Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — Q1 2022 Earnings Presentation
31 slides from Migros Ticaret A.s's earnings presentation, 2022
Slide 1: Company Presentation 1Q 2022 Financial Results
Company Presentation 1Q 2022 Financial Results 1 Omni-channel Retailer
Slide 2: Contents
Contents Sales Expansion Market Share Evolution Financial Overview Online Operations & Strategy Update Summary & Guidance Operations & Financials Details
Slide 3: Sales – 1Q 2022 (TL million)
Sales – 1Q 2022 (TL million) Sales Sales 1Q 2022 2021 59.6% 26.0% 36,272 Increase in product 12,271 shelf prices 28,790 7,689 Omni-channel capabilities and large stores’ traffic recovery are supportive 1Q 2021 1Q 2022 2020 2021 3
Slide 4: Offline & Online Expansion
Offline & Online Expansion Number of Stores Online Service Stores (Total) (Total) +268 2,598 Sales Area +193 (K sqm) 899 2,330 7.0% 706 1,683 1,573 1Q 2021 1Q 2022 1Q 2021 1Q 2022 1Q 2021 1Q 2022 4
Slide 5: CAPEX (TL million)
CAPEX (TL million) % of Sales % of Sales 1.9% 2.7% 1.4% 1.3% ~1,500 164 969 106 539 2020 2021 2022E 1Q 2021 1Q 2022 Cost Increase in IT & store equipment mainly due to Focusing on IT infrastructure & currency impact fulfillment center automation 5
Slide 6: Market Share Evolution
Market Share Evolution Migros FMCG Market Share Evolution (%) 80 bps 18 15.4 Base year impact at 14.6 16 e-commerce 14 20 bps 12 10 8 8.6 8.4 6 4 Relatively lower space growth 2 0 1Q 2021 1Q 2022 1Q 2021 1Q 2022 Total FMCG Modern FMCG Source: Nielsen 6 Note 1: FMCG: Fast Moving Consumer Goods, Moder
Slide 7: Financial Overview
Financial Overview
Slide 8: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Gross Profit Gross Profit (w/o IFRS 16) 1Q 2022 1Q 2022 65.0% 66.0% 3,134 3,094 1,899 1,864 1Q 2021 1Q 2022 1Q 2021 1Q 2022 Margin 24.7% 25.5% Margin 24.2% 25.2% Normalized Gross Profit* increase: 61.7% Normalized Gross Profit* increase: 62.6% 8 * Normalized Gr
Slide 9: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) EBITDA EBITDA 1Q 2022 (w/o IFRS 16) 1Q 2022 60.4% 79.4% 820 1,075 670 457 1Q 2021 1Q 2022 1Q 2021 1Q 2022 Margin 8.7% 8.8% Margin 5.9% 6.7% Normalized EBITDA* increase: 51.6% Normalized EBITDA* increase: 65.3% Note: The Company’s EBITDA definition was amended, i.e. t
Slide 10: Net Cash Position
Net Cash Position Total Financial Debt* Net Cash / EBITDA* (TL million) (TL million) Temporary increase in financial debt for 3,561 816 refinancing purposes 3,067 0.2x 0.3x 1Q 2021 Significant improvement on -0.4x 1Q 2022 cash generation -0.5x 1Q 2021 1Q 2022 -722 *w/o IFRS 16 *w/o IFRS 16 10
Slide 11: Online Operations & Strategy Update
Online Operations & Strategy Update
Slide 12: Migros’ Geographical Coverage in Online
Migros’ Geographical Coverage in Online Migros Hemen Migros Sanal Market # of Service Stores 81 # of Service Stores cities +40,000 SKU 271 +147 724 +144 577 127 61 ~2,500 SKU cities Delivery within minutes Macroonline # of Service Stores 1Q 2021 1Q 2022 10 +15,000 SKU +12 72 1Q 2021 1Q 2022 60 citie
Slide 13: Sales Contribution of Online Operations
Sales Contribution of Online Operations Online Sales (TL billion) Online Share in Total Sales 1.8 1Q 2022 73% (w/o tobacco & alcohol) 1.0 16.9% Online Sales (TL billion) 1Q 2021 1Q 2022 87% 4.8 2.6 2020 2021 13
Slide 14: Transforming with New Subsidiaries to Sustain Long Term Growth
Transforming with New Subsidiaries to Sustain Long Term Growth Online Business Focusing on gearing up the Focused on online grocery development of Migros’ business and food online channels Migros shareholding: 100% Financial solutions such as e- Fintech company Pending e-Money license wallet, money
