Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — Q1 2019 Earnings Presentation
23 slides from Migros Ticaret A.s's earnings presentation, 2019
Slide 1: Migros Ticaret A.Ş. 1Q 2019 Financial Results
Migros Ticaret A.Ş. 1Q 2019 Financial Results
Slide 2: Contents
CONTENTS Market Share Sales Evolution Capital Expansion Expenditures Ataşehir Migros Financial Management Overview Overview Financial Format Results Summary 1
Slide 3: Sales in 1Q 2019
Sales in 1Q 2019 ▪ Consolidated sales growth of 24.9% in 1Q 2019 ▪ Solid sales performance of existing Migros stores Sales in 1Q 2019 (TL million) Sales in 2018 (TL million) Strong consolidated 4,923 18,717 growth in 1Q19… 3,940 15,344 1Q 2018 1Q 2019 2017 2018 Sales Growth in 1Q 2019 24.9% Sales Gr
Slide 4: Market Share Evolution
Market Share Evolution Market Share Gain Migros FMCG Market Share Evolution (%) 90 bps market share gain in 16.7 15.8 modern FMCG market. 110 bps market share gain in total FMCG market. 7.7 6.6 Source: Nielsen Note: FMCG stands for Fast Moving Consumer Goods; 1Q 2019 1Q 2018 1Q 2019 1Q 2018 Mode
Slide 5: Expansion
Expansion Number of Stores - Total Net Sales Area Split By Banner - 1Q 2019 19 new store +167 openings in 1Q 2019 2,100 1,933 17 new store openings in April 2019 1Q 2018 1Q 2019 81 cities operating in every Space growth (m2) 5.0% city in the Country Net Sales Area (1Q 2019) 1,501K sqm 2,100 number o
Slide 6: Capital Expenditures
Capital Expenditures Capex (TL million) % of Sales 2.7% 2.6% 2.6% 2.0% 0.9% 488 77 399 297 Space optimization 42 continues in large stores, 2016 2017 2018 1Q 2018 1Q 2019 17 completed since Kipa acquisition so far (including 3 this year) and 1 is under construction 5
Slide 7: Consolidated Gross Profit in 1Q 2019
Consolidated Gross Profit in 1Q 2019 ▪ Consolidated gross profit increased by 34.1% y-o-y despite price investments ▪ Merger synergies and new store acquisitions lead to an improvement in gross profitability Increased price competitiveness Gross Profit 1Q 2019 (TL million) Gross Profit in 2018 (TL m
Slide 8: Consolidated EBITDA(R) in 1Q 2019
Consolidated EBITDA(R) in 1Q 2019 EBITDA in 1Q 2019 (TL million) EBITDA 2018 (TL million) 6.4% 490 1,217 EBITDA margin in 314 872 1Q19, w/o IFRS 206 16 impact driven by better sales performance 1Q 2018 1Q 2019 1Q 2019 2017 2018 (IFRS 16) and strong gross Margin 5.2% 6.4% 9.9% Margin 5.7% 6.5% profit
Slide 9: Deleveraging
Deleveraging Migros 1Q 2019 Cash and Leverage Position Gross Euro Debt (in million) Total TL m Cash & Debt Items Total TL m (w/ IFRS 16) Cash & Cash equivalents 1,632 1,632 692 TL m 1,322 1,322 EUR m 49 49 672 Financial Debt 4,762 7,6221 611 TL m 1,508 4,368 515 <500 EUR m 515 515 Net Debt 3,130 5,9
Slide 10: Expectations and Guidance
Expectations and Guidance 2019 Guidance [consolidated] Sales Growth 20% EBITDA Margin ~6%* Expansion Target 100 new stores CAPEX Guidance TL 300 m * excluding IFRS 16 impact Management Agenda in 2019 Growth Operational Profitability Deleveraging • There has been an upside • Vigilant cost management,
Slide 11: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 12: Summary of Income Statement – 1Q 2019
