Transcript CLIENT NAME TITLE Description Date

SABANCI RETAILING GROUP
INVESTOR PRESENTATION
October 2006
-0-
AGENDA
Sabancı Food Retail
Sabancı Consumer Electronics Retail
-1-
FOOD RETAIL MARKET, REACHED 28 BILLION US$ IN 2005, IS
EXPECTED TO GROW WITH THE GDP
The Share Of Organized Retail In Total Is Expected
To Further Increase In The Coming Years
CAGR
(06E-09F)
Turkish Food Retail Market (Billion US$)
34
Share of Organized
retail :
28
29
11
12
17
17
17
2005
2006E
2009F
42%
50%
39%
17
Total
%5
Organized
%12
Traditional
%0
Similarly, the share of organized retail increased from 51% to 83% in
Europe in the last 20 years
Source: AC Nielsen, CarrefourSA, Food & Retail Group Analysis
-2-
THE NUMBER OF ORGANIZED RETAILERS (CHAINS) HAVE BEEN
INCREASING, WHEREAS THE NUMBER OF GROCERY STORES HAVE
BEEN DECREASING IN THE LAST YEARS
Number of Retail Outlets By Type In The Turkish FMCG Retail
(1998-2006E) (‘000 units)
CAGR
(98-06)
225 K
2.1
12.2
155.4
Source : AC Nielsen
212 K
206 K
-%1.3
203 K
3.0
13.2
203 K
4.0
13.6
4.8
15.2
6.5
14.8
136.8
122.3
122.8
116.9
55.5
59.3
62.6
63.5
65.1
1998
2000
2002
2004
2006E
Chains
Med- markets
%14.9
%2.4
Grocery
stores
-%3.5
Others
(pharmarcy,
kiosks etc)
%2.0
-3-
SIMILAR TO DEVELOPED COUNTRIES’ MARKETS,
CONSOLIDATION IS A REALISTIC EXPECTATION FOR THE
TURKISH FMCG RETAIL SECTOR
The Total Market Share of The Top Three
Food Retailers (2004/05) (%)
Denmark
88%
Swedeen
85%
Finland
80%
Switzerland
79%
Austria
75%
Germany
67%
UK
50%
France
40%
Greece
39%
Spain
38%
Italy
28%
Turkey
Poland
Source : AC Nielsen
21%
13%
-4-
CARREFOURSA GROUP IS THE 2ND BIGGEST GROCERY RETAILER IN
THE TURKISH ORGANIZED FOOD RETAIL MARKET
As of 2005, The Size of The Organized Food Retail Market Was ~11 Billion US$
Organized Food Retail Market
(As of December 2005)
Other
organized
retailers, 42.4%
Metro
Cash&Carry ve
Real, 10.2%
Tesco-Kipa,
3.1% BİM, 9.2%
CarrefourSA
Group, 14.2%
Koç Group,
20.8%
(Migros,
Tansaş & Şok
markets)
CarrefourSA Group’s top competitors in the food retail market are:
- Real and Tesco Kipa in the hypermarket format
- Migros and Tansaş in the supermarket format
- BİM and Şok in the discount market format
-5-
CARREFOURSA GROUP COMPETES WITH THREE DIFFERENT
FORMATS IN THE TURKISH FOOD RETAIL SECTOR
The Total Net Sales Target For 2006 Is 1.5 Billion Euros
Hypermarkets
Supermarkets
Discounts
markets
2006B total net sales target for hypermarket and
supermarket formats is 1.2 billion Euros
2006B total net sales target for discount market
format is 0.3 billion Euros
-6-
CARREFOURSA GROUP WILL HAVE 14 CARREFOURSA
HYPERMARKETS IN 8 CITIES BY THE END OF 2006
7 stores
İstanbul
Kocaeli
Bursa
Ankara
Eskişehir
İzmir
Adana
Mersin
~49% of the total net sales (0.7 Billion Euros) will be
coming from CarrefourSA hypermarkets in 2006
Source: CarrefourSA
-7-
CARREFOURSA GROUP WILL HAVE 88 GİMASA AND 7 CHAMPIONSA
SUPERMARKETS IN 33 CITIES BY THE END OF 2006
88 GimaSA Supermarkets In 33 Cities and 7 ChampionSA Supermarkets In Istanbul
29 GimaSA
3 GimaSA
2 GimaSA
2 GimaSA
7 ChampionSA
Edirne Çorlu
Sinop
Zonguldak
İstanbul
Karabük
Kocaeli Adapazarı
Düzce
Bursa
Çanakkale
Balıkesir
2 GimaSA
2 GimaSA
Samsun
Ordu
2 GimaSA
2 GimaSA
Ankara
Kırıkkale
Sivas
10 GimaSA
Kayseri
İzmir
Malatya
Aksaray
Muğla
Adana
Antalya
Van
Diyarbakır
Aydın
2 GimaSA
Rize
Trabzon
G.Antep
Ş.Urfa
2 GimaSA
Mersin
5 GimaSA
Hatay
2 GimaSA
2 GimaSA
~33% of the total net sales (0.5 Billion Euros) will be coming
from ChampionSA and GimaSA supermarkets in 2006
Source: CarrefourSA
-8-
DIASA WILL REACH 440 STORES BY THE END OF 2006. THE COMPANY
PLANS TO GROW IN TWO OTHER REGIONS VIA ALREADY EXISTING ENDI
STORES AS WELL AS NEW DIASA STORES
Marmara Region
2006B target: 393
markets
Tekirdağ
İstanbul
Kocaeli
Adapazarı
Bursa
Balıkesir
İzmir
Ankara
Central Anatolia
Region 2006B
target: 11
markets (all
