koctas - Kingfisher

KOCTAS
May 16th, 2012
Istanbul
I d
Index
▪
▪
▪
▪
Macroeconomic Environment
Retail Market in Turkey
Business Highlights
Commercial Overview
E
Economy,
P
People
l and
dS
Society
i t
United
Kingdom
Population - mn*
Age Structure
St t e
France
Poland
Turkey
63,0
65,6
38,4
74,8
Population Growth**
Median age (years)**
17,3%
66,2%
16,5%
0,6%
40,0
18,5%
64,7%
16,8%
0,5%
39,9
14,7%
71,6%
13,7%
-0,08%
38.5
26,6%
67,1%
6,3%
1,2%
28,5
GDP (purchasing power parity) - bn USD
USD***
GDP (official exchange rate) - bn USD***
GDP - real growth rate***
GDP - per capita - USD***
2.250
2
250
2.481
1,1%
35.900
2.214
2
214
2.808
1,7%
35.000
765,6
765
6
531,8
3,8%
20.100
1.026,0
1
026 0
763,1
8,5%
10.444
0-14
15-64
>65
Source: CIA – The World Factbook,
*July 2012 estimation; **2012 estimation; ***2011
With 75 million population and 8,5% growth in 2011, Turkey has the 16th largest economy in the world.
Europe’s
Europe
s Biggest Economies
(GDP based on Purchasing Power Parity, Trillion Dolar, 2010)
Greece
Switzerland
Austria
Sweden
d
Belgium
Netherlands
P l d
Poland
Turkey
Spain
Italy
France
UK
Germany
0.0
0.5
1.0
1.5
Source: IMF, World Economic Outlook, September 2011
Turkish economy is the 6th largest economy in Europe.
2.0
2.5
3.0
Sectoral Based GDP Growth
GDP Growth
(%)
Real estate,
renting and
Agriculture,
Wholesale
Transport,
business
hunting and
and retail
storage and
Home
forestry
Manufacturing Construction
trade
communication ownership
act
act.
Other
Total
12.8%
10.5%
2.2%
4.5%
5.5%
5.7%
2.6%
5.2%
12.6%
10.4%
5.3%
9.3%
Q1
Q2
Q3
Q4
3.8%
2.8%
0.9%
4.5%
22.0%
15.4%
7.2%
11.3%
9.0%
21.7%
23.7%
18.7%
21.2%
14.0%
7.5%
13.4%
12.7%
10.4%
6.0%
13.8%
1.8%
1.7%
2.6%
1.3%
2010 growth
2 4%
2.4%
13 6%
13.6%
18 3%
18.3%
13 6%
13.6%
10 6%
10.6%
1 8%
1.8%
7 6%
7.6%
4 7%
4.7%
9 2%
9.2%
Q1
Q2
Q3
Q4
7.1%
5.0%
4.2%
6.7%
14.9%
9.1%
9.2%
5.2%
15.3%
13.0%
10.2%
7.0%
17.3%
14.2%
11.5%
3.9%
12.4%
12.4%
12.0%
6.8%
2.0%
1.8%
1.3%
2.5%
10.3%
7.2%
10.2%
9.3%
8.3%
6.3%
7.8%
3.9%
11.9%
9.1%
8.4%
5.2%
2011 g
growth
5.2%
9.4%
11.2%
11.4%
10.8%
1.9%
9.3%
6.5%
8.5%
Real GDP Growth
11%
9%
9.2%
8.4%
7%
6.9%
5%
%
8.5%
4.7%
3%
0.7%
1%
-1%
-3%
-5%
2005
2006
2007
2008
2009
2010
2011
Years
-4.8%
Despite the slowdown in the last quarter,
quarter GDP growth was realized by 8.5%
8 5% at the end of the year 2011.
2011
Wholesale & retail trade sector growth was 11.4% in 2011. The annual GDP growth expectation is between
1.5-4% for year-end 2012.
