Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — 9M 2017 Earnings Presentation
22 slides from Migros Ticaret A.s's earnings presentation, 2017
Slide 1: Migros Ticaret A.Ş. 9M 2017 Financial Results
Migros Ticaret A.Ş. 9M 2017 Financial Results Migros 2016 Sustainability Report released
Slide 2: 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
Slide 3: Contents
CONTENTS Market Share Sales Evolution Financial Expansion Overview Ataşehir Migros Key Financial Guidance Metrics Financial Format Results Summary 2
Slide 4: Sales in 9M 2017
Sales in 9M 2017 Consolidated sales increased by 39.1% with Kipa in 3Q 2017 Top-line growth continued to be strong with 20.1% in 3Q 2017 w/o Kipa operations Strong sales momentum Sales in 3Q 2017 (TL million) Sales in 9M 2017 (TL million) continues 4,285 w/Kipa 11,322 w/Kipa Main driver: Migros
Slide 5: Market Share Evolution
Market Share Evolution FMCG Market Shares (%) In 9M 2017, Migros improved its market share by 17.4 w/Kipa Market share 40 bps in total FMCG and 50 bps in modern gain FMCG market w/o Kipa operations over a year 14.9 continued ago. even before 14.4 7.2 w/Kipa Kipa Migros accounts for 17.4% of FMCG
Slide 6: Organic Expansion
Organic Expansion Net Sales Area Split By Banner - 3Q 2017 52 Number of Stores - Total new store openings in 3Q17 1,863 162* 151 +288 new store 1,575 openings in 9M17 +223 1,352 1,701 1,863 number of stores as of 9M17 9M 2015 9M 2016 9M 2017 9M17 Sales area 1,424K sqm with Kipa stores 9M17 Sales are
Slide 7: Capital Expenditure
Capital Expenditure Capex (TL million) Capex as a Percentage of Sales 2.9% 3.0% 2.7% 2.4% 2.2% 253 mn TL 297 253* 281 Capex in 9M 2017 197 232 Right-sizing started in 4 Kipa stores 2014 2015 2016 9M 2016 9M 2017 * with Kipa 6
Slide 8: Consolidated Gross Profit in 9M 2017
Consolidated Gross Profit in 9M 2017 Consolidated Gross profit grew by 41.4% y-o-y and exceeded TL 1.1 billion in 3Q 2017 Gross margin gains at Kipa level in 3Q 2017 to smooth out for the rest of the year Gross Profit in 3Q 2017 (TL million) Gross Profit in 9M 2017 (TL million) Solid Gross Profi
Slide 9: Consolidated EBITDA(R) in 9M 2017
Consolidated EBITDA(R) in 9M 2017 EBITDA in 3Q 2017 (TL million) EBITDA in 9M 2017 (TL million) 297 w/Kipa 646 w/Kipa EBITDA margin improved 50 bps w/o Kipa in 3Q17 215 278 511 627 over a year ago Better cost absorption 3Q 2016 3Q 2017 9M 2016 9M 2017 Margin 7.0% 6.9% Margin 6.3% 5.7% [7.5% w/o Kipa
Slide 10: Key Financial Metrics
Key Financial Metrics Accelerated growth, solid EBITDA generation Domestic Sales Growth Y-o-Y (%) Resilient EBITDA margin 39.8% 7.5% with Kipa w/o 7.0% 7.0% Kipa 18.4% 15.5% 20.2% 6.9% w/o with Kipa Kipa 3Q 2015 3Q 2016 3Q 2017 3Q 2015 3Q 2016* 3Q 2017 * restated Stable Negative Cash Conversion Stro
Slide 11: Track Record of Deleveraging
Track Record of Deleveraging Migros 9M 2017 Cash and Leverage Position Cash & Debt Items Total TL m TL m EUR m Cash & Cash equivalents 1,599 1,222 90 Financial Debt* 3,843 903 701 Net Debt 2,244 Net Debt / EBITDA LTM 2.8x * Based on amortised costing as indicated in financial statements Net debt/E
Slide 12: Expectations and Guidance
Expectations and Guidance Targets revised upwards [including 10 months Kipa] 2017E Previous Guidance1 New Guidance1 Sales Growth 35%+ ~38% EBITDA Margin 5.0-5.5% ~5.5% Expansion Target 180+ new stores 180+ new stores Management Message Consolidated sales growth Consolidated EBITDA margin Syner
Slide 13: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 14: Summary of Income Statement – 9M 2017
Summary of Income Statement – 9M 2017 IFRS Consolidated Income Statement Summary 9M 2016 (TL Million) 9M 2017 (restated) Net Sales 11,321.8 8,158.5 Cost of sales -8,319.7 -5,961.9 Gross Profit 3,002.1 2,196.6 Operating Expenses -2,616.1 -1,875.1 Other Operating Income / (Expense) -170.1 -62.3 Operat
Slide 15: Summary of Balance Sheet – 9M 2017
Summary of Balance Sheet – 9M 2017 IFRS Consolidated Balance Sheet Summary 2016 (TL Million) 9M 2017 (restated) Current Assets 3,515.0 2,471.3 Non-current Assets 5,698.5 3,805.4 Total Assets 9,213.4 6,276.7 Current Liabilities 5,131.5 3,320.8 Non-current Liabilities 3,116.2 2,763.4 Total Liabilities
Slide 16: Migros at a Glance
Migros at a Glance 63rd Year! Operating in 3 countries Geographical Footprint — Turkey (73 cities out of 81) — Macedonia and Kazakhstan (39 stores) 1,603 (supermarkets) 43 (upscale supermarkets) 162 (Supermarkets and Hypermarkets) 16 (wholesale and foodservice stores) 1,863 Stores1 39 (i
Slide 17: Migros, Largest National Supermarket Chain
Migros Migros, Largest National Supermarket Chain Number of stores: 1,603 including 437 5M, MMM & MM stores and 1,166 Migros Jet & M stores, Penetration: 73 cities ─ (40*-4,500) sqm / (1,800* – 18,000) SKUs ─ Differentiated offering and service on fresh product categories ─ Wide branded assortme
Slide 18: Macrocenter
Macrocenter Exclusive shopping Number of stores: 43 400 - 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 19: Wholesale & Food Service
Wholesale & Food Service Focus on Horeca Penetration Currently operating in 7 regions through dedicated sales team. Dedicated warehouses and customer delivery 16 Wholesale stores Penetration: 11 cities 18
Slide 20: Online Business
Online Business Turkey’s first and leading e-commerce web site in food retail Top-line growth is significantly higher than the Company average Improved operational efficiency through picking automation Direct delivery from stores (110 stores in 24 cities across Turkey) Healthy Organic Natura
Slide 21: International Operations
International Operations Kazakhstan Macedonia 1.4% of consolidated sales from Kazakh operations 1.2% of consolidated sales from Macedonian operations Number of stores: 17, including 2 hypermarkets, 14 supermarkets and 1 Macrocenter. Owns 1 shopping Number of supermarkets: 22 mall in Almaty
Slide 22: Ownership Structure
Ownership Structure JV Structure between BC Partners & Anadolu Group Current Shareholding Structure Anadolu Endüstri Holding A.Ş. 100.00% MH Kenan Moonlight Capital Free Float Perakendecilik Investments S.A. S.A. ve Ticaret A.Ş. 19.49% 15.37% 15.13% 50.00% Migros Ticaret A.Ş Anadolu Endüstri Holdi