2015-04-12_BIMEKS-Investor-Brief18-1Q2015

Bimeks Bilgi İşlem ve Dış Tic. A.Ş.
Barbaros Mah. Sütçüyolu Cad. No:62
34746 Yenisahra, Ataşehir - İstanbul
Ticaret Sicil No: 270380
Tel: 0216 542 62 62
Faks: 0216 542 62 63
www.bimeks.com.tr
INVESTORS’ BRIEF
-18
12 MAY 2015
Bimeks, Turkish Technology Retailer ( BMEKS.TI ; BMEKS.IS)
released its 1Q 2015 consolidated audited financial reports.
Below you will find highlights of the 1Q2015 results and details
about recently launched sales&marketing projects. The guidance
for FY2015 is also attached.
About the Company:
Bimeks is a Turkish technology (or electrical) retailer. Founded in
1990 as the first and only technology retailer, Bimeks operates
110.000 sqm. sales area with 135 stores in 58 cities.
After two major acquisitons ( EW of Dixons and Darty), Bimeks
increased its market share to 18-20% and became the second largest
player in the market. Bimeks’ business philosophy is based on
“engineering retail” and its strategy focuses on establishing “true
omnichannel” by integrating its store network with its online retail
operations.
1Q2015 Highlights:
Strong Growth in Topline:
 Bimeks posted TRL 399 million net sales in 1Q, which
represents 46% YoY increase and outperformed the
technology retail market, which is expected to grow by 1015 %
 Worth to note: Despite faltering consumer confidence and
weak economic environment, Bimeks like-for-like growth
exceeded 15%, thanks to recently launched “portfolio
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Bimeks Bilgi İşlem ve Dış Tic. A.Ş.
Barbaros Mah. Sütçüyolu Cad. No:62
34746 Yenisahra, Ataşehir - İstanbul
Ticaret Sicil No: 270380
Tel: 0216 542 62 62
Faks: 0216 542 62 63
www.bimeks.com.tr
 management approach” which lets the sales team of
thecompany to heavily focus on proactive sales strategies,
without losing profitability.
 Online (web) sales increased by 70% to reach 8,5% of total
sales, also contributing to topline growth.
Sustainable profitability and encouraging EBITDA:
 Gross margin in 1Q retreated to 15,7% (seasonal effect) ,
whereas EBITDA margin remained stable at 4,8% despite
unfavorable market conditions.
 Net Profit margin improved YoY, from -1,3% to 0,6%.
Hence the company posted TRL 2,6 million net profit.
Continuing improvement in Opex:
 Following completion of the acquisitons and subsequent
digestion of EW ve Darty, operational expenses continued to
improve in three consecutive quarters.
 Opex/Sales Ratio dropped to 11,2% from 12,7% YoY
 Main factors securing a more favorable opex are :
 Sub-lease contracts with different retailers
(furniture,consumer goods, convenience stores, etc.)
 Shop-in-shop agreements with major suppliers
(Samsung,Vestel, etc.)
 Lease contract renewals of former EW&Darty stores,
with more favorable conditions
 Revisions and re-positioning of less efficient stores.
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Bimeks Bilgi İşlem ve Dış Tic. A.Ş.
Barbaros Mah. Sütçüyolu Cad. No:62
34746 Yenisahra, Ataşehir - İstanbul
Ticaret Sicil No: 270380
Tel: 0216 542 62 62
Faks: 0216 542 62 63
www.bimeks.com.tr
Recently launched projects & Projects in the pipeline:
Following the organizational implementation of new product and
store portfolio management system, several sales-driven projects
recently kicked off or are in the pipeline:
Biimza :
The first and only payment system in the sector that lets
customers pay in installments without using a credit or debit
card.
The system is based on credit scoring and installments are
insured against default risk. Hence, the company is fully secured
for non-performing payments.
Hopi :
This customized and digital shopping platform can be described
as a loyalty program. Its members earn and spend digital coins
on their shopping in member companies. More than 50 big
retailers, i.e., gas station chains, mobile operators, FMCG chains,
department stores joined the platform. Bimeks is the only
technology retailer in Hopi.
Hopi plans to reach to 5 million unique users by the end of 2015
and 12 million users as of 2017.
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Bimeks Bilgi İşlem ve Dış Tic. A.Ş.
Barbaros Mah. Sütçüyolu Cad. No:62
34746 Yenisahra, Ataşehir - İstanbul
Ticaret Sicil No: 270380
Tel: 0216 542 62 62
Faks: 0216 542 62 63
www.bimeks.com.tr
Vodafone :
The marketing and cooperation agreement signed with Vodafone
consists of selling mobile phones to customers with Vodafone
contracts in Bimeks stores. The agreement enables Bimeks to sell
phones from its inventory and collect the amount in cash from
Vodafone’s subcontractor company.
Vodafone corners is being established in selected stores and the
project kick-off took place in May.
Vodafone agreement is expected to boost mobile phone sales,
curbed by credit card installment ban that went into effect in
February 2014.
Selling Coca-Cola products in Bimeks Stores:
Bimeks is approached by Coca-Cola to sell soft drink products in
stores.
It will be a valuable case study for handling/selling nontechnology & FMCG products via the Bimeks procurement and
marketing system.
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Bimeks Bilgi İşlem ve Dış Tic. A.Ş.
Barbaros Mah. Sütçüyolu Cad. No:62
34746 Yenisahra, Ataşehir - İstanbul
Ticaret Sicil No: 270380
Tel: 0216 542 62 62
Faks: 0216 542 62 63
www.bimeks.com.tr
GUIDANCE 2015-2017:
2014
2015 T
2016 T
2017 T
Sales Area sqm. 110.000 113.000 116.000 120.000
Number of Stores
Sales million TL
145
150
160
5%
1.260
1.480
1.775
2.130
19%
2014
2015 T
2016 T
2017 T
19,3
18,0
17,0
16,0
EBITDA %
5,3
5,3
6,1
6,6
Net Profit Margin %
0,7
1,0
2,6
3,8
2014
2015 T
2016 T
2017 T
24
15
15
16
Capex
3%
140
Revenue per sqm 11.455 13.097 15.302 17.750
Gross Margin %
CAGR
2015-2017
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16%