arcelik sunum son

CHALLENGES

1. Economic and Political Complications in the Region

2. Outsourced Products (AC/TV) and Production Issues

3. Parity Effect

GULF

• The diplomatic rift between Qatar and Arab allies flared regional tensions and effected the trade negatively. Due to Qatar crisis, in upcoming months our trade relationship with other Gulf Country partners may be effected negatively.

• Money collection problem (Saudi Arabia, Qatar, UAE payment terms continuously delaying)

Action Plans:

• We try to compensate A/C loss from refrigerator, washing machine and dishwasher sales.

• To increase sell out of distributors, Sales+ campaigns have been launched through in-store and digital activities

TURKIC REP. & NEAR EAST

MIDDLE EAST

• A civil war threat between South and North Iraq is existing.
• Customs tariffs tripled both in North & South Iraq.

Iraq:

Iran:

• Due to post-election climate and tense political conditions in US have some negative effects, the trade and collection of payments almost stopped. 2 mio Euro loss

Turkmenistan :

• Has the second biggest budget (5,5 mio € - 20% of our budget) in our region, government stopped convertibility from USD to Turkmen Manat.

• Unofficial exchange rate is 7,2 while official is 3,5 and purchase power decreased dramatically. 1,5 mio Euro loss

Moldova:

• Business has been stopped due to financial decision taken by Arçelik management. 2,5 mio Euro loss

Action Plans:

• Activating new cabinets and models from Thailand and China factories in Q4 for Bangladesh, Sri Lanka, Kirgizstan, Tajikistan and Uzbekistan

• To increase sell-out figures for all markets, bundle & sales campaigns will be placed from the beginning of August till the year end.

• Looking for another distribution channels for Moldavia and Uzbekistan because of insufficient performance of current partners

Israel & Palestine:

• There is shrinkage in the market in terms of value due to shifting market trends towards lower price positioned brands since end of 2016. Our distributors performance was low in 2017 Q1 period due to 3 mio € stock in their warehouse
• High tension in the region has been rising extremely since May, thus Palestine market has been affected dramatically. 3 mio Euro loss

ACTION PLANS

• With the finalization of the CBU Outsource TV project which shifted to the end of Q3 period, TV sales will be utilized in order to reach annual targets.
• New SKU launches will be generated with the completion of washing machine and refrigerator projects (fascia transition & cabinet changes, Fourever (Innova))
• To compensate some part of the loss due to continuous production shifts, System Air Conditioner and Built-In project sales will be tracked closely.

The total loss is 4 mio Euro in Jan-August

The total loss is 5 mio Euro in Jan-August

NORTH AFRICA

Libya

• Due to devaluation and lack of USD reserve in Central Bank, it is difficult to collect money.

• April & May orders are still waiting in Misurata port while June order (50 containers) in Turkey ports.

• Kidnapping and violence are still threats in daily life.

• Since most of the forwarders stopped Libya destination, there is limited access to Libya. 1,2 mio Euro loss

Action Plans:

• Thailand range is included in Algeria and Tunisia. First 7 months 8K of product will be shipped.

• 5K of China washing machine has been already shipped. Extra 10K is planned for the second half.

• The main reason of the refrigerator loss is due to Libya account. The loss in refrigerator is planned to be recovered by other product categories like washing machine and ovens.

• 7 mio Euro loss have been occured due to supplying problems for AC and TV in January - August period. The loss will be 10 mio Euro only from AC and TV by end of the year.

• 3 mio Euro loss in January – August period as a result of delays in new product launches and technical problems mostly coming from cooling category. (Refrigerator projects: Thai RF – new colour options and combi models, Fourever 4 door with water dispenser, Inova, WM projects: Beko Premium Outlook)

The total loss is 10 mio Euro in Jan-August

Beko Egypt Trading LLC

Management Meeting 6-7 Sep 2017

NET SALES

STRATEGIC COUNTRIES IN

TURKIC REP. &

NEAR EAST

TURKIC REP. & NEAR EAST

PLEASE TAKE

THE GLASSES OFF

MIDDLE EAST

FINANCIAL RESULTS

WEST AFRICA

STRATEGIC COUNTRIES IN

MIDDLE EAST

WEST AFRICA

STRATEGIC COUNTRIES IN

NORTH AFRICA

NORTH

AFRICA

SDA Sales

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STRATEGIC COUNTRIES IN

GULF

Beko China Sales

PROJECTS

• Regional Management Organization
• Regional Product Management
• Thailand Sales
• China Sales
• Small Domestic Appliances Sales
• Built – In Sales

Beko Thailand Sales

Regional Product Management

Management Meeting 6 - 7 September