Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — H1 2019 Earnings Presentation
23 slides from Migros Ticaret A.s's earnings presentation, 2019
Slide 1: Migros Ticaret A.Ş. 1H 2019 Financial Results
Migros Ticaret A.Ş. 1H 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 1H 2019
Sales in 1H 2019 ▪ Sales growth improved to 28.4% in 2Q 2019 ▪ Increased momentum on sales with a strong performance at summer destinations Sales in 2Q19 (TL million) Sales in 1H19 (TL million) Improvement in sales momentum 5,808 10,731 in 2Q19… 4,523 8,463 2Q 2018 2Q 2019 1H 2018 1H 2019 Sales Grow
Slide 4: Market Share Evolution
Market Share Evolution Market Share Gain Migros FMCG Market Share Evolution (%) ◼ 110 bps market share gain in 17.1 16.0 modern FMCG market. ◼ 110 bps market share gain in total FMCG market. 7.9 6.8 Source: Nielsen Note: FMCG stands for Fast Moving Consumer Goods; 1H 2019 1H 2018 1H 2019 1H 2018 Mod
Slide 5: Expansion
Expansion Number of Stores - Total Net Sales Area Split By Banner - 1H 2019 68 new store +133 openings in 1H 2019 2,144 2,011 10 new store openings in July 2019 1H 2018 1H 2019 81 cities operating in every Space growth (m2) 3.9% city in the Country Net Sales Area (2Q19) 1,515 K sqm 2,144 number of s
Slide 6: Capital Expenditures
Capital Expenditures Capex (TL million) % of Sales 2.7% 2.6% 2.6% 3.2% 1.2% 488 271 399 297 Space optimization 130 continues in large stores, 2016 2017 2018 1H 2018 1H 2019 20 completed since Kipa acquisition (including 6 in the current year) 5
Slide 7: Consolidated Gross Profit in 1H 2019
Consolidated Gross Profit in 1H 2019 Gross Profit 2Q (TL million) Gross Profit in 1H (TL million) Increased price competitiveness mainly in fresh 1,562 2,918 1,540 2,879 lines & basics 1,168 2,166 Strong gross profitability in 2Q 2019 2Q 2018 2Q 2019 2Q 2019 1H 2018 1H 2019 1H 2019 [IFRS 16] [IFRS 1
Slide 8: Consolidated EBITDA(R) in 1H 2019
Consolidated EBITDA(R) in 1H 2019 EBITDA in 2Q (TL million) EBITDA 1H (TL million) 587 1,076 6.8% EBITDA margin in 397 710 2Q19, w/o IFRS 270 476 16 impact driven by better 2Q 2018 2Q 2019 1H 2018 1H 2019 2Q 2019 1H 2019 sales performance [IFRS 16] [IFRS 16] Margin 6.0% 6.8% 10.1% Margin 5.6% 6.6% 1
Slide 9: Deleveraging
Deleveraging Migros 1H 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 2,154 2,154 692 TL m 1,586 1,586 EUR m 87 87 672 Financial Debt 4,909 7,9461 611 TL m 1,524 4,561 517 EUR m 517 517 460 Net Debt 2,755 5,79
Slide 10: Expectations and Guidance
Expectations and Guidance 2019 Guidance [Consolidated] 2019E Previous Guidance New Guidance Sales Growth ~20% 23-25% EBITDA Margin ~6%* 6-6.5%* Expansion Target 100 100 new stores new stores CAPEX TL 300 mn TL 300 mn * excluding IFRS 16 impact Management Agenda in 2019 Growth & Operational Profitabi
Slide 11: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 12: Summary of Income Statement – 1H 2019
Summary of Income Statement – 1H 2019 IFRS Consolidated Income Statement Summary (TL Million) 1H 2019 1H 2018 Net Sales 10,731 8,463 Cost of sales -7,813 -6,297 Gross Profit 2,918 2,166 Operating Expenses -2,329 -1,894 Other Operating Income / (Expense) -240 -154 Operating Profit 349 119 Income / (E
Slide 13: Summary of Balance Sheet – 1H 2019
Summary of Balance Sheet – 1H 2019 IFRS Consolidated Balance Sheet Summary (TL Million) 1H 2019 2018 Current Assets 5,039 4,474 Non-current Assets 9,236 6,411 Total Assets 14,275 10,885 Current Liabilities 7,416 6,675 Non-current Liabilities 6,593 3,575 Total Liabilities 14,009 10,250 Equity 265 635
Slide 14: Migros at a Glance
Migros at a Glance 65th Year! ◼ Operating in 3 countries Geographical Footprint — Turkey (81 cities out of 81) — North Macedonia and Kazakhstan (45 stores) ◼ 2,024 (supermarkets) ◼ 54 (upscale supermarkets) ◼ 21 (wholesale and foodservice stores) ◼ 45 (international stores) 2,144 Stores1 ◼ Migros On
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: 2,024 including 1,154 Supermarkets. 56 Hypermarkets, and 814 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: 54 ◼ 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 ◼ 21 Wholesale stores Penetration: 16 cities 17
Slide 19: Enhancing online penetration..
Enhancing online penetration.. Four online channels ▪ Same day delivery, ▪ For over 28,000 SKUs, ▪ Service in 35 cities, ▪ Night delivery between Migros Online 22:00-24:00 in selected regions ▪ Click-collect option for customers Taze ▪ A new logistics channel direkt Customer Macro to increase online
Slide 20: International Operations
International Operations Kazakhstan North Macedonia ◼ 1.2% 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
Slide 21: Store Portfolio
Store Portfolio June 30, 2018 June 30, 2019 # of stores Sales area # of stores Sales area 1,968 (th sqm) (th sqm) Supermarkets Migros (M, MM,MMM) 1,039 852.2 1,154 972.0 (incl. 814 Migros Jet stores) Migros Jet 680 128.5 814 164.8 56 5M 23 102.7 56 280.4 Hypermarkets Wholesale 17 10.0 21 12.0 54 Mac
Slide 22: Ownership Structure
Ownership Structure Migros Ticaret A.S. 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 Moonlight Migros Ticaret Perakend
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