Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — FY2022 Earnings Presentation
34 slides from Migros Ticaret A.s's earnings presentation, February 2023
Slide 1: Company Presentation 2022 Financial Results
Company Presentation 2022 Financial Results Remembering our colleagues who passed away in the recent earthquakes February 2023
Slide 2: Kahramanmaraş Earthquake Impact
Kahramanmaraş Earthquake Impact • Twenty-two of our colleagues lost their lives • Nearly one-thousand colleagues lost their homes (heavily damaged or collapsed) Impact on Migros • Migros has 228 stores, all rented & insured, in the affected 10 cities • 41 out of 228 stores damaged & not operational
Slide 3: Contents
Contents Sales Expansion Market Share Evolution Financial Overview Online Operations & Strategy Update Summary & Guidance Operations & Financials Details
Slide 4: Sales (TL million)
Sales (TL million) Quarterly Yearly 136% 105% 74,502 Outstanding growth performance 24,448 36,272 10,351 Topline growth mostly driven by competitive shelf pricing & strong tourism 4Q 2021 4Q 2022 2021 2022 4
Slide 5: Physical & Online Expansion
Physical & Online Expansion Number of Stores Online Service Stores (Total) (Total) +343 +89 2,908 Sales Area 956 2,565 (K sqm) 867 7% 1,796 1,679 2021 2022 2021 2022 2021 2022 5
Slide 6: CAPEX (TL million)
CAPEX (TL million) % of Sales CAPEX Breakdown % 2.7% 3.0% ~4,000 33% 39% 2,262 969 28% 2021 2022 2023E New stores & DC's IT, R&D, Energy Sustainability Maintenance 6
Slide 7: Market Share Evolution in a period of trading-down
Market Share Evolution in a period of trading-down Migros FMCG Market Share Evolution (%) +30 bps 15.3 15.5 15.8 +50 bps Market share increase marking 8.2 8.4 8.9 our commitment to pricing 2020 2021 2022 2020 2021 2022 Total FMCG Modern FMCG 7 Source: Nielsen Note: FMCG: Fast Moving Consumer Goods,
Slide 8: Financial Overview
Financial Overview
Slide 9: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Quarterly Yearly 117% 103% 5,255 17,800 Investing in pricing to support 2,422 cash-strapped consumers 8,755 in 4Q 2022 4Q 2021 4Q 2022 2021 2022 Margin 23.4% 21.5% Margin 24.1% 23.9% 9
Slide 10: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) • EBITDA margin maintained despite energy cost pressures in 2022 • Further improvement in EBITDA margin w/o IFRS 16 in 2022 mostly due to favorable rental impact Quarterly Yearly 108% 1,551 106% 5,968 745 2,894 (w/o IFRS 16) (w/o IFRS 16) 134% 142% 4,803 1,209 4Q 202
Slide 11: Net Income (TL million)
Net Income (TL million) Quarterly Yearly 1,165 619% 2,580 993 916 Deferred Deferred Tax Income Tax Income 249 1,587 Margin: Margin: 359 2.1% 1.0% -8 4Q 2021 4Q 2022 2021 2022 Margin -0.1% 4.8% Margin 1.0% 3.5% 11
Slide 12: Net Cash Position
Net Cash Position Total Financial Debt* Net Cash / EBITDA* (TL million) (TL million) 2,974 5,426 2,641 Favorable borrowing conditions 1.6-years avg. maturity & 18% avg. interest cost 1.1x 660 0.3x 2021 2022 2021 2022 *w/o IFRS 16 *w/o IFRS 16 12
Slide 13: Online Operations & Strategy Update
Online Operations & Strategy Update
Slide 14: Migros' Online Operations Expanding
Migros’ Online Operations Expanding Quarterly Yearly GMV GMV Online Share (TL billion) (TL billion) in Sales in 2022 134% 3.4 103% 9.8 (w/o tobacco & alcohol) 15.6% 1.4 4.8 4Q 2021 4Q 2022 2021 2022 Fast & Scheduled Ultra Fast Delivery Delivery # of Service Stores # of Service Stores +148 +149 927 3
Slide 15: MigrosOne-Online Meal Platform, MigrosOne-Cloud Kitchen
MigrosOne-Online Meal Platform MigrosOne-Cloud Kitchen • Launched in June 2022 • Fast roll-out: Operating in 100+ districts in 17 cities as of 2022 • Delivery by Migros option will be available • Launched in January 2022 • Online only service • Operating in 10+ kitchens with 10+ own brands • Targeti
Slide 16: New Initiatives: Moneypay
New Initiatives: Moneypay Closed e-Wallet Loop/Wallet BNPL/Credit Card/Loyalty Market Place Programmes Cash Withdrawal Virtual POS at Migros (PF) Money Invoice Transfer Payment 16
Slide 17: New Initiatives: Migen Energy, Mion
