%) Sabancı Holding 77,310, % 66,310, % Sabancı Family 32,689, % 32,689, % Free Float ,000, % TOTAL 110,000, % 110,000, % Pre-IPO Post - IPO Sabancı Family Members 29.72% Sabancı Holding 70.28% Free Float Free Float % % Sabancı Sabancı Family Family Members Members 29.72% % Sabancı Sabancı Holding Holding % 60.28% Sabancı Family Members 29.72% Free Float 11.50% Sabancı Holding 58.78% Allocation of the shares issued Allocation percentage Domestic Indiviual Investors %55 Domestic Corporate Investors %15 International Corporate Investors %30

8 Sabancı Holding Energy Retail Shareholding Structure Enerjisa Teknosa Carrefoursa Diasa 39.6% 60.4% Banking Insurance Free Float Sabancı Family Akbank Aksigorta Avivasa (TL million) 2011 Consolidated Sales 22,409 Industrials Cement Consolidated Assets 151,114 Market Cap* 15,017 *As of April 18, 2012 Source: Sabancı Holding Kordsa Global Brisa Sasa Yünsa Olmuksa Temsa Çimsa Akcansa 8

9 Introduction Teknosa at a Glance Financial Overview Appendix: Sector at a Glance

10 Operations Breakdown of 2011 Revenues Retail Operations Teknosa operations are composed of Retail and Dealership activities Revenue Breakdown as of 2011 Product Groups: Consumer Electronics & Photo Information Technology Telecom Information Technology 31 % Other 7 %* Telecom 18 % Consumer Electronics & Photo 44 % *Consists of Tekno Guarantee warranty sales, small domestic appliances and white goods Retail Operations 94% Dealership Group 6% Dealership Group Breakdown of 2011 Revenues Other >1 % Product Groups: Air Conditioners Refrigerators Cash registers Cash Registers 2% Refrigerators 9% Air Conditioners 89% 10

11 Proven Growth Number of Stores, Net Sales Area and Net Sales Number of Provinces with Teknosa Stores ,670 97, ,146 1,020 65, , ,238 1, , ,090 1,292 79,786 1,212 1, ,094 12, , , Q1-11 Q Q112 Sales Area (m 2 000) # of Stores Retail Sales (TL mn) Dealership Sales (TL mn) Source: Teknosa Source: Teknosa 11

12 Retail Operations Store Formats Teknosa retail operations are carried out in 3 different store formats to increase market penetration. Standard Store 212 stores in 72 cities <750 sqm store area 41 stores in 21 cities Between 750-1,200 sqm store area 25 stores in 10 cities >1,200 sqm store area Number of Stores as of Q Source: Teknosa Provinces with Teknosa stores 12

13 Retail Operations Net Sales and Net Sales Area Revenue Breakdown by Store Format Revenue Breakdown by Province 11% 15% 18% 21% 71% 64% 26% 18% 25% 20% 23% 23% 51% 62% 52% 30% 30% 30% 31% 31% 13% 11% 10% 11% 10% 9% 9% 9% 9% 9% 48% 50% 51% 49% 50% Revenue Breakdown by Product Category 5% 7% 7% 6% 7% Q1-11 Q1-12 Exxtra Extra Standard Q1-11 Q1-12 Istanbul Ankara Izmir Other 34% 40% 44% 38% 45% Net Sales Area Breakdown by Store Format 24% 30% 25% 51% 28% 42% 38% 33% 38% 27% 27% 27% 35% 40% 35% Net Sales Area Breakdown by Province 30% 30% 30% 31% 31% 13% 11% 10% 11% 10% 9% 9% 9% 9% 9% 48% 50% 51% 49% 51% 42% 32% 31% 37% 28% 19% 21% 18% 19% 20% Q1-11 Q1-12 White Goods and Other Consumer Electronics & Visual IT Telecom Q1-11 Q1-12 Exxtra Extra Standard Q1-11 Q1-12 Istanbul Ankara Izmir Other Source: Teknosa 13

