Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — H1 2023 Earnings Presentation
32 slides from Migros Ticaret A.s's earnings presentation, 2023
Slide 1: Company Presentation 1H 2023 Financial Results
Company Presentation 1H 2023 Financial Results
Slide 2: Contents
Contents Expansion Market Share Evolution Financial Overview Online Operations & Strategy Update Summary & Guidance Operations & Financials
Slide 3: Physical & Online Expansion
Physical & Online Expansion Number of Stores Online Service Stores (Total) (Total) +419 3,100 +73 1,028 Sales Area 955 2,681 (K sqm) 8.6% 1,860 1,713 1H 2022 1H 2023 1H 2022 1H 2023 1H 2022 1H 2023 3
Slide 4: CAPEX (TL million)
CAPEX (TL million) % of Sales % of Sales 1.7% 2.3% 2.7% 3.0% 1,413 2,262 969 474 1H 2022 1H 2023 2021 2022 4
Slide 5: Multi-channel Growth Leading to Market Share Gain
Multi-channel Growth Leading to Market Share Gain Migros FMCG Market Share Evolution (%) 8.2 Growth Focus +160 bps 16.0 14.9 14.4 +110 bps 9.4 Market 8.4 8.3 Share Gain Price New Shopper Investments Segments 14.2 1H 1H 1H 1H 1H 1H 2021 2022 2023 2021 2022 2023 Total FMCG Modern FMCG Source: Nielsen
Slide 6: Financial Overview
Financial Overview
Slide 7: Sales (TL million)
Sales (TL million) Sales Sales 106% 32,951 113% 60,135 Robust top-line growth 15,963 28,235 Strong growth in traffic & basket size 2Q 2022 2Q 2023 1H 2022 1H 2023 7
Slide 8: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Gross Profit Gross Profit 86% 7,504 96% 14,053 4,042 7,174 Intensive online & offline price investments 2Q 2022 2Q 2023 1H 2022 1H 2023 Margin 25.3% 22.8% Margin 25.4% 23.4% 8
Slide 9: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) 2,183 3,959 54% 66% 1,416 2,380 (w/o IFRS 16) (w/o IFRS 16) 52% 1,738 68% 3,113 1,143 1,852 2Q 2022 2Q 2023 1H 2022 1H 2023 Margin 8.9% 6.6% 2Q 2022 2Q 2023 Margin 8.4% 6.6% 1H 2022 1H 2023 7.2% 5.3% 6.6% 5.2% 9 * EBITDA after ETB & unused vacation provisions = Opera
Slide 10: Net Income (TL million)
Net Income (TL million) 241% 1,515 245% 2,081 One-off 284* One-off 288* income income 1,231 1,793 Margin: Margin: 444 3.7% 603 3.0% 2Q 2022 2Q 2023 1H 2022 1H 2023 Margin 2.8% 4.6% Margin 2.1% 3.5% 10 * One-off gains from asset sales: TL 288 mn in 1H 2023 (TL 284 mn in 2Q 2023)
Slide 11: Net Cash Position
Net Cash Position Total Financial Debt* Net Cash / EBITDA* (TL million) (TL million) 9,518 Strong cash generation 2,899 2,862 from EBITDA & working capital 1.6x 1,903 TL 7,615 mn improvement in net cash 0.6x 1H 2022 1H 2023 1H 2022 1H 2023 *w/o IFRS 16 *w/o IFRS 16 11 Note: Net cash includes TL 472
Slide 12: Online Operations & Strategy Update
Online Operations & Strategy Update
Slide 13: Migros' Online Operations Expanding
Migros’ Online Operations Expanding GMV GMV (TL billion) (TL billion) 135% 4.8 134% 8.9 2.0 3.8 Scheduled Delivery Ultra Fast Delivery # of Service Stores # of Service Stores 941 473 +127 +132 2Q 2022 2Q 2023 1H 2022 1H 2023 814 341 Online Grocery Share in Sales in 1H 2023 (w/o tobacco & alcohol) 1H
Slide 14: Migros Yemek Cloud Kitchen
Migros Yemek Cloud Kitchen • Fast roll-out: • Operating in 25 Operating in cloud kitchens with 270 districts in 15 own brands 81 cities • Targeting 20+ own • Delivery by Migros brands & 60+ cloud option roll-out kitchens in 2023 Acquisition of 50% of CRC Danışmanlık ve Organizasyon A.Ş. (GurmePack)
Slide 15: Moneypay Migen Energy
Moneypay Migen Energy • +1 million registered MoneyPay users • Pay with MoneyPay • Currently 50 EV charging • Pay with QR at all stations Migros store network • Operational • Pay with QR at all in 19 cities other merchant network accepting QR payments 15
Slide 16: Summary & Guidance
