Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — Q1 2017 Earnings Presentation
23 slides from Migros Ticaret A.s's earnings presentation, 2017
Slide 1: Migros Ticaret A.Ş. 1Q 2017 Financial Results
Migros Ticaret A.Ş. 1Q 2017 Financial Results
Slide 2: Disclaimer Statement
Disclaimer Statement Migros Ticaret A.Ş. (the “Company”) has prepared this presentation for the sole purpose of providing information about its business, operations and financial results. The informaation in this presentation is subject to updating, revision and amendment. The information in this pr
Slide 3: Contents
CONTENTS Market Share Sales Evolution Financial Expansion Overview Ataşehir Migros Key Financial Guidance Metrics Financial Format Results Summary 2
Slide 4: Sales in 1Q 2017
Sales in 1Q 2017 Consolidated sales reached TL 3,114 million in 1Q2017, with an increase of 29.1% versus last year with Kipa’s 1 month sales contribution of TL 186 million Robust sales growth performance thanks to effective & competitive positioning in the market, Domestic sales growth of 21.4%
Slide 5: Market Share Evolution
Market Share Evolution FMCG Market Share Evolution (%) Migros improved its market share by 50 bps 16.8 w/Kipa Clear market in modern FMCG market and 40 bps in total share gain FMCG market without Kipa operations 14.0 with Kipa and in 1Q 2017 over a year ago. w/o Kipa 7.0 w/Kipa 13.5 Migros accou
Slide 6: Organic Expansion
Organic Expansion Net Sales Area Split By Banner - 1Q 2017 42 new store Number of Stores - Total openings in 1Q17 1,794 168* 20 new store +347 1,447 openings in April +220 2017 1,227 1,626 1,794 number of stores as of 1Q17 1Q 2015 1Q 2016 1Q 2017 1Q17 Sales area 1,412K sqm with Kipa stores * Kipa st
Slide 7: Consolidated Gross Profit in 1Q 2017
Consolidated Gross Profit in 1Q 2017 Consolidated Gross profit grew by 23.9% y-o-y to TL 817 million in 1Q 2017 Investment on pricing continued in 1Q 2017 Mass communication focused on price competitiveness and personalize digital communication focused on quality and service. Solid Gross Profi
Slide 8: Consolidated EBITDA(R) in 1Q 2017
Consolidated EBITDA(R) in 1Q 2017 EBITDA rose by 5.6% and reached TL 156 million despite the dilution impact of Kipa EBITDA rose by EBITDA* (TL million) EBITDA* w/o Kipa (TL million) 11.7% and reached TL 165 156 165 million with 148 148 the margin of 5.6% w/o Kipa operations, 1Q 2016 1Q 2017 1Q 20
Slide 9: Key Financial Metrics
Key Financial Metrics Accelerated growth, where EBITDA margin sustained Domestic Sales Growth Y-o-Y (%) Transitional decrease in EBITDA margin 29.3% 6.3% 6.1% 5.6% with Kipa w/o Kipa 18.6% 18.7% 21.3% 5.0% w/o Kipa with Kipa 1Q 2015 1Q 2016 1Q 2017 1Q 2015 1Q 2016 1Q 2017 Stable Negative Cash Conver
Slide 10: Track Record of Deleveraging
Track Record of Deleveraging Migros 1Q 2017 Cash and Leverage Position Cash & Debt Items Total TL m TL m EUR m Cash & Cash equivalents 1,199 939 67 Financial Debt* 3,660 923 700 Net Debt 2,461 Net Debt / EBITDA 3.6x * Based on amortised costing as indicated in financial statements Net debt/EBITDA
Slide 11: Capex and strong cash flow generation
Capex and strong cash flow generation Capex (TL million) Capex as a Percentage 2.9% 3.0% 2.7% 2.7% 2.0% of Sales 297 65 281 62 232 Low Capex Business 2014 2015 2016 1Q 2016 1Q 2017 Strong Cash Generation through Sustainable Cash Contribution from Working Capital (TL million) Working Capital 383 259
Slide 12: Significant Real Estate Content Increases Operational Flexibility