New Initiatives: Migen Energy, Mion • Easily accessible, fast & reliable charging service for electric vehicles at our large stores Migen Energy • Initial stage: 50+ charging stations in 19 cities to operate at our premises • Supportive to store-customer traffic 219 • Offering a wide range of Health
Slide 18: Summary & Guidance
Summary & Guidance
Slide 19: 2022 Underlying Performance
2022 Underlying Performance Net Sales Sales Growth EBITDA Margin Net Profit TL 74,502 105% 8.0%* TL 2,580 in million in million 4Q22: 136% 4Q22: TL 1,165 million * EBITDA after ETB & unused vacation provisions = Operating Profit + Amortization - Other Income + Other Expenses 19 ** EBITDA margin: 8.4
Slide 20: 2023 Guidance (Consolidated)
2023 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX 75-80% 7.0-7.5%* ~365 TL ~4,000 new stores million 20 * EBITDA = Operating Profit + Amortization - Other Income + Other Expenses
Slide 21: Appendix
Appendix
Slide 22: Migros at a Glance
Migros at a Glance TL 74.5 billion 45,303 +2,000 49.18% sales in 2022 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 th 2,908 stores in all 81 cities 68 year 10.7 milli
Slide 23: Transforming our Ecosystem with New Subsidiaries
Transforming our Ecosystem with New Subsidiaries Online business Focusing on the Focused on online grocery development of Migros’ business and ready-made meals Migros shareholding: 93% online channels Fintech company E-wallet, money transfer, Financial solutions utility payments, BNPL and product fi
Slide 24: Store Portfolio: Physical & Online Network – 2022
Store Portfolio: Physical & Online Network – 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 2,696 56 130 26 956 31 December 2021 31 December 2022 Sales area Sales area # of stores # o
Slide 25: Migros' Online Channels
Migros’ Online Channels 81 cities 35,000+ SKU 81 ~2,500 SKU cities Delivery within minutes 10 15,000+ SKU cities High-end gourmet 5 3,000+ SKU cities Fresh categories Direct from farm to consumers 81 7,000+ SKU cities Non-food categories 17 100+ districts cities Online meal delivery 25
Slide 26: IFRS Consolidated Income Statement Summary – 2022
IFRS Consolidated Income Statement Summary – 2022 (TL million) 2022 2021 Net Sales 74,502 36,272 Cost of Sales -56,702 -27,518 Gross Profit 17,800 8,755 Operating Expenses -13,010 -6,768 Other Operating Income / (Expense) -2,065 -1,279 Operating Profit 2,725 708 Income / (Expense) from Investment Ac
Slide 27: IFRS Consolidated Balance Sheet Summary – 2022
IFRS Consolidated Balance Sheet Summary – 2022 (TL million) 2022 2021 Current Assets 20,123 8,704 Non-current Assets 16,301 9,397 Total Assets 36,424 18,100 Current Liabilities 26,010 13,109 Non-current Liabilities 6,324 4,455 Total Liabilities 32,334 17,564 Equity 4,090 536 Total Liabilities and Eq
Slide 28: Cash Position & Leverage
Cash Position & Leverage Without IFRS 16 With IFRS 16 (TL million) 2021 2022 2021 2022 Cash & Cash Equivalents 3,635 8,067 3,635 8,067 TL 3,352 7,436 3,352 7,436 EUR, USD 17€ 31$ 17€ 31$ Financial Debt 2,974 2,641 6,0831 7,4551 TL 2,905 2,641 6,013 7,455 EUR 5* 0 5* 0 Net Cash (Net Debt) 660 5,426 (
Slide 29: 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 30: Sustainability
Sustainability
Slide 31: Migros Sustainability Targets
Migros Sustainability Targets By 2030 42% Science Based Target (SBT) Reducing Scope 1 & Scope 2 Greenhouse Gas Emission Base Year: 2020 Progress 2020-2022: 9% By 2030 By 2030 By 2026 10% 50% 27-33% Reducing Water Reducing Food Women Participation Consumption per sqm Waste (tones) in Top Management B
Slide 32: Migros Better Future Plan
Migros Better Future Plan TRANSPARENT, RESPONSIBLE AND ETHICAL GOVERNANCE FOR A SUSTAINABLE ECOSYSTEM To adopt the governance approach that suits best to our value-oriented business model and integrated mindset, for all our stakeholders. To create a joint value with our stakeholders integrated into
Slide 33: Waste Management & Biodiversity Conservation
Waste Management & Biodiversity Conservation Preventing Food Waste* Reducing Plastic Waste* Plastic Bag-Free Shopping Movement Prevented food loss with Expiry Date 21% less plastic bag discounts: per transaction 9,589 tons of food Business Plastic Initiative (IPG) 247 tons less plastic Food Donation
Slide 34: 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