Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — 9M 2021 Earnings Presentation
31 slides from Migros Ticaret A.s's earnings presentation, 2021
Slide 1: Company Presentation 9M 2021 Results
Company Presentation 9M 2021 Results 1
Slide 2: Contents
Contents Sales Expansion Market Share Evolution Financial Overview Online Operations & Strategy Update Summary & Guidance Operations & Financials Details
Slide 3: Sales – 9M 2021 (TL million)
Sales – 9M 2021 (TL million) Sales Sales 3Q 2021 9M 2021 29.0% 24.2% Strong recovery in large stores 9,817 25,921 20,863 7,610 Strong performance of seasonal stores Continuing sales growth momentum in online operations 3Q 2020 3Q 2021 9M 2020 9M 2021 3
Slide 4: Offline & Online Expansion
Offline & Online Expansion Number of Stores Online Service Stores (Total) (Total) +211 Sales Area +298 2,484 (K sqm) 848 2,273 5.8% 1,645 550 1,555 9M 2020* 9M 2021 9M 2020 9M 2021 9M 2020* 9M 2021 10M 2021: 245 new stores 10M 2021: 323 new online service stores 4 * Excluding discontinued North Mace
Slide 5: CAPEX (TL million)
CAPEX (TL million) % of Sales % of Sales 1.5% 1.9% 1.3% 2.0% ~800 508 539 341 268 2019 2020 2021E 9M 2020 9M 2021 5
Slide 6: Market Share Evolution
Market Share Evolution Migros FMCG Market Share Evolution (%) -10 bps 20 18 17.2 17.1 16 20 bps 14 12 10 8.9 8 8.7 6 4 2 0 9M 2020 9M 2021 9M 2020 9M 2021 Total FMCG Modern FMCG Source: Nielsen 6 Note: FMCG: Fast Moving Consumer Goods, Modern and total FMCG market include all food-retail formats
Slide 7: Financial Overview
Financial Overview
Slide 8: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Restated* Gross Profit Gross Profit 3Q 2021 9M 2021 33.5% 27.0% 2,408 6,333 1,804 4,987 3Q 2020 3Q 2021 9M 2020 9M 2021 Margin 23.7% 24.5% Margin 23.9% 24.4% Normalized Gross Profit** increase: 26.0% Normalized Gross Profit** increase: 22.3% * Online business e
Slide 9: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) EBITDA EBITDA (w/o IFRS 16) (w/o IFRS 16) 3Q 2021 9M 2021 57.4% 40.5% 663 1,566 421 1,114 EBITDA EBITDA 3Q 2021 9M 2021 44.0% 31.2% 905 2,245 628 3Q 2020 3Q 2021 1,712 9M 2020 9M 2021 5.5% 6.7% 5.3% 6.0% Normalized EBITDA** increase: Normalized EBITDA** increase: 25.
Slide 10: Net Cash Position
Net Cash Position* Total Financial Debt Net Cash / EBITDA (TL million) (TL million) 449 No hard-currency 3,814 exposure 2,754 0.2x 9M 2020 9M 2021 Net cash position* -0.4x as of 9M 2021 9M 2020 9M 2021 -623 *w/o IFRS 16 *w/o IFRS 16 10
Slide 11: Online Operations & Strategy Update
Online Operations & Strategy Update
Slide 12: Gearing up for the Future
Gearing up for the Future Online Potential Migros’ Migros’ in Turkey Online Channels Integrated App Migros’ Total New Subsidiary Population¹ 83.6 million 2021-2025 (E) Growth² Dijital Platform (USD) Gıda Hizmetleri A.Ş. 72.4% 12 ¹ Source: Turkstat , 2020 year-end ² Source: Statista
Slide 13: Potential and Drivers of New Subsidiary
Potential and Drivers of New Subsidiary Managerial Agility & Strategic Focus Online Technological Meal Last Mile Partnerships Business Delivery ONLINE GROCERY Online Vertical Potential / Near Food Business Unlock Additional Value for our Shareholders 13
Slide 14: Expanding Geographical Coverage in Online
Expanding Geographical Coverage in Online 81 42 ~2,000 SKU +30,000 SKU cities cities 196 stores 627 stores Delivery within 30 mins 8 +13,000 SKU 6 +2,150 SKU cities cities Fresh categories 14 High-end gourmet 69 stores Direct from farm to consumers
Slide 15: Sales of Online Operations
Sales of Online Operations Online Sales Online Share (TL million) in Total Sales 9M 2021 (w/o tobacco & alcohol) 99% 3,064 2,345 14.5% 1,542 2020 9M 2020 9M 2021 15
Slide 16: Summary & Guidance
Summary & Guidance
Slide 17: 9M 2021 Underlying Performance