14 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 *Source: The Interbank Card Center (BKM). B2B transactions are included. Share of E-commerce in Total Retail Sales in Turkey USD 2 bn 0.6% Total Retail Sector Size Share of Online Retail Sales Source: Teknosa & Ak Investment USD 9 bn E 1.1% Teknosa s website, 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 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 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. 14

15 Human Resources Teknosa had 3,341 employees as of Q 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. Personnel Breakdown 3,067 3,060 3,334 2,986 3,282 3,341 3% 2% 2% 2% 2% 2% 15% 14% 13% 13% 12% 12% 83% 83% 84% 85% 86% 86% Q1-12 Retail Sales Personnel Headquarters Dealership Source: Teknosa 15

16 Teknosa Academy Candidate Training Program Personnel Training Program Sales Managerial Development Products Career Development Systems Personal Development Communication Quality Management System E-Learning Education Portal Social Learning Tools Simulations 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. 16

17 Warehouses and Distribution 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. Location Closed Area (sqm) # of Provinces Served Istanbul Gebze Warehouse 30,000 All Provinces Regional Transfer Points Ankara 1, Adana Izmir Antalya Subtotal 33,050 In-store warehouses 20,374 Total 53,424 Source: Teknosa 17

18 CRM Applications 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 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 18

19 After Sale Services 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. 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 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 onsite installation / setup. Teknosa received ISO 9001 (quality management system for operational excellence) with the broadest scope in the market, ISO (information security management), ISO (customer satisfaction) certificates. 19

20 Introduction Teknosa at a Glance Financial Overview Appendix: Sector at a Glance

21 Summary Financials Income Statement Income Statement (TL'000) Net Sales Cost of Sales Gross Profit Gross Profit Margin % 21,8% 21,9% 21,9% Operating Expenses Other Operating Income Other Operating Expense Operating Profit Net Financial Expense Profit Before Taxation on Income Deferred Tax Income/Expense Net Profit EBITDA EBITDA Margin % 3,7% 3,0% 6,4% Income Statement (TL'000) Q1-11 Q1-12 Net Sales Cost of Sales Gross Profit Gross Profit Margin % 21,7% 20,9% Operating Expenses Other Operating Income Other Operating Expense Operating Profit Net Financial Expense Profit Before Taxation on Income Deferred Tax Income/Expense Net Profit EBITDA EBITDA Margin % 5,7% 5,5% Source: Independent Auditor s Report 21

22 Summary Financials Balance Sheet Assets (TL'000) Current Assets Cash and Cash Equivalents Due From Related Parties Trade Receivables Other Receivables Inventories Other Current Assets Non-current Assets Investment Property Property,Plant and Equipment Intangible Assets Deferred Income Tax Assets Other Non-current Assets Total Assets Liabilities (TL'000) Current Liabilities Financial Liabilities Due to Related Parties Trade Payables Other Payables Other Current Laibilities Non-current Liabilities Total Equity Total Liabilities Assets (TL'000) Q1-11 Q1-12 Current Assets Cash and Cash Equivalents Due From Related Parties Trade Receivables Other Receivables Inventories Other Current Assets Non-current Assets Investment Property Property,Plant and Equipment Intangible Assets Deferred Income Tax Assets Other Non-current Assets Total Assets Liabilities (TL'000) Q1-11 Q1-12 Current Liabilities Financial Liabilities Due to Related Parties Trade Payables Other Payables Other Current Laibilities Non-current Liabilities Total Equity Total Liabilities Source: Independent Auditor s Report 22

23 Revenues Revenues (TL Million) 1,670 Retail Operations Revenue Growth ,020 1,146 1,292 Source: Independent Auditor s Report Revenue Breakdown Q1-11 Q1-12 Dealership Group Retail Sales 9% 6% 6% 6% %6 3% 91% 94% 94% 94% %94 97% Q1-11 Q1-12 Dealership Group Retail Sales 15% Source: Teknosa 15% * Growth through new store openings effect of closed stores Retail revenues, constituting 94% of the total revenues over the last 3 years, posted 30% growth in 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. * 30% Like For Like Growth Net Expansion Effect Total Growth Source: Independent Auditor s Report 23