Significant Real Estate Content Increases Operational Flexibility The total book value of Kipa Real Estate assets is TL1,587m The company owns its main warehouse with a storage area of ~50k sqm Sizeable Asset (Torbalı Distribution Centre) Value 37 Real Estates (21 Company owned, 16 of which are
Slide 13: Expectations and Guidance
Expectations and Guidance Management Message 2017 Guidance for Migros Excluding Kipa1 Including Kipa2 Strong domestic sales growth Sales Growth 15-18% 30-35% continued with 21.3% w/o Kipa in 1Q 2017 EBITDA Margin 6.0-6.5% 5.0-5.5% Consolidated sales growth of 29.1% including March 2017 Expansion Tar
Slide 14: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 15: Summary of Income Statement – 1Q 2017
SUMMARY OF INCOME STATEMENT – 1Q 2017 IFRS Consolidated Income Statement Summary 1Q 2016 (TL Million) 1Q 2017 (restated) Net Sales 3,113.6 2,411.1 Cost of sales -2,296.3 -1,751.6 Gross Profit 817.3 659.5 Operating Expenses -742.1 -584.0 Other Operating Income / (Expense) -44.1 -30.2 Operating Profit
Slide 16: Summary of Balance Sheet – 1Q 2017
SUMMARY OF BALANCE SHEET – 1Q 2017 IFRS Consolidated Balance Sheet Summary 2016 (TL Million) 1Q 2017 (restated) Current Assets 2,887.0 2,471.3 Non-current Assets 5,673.8 3,805.4 Total Assets 8,560.8 6,276.7 Current Liabilities 4,376.4 3,320.8 Non-current Liabilities 3,018.4 2,763.4 Total Liabilities
Slide 17: Migros at a Glance
Migros at a Glance 63rd Year! Operating in 3 countries Geographical Footprint — Turkey (73 cities out of 81) — Macedonia and Kazakhstan (39 stores) 1,533 (supermarkets) 39 (upscale supermarkets) 168 (Supermarkets and Hypermarkets) 1,794 Stores1 15 (wholesale and foodservice stores) with Ki
Slide 18: Migros
Migros Migros, Largest National Supermarket Chain Number of stores: 1,533 including 424 5M, MMM & MM stores and 1,109 Migros Jet & M stores, Penetration: 73 cities ─ (40*-4,500) sqm / (1,800* – 18,000) SKUs ─ Differentiated offering and service on fresh product categories ─ Wide branded assortme
Slide 19: Macrocenter
Macrocenter Exclusive shopping Number of stores: 39 400 - 2,500 sqm / 10,000 SKUs ─ Upscale gourmet store serving with strong brand loyalty ─ Wide product range in delicatessen, appetizers and spirits. Premium quality in fresh products ─ Complementary and premium non-food Customized service su
Slide 20: Wholesale & Food Service
Wholesale & Food Service Focus on Horeca Penetration Currently operating in 7 regions through dedicated sales team. Dedicated warehouses and customer delivery 15 Wholesale stores Penetration: 11 cities 19
Slide 21: Online Business
Online Business Turkey’s first and leading e-commerce web site in food retail Top-line growth is 2-3x higher than the Company average Improved operational efficiency through picking automation Direct delivery from stores (105 stores in 24 cities across Turkey) Healthy Organic Natural Fresh 2
Slide 22: International Operations
International Operations Kazakhstan Macedonia 1.8% of consolidated sales from Kazakh operations 1.4% of consolidated sales from Macedonian operations Number of stores: 19, including 3 hypermarkets, 15 supermarkets and 1 Macrocenter. Owns 1 shopping Number of supermarkets: 20 mall in Almaty
Slide 23: Ownership Structure
Ownership Structure JV Structure between BC Partners & Anadolu Group Current Shareholding Structure Shareholding Structure on 16.05.2017 Anadolu Moonlight Anadolu Endüstri Capital S.A. Endüstri Holding A.Ş. 19.50% Holding A.Ş. 80.50% 100.00% MH Kenan MH Kenan Moonlight Investments Free Float Moonlig