Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — Q1 2021 Earnings Presentation
33 slides from Migros Ticaret A.s's earnings presentation, 2021
Slide 1: Migros Ticaret A.Ş. 1Q 2021 Financial Results
Migros Ticaret A.Ş. 1Q 2021 Financial Results
Slide 2: Contents
Contents Sales Online Business Expansion Market Share Evolution Financial Overview Strategy Update & Guidance Operations & Financials Details
Slide 3: Sales – 1Q 2021 (TL million)
Sales – 1Q 2021 (TL million) Sales Sales 1Q 2021 2020 21.1% 25.9% 22.2% domestic growth in 1Q 2021 7,689 28,790 22,865 6,348 Elevated home consumption Accelerated sales performance in online channels 1Q 2020 1Q 2021 2019 2020 3
Slide 4: Online Service Channels
Online Service Channels Online Orders Online Orders # of New Customers Customers 1Q 2021 vs x2.6 x9.0 x2.0 x1.6 1Q 2020 81 cities 23 cities 7 cities 4 cities +30,000 SKU ~2,500 SKU +13,000 SKU +2,150 SKU 577 stores 127 stores 60 stores Direct from farm to Delivery within 30 mins consumers 2020 vs x2
Slide 5: Expansion
Expansion Number of Stores Online Service Stores (Total) (Total) +128 Sales Area +497 2,330 (K sqm) 706 2,202 3.7% 81 city 81 81 1,573 city city 1,517 209 81 city 1Q 2020* 1Q 2021 1Q 2020 1Q 2021 1Q 2020* 1Q 2021 4M 2021: 82 new stores 4M 2021: 212 new online service stores 5 * Excluding discontinue
Slide 6: CAPEX (TL million)
CAPEX (TL million) % of Sales % of Sales 1.5% 1.9% 1.0% 1.4% ~600 539 106 341 61 2019 2020 2021E 1Q 2020 1Q 2021 Accelerated store expansion Gebze F&V Packaging Facility ✓ Packaging capacity: 34,000 tons/year ✓ Macrocenter, MigrosJet and M stores ✓ No plastic waste, environmentally friendly 6 ✓ Empl
Slide 7: Market Share Evolution
Market Share Evolution Migros FMCG Market Share Evolution (%) 20 bps 20 17.0 17.2 18 16 40 bps 14 12 9.2 10 8 8.8 6 4 2 0 1Q 2020 1Q 2021 1Q 2020 1Q 2021 Total FMCG Modern FMCG Source: Nielsen 7 Note: FMCG: Fast Moving Consumer Goods, Modern and total FMCG market include all food-retail formats
Slide 8: Financial Overview
@ Vir Financial Overview
Slide 9: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Gross Profit Gross Profit (w/o IFRS 16) 1Q 2021 1Q 2021 25.1% 24.5% 2,122 2,087 1,696 1,676 1Q 2020 1Q 2021 1Q 2020 1Q 2021 Margin 26.7% 27.6% Margin 26.4% 27.1% Normalized Gross Profit* increase: 23.0% Normalized Gross Profit* increase: 22.3% 9 * Normalized Gr
Slide 10: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) EBITDA EBITDA 1Q 2021 (w/o IFRS 16) 1Q 2021 20.6% 27.3% 680 467 564 367 Asset divestitures & Covid-19 dilution impact in malls¹ : 34 bps 1Q 2020 1Q 2021 1Q 2020 1Q 2021 Margin 8.9% 8.8% Margin 5.8% 6.1% Normalized EBITDA* increase: 14.5% Normalized EBITDA* increase:
Slide 11: Improved Balance Sheet Structure
Improved Balance Sheet Structure Gross Euro Debt (mn) Net Debt/EBITDA - Net Debt (TL mn) 1,939 335 Gross foreign currency bank debt is nil as of April 2021 1.2x Significant improvement in net debt position 722 0.4x 34 1Q 2020 1Q 2021 1Q 2020 1Q 2021 without IFRS 16 11
Slide 12: Strategy Update & Guidance
Strategy Update & Guidance − Foreign Operations − New Normal Initiatives
Slide 13: Divestiture of Ramstore Macedonia & Kazakhstan Operations
Divestiture of Ramstore Macedonia & Kazakhstan Operations North Macedonia ◼ Divested North Macedonian operations (29.03.2021) ◼ Transaction value: EUR 39.2 mn Kazakhstan ◼ Exited from retail business ◼ Operating a company-owned mall in Almaty 13
Slide 14: Enriching Ready Meal Portfolio
Enriching Ready Meal Portfolio Ready Meal Store: 378 Store: 1,572 Food Atelier Dark Kitchen Online: 192 Online: 520 ✓ in 5M store Instant Delivery: 122 Instant Delivery: 66 ✓ Take-away ✓ Migros Hemen 14
Slide 15: Building New Ecosystem
Building New Ecosystem Fulfillment Center Last-mile Delivery Fintech Subsidiary 7/24 Self-Service Migros with Startups Automation ✓ e-wallet Concept ✓ Collaboration opportunities ✓ TARO Robots ✓ Money transfer & Bill-payment Piloting in 3 cities ✓ Engaging with young talents ✓ x5 picking efficiency