GDP Growth Rate
GDP Growth Rate (Annual Average, %)
8
7
6
5
4
3
7.2
5.3
2
4.3
4.4
1
3.5
1.5
0
1982-1986
1987-1991
1992-1996
1997-2001
2002-2006
2007-2011
Source : TURKSTAT, Undersecretariat of Treasury
Annual average GDP growth of Turkey ise 3.5%
3 5% between 2007 and 2011 mainly due to the global
economic crisis especially in 2008 and 2009
-4%
Maintenanceand repair of dwelling
Mar-12
Jan-12
Nov-11
Sep-11
Jul-11
May-11
Mar-11
Jan-11
Nov-10
Sep-10
Jul-10
May-10
Mar-10
Jan-10
Mar‐12
Jan‐12
Nov‐11
Sep‐11
Jul‐11
May‐11
Mar‐11
Jan‐11
Nov‐10
Sep‐10
Jul‐10
May‐10
Mar‐10
Jan‐10
Nov‐0
09
Sep‐0
09
Jul‐0
09
May‐09
PPI
Nov-09
Sep-09
Jul-09
May-09
09
Mar‐0
Jan‐09
Nov‐0
08
Sep‐0
08
Jul‐0
08
May‐08
08
Mar‐0
Jan‐08
Nov‐0
07
Sep‐0
07
Jul‐0
07
May‐07
Mar‐0
07
20%
Mar-09
Jan-09
Nov-08
Sep-08
Jul-08
May-08
Mar-08
Jan-08
Nov-07
Sep-07
Jul-07
May-07
Mar-07
Inflation
Inflation Rates
CPI
15%
10%
CPI (YoY): 10.4%
PPI (YoY): 8.2%
5%
0%
‐5%
Sectoral Inflation Rates
14%
12%
10%
8%
6%
4%
2%
-2%
0%
Housing
maintenance
i t
and
d
repair : 7.36%
Furniture,
household
equipment
i
t and
d
house
maintenance
services : 11.76%
Foreign
i
Exchange
h
Rates
TRL / EURO
TRL / USD
Linear (TRL / EURO)
Linear (TRL / USD)
 EURO apreciated by 8% and USD apreciated by 14% compared to April 2011
Apr--12
Feb--12
Dec--11
Oct--11
Aug--11
Jun--11
Apr--11
Feb--11
Dec--10
Oct--10
Aug--10
Jun--10
Apr--10
Feb--10
Dec--09
Oct--09
Aug--09
Jun--09
Apr--09
Feb--09
Dec--08
Oct--08
Aug--08
Jun--08
Apr--08
Feb--08
2.8
2.6
2.4
2.2
2.0
18
1.8
1.6
1.4
1.2
1.0
Dec--07
RL / FX
TR
EURO & USD vs. Turkish Lira
K G
Koc
Group
Overview:
The only Turkish company in “Fortune Global
500” list, rising to 250nd palace in the 2010
rankings.
 The Group was named as `Most Admired
Company` in the world in the energy sector in
Fortune’s 2012 rankings.
 Combined revenues corresponding to 9% of
Turkey’s GDP in 2011.
 Consolidated revenues were TL75,740m in
2011 with TL5,490m operating profit.
 Exports corresponding to 11% of Turkey’s total
exports.
 Operates in 23 countries in automotive,
durable goods, food, retailing, energy, financial
services, tourism, construction and IT industries.
 The Group employed 80,987 poeple, of which
73,339
3,339 work
o in Turkey
u ey a
and
d 7,648
,6 8 ab
abroad.
oad
International Alliances:
I d
Index
▪
▪
▪
▪
Macroeconomic Environment
Retail Market in Turkey
Business Highlights
Commercial Overview
P iti
Position
off Retail
R t il Sector
S t in
i Turkey
T k
 Retail Sector is the 4th biggest sector
after energy, education and health sectors
in Turkey, estimated sector size is around
200 billion dollars and the share of
organized retail sector is 40% in total.
