Arcelik A.s. · BIST:ARCLK
Arcelik A.s — H1 2019 Earnings Presentation
23 slides from Arcelik A.s's earnings presentation, 2019
Slide 1: 2019 – 6 Month Financial Results
2019 – 6 Month Financial Results Sensitivity: Public
Slide 2: Quarter Highlights
Quarter Highlights ▪ Top line growth of 29% TRY8.4bn 10.5% ▪ Slight decline in gross profitability due to TRY depreciation Revenue EBITDA Margin* ▪ Improvement in OPEX/Sales (23.7%) ▪ Higher ETR, largely due to one-off items 28.4% 2.4x ▪ Flat NWC/Sales ratio despite strong domestic revenue NWC/Sales
Slide 3: Key Factors Sales/Margins
Key Factors Sales/Margins 8,428 5.5% inorganic growth from Singer Bangladesh 6,512 6,902 Revenue Growth +29% TRY depreciation continues to support top line Despite challenging market conditions, robust domestic sales 2018 Q2 2019 Q1 2019 Q2 Higher share of Turkey sales compared to 1Q19 32.4 Gross 31
Slide 4: Performance Turkey
2019 Q2 Performance Turkey MDA-6 Air-Conditioner TV Market -8% -44% -22% >25% Market Share +16% Better than market Leading Position Turkish MDA6 Market YoY Change 4% -13% -6% -7% -14% -20% Oct Apr Aug Sep Mar May Nov Jul Jan Jun Feb Dec 2018 2019 Sensitivity: Public MDA-6 and A/C data (sell-in) is b
Slide 5: International Markets
2019 Q2 International Markets East Europe -5.0% 0.0% 5.0% 10.0% 15.0% • Romania and Poland gained West Europe further pace E. Europe • UK continues its strong • Russia remained weak performance Russia • France improved significantly in Poland 2Q Romania Ukraine Bangladesh W. Europe • Stable trading
Slide 6: International Performance
2019 Q2 International Performance 42% Europe 7% Africa 12% Asia-Pacific ▪ Flat revenue YoY in hard currency ▪ Defy recorded low-teens revenue growth ▪ Sales in Pakistan remained flat in PKR due ▪ Weak June sell-in affecting 2Q negatively in ZAR in domestic sales to sluggish demand. ▪ Sub-Sahara expo
Slide 7: Singer Bangladesh Results
2019 Q2 Singer Bangladesh Results Δ% BDT mn 2019 Q2 2018 Q2 2019 Q1 Δ% YoY QoQ 2019 6M 2018 6M Δ% YoY Revenue 5,244 4,182 2,777 25 89 8,021 6,541 23 Gross Profit 1,488 1,126 824 32 81 2,312 1,817 27 margin 28.4 26.9 29.7 28.8 27.8 EBIT 666 486 263 37 153 958 713 34 margin 12.7 11.6 9.5 11.9 10.9 Pro
Slide 8: Raw Material Trends
2019 Q2 Raw Material Trends 110 140 130 100 120 90 110 80 100 70 Info-Text 90 60 80 50 70 40 60 Apr-16 Apr-17 Apr-18 Apr-19 Jul-16 Jul-17 Jul-18 Oct-16 Oct-17 Oct-18 Jan-16 Jan-17 Jan-18 Jan-19 Apr-17 Jul-17 Apr-18 Jul-18 Apr-19 Apr-16 Jul-16 Oct-16 Oct-17 Oct-18 Jan-17 Jan-18 Jan-19 Jan-16 2Q Avera
Slide 9: Sales Performance
Sales Performance Sensitivity: Public
Slide 10: Sales by Region
2019 Q2 Sales by Region +29% 2019 Q2 8,428 4.3% 4.3% 6,512 5.3% 5.6% 2.8% 6.1% 5,502 34.7% 6.6% 6.3% 36.3% 4,150 +33% 2.3% 2018 Q2 13.6% 13.9% 2,362 2,926 +24% 29.8% 2018 Q2 2019 Q2 28.1% 2019 1H +30% 4.9% 2.4% 15,330 5.1% 2.5% 5.4% 5.6% 33.5% 11,794 7.0% 6.7% 0.0% 36.2% 2.1% 10,201 13.5% 2018 1H 7,
Slide 11: Sales Bridge