Summary & Guidance
Slide 17: 1H 2023 Underlying Performance
1H 2023 Underlying Performance Net Sales Sales Growth EBITDA Margin Net Profit TL 60,135 113% 6.6%* TL 2,081 in mn in mn 2022: TL 74,502 mn 2022: 105% 2022: 8.0% 2022: TL 2,580 mn 17 * EBITDA after ETB & unused vacation provisions = Operating Profit + Amortization - Other Income + Other Expenses
Slide 18: 2023 Guidance (Consolidated)
2023 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX ~90% 6.5-7.0%* ~450 TL ~6,000 new stores mn from 80-85% from 7.0-7.5% from ~365 from TL ~ 4,000 * EBITDA = Operating Profit + Amortization - Other Income + Other Expenses 18
Slide 19: Proliferation of Customer Touch Points
Proliferation of Customer Touch Points Further geographical expansion into small towns Category specialization Embracing increasing customer demand for ready meals • Migros Yemek online • Cloud Kitchen • On shelf 19
Slide 20: Appendix
Appendix
Slide 21: Migros at a Glance
Migros at a Glance TL 106.4 bn 51,025 +2,000 49.18% sales 1H23 LTM employees suppliers free float Listed in BIST Sustainability Index for 9 years in a row Included BIST Corporate Governance Index since 2015 Business Option th 3,100 stores in all 81 cities As of 2Q23 69 year 11.3 mn loyal households
Slide 22: Transforming our Ecosystem with New Subsidiaries
Transforming our Ecosystem with New Subsidiaries Online grocery & Financial solutions Last-mile delivery Marketing Migros’ Charging services meal business solution offline & online for electric vehicles media assets Focusing on the • E-wallet Rapidly growing Providing data-driven Easily accessible,
Slide 23: Store Portfolio: Physical & Online Network – 1H 2023
Store Portfolio: Physical & Online Network – 1H 2023 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 2,870 56 141 26 1,028 30 June 2022 30 June 2023 Sales area Sales area # of stores # of s
Slide 24: Migros' Online Channels
Migros’ Online Channels 81 cities 35,000+ SKU 81 ~2,500 SKU cities Delivery within minutes 9 15,000+ SKU cities Upscale grocery 5 3,000+ SKU cities Fresh categories Direct from farm to consumers 81 7,000+ SKU cities Non-food categories 81 270 districts cities Online meal delivery 24
Slide 25: IFRS Consolidated Income Statement Summary – 1H 2023
IFRS Consolidated Income Statement Summary – 1H 2023 (TL million) 1H 2023 1H 2022 Net Sales 60,135 28,235 Cost of Sales -46,081 -21,061 Gross Profit 14,053 7,174 Operating Expenses -11,005 -5,327 Other Operating Income / (Expense) -921 -707 Operating Profit 2,127 1,141 Income / (Expense) from Invest
Slide 26: IFRS Consolidated Balance Sheet Summary – 1H 2023
IFRS Consolidated Balance Sheet Summary – 1H 2023 (TL million) 1H 2023 2022 Current Assets 28,246 20,123 Non-current Assets 18,582 16,301 Total Assets 46,828 36,424 Current Liabilities 34,142 26,010 Non-current Liabilities 6,722 6,324 Total Liabilities 40,865 32,334 Equity 5,963 4,090 Total Liabilit
Slide 27: 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 28: Sustainability
Sustainability
Slide 29: 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: 8.62% By 2030 By 2030 By 2026 10% 50% 27-33% Reducing Water Reducing Food Women Participation Consumption per sqm Waste (tones) in Top Managemen
Slide 30: Migros Better Future Plan
Migros Better Future Plan ECOSYSTEM SUSTAINABILITY THROUGH TRANSPARENT, RESPONSIBLE, ETHICAL GOVERNANCE To adopt the governance practices that are rightful for all stakeholders through our value-focused business model and integrated thinking system. To create shared value for all by integrating our
Slide 31: 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 Donati
Slide 32: 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