 According to the studies, as of 2010,
there are 2
2.7
7 million employess working in
retail sector in Turkey.
 The number of Shopping Malls in Turkey
end
of tthe
and
exceeded
e ceeded 298
98 at tthe
ee
do
e 2011
0 a
d itt
is expected to be 360 as of 2013. The
rentable areas in malls were 6.7 million sqm
at the end of 2010 and they are also going
to be 10 million sqm in 2013.
Turkish retail sector is the 7th biggest
sector in Europe and 10th in the world.
H
Home
IImprovementt M
Market
k t in
i Turkey
T k
Total HI Market**
Ma ket**
86,6%
Traditional
Organized
(37 stores)
(10 stores)
13,4%
(5 stores)
Organized Market Shares**
HI MARKET
$10 bln
(2 stores)
Praktiker
12%
(5 stores)
14%
43%
Bauhaus
IKEA
Tekzen
(79 stores)
(7 stores)
15%
Leroy
Baumax
12%
2%
* As of March 2012
** No official data for 2011 and available calculations are based on estimations.
2%
Koçtaş
Competition Overview
Kırklareli
Bartın
Kastamonu
Edirne
İstanbul
Tekirdağ
Yalova
Zonguldak
Karabük
Kocaeli
Düzce
Sakarya Bolu
Çankırı
Bursa
Çanakkale
Artvin
Samsun
Ordu
Amasya
Tokat
Çorum
Rize
Trabzon
Giresun
GümüşhaneBayburt
Bilecik
Ankara
Balıkesir
Kırıkkale
Manisa
Uşak
Tunceli
Nevşehir
Kayseri
Aydın
Denizli
Konya
Muğla
Kahraman
Maras
Niğde
Burdur
Adana
Karaman
Antalya
y
Iğdır
Erzurum
Ağrı
Muş
Bingöl
Bitlis
Elazığ
Malatya
Aksaray
Isparta
Kars
Sivas
Kırşehir
Afyon
Ardahan
Erzincan
Yozgat
Eskişehir
Kütahya
İzmir
Sinop
Diyarbakır
Batman
Adıyaman
Gaziantep
Şanlıurfa
Kilis
Mersin
Siirt
Sırnak
Mardin
Osmaniye
Hatay
Store number
37
10
7
5
79
2
5
Cities
19
6
3
4
40
2
5
Van
Hakkari
I d
Index
▪
▪
▪
▪
Macroeconomic Environment
Retail Market in Turkey
Business Highlights
Commercial Overview
Koçtaş Timeline
1955
Founded by Vehbi Koc as a wholesale retailer.
1996
Entered into the Home Improvement
p
retailing
g business.
2000
50%-50% JV agreement with Kingfisher Group.
2001
Opening of first large format store in Kartal, Istanbul.
2005
Opening of first shopping mall store in Sisli, Istanbul.
As of December 2011, total store
numbers reached to 36 in 19 cities
with 185k sqm selling space and
Total net sales are £332m.
2011
In 2011, DIY & Home Improvement
market constitutes 13.4% of the total
market and Koctas’s share is about
43% in organized market.
The first new concept store of
Eryaman was opened in October
2011.
2012
Mar
In the first quarter of 2012
2012, total selling space reached to 190k sqm
with the opening of Gaziemir store in İzmir that is our 37th store in Turkey.