24 Profitability EBITDA (TL '000) 107,023 41,486 39, Q1-11 Q1-12 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 Q The acquisition of Best Buy s operations in Turkey had a TL17.7 million direct contribution to 2011 EBITDA. 21.8% 21.9% 21.9% 21,7% 3.6% 3.1% 6.4% 20,9% 5,7% 5,5% 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 Q1-11 Q1-12 Gross Profit Margin EBITDA Margin Source: Independent Auditor's Report 24

25 Operating Expenses (TL'000) Q1-11 Q1-12 Personnel Expenses Personnel Expenses / Net Sales 7,8% 7,8% 6,1% 6,4% 6,3% Lease Expenses Lease Expenses / Net Sales 5,3% 5,8% 5,7% 5,6% 6,0% Advertising & Promotion Expenses Advertising & Promotion Expenses / Net Sales 1,8% 1,9% 1,6% 1,5% 1,7% Other Other / Net Sales 4,8% 5,1% 4,9% 4,5% 4,6% Total Operating Expenses Total Operating Expenses / Net Sales 19,7% 20,7% 18,3% 18,0% 18,6% Source: Independent Auditor s Report %7,7 %7,8 840 Source: Teknosa Personnel Expenses - Retail Operations 784 %6,1 6,2% 6,0% Q1-11 Q1-12 Retail Personnel Expenses Per Sqm (TL) Retail Personnel Expenses / Retail Sales (%) 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). 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

26 Other Performance Indicators 1,572,183 14,901 1,080,455 72,508 90, , Source: Teknosa 13,375 1,212,206 13, Q1-11 Q1-12 Sales Area (Sqm) - Annual Average Retail Operations Sales (TL '000) Sales Performance- Sales/ Sqm Teknosa s average annual sales area posted a 25% increase both in 2010 and It has been increased 13% as of Q ,939 6, , 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 Q when compared to 31 Dec 2011) Q1-11 Q1-12 Source: Teknosa # of Receipts ('000 Persons) Average Basket Size (TL) 26

27 Working Capital Working Capital Breakdown (TL mn ) Q1-11 Q1-12 Trade Receivables Inventories Trade Payables Net Working Capital Q1-11 Q1-12 Days Receivable Days Inventory Days Payable Source: Independent Auditor s Report 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. 27

28 Capital Expenditures Capital Expenditures (TL 000) Q1-11 Q1-12 Source: Independent Auditor s Report 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) 28

29 Introduction Teknosa at a Glance Financial Overview Appendix: Sector at a Glance

30 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 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 Product Categories of Technical Consumer Goods Market Consumer Electronics & Photo Information Technology Telecom Market Size (TL mn) 14,304 13,833 17,133 21,370 4,478 5,218 20% 20% 24% 25% 28% 28% 17% 17% 13% 11% 16% 15% 12% 11% 19% 16% 9% 8% Small Domestic Appliances White Goods 32% 35% 32% 31% 27% 28% 19% 16% 16% 18% 18% 20% Jan-March 2011 Consumer Electronics&Photo White Goods Small Domestic Appliances Information Technology Telecom Jan-March 2012 Source: GfK Electronics Panel Report 30

