{"id":112421,"date":"2021-04-29T08:43:37","date_gmt":"2021-04-29T06:43:37","guid":{"rendered":"https:\/\/tim.www.timsa.pl\/tim-after-a-year-of-the-pandemic-krzysztof-folta-we-are-already-playing-in-a-different-league\/"},"modified":"2023-01-20T17:00:57","modified_gmt":"2023-01-20T16:00:57","slug":"tim-after-a-year-of-the-pandemic-krzysztof-folta-we-are-already-playing-in-a-different-league","status":"publish","type":"post","link":"https:\/\/www.timsa.pl\/en\/tim-after-a-year-of-the-pandemic-krzysztof-folta-we-are-already-playing-in-a-different-league\/","title":{"rendered":"TIM after a year of the pandemic. Krzysztof Folta: \u201cWe are already playing in a different league\u201d"},"content":{"rendered":"

Analysts at PKO BP bank forecast an increase in revenues and profits in the coming years and regular dividend payments for TIM.\u2013 After the pandemic customers \u2013 both individual and business ones \u2013 will continue to shop online.<\/span><\/span>\u00a0<\/span><\/span>This is what I am convinced of \u2013 says Krzysztof\u00a0<\/span><\/span>Folta<\/span><\/span>, President of TIM SA.<\/span><\/span>\u00a0<\/span><\/b><\/p>\n

Aren\u2019t you afraid of the end of the pandemic?<\/span><\/span>\u00a0<\/span><\/b><\/p>\n

I\u2019m surprised by this question<\/span><\/span>.<\/span><\/span>\u00a0<\/span><\/span>When it comes to health issues, I can\u2019t wait for it to end<\/span><\/span>\u00a0<\/span><\/p>\n

And in terms of business? After all, the pandemic has helped TIM in its very dynamic development.<\/b><\/p>\n

It\u2019s true.<\/span><\/span>\u00a0<\/span><\/span>A year ago I said that we have been facing an opportunity we had never had before<\/a>. We took it, still it is the result of hard work of the entire team not only during the last year but over the last 8 years, i.e. from the moment of the decision to change the company\u2019s business model and enter e-commerce.<\/span><\/span>\u00a0<\/span><\/p>\n

My impression, however, is the market wouldn\u2019t have noticed this change hadn\u2019t it been for the pandemic.<\/span><\/span>\u00a0<\/span><\/span>TIM\u2019s share price has increased by about 200% within the last 12 months.<\/span><\/span>\u00a0<\/span><\/b><\/p>\n

This change in the perception of TIM from a wholesaler of\u00a0<\/span><\/span>electrotechnical<\/span><\/span>\u00a0materials to a serious e-commerce market player is undoubtedly one of our successes.<\/span><\/span>\u00a0<\/span><\/span>But let me say it once again: we have been workin<\/span><\/span>g long and hard to achieve this.<\/span><\/span>\u00a0<\/span><\/p>\n

During the meeting with analysts, summarizing the results for 2020, you said that that was the last time you presented a slide comparing TIM to companies in the\u00a0<\/span><\/span>electrotechnical<\/span><\/span>\u00a0industry.<\/span><\/span>\u00a0<\/span><\/b><\/p>\n

It\u2019s because we are already playing in a different league.<\/span><\/span>\u00a0<\/span><\/span>Just like today nobody compares Amazon to\u00a0<\/span><\/span>Wallmart<\/span><\/span>, although both entities are involved in trade.<\/span><\/span>\u00a0<\/span><\/span>This is why I can reply, I\u2019m now getting back to the question about \u201cconcerns\u201d related to the end of the pandemic, that eight years after the implementation of the business model based on online sales TIM is prepared to develop at least as fast as the e-commerce market.<\/span><\/span>\u00a0<\/span><\/p>\n

\"\"<\/a>Meaning what?<\/span><\/span>\u00a0<\/span><\/b><\/p>\n

PwC, a consulting company, forecasts that this market will grow in Poland annually at the rate of 12%.<\/span>\u00a0<\/span>After the pandemic, customers \u2013 both individual and business ones \u2013 will continue to shop online.<\/span>\u00a0<\/span>This is what I am convinced of.<\/span>\u00a0<\/span><\/p>\n

More so, we are strongly supported by the demographic trend.<\/span>\u00a0<\/span>TIM solicits about a thousand new customers a month.<\/span>\u00a0<\/span>These are mostly young people who expect the provision of\u00a0<\/span>full service from the level of a computer or smartphone.<\/span>\u00a0<\/span>They quite rarely contact their account managers directly.<\/span>\u00a0<\/span><\/p>\n

Exactly.<\/span><\/span>\u00a0<\/span><\/span>In 2020 TIM\u2019s sales exceeded PLN 2.5 million per day (+13% y\/y)<\/span><\/span>.<\/span><\/span>\u00a0<\/span><\/span>It was handled by 75 salesmen.<\/span><\/span>\u00a0<\/span><\/b><\/p>\n

