Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — FY2017 Earnings Presentation
23 slides from Migros Ticaret A.s's earnings presentation, 2018
Slide 1: Migros Ticaret A.Ş. 2017 Financial Results
Migros Ticaret A.Ş. 2017 Financial Results
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 Performance Guidance Summary Financial Format Results Summary 2
Slide 4: Sales in 2017
Sales in 2017 Consolidated sales including Kipa rose by 38.7% in 2017 Strong sales performance of Migros stores reaching 21.3% yearly growth Strong growth momentum Sales in 4Q 2017 (TL million) Sales in 2017 (TL million) 4,022 w/Kipa 15,344 w/Kipa Best service, Ease of shopping, 2,901 3,473 11,0
Slide 5: Market Share Evolution
Market Share Evolution FMCG Market Shares (%) Excluding Kipa, Migros improved its market 17.2 w/Kipa share by 40 bps in both total FMCG and 7.1% modern FMCG markets. 14.8 market share Migros & Kipa account for 17.2% of FMCG 7.1 14.4 in total FMCG w/Kipa sales in modern FMCG market and 7.1% in to
Slide 6: Organic Expansion
Organic Expansion Number of Stores - Total Net Sales Area Split By Banner - 2017 1,897 43 162(1) new store openings in 4Q17 +292 1,605 +195 1,410 1,735 193 new store openings in 2017 355 2015 2016 2017 store addition in 2017 including Kipa Avg. space growth 6.2% 6.6% 5.5% w/o Kipa • Migros more than
Slide 7: Capital Expenditure & Working Capital
Capital Expenditure & Working Capital Capex % of Sales 2.9% 3.0% 2.7% 2.6% 399 mn TL 399 (1) Capex in 2017 297 281 232 4 Kipa stores Space optimization completed in 2017 2014 2015 2016 2017 3 more stores under construction, Domestic operations Working Capital in days(2) 17 more in 2018 pipeline (38)
Slide 8: Consolidated Gross Profit in 2017
Consolidated Gross Profit in 2017 Consolidated Gross profit grew by 42.8% y-o-y and exceeded TL 1.0 billion in 4Q 2017 Long-term and healthy collaborations with suppliers Solid Gross Profit Generation Gross Profit in 4Q 2017 (TL million) Gross Profit in 2017 (TL million) 1,080 w/Kipa 4,082 w/Kip
Slide 9: Consolidated EBITDA(R) in 2017
Consolidated EBITDA(R) in 2017 EBITDA in 4Q 2017 (TL million) EBITDA in 2017 (TL million) 226 w/Kipa 872 w/Kipa 33.5% Growth in EBITDA 167 222 677 850 in 4Q17, excluding Kipa 4Q 2016 4Q 2017 2016 2017 Margin 5.7% 5.6% Margin 6.1% 5.7% [6.4% w/o Kipa] [6.3% w/o Kipa] EBITDAR in 4Q 2017 (TL million) E
Slide 10: Track Record of Deleveraging
Track Record of Deleveraging Migros 2017 Cash and Leverage Position Cash & Debt Items Total TL m TL m EUR m Cash & Cash equivalents 1,628 1,266 80 Financial Debt* 3,930 897 672 Net Debt 2,302 Net Debt / EBITDA LTM 2.6x * Based on amortised costing as indicated in financial statements Net debt/EBIT
Slide 11: Performance Summary 2017
Performance Summary 2017 Performance Summary Performance Performance vs 2016 Target 2017 Indicator Guidance Expansion Program (Number of NEW Stores) 232 180+ 193 Top-Line Sales Growth 17.8% ~38% 38.7% EBITDA Margin 6.1% ~5.5% 5.7% Management Message for 2017 Consolidated shareholders’ equity
Slide 12: Expectations and Guidance
Expectations and Guidance 2018 Guidance [consolidated] Sales Growth 15-18% EBITDA Margin 5.5-6.0% Expansion Target 120-150 new stores Management Agenda in 2018 Consolidated sales growth is Hard currency component in Space optimisation in large expected to be between 15% total debt is expected
Slide 13: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 14: Summary of Income Statement – 2017
Summary of Income Statement – 2017 IFRS Consolidated Income Statement Summary 2016 (TL Million) 2017 (restated) Net Sales 15,344.0 11,059.2 Cost of sales -11,262.1 -8,106.7 Gross Profit 4,082.0 2,952.6 Operating Expenses -3,554.0 -2,525.0 Other Operating Income / (Expense) -225.1 -96.4 Operating Pro
Slide 15: Summary of Balance Sheet – 2017
Summary of Balance Sheet – 2017 IFRS Consolidated Balance Sheet Summary 2016 (TL Million) 2017 (restated) Current Assets 3,776.3 2,471.3 Non-current Assets 6,526.4 3,805.4 Total Assets 10,302.7 6,276.7 Current Liabilities 5,516.1 3,320.8 Non-current Liabilities 3,259.4 2,763.4 Total Liabilities 8,77
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) 1,635 (supermarkets) 44 (upscale supermarkets) 162 (Supermarkets and Hypermarkets) 17 (wholesale and foodservice stores) 1,897 Stores1 39 (i
Slide 17: Migros, Largest National Supermarket Chain
Migros Migros, Largest National Supermarket Chain Number of stores: 1,635 including 440 5M, MMM & MM stores and 1,195 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: 44 400 - 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 17 Wholesale stores Penetration: 12 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 27 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: 16, including 2 hypermarkets, 13 supermarkets and 1 Macrocenter. Owns 1 shopping Number of supermarkets: 23 mall in Almaty
Slide 22: Store Portfolio
Store Portfolio 1,195 2016 2017 Migros Jet & M stores # of stores Sales area (th sqm) # of stores Sales area (th sqm) Proximity stores Migros (M, MM,MMM) 911 772.0 982 819.1 440 Migros Jet 578 104.3 632 116.7 MM, MMM & 5M stores Large supermarkets 5M 23 109.8 21 94.7 Wholesale 15 9.1 17 10,0 44 Macr
Slide 23: Ownership Structure
Ownership Structure JV Structure between BC Partners & Anadolu Group Current Shareholding Structure AG Anadolu BC Partners Grubu Holding A.Ş. & related funds MH Kenan Moonlight Perakendecilik Investments Free Float Capital S.A. ve Ticaret A.Ş. S.A. 26.8% 8.07% 50.00% 15.13% Migros Ticaret A.Ş. Moo