Slide 15: Summary & Guidance
Summary & Guidance
Slide 16: 1Q 2022 Underlying Performance
1Q 2022 Underlying Performance Net Sales Sales Growth EBITDA Net Profit Margin TL 12,271 59.6% 8.8% TL 82 in million in million 16
Slide 17: 2022 Guidance (Consolidated)
2022 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX 55-60% 8-8.5% 250+ ~ TL 1,500 new stores mn from 40-45% maintained from 200+ from ~TL 1,200 mn 17
Slide 18: Appendix
Appendix
Slide 19: Migros at a Glance
Migros at a Glance TL 36.3 billion 40,470 1,500+ 49.18% sales in 2021 employees suppliers free float The only food retailer listed in BIST Sustainability Index for 8 years in a row Included BIST Corporate Governance Index since 2015 Business Option 2,598 stores in all 81 cities th 68 year 9.7 millio
Slide 20: Offline & Online – 1Q 2022
Offline & Online – 1Q 2022 40 sqm - 3,500 sqm 3,500 sqm – 8,500 sqm 250 sqm – 2,000 sqm 200 sqm – 1,600 sqm 2,000 SKU – 40,000 SKU Supermarkets Hypermarkets Macrocenter Wholesale Online 2,399 57 117 25 899 20
Slide 21: Store Portfolio
Store Portfolio 2,399 31 March 2021 31 March 2022 Supermarkets Sales area Sales area # of stores # of stores (th sqm) (th sqm) Migros 1,315 1,067.7 1,456 1,147.9 57 (M, MM,MMM) Hypermarkets Migros Jet 873 181.2 943 197.9 5M 55 266.9 57 266.8 117 Macrocenter Wholesale 23 13.4 25 14.3 Macrocenter 64 4
Slide 22: IFRS Consolidated Income Statement Summary – 1Q 2022
IFRS Consolidated Income Statement Summary – 1Q 2022 (TL million) 1Q 2022 1Q 2021 Net Sales 12,271 7,689 Cost of sales -9,137 -5,790 Gross Profit 3,134 1,899 Operating Expenses -2,519 -1,504 Other Operating Income / (Expense) -274 -138 Operating Profit 342 258 Income / (Expense) from Investment acti
Slide 23: IFRS Consolidated Balance Sheet Summary – 1Q 2022
IFRS Consolidated Balance Sheet Summary – 1Q 2022 (TL million) 1Q 2022 2021 Current Assets 10,994 8,704 Non-current Assets 9,616 9,397 Total Assets 20,609 18,100 Current Liabilities 15,017 13,109 Non-current Liabilities 4,932 4,455 Total Liabilities 19,949 17,564 Equity 660 536 Total Liabilities and
Slide 24: Cash Position & Leverage
Cash Position & Leverage Without IFRS 16 With IFRS 16 (Total TL mn) 1Q 2021 1Q 2022 1Q 2021 1Q 2022 Cash & Cash Equivalents 2,345 4,377 2,345 4,377 TL 1,695 4,205 1,695 4,205 EUR 66 6 66 6 USD 1 5 1 5 Financial Debt 3,067 3,561 5,9431 6,8071 TL 2,733 3,486 5,609 6,733 EUR 34 5* 34 5* Net Cash (Net D
Slide 25: 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 26: Sustainability
Sustainability
Slide 27: Migros Sustainability Targets
Migros Sustainability Targets By 2030 By 2030 By 2030 35% 10% 35% Reducing Electricity Reducing Water Reducing Greenhouse Gas Consumption per sqm Consumption per sqm Emission per sqm Base Year: 2019 Base Year: 2019 Base Year: 2019 Progress 2019- 2021: 15% Progress 2019- 2021: 32% Progress 2019- 2021
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: 59% 3,967 tons of food Plastic Initiative from the Business World 211 tons less plastic Food Donation: 5.9 million meals Good Agricultural Practices GAP certified
Slide 30: Social Responsibility Efforts
Social Responsibility Efforts Family Clubs Aegean Forest Foundation Growing Healthy with Migros P&G - Turkey Special Olympics 167,000 members / 128 different 554,148 sapling donation F2f conscious shopping trainings to Committee Collaboration trainings in 33 locations in 14 years 176,000 children. 2
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