10 stores
76k sqm
d
Medium
15 stores
71k sqm
11 stores
38k sqm
KPIs
Sales
l (TL
(
m))
Sales growth (%)
Number of Stores
Selling Space (sqm k)
Staff number
2002
2003
2004
2005
2006
2007
2008
2009
2010
50
74
49%
5
26
381
112
50%
5
26
474
150
35%
7
35
744
277
84%
10
57
1.140
404
46%
15
78
1.666
543
35%
21
108
2.051
643
18%
26
135
2.338
776
21%
30
160
2.492
5
26
326
40
913
35
776
30
277
10
5
0
50
74
5
5
2002
2003
112
5
150
7
500
21
26
30
36
400
300
15
200
10
2004
2005
2006
Number of Stores
900
600
404
15
1,000
700
543
20
913
18%
36
185
2.964
800
643
25
2011
100
0
2007
2008
2009
2010
Sales (TL m)
Average sales growth in the last 5 years is 37%
2011
TL
L m
KPIs
I d
Index
▪
▪
▪
▪
Macroeconomic Environment
Retail Market in Turkey
Business Highlights
Commercial & Marketing Overview
Brand Awareness (Unaided Recall)
What is the first brand you remembered in home improvement and diy sector?
2007 (n=508)
(n 508)
KOÇTAŞ
37
BAUHAUS
30
PRAKTİKER
29
IKEA
TEKZEN
CARREFOUR
2008 (n=550)
(n 550)
2009 (n=539)
(n 539)
43
41
24
20
17
2010 (n=551)
(n 551)
16
52
27
33
24
31
16
39
27
17
23
9
12
12
9
7
11
7
8
6
4
7
6
2
ARÇELİK
6
2
2
2
DİĞER
6
6
3
5
AKLIMA BİR YER GELMİYOR
56
10
METRO 1
23
26
24
2011 (n=555)
(n 555)
13
Base: 550 respondents from İstanbul, İzmir, Ankara, Bursa, İzmit, Antalya /April 2011
19
43
9
2011 Brand Awareness Research
(conversion & awareness)
65
60
stürme)
sion(Dönüs
Convers
KOÇTAŞ
55
50
BAUHAUS
45
IKEA
PRAKTİKER
40
35
30
TEKZEN
25
75
80
85
90
95
100
105
Total Awareness(Toplam Bilinirlik)
110
115
120
2011 Brand Awareness Research
(conversion & retention)
60
KOÇTAS
55
Rettention(Tuttma)
50
45
IKEA
40
BAUHAUS
35
PRAKTIKER
30
25
TEKZEN
20
25
30
35
40
45
Conversion(Dönüstürme)
50
55
60
C t
Customer
P
Profile
fil
 39 yrs old Target
g consumers
Families
Young couples
Teenagers
 50‐50% male‐
female 

Working
g
on it
 63% married
 Well‐educated
 37% AB, 33% C1 SEC
 46% visit alone
 High internet usage – 66%
66%*
usage  54% visit with family/friends
 to get info, make research, enter facebook *42% in Turkey
Source: Koçtaş Customer Profile Survey, 2010, will be updated in July 2012
 Price & payment conditions
 Product quality & variety
 Convinience
Important
factors in DIY
shopping
P
Price
ice Pe
Perception
ception Resea
Research
ch
Which DIY / home improvement store have the lowest prices?
50.5
Koçtaş
18.6
Ikea
15.2
Praktiker
7.4
Tekzen
5.1
Bauhaus
%15
%18
%7
%13
0.8
Leroy Merlin
Baumax
0.2
Carefour
0.2
Yok / ucuz bılduğu
marka yok
10
1.0
Bilmiyor / fikri yok /
hatırlamıyor
1.0
0

%33 
2009 results for
comparison
10
20
30
40
50
60
Base: 1105 people who live in İstanbul, Ankara , İzmir, Bursa, Antalya, Adana, Kayseri, Malatya, Konya & Trabzon and shop from DIY stores
held on 15June-15July 2011 / compared with 2009 results
CRM Activities y
ytd 2012
%50 of turnover with ith
parocards
Min 300 CRM campaigns
i
yearly
600.000
SMS SMS
yearly
500.000 Mailing
yearly
2,5 million KOCTAS KART alive
,
!
%50 0f them are ACTIVE!
136 cards
in 2011
 30.000 trade cardholders approx.
 Min 12% of total sales with trade cards
600 active cards,
March YTD



5% paropoint gift
10% discount for Fabel paints
Special campaigns for paint
shopping