2019 Q2 Sales Bridge 9,000 361 8,428 8,000 1076 -85 564 7,000 6,512 6,000 5,502 5,000 4,150 4,000 8,067 3,000 2,000 2,926 1,000 2,362 - TL mn 2018 Q2 TR - Organic INT - Organic INT - FX Impact Acquisition 2019 Q2 Turkey International Revenue Impact 2019 Q2 Organic Currency Effect Acquisition TOTAL D
Slide 12: Financial Performance
Financial Performance Sensitivity: Public
Slide 13: Income Statement
2019 Q2 Income Statement Δ% TL mn 2019 Q2* 2018 Q2 2019 Q1* Δ% YoY QoQ 2019 6M* 2018 6M Δ% YoY Revenue 8,428 6,512 6,902 29 22 15,330 11,794 30 Gross Profit 2,643 1,974 2,239 34 18 4,882 3,625 35 margin 31.4 30.3 32.4 31.8 30.7 EBIT ** 629 418 430 50 46 1,058 792 34 margin 7.5 6.4 6.2 6.9 6.7 Profit
Slide 14: Margin by Segments
2019 Q2 Margin by Segments Consolidated 9,000 32.4 8,428 33.0 8,000 32.0 7,000 6,902 6,512 31.0 6,000 31.4 30.0 5,000 30.3 29.0 4,000 28.0 3,000 2,000 27.0 1,000 26.0 0 25.0 2018 Q2 2019 Q1 2019 Q2 Revenue Gross Margin (%) White Goods Consumer Electronics Other 900 30.0 1,400 1,324 32.0 7,000 6,345
Slide 15: Working Capital
2019 Q2 Working Capital 6,082 8,636 5,439 7,777 1,065 861 9,486 8,230 5,309 6,203 2016 - Assets 2019 Q1 2016 - Liabilities 2017 1Q - Assets 2019 Q2 20171Q - Liabilities Trade Rec. Inventory Other Rec. Trade Payables Other Pay. Working Capital Working Capital / Sales 32.5% 30.9% 30.3% 30.8% 29.3% 32.
Slide 16: Cash & Financial Debt
2019 Q2 Cash & Financial Debt TL mn 12,000 4.00 Cash Breakdown by Currency 3.13 3.15 2.83 2.52 2.56 2.45 2.36 2.41 3.00 7,000 2.11 2.31 2.00 8% 9% 2,000 2,886 1,983 2,582 2,612 2,956 4,225 5,342 6,478 5,788 5% 2,038 1.00 -2,770 -2,922 -3,216 -3,262 -3,900 -4,413 -3,000 -4,687 -5,517 -5,602 -5,596 0.
Slide 17: FX Hedging
2019 Q2 FX Hedging 400 6.0% 3.9% Before Hedged Net 300 4.0% (TRYmn) Hedge Position Position 200 EUR -877 748 -130 2.0% 100 USD -1,218 1,083 -135 0 0.0% 0.4% GBP 660 -655 6 -100 -1.1% -2.0% -1.2% -1.2% Other 828 -838 -10 -200 -2.5% -2.1% -2.0% -3.6% -2.9% -4.0% TOTAL -607 338 -269 -300 -4.1% -3.7% -5
Slide 18: Cash Flow
2019 Q2 Cash Flow 2019 H1 2018 H1 Sensitivity: Public
Slide 19: Guidance
2019 Guidance Sensitivity: Public
Slide 20: Guidance
2019 Guidance White Goods Market Global: ~2% Growth Volume Growth Turkey: ~-15% Contraction (previous ~-10%) Revenue Growth 20-25% in TRY (previous 25-30%) EBITDA Margin 2019* Around 10.5% (previous c. 11,5%) EBITDA Margin Around 12% Long Term* *EBITDA margin calculations are inline with the methodo
Slide 21: Contacts for Investor Relations
Contacts for Investor Relations Polat Şen Hande Sarıdal Orkun İnanbil Kerimcan Uzun CFO Finance Director Investor Relations Manager Investor Relations Specialist Tel: (+90 212) 314 34 34 Tel: (+90 212) 314 31 85 Tel: (+90 212) 314 31 14 Tel: (+90 212) 705 96 81 Investor Relations App www.arcelikas.c
Slide 22: Disclaimer
Disclaimer This presentation contains information and analysis on financial statements as well as forward-looking statements that reflect the Company management’s current views with respect to certain future events. Although it is believed that the information and analysis are correct and expectatio
Slide 23: Thank You
Thank You Sensitivity: Public