31 Technical Consumer Goods Market in Turkey cont. d Sales Channels of Technical Consumer Goods Market Hypermarkets /Supermarkets and Department Stores (MASS Merchants) Consumer Electronics Stores (CES) Computer Shops & System Houses (CSS) Telecom Specialists Technical Super Stores (TSS) Points of Sale: 6,898 Points of Sale: 17,628 Points of Sale: 6,041 Points of Sale: 17,261 Points of Sale: 538 Hypermarkets /Supermarkets Carrefour, Migros, Real, Kipa, Tesco, Beğendik Cash&Carry Metro Exclusive and Nonexclusive Dealerships Arçelik, Beko, Bosch, Profilo, Siemens, Tefal, Samsung, LG, Regal, Vestel, Philips, İhlas, Esse Exclusive Dealerships Escort, Casper, Key Smart, Apple Mobile Phone Dealerships Turkcell, Vodafone, Avea Media Markt, Darty, Electroworld, Bimeks, Gold Bilgisayar, Teknolojix Do It Yourself (DIY) Retailers Bauhaus, Praktiker, Koçtaş Non-exclusive Dealerships Department Stores Boyner, YKM, EVKUR Pure Online Players Hepsi Burada Source: GfK Electronics Panel Report

32 Germany Turkey France UK Italy Spain Poland Czech Rep. Hungary Main Drivers of Market Growth in Turkey The second largest and the fastest growing population in Europe (TL mn ) -0.20% 1.30% 0.50% 0.70% 0.50% 0.40% 0.10% 0.40% -0.10% Young population with an appetite for consumer electronics Age breakdown of 74.7 mn population 50% 39% 11% Source: The World Bank Population growth rate (%) Source: TurkStat Consumer Confidence Index reached pre economic crises levels Higher GDP growth expectations compared to EU 117,0 97,0 96,0 62,0 90,0 114, r 90,0 4l 9% 8.5% 1.9% 1.4% 2.3% 3.2% 4.0% 4.3% 4.5% 05% -0.3% 0.9% 1.4% 1.6% 1.7% 02% Source: CNBC-e Confidence Index E 2013E 2014E 2015E 2016E 2017E Turkey Euro Area Source: TurkStat, EIU 32

33 UAE Belgium Netherlands Germany Austria France Spain Italy Greece Portugal Saudi Arabia Russia Slovakia Turkey Ukraine Romania Main Drivers of Market Growth in Turkey cont. d The boosting effect of credit card instalment payments on consumer spending Share of instalment payments in total credit card payments 36% 42% 41% 41% 44% 47% 47% 36% Lower per-capita spending on technical consumer goods in Turkey compared to EU ( ) EU Average: Q1-12 Source: Central Bank of the Republic of Turkey Number of credit cards owned (mn) Source: The Interbank Card Center (BKM) Stimulating effect of the increase in number of shopping malls on retail sector growth Source: GfK Temax Stimulating effect of booming housing projects on consumer electronics demand 98 Number of Shopping Malls Houses with Construction Permits ('000) Source: Trade Council of Shopping Centers & Retailers (AMPD) Source: The Association of Real Estate Investment Companies ( ), TurkStat (2010,2011) 33

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 Teknosa is the market leader of the Technical Super Stores channel with 45% market share* as of March Teknosa s market share in the total Technical Consumer Goods Market was 13%* as of March 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 ** Company Source: Company websites *As of May, 2012 Technical Super Stores Operating in Turkey Incorporation/Start of Operations in Turkey Origin # of Stores # of Provinces * 2000 Turkey 272* 72 Gold 1991 Turkey Bimeks 1990 Turkey Vatan 1983 Turkey Darty 2006 UK Media Markt 2007 Germany 25 9 Electro Word 2007 UK Teknosa solidified its lead position in TSS channel by acquiring some of the leading international TSS players operations and assets in Turkey 56% 53% 58% 57% 55% 44% 47% 42% 43% 45% r2l r2l Other Technical Super Stores (Bimeks, Gold, Media Markt, Electro World, Saturn, Darty and etc.) Company Start of Operations in Turkey Exit from Turkey Origin Electronic Partner Germany Notes All 5 stores in Turkey acquired by Teknosa via asset sale Jan-March 2011 **Excluding white goods and small domestic appliances product groups Source: GfK Electronics Panel Report Jan-March 2012 Best Buy USA Acquired by Teknosa 34

35 17 May 2012 Gong Ceremony 35