This shows best how our hybrid sales model works.<\/span><\/span>\u00a0<\/span><\/span>In the traditional one, each of our salesmen would have to handle over 230 orders a day.<\/span><\/span>\u00a0<\/span><\/span>That would be undoable.<\/span><\/span>\u00a0<\/span><\/p>\n

\"\"<\/a>Let\u2019s get back to the average annual growth of the e-commerce market by 12 percent.<\/span><\/span>\u00a0<\/span><\/span>How will that translate into TIM\u2019s results?<\/span><\/span>\u00a0<\/span><\/b><\/p>\n

We do not share forecasts.<\/span><\/span>\u00a0<\/span><\/span>But it is quite easy, based on this, to calculate the potential for the growth of revenues.<\/span><\/span>\u00a0<\/span><\/span>In its latest forecast, PKO BP estimates TIM\u2019s revenues for over PLN 1.3 billion and PLN 56.5 million of net profit in 2023. Analysts also point to the company\u2019s high dividend potential.<\/span><\/span>\u00a0<\/span><\/p>\n

You have surprised the investors with high dividend his year.<\/span><\/span>\u00a0<\/span><\/b><\/a><\/p>\n

Once again let me refer to the American market: there the first dividend league is made up of companies that have been paying dividends for at least 20-25 years increasing it year by year and the company capitalization itself exceeds USD 2 billion.<\/span><\/span>\u00a0<\/span><\/p>\n

Is this your goal?<\/span><\/span>\u00a0<\/span><\/b><\/p>\n

One needs ambitious goals.<\/span><\/span>\u00a0<\/span><\/span>(laughing).<\/span><\/span>\u00a0<\/span><\/span>We certainly want TIM to be perceived as a dividend company which increases profit distributions to shareholders year by year.<\/span><\/span>\u00a0<\/span><\/span>In the aforementioned analysis, PKO BP forecasts a dividend per share in the amount of:<\/span><\/span>\u00a0<\/span><\/span>PLN 1.6 for the year 2021, PLN 1.68 for the year 2022 and PLN 1.77 for the year 2023.<\/span><\/span>\u00a0<\/span><\/p>\n

In the presentation regarding plans for the coming quarters you mention the expansion of the warehouse of 3LP, the company being a part of the TIM Capital Group.<\/span><\/span>\u00a0<\/span><\/b><\/p>\n

The facility with an area of 25 thousand sq. m will be fully automated, adapted to handle the most demanding customers from the e-commerce industry.<\/span><\/span>\u00a0<\/span><\/span>The warehouse will be built by the developer on a plot we\u2019re going to sell them.<\/span><\/span>\u00a0<\/span><\/span>3LP will invest in automation and will manage the facility.<\/span><\/span>\u00a0<\/span><\/span>We are already operating in this system with such customers as Oponeo.pl or IKEA.<\/span><\/span>\u00a0<\/span><\/span>Everything works like clockwork, 20 hours a day, 7 days a week.<\/span><\/span>\u00a0<\/span><\/p>\n

The plans also include forwarding services for 3LP customers.<\/span><\/span>\u00a0<\/span><\/span>Do you want your own truck fleet?<\/span><\/span>\u00a0<\/span><\/b><\/p>\n

No.<\/span><\/span>\u00a0<\/span><\/span>We will manage the fleet in cooperation with transport companies whom we have very good relations with.<\/span><\/span>\u00a0<\/span><\/span>All this to provide customers with the most comprehensive e-commerce service at a single address:<\/span><\/span>\u00a0<\/span><\/span>3LP.<\/span><\/span>\u00a0<\/span><\/span>This company is invariably the black horse within our group, we stake on.<\/span><\/span>\u00a0<\/span><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Analysts at PKO BP bank forecast an increase in revenues and profits in the coming years and regular dividend payments for TIM.\u2013 After the pandemic customers \u2013 both individual and business ones \u2013 will continue to shop online.\u00a0This is what I am convinced of \u2013 says Krzysztof\u00a0Folta, President of TIM SA.\u00a0<\/p>\n","protected":false},"author":1,"featured_media":112358,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[81,82],"tags":[],"class_list":["post-112421","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investor-relations","category-news-for-investors"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.timsa.pl\/en\/wp-json\/wp\/v2\/posts\/112421","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.timsa.pl\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.timsa.pl\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.timsa.pl\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.timsa.pl\/en\/wp-json\/wp\/v2\/comments?post=112421"}],"version-history":[{"count":1,"href":"https:\/\/www.timsa.pl\/en\/wp-json\/wp\/v2\/posts\/112421\/revisions"}],"predecessor-version":[{"id":112424,"href":"https:\/\/www.timsa.pl\/en\/wp-json\/wp\/v2\/posts\/112421\/revisions\/112424"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.timsa.pl\/en\/wp-json\/wp\/v2\/media\/112358"}],"wp:attachment":[{"href":"https:\/\/www.timsa.pl\/en\/wp-json\/wp\/v2\/media?parent=112421"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.timsa.pl\/en\/wp-json\/wp\/v2\/categories?post=112421"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.timsa.pl\/en\/wp-json\/wp\/v2\/tags?post=112421"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}