Endi)
Aegean Region
2006B target: 36
markets (6 Endi
stores)
Note: Endi is the discount market format of the Gima Group which was fully acquired in 2005
Source: DiaSA
-9-
CARREFOURSA PLANS TO DOUBLE ITS HYPERMARKET NETWORK
UNTIL THE END OF 2009
CarrefourSA Hypermarket Numbers and Sales Area Evolution
CAGR (06E1-09F)
%26
%17
28
14
12
Total sales
area (K m2)
Source: CarrefourSA
2005
2006 E1
2009F
113
121
228
%7
CAGR: %24
- 10 -
CARREFOURSA PLANS TO INCREASE ITS SUPERMARKET NETWORK
BY 50% UNTIL THE END OF 2009
The Growth Will Be Mainly Accomplished With GimaSA Brand
CarrefourSA Supermarket Numbers and Sales Area Evolution
CAGR (06E1-09F)
%13
%8
137
Total Sales
Area (K m2)
Source: CarrefourSA
88
95
2005
2006 E1
107
2009F
113
%6
160
CAGR: %13
- 11 -
DIASA PLANS TO NEARLY DOUBLE ITS DISCOUNT MARKETS
UNTIL THE END OF 2009
DiaSA Discount Market Numbers and Sales Area Evolution
CAGR (06E1-09F)
%24
837
CAGR (00-05)
%53
440
313
182
37
2000
Total Sales
Area (K m2)
Source: DiaSA
2003
2005
2006 E1
2009F
72
97
188
- 12 -
IN PARALLEL WITH STORE EXPANSION, SABANCI FOOD RETAIL
TURNOVER WILL NEARLY DOUBLE IN THREE YEARS
Total Turnover 2009F (B €)
Total Turnover 2006 (B €)
DiaSA: 0.6
CAGR (06-09)
DiaSA: 0.3
Sabancı Food
Retail: €1.5B
%23
Sabancı Food
Retail: €2.8B
CarrefourSA: 2.2
CarrefourSA: 1.2
Source: CarrefourSA, DiaSA
- 13 -
AGENDA
Sabancı Food Retail
Sabancı Consumer Electronics Retail
- 14 -
CONSUMER ELECTRONICS AND WHITE GOODS MARKET
IS EXPECTED TO REACH ~9 BILLION US$ IN 2009
2005-2009F Turkish Consumer Electronics and White Goods Market (US$ M)
CAGR
(06-09F)
7.0
8.8
Total
%8
1.7
White Goods
%4
6.4
1.7
1.6
7.1
4.8
5.3
2005
2006B
Source: GfK, TeknoSA forecasts
Consumer
Electronics
(IT, telecom
and
electronics)
%10
TeknoSA’s
main
categories
2009F
- 15 -
TEKNOSA A.Ş. HAS BOTH RETAIL OPERATIONS AND
FRANCHISING BUSINESS
Retail Operations Account For ~90% Of The Business
Retail Operations
Franchising Business
• By the end of 2006, there will be 151
TeknoSA stores in Turkey
• More than 200 İklimSa dealers in Turkey
• Main Product Groups:
- Electronics
- IT Products
- Telecom
• Main Product Groups:
- Air Conditioners and Combi Boilers
- Cash Registers
- Refrigerators
- 16 -
TEKNOSA WILL REACH 151 STORES BY THE END OF 2006
TeknoSA Presence In All Of The Major Cities
İstanbul
45 stores
Kırklareli
1 store
Edirne
1 store
Samsun
2 stores
Tekirdağ 2 stores
Çanakkale
1 store
Yalova 1 store
Bursa
4 stores
Balıkesir 1store
İzmir
12 stores
Aydın
2 stores
Bolu
1 store
Manisa
1 store
Ankara
22 stores
Kütahya
1 store
Eskişehir
2 stores
Afyon
1 store
Uşak
1 store
Kırıkkale
1 store
Isparta
1 store
Antalya
4 stores
Alanya
1 store
Ordu
1 store
Amasya
1 store
Giresun
1 store
Erzurum
1 store
Sivas
1 store
Nevşehir
1 store
Elazığ
1 store
Kayseri
2 store
K. Maraş
1 store
Konya
3 stores
Denizli
2 stores
Bodrum
1 store
Çorum
1 store
Rize
1 store
Trabzon
1 store
Adana
7 stores
Mersin
3 stores
Ağrı
1 store
Van
1 store
Malatya
2 stores
Diyarbakır 2 stores
Batman 1 store
Adıyaman Şanlıurfa 1 store Mardin
1 store
1 store
İskenderun
1 store
Gaziantep
2 stores
Hatay
1 store
- 17 -
TEKNOSA TARGETS DOUBLING ITS STORE NETWORK BY 2009
The Total Net Sales Area Will Reach 95 Thousand Sqm By 2009
TeknoSA Store Number and Net Sales Area Evolution
CAGR (06E1-09F)
%26
57%
300
151
96
2005
Total net sales
area (K m2)
Average store
size (m2)
Source: TeknoSA
2006 E1
22
32
46%
229
2009F
95
CAGR: %43
317
- 18 -
TEKNOSA TOTALLY TARGETS TO DOUBLE ITS NET SALES
IN THE NEXT THREE TEARS
Net Sales Target* For 2009 Is 1 Billion US$
TeknoSA Total Net Sales Forecasts* – 2005-2009F (M US$)
1.00
0.51
0.36
2005
CAGR
(06-09)
25%
2006 B
2009F
TeknoSA will expand internationally (especially in the Eastern
Europe) in the near future through both acquisitions and
greenfield investments
Note: Domestic sales only.
Source: TeknoSA
- 19 -