Slide 16: 1Q 2021 Underlying Performance
1Q 2021 Underlying Performance Net Sales Domestic EBITDA Net Profit Sales Growth Margin TL 7,689 22.2% 8.8% TL 210 in million in million 16
Slide 17: 2021 Guidance (Consolidated)
2021 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX 15-18% 8-8.5% ~ 170 ~ TL 600 new stores mn maintained maintained maintained maintained 17
Slide 18: Appendix
Appendix − Operations − Financials
Slide 19: Migros at a Glance
Migros at a Glance TL 28.8 billion 38,368 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 Best retailer for 17 years in a row 2,330 stores in
Slide 20: Sales Area Split – 1Q 2021
Sales Area Split – 1Q 2021 40 sqm - 3,500 sqm 3,500 sqm – 8,500 sqm 250 sqm – 2,000 sqm 200 sqm – 1,600 sqm Supermarkets Hypermarkets Macrocenter Wholesale 79% 17% 3% 1% 2,188 55 64 23 20
Slide 21: Store Portfolio
Store Portfolio 31 March 2020 31 March 2021 Sales area Sales area 2,188 # of stores (th sqm) # of stores (th sqm) Supermarkets Migros 1,209 1,002.9 1,315 1,067.7 (M, MM,MMM) 55 Migros Jet 843 171.7 873 181.2 Hypermarkets 5M 55 268.9 55 266.9 Wholesale 20 11.5 23 13.4 64 Macrocenter Macrocenter 59 41
Slide 22: IFRS Consolidated Income Statement Summary – 1Q 2021
IFRS Consolidated Income Statement Summary – 1Q 2021 (TL million) 1Q 2020 1Q 2021 Net Sales 6,348 7,689 Cost of sales -4,651 -5,567 Gross Profit 1,696 2,122 Operating Expenses -1,396 -1,727 Other Operating Income / (Expense) -66 -138 Operating Profit 235 258 Income / (Expense) from Investment activi
Slide 23: IFRS Consolidated Balance Sheet Summary – 1Q 2021
IFRS Consolidated Balance Sheet Summary – 1Q 2021 (TL million) 2020 1Q 2021 Current Assets 7,331 6,458 Non-current Assets 8,047 8,018 Total Assets 15,378 14,476 Current Liabilities 10,403 10,226 Non-current Liabilities 4,942 4,216 Total Liabilities 15,345 14,442 Equity 33 34 Total Liabilities and Eq
Slide 24: Cash Position & Leverage
Cash Position & Leverage Without IFRS 16 With IFRS 16 (Total TL mn) 1Q 2020 1Q 2021 1Q 2020 1Q 2021 Cash & Cash Equivalents 2,483 2,345 2,483 2,345 TL 1,678 1,695 1,678 1,695 EUR 112 66 112 66 Financial Debt 4,422 3,067 6,929¹ 5,943¹ TL 2,005 2,733 4,513 5,609 EUR 335 34 335 34 Net Debt 1,939 722 4,
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
e@ Sustainability
Slide 27: Migros Better Future Plan
Migros Better Future Plan Combating climate Waste management change and circular economy Consistent and rapid Preventative flow of product data solutions for pollution Innovative Efficient use of implementations resources Compliance with Value added human rights and activities to raise equal opportu
Slide 28: Sustainability
Sustainability* Carbon Footprint* Food Waste 2019: 26.6%** 2020: 24% (completed 2023 target) by 2030: 50% by 2024: 7% 3 times among Climate Leaders in 2020 among Water Leaders Energy Consumption* Gender Equality 2019: 16.3% Current: 29% 2019: 18% Current: 22% 50% by 2024: 18.5% by 2025: 31% by 2023:
Slide 29: Initiatives on Sustainability
Initiatives on Sustainability Sustainable Healthier Lives Food Waste Gender Equality Data Transperancy Agriculture & & Integrity Biodiversity WellBeing Journey: Regenerative Agriculture: The only retailer in Turkey Leading the industry in Leading Programme in the ‘CEO Pledge’ ‘10x20x30’ initiative G
Slide 30: 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 31: Annex
Annex − 2019 vs 2020 Quarterly Income Statements (Restated figures, excluding discontinued North Macedonian operations)
Slide 32: IFRS Consolidated Income Statement Summary – Quarterly 2020 vs 2019 (Restated)
IFRS Consolidated Income Statement Summary – Quarterly 2020 vs 2019 (Restated*) (TL million) 1Q 2019 1Q 2020 2Q 2019 2Q 2020 3Q 2019 3Q 2020 4Q 2019 4Q 2020 Net Sales 4,846 6,348 5,723 6,906 6,384 7,610 5,912 7,927 Cost of sales -3,511 -4,651 -4,182 -5,113 -4,632 -5,660 -4,420 -5,966 Gross Profit 1,
Slide 33: 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