Summary of Income Statement – 1Q 2019 IFRS Consolidated Income Statement Summary (TL Million) 1Q 2019 1Q 2018 Net Sales 4,922.7 3,940.1 Cost of sales -3,566.9 -2,941.6 Gross Profit 1,355.8 998.5 Operating Expenses -1,113.8 -889.2 Other Operating Income / (Expense) -99.5 -59.7 Operating Profit 142.5
Slide 13: Summary of Balance Sheet – 1Q 2019
Summary of Balance Sheet – 1Q 2019 IFRS Consolidated Balance Sheet Summary (TL Million) 1Q 2019 2018 Current Assets 4,431.1 4,474.3 Non-current Assets 9,167.1 6,410.6 Total Assets 13,598.1 10,884.9 Current Liabilities 6,695.3 6,674.9 Non-current Liabilities 6,491.5 3,574.9 Total Liabilities 13,186.8
Slide 14: Migros at a Glance
Migros at a Glance 65th Year! Operating in 3 countries Geographical Footprint — Turkey (81 cities out of 81) — Macedonia and Kazakhstan (45 stores) 1,984 (supermarkets) 51 (upscale supermarkets) 20 (wholesale and foodservice stores) 45 (international stores) 2,100 Stores1 Migros Online —
Slide 15: Three-year Summary
Three-year Summary Consolidated Sales (TL million) 18,717 15,344 11,059 9,390 Consolidated sales & EBITDA 2015 2016 2017 2018 doubled in 3 years Consolidated EBITDA (TL million) 1,217 872 677 602 2015 2016 2017 2018 14
Slide 16: Migros, Largest National Supermarket Chain
Migros Migros, Largest National Supermarket Chain Number of stores: 1,984 including 1,153 Supermarkets. 56 Hypermarkets, and 775 Migros Jet stores, Penetration: 81 cities ─ (40*-4,500) sqm / (1,800* – 18,000) SKUs ─ Differentiated offering and service on fresh product categories ─ Wide branded a
Slide 17: Macrocenter
Macrocenter Exclusive shopping Number of stores: 51 400 - 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 18: Wholesale & Food Service
Wholesale & Food Service Focus on Horeca Penetration Currently operating in 7 regions through dedicated sales team. Dedicated warehouses and customer delivery 20 Wholesale stores Penetration: 15 cities 17
Slide 19: Enhancing online penetration..
Enhancing online penetration.. Four online channels ▪ Same day delivery, ▪ For over 28,000 SKUs, ▪ Service in 31 cities, ▪ Night delivery between Migros Online 22:00-24:00 in selected regions ▪ Click-collect option for customers Taze direkt Customer Macro Online Migros Now ▪ Delivery within 30 minut
Slide 20: International Operations
International Operations Kazakhstan Macedonia 1.3% of consolidated sales from Kazakh operations 1.5% of consolidated sales from Macedonian operations Number of stores: 18, including 2 hypermarkets and 16 supermarkets. Number of supermarkets: 27 Owns 1 shopping mall in Almaty Owns 1 shopp
Slide 21: Store Portfolio
Store Portfolio 1Q 2018 1Q 2019 # of stores Sales area # of stores Sales area (th sqm) (th sqm) 1,928 Supermarkets Migros (M, MM,MMM) 1,002 830.5 1,153 969.4 (incl. 775 Migros Jet stores) Migros Jet 645 120.9 775 152.2 56 5M 21 94.7 56 284.4 Hypermarkets Wholesale 17 10.0 20 11.2 51 Macrocenter 46 3
Slide 22: Ownership Structure
Ownership Structure JV Structure between BC Partners & Anadolu Group Direct Shareholding Structure Indirect Shareholding Structure AG Anadolu Grubu Holding BC Partners A.Ş. & related funds AG Anadolu BC Partners Grubu Holding Free Float 100.00% A.Ş. & related funds 26.81% 50.00% 23.19% MH Kenan Moon
Slide 23: 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