Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — FY2016 Earnings Presentation
23 slides from Migros Ticaret A.s's earnings presentation, 2017
Slide 1: Migros Ticaret A.Ş. 2016 Financial Results
Migros Ticaret A.Ş. 2016 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 2016
Sales in 2016 Robust domestic growth of 22.9% in 4Q 2016 and 19.7% in FY 2016 Consolidated sales reached TL 11,059 million in 2016, with an increase of 17.8% versus last year, Accelerated sales growth in 2016, driven by increased competiveness and household penetration Sales (TL million) Sales (TL m
Slide 5: Market Share Evolution
Market Share Evolution Domestic Sales Growth of Migros FMCG Market Share Evolution Migros’ Domestic Sales Growth Y-o-Y (%) Migros Market Share (%) 19.7% 14.4% 13.8% 16.6% 14.6% 5.7% 5.5% 2014 2015 2016 2015 2016 Domestic Sales Growth In total FMCG market In modern FMCG market Note : Modern FMCG mark
Slide 6: Expansion
Expansion Net Sales Area Split By Banner - 2016 New store openings in 4Q16 38 Small/mid/large supermarkets New store openings in 2016 232 Number of Stores as of 2016 1,605 Compact hypermarkets Number of Stores - Total Mid/large supermarkets 1,605 1,410 +195 +220 1,190 Mid/large supermarkets and hy
Slide 7: Consolidated Gross Profit in 2016
Consolidated Gross Profit in 2016 Solid Gross Profit Generation Gross profit grew by 17.3% y-o-y to TL 2,962 million in 2016, Despite heavy investment on pricing in 4Q 2016, gross profitability was maintained on yearly basis Quarterly Gross Profit (TL million) Gross Profit (TL million) 757 2,962 649
Slide 8: Consolidated EBITDA(R) in 2016
Consolidated EBITDA(R) in 2016 Solid EBITDA(R) Generation EBITDA rose by 14.0% and reached TL 686 million, in spite of staff cost hike in 2016 EBITDAR increased by 14.5% y-o-y in 2016, thanks to effective opex management Quarterly EBITDA* (TL million) EBITDA* (TL million) 167 686 149 602 4Q 2015 4Q
Slide 9: Key Financial Metrics
Key Financial Metrics Accelerated growth, where EBITDA margin sustained Domestic Sales Growth Y-o-Y (%) Consolidated EBITDA Margin (%) Sustainable EBITDA margin: 6.0-6.5% 19.7% 16.6% 14.6% 6.5% 6.4% 6.2% 2014 2015 2016 2014 2015 2016 Stable Negative Cash Conversion Strong EBITDA generation was the d
Slide 10: Inorganic Growth: Overview of Tesco Kipa
Inorganic Growth Overview of Tesco Kipa Summary Business Overview Net Sales Area Express Competition Board permission : Feb. 09, 2017 5% Supermarkets Hypermarkets 13% 39% Migros acquired 95.5% of Tesco Kipa shares on March 01, 2017 with the price per share of TL 0.15638* 3Q 2016 LTM Sales : TL
Slide 11: Inorganic Growth: Acquisition of Tazedirekt
Inorganic Growth Acquisition of Tazedirekt Summary Business Overview Acquisition of Tazedirekt, online fresh & natural food products service Important technology investment, which set the course for a pioneering online sales development of fresh and natural food product categories Tazedirekt w
Slide 12: Performance Summary & Expectations
Performance Summary & Expectations Performance Summary Performance Performance 2014 2015 Target 2016 Indicator vs Guidance Expansion Program (Number of NEW Stores) 199 257 220+ 232 Top-Line Sales Growth 14.0% 15.6% Double Digit 17.8% EBITDA Margin 6.5% 6.4% 6.0-6.5% 6.2% Number of stores rea
Slide 13: Expectations and Guidance
Expectations and Guidance Management Message Domestic sales growth doubled in 3 years thanks to long-term effective strategies (2013 Growth: 10.2%, 2016 Growth: 19.7%) Dilutive impact of employee cost and rent cost increases minimized in 2016 thanks to opex control and strong sales performance,
Slide 14: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 15: Summary of Income Statement – 2016
SUMMARY OF INCOME STATEMENT – 2016 IFRS Consolidated Income Statement Summary (TL Million) 2016 2015 Net Sales 11,059.2 9,389.8 Cost of sales -8,097.7 -6,864.2 Gross Profit 2,961.5 2,525.6 Operating Expenses -2,525.0 -2,154.3 Other Operating Income / (Expense) -96.4 -107.7 Operating Profit 340.2 263
Slide 16: Summary of Balance Sheet – 2016
SUMMARY OF BALANCE SHEET – 2016 IFRS Consolidated Balance Sheet Summary (TL Million) 2016 2015 Current Assets 2,532.0 2,035.5 Non-current Assets 3,805.4 3,725.2 Total Assets 6,337.4 5,760.7 Current Liabilities 3,320.8 2,725.7 Non-current Liabilities 2,775.5 2,519.1 Total Liabilities 6,096.2 5,244.7
Slide 17: Migros Today
Migros Today Since 1954 Largest national supermarket operator − Operates 1,605 stores across 73 cities in Turkey as well as in Kazakhstan and Macedonia, as of December 31, 2016 − 14.4% market share in organized grocery FMCG retail sales in Turkey¹ − Owns 95.5% of Kipa shares Turkey’s largest int
Slide 18: Migros, Largest National Supermarket Chain
Migros Migros, Largest National Supermarket Chain Number of stores: 1,512 including 417 5M, MMM & MM stores and 1,095 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) 20
Slide 22: International Operations
International Operations Kazakhstan Macedonia 1.8% of consolidated sales from Kazakh operations 1.2% 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 with 40.25% Migros shares each Current Shareholding Structure Anadolu Moonlight Endüstri Capital S.A. Holding A.Ş. 19.50% 80.50% MH Kenan Moonlight Free Float Perakendecilik Investments S.A. Capital S.A. ve Ticaret A.Ş. 19.49% 15.3