9M 2021 Underlying Performance Net Sales Domestic EBITDA Net Profit Sales Growth Margin TL 25,921 25.0% 8.7% TL 367 in million in million consolidated: 24.2% 17
Slide 18: 2021 Guidance (Consolidated)
2021 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX ~ 23% 8-8.5% 300+ ~ TL 800 new stores mn from 18-20% maintained maintained maintained 18
Slide 19: Appendix
Appendix
Slide 20: Migros at a Glance
Migros at a Glance TL 28.8 billion 39,552 1,500+ 49.18% sales in 2020 employees suppliers free float The only food retailer listed in BIST Sustainability Index for 7 years in a row Included BIST Corporate Governance Index since 2015 Business Option 2,484 stores in all 81 cities th 67 year 9.3 millio
Slide 21: Offline & Online – 9M 2021
Offline & Online – 9M 2021 40 sqm - 3,500 sqm 3,500 sqm – 8,500 sqm 250 sqm – 2,000 sqm 200 sqm – 1,600 sqm 2,000 SKU – 30,000 SKU Supermarkets Hypermarkets Macrocenter Wholesale Online 2,309 57 94 24 848 21
Slide 22: Store Portfolio
Store Portfolio 30 September 2020 30 September 2021 Sales area Sales area 2,309 # of stores (th sqm) # of stores (th sqm) Supermarkets Migros 1,263 1,035.1 1,393 1,119.3 (M, MM,MMM) 57 Migros Jet 862 178.0 916 190.8 Hypermarkets 5M 55 268.9 57 269.3 Wholesale 21 12.4 24 13.9 94 Macrocenter Macrocent
Slide 23: IFRS Consolidated Income Statement Summary – 9M 2021
IFRS Consolidated Income Statement Summary – 9M 2021 (TL million) 9M 2020 9M 2021 Net Sales 20,863 25,921 Cost of sales -15,877 -19,588 Gross Profit 4,987 6,333 Operating Expenses -3,964 -4,851 Other Operating Income / (Expense) -218 -505 Operating Profit 805 976 Income / (Expense) from Investment a
Slide 24: IFRS Consolidated Balance Sheet Summary – 9M 2021
IFRS Consolidated Balance Sheet Summary – 9M 2021 (TL million) 2020 9M 2021 Current Assets 7,331 7,761 Non-current Assets 8,047 8,464 Total Assets 15,378 16,225 Current Liabilities 10,403 11,818 Non-current Liabilities 4,942 4,236 Total Liabilities 15,345 16,054 Equity 33 171 Total Liabilities and E
Slide 25: IFRS Consolidated Income Statement Summary - Quarterly
IFRS Consolidated Income Statement Summary - Quarterly (Restated*) (TL million) 2020 2021 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 Net Sales 6,348 6,906 7,610 7,927 7,689 8,415 9,817 Cost of sales -4,762 -5,309 -5,806 -6,142 -5,790 -6,390 -7,408 Gross Profit 1,586 1,597 1,804 1,785 1,
Slide 26: Ownership Structure
Ownership Structure Direct Shareholding Structure Indirect Shareholding Structure AG Anadolu Grubu Holding A.Ş. 100.00% AG Anadolu Grubu Free Float Holding A.Ş. 50.00% 50.00% MH Perakendecilik Free Float Migros Ticaret A.Ş.* ve Ticaret A.Ş. 49.18% 1.64% 49.18% Migros Ticaret A.Ş. Migros Ticaret A.Ş.
Slide 27: Sustainability
Sustainability
Slide 28: Migros Better Future Plan
Migros Better Future Plan Better for our Better for Innovative Better for our Customers Better for our World Transformation and Stakeholders Employees EXTENSIVE COMBAT AGAINST CLIMATE SUPPORTING EMPLOYEE CHANGE INNOVATIVE HEALTHY LIVING DEVELOPMENT AND Doing studies to measure APPLICATIONS To manage
Slide 29: Waste Management & Biodiversity Conservation
Waste Management & Biodiversity Conservation Combating Food Waste Combating Plastic Waste Day-end clearance on perishables: Plastic bags: 66% 4,474 tons of food 373 tons less plastic on PL products Food Donation: 2.5 million meals Good Agricultural Practices GAP certified F&V: 963,413 tons Fresh Lef
Slide 30: Social Responsibility Efforts
Social Responsibility Efforts Family Clubs Aegean Forest Foundation Growing Healthy with Migros P&G - Turkey Special Olympics 150,725 members / 113 different 553,048 sapling donation good living & conscious shopping Committee Collaboration trainings in 30 locations in 14 years trainings to 176,000 c
Slide 31: 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