Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — FY2023 Earnings Presentation
37 slides from Migros Ticaret A.s's earnings presentation, 2024
Slide 1: Company Presentation 2023
Omni-channel retailer, evolving beyond trade Company Presentation 2023
Slide 2: Disclaimer
Disclaimer In accordance with the decision of the Capital Markets Board (CMB) dated 28.12.2023 and numbered 81/1820, it has been decided that issuers and capital market institutions, which apply Turkish Accounting/Financial Reporting Standards and are subject to the financial reporting regulations o
Slide 3: Contents
Contents Market Share Evolution Expansion Financial Overview Strategy Update Summary & Guidance Operations & 3 Financials
Slide 4: Market Share Evolution
Market Share Evolution Migros FMCG Growth Focus Market Share (%) Omni channel & Multi format +120 bps 15.0 16.2 Further +60 bps penetration 9.3 in rural 8.7 Market districts Share Gain Price 2022 2023 2022 2023 Investments Total FMCG Modern FMCG Source: Nielsen 4 Note: FMCG: Fast Moving Consumer Goo
Slide 5: Physical & Online Expansion
Physical & Online Expansion # of Stores Sales Area Online Service Stores (k sqm) +455 7.5% +137 3,363 1,930 1,093 2,908 1,796 956 2022 2023 2022 2023 2022 2023 5
Slide 6: CAPEX (TL million)
CAPEX (TL million) % of Sales 2.9% 3.5% CAPEX Breakdown % 2023 56% 6,408 with IAS 29 4,101 inflation accounting IT, R&D, 36% Energy New Stores 36% 2022 2023 15% 8% 5% 3.0% 3.8% without IAS 29 inflation accounting Refurbishment of 143% 5,486 Stores & DCs New DCs 2,262 Subsidiaries 6 2022 2023
Slide 7: Financial Overview
Online Operations & Financial Overview Strategy Update
Slide 8: Consolidated Sales (TL million)
Consolidated Sales (TL million) 29% 181,674 140,480 with IAS 29 inflation accounting 2022 2023 96% 80% 145,810 without IAS 29 43,953 74,502 inflation accounting 24,448 4Q 2022 4Q 2023 2022 2023 8 | | 6.3%
Slide 9: Gross Profit (TL million)
Gross Profit (TL million) 29% 34,003 26,270 with IAS 29 inflation accounting | 2022 2023 18.7% 18.7% 100% 94% 34,579 without IAS 29 10,527 17,800 inflation accounting 5,276 4Q 2022 | 4Q 2023 2022 | 2023 | | 1.9% 1.9% | 1.9% 1.9% 9 | 21.6% 24.0% 23.9% 6.3% 23.7% 5.1%
Slide 10: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) 3,761 -14% 3,221 with IAS 29 inflation accounting | 2022 2023 | 2.7% 1.8% 80% 64% 9,784 2,789 5,968 1,551 3,469 without IAS 29 2.4% inflation accounting 2022 2023 | | 4Q 2022 4Q 2023 6.3% 6.3% 8.0% 6.7% 10 | * EBITDA = Operating Profit + Amortization - Other Income +
Slide 11: Net Income (TL million)
Net Income (TL million) -3% 9,156 8,905 with IAS 29 inflation accounting | 2022 2023 6.3% 6.5% 4.9% 5.1% | 45% 131% 5,954 without IAS 29 1,688 inflation accounting 1,165 2,580 4Q 2022 4Q 2023 2022 2023 11 4.8% || 3.8% 3.5% 6.3% | 4.1% 5.1%
Slide 12: Inflation-accounting impact on EBITDA & Net Income
Inflation-accounting impact on EBITDA & Net Income 7,944 -3,278 2,318 -8,881 225 -1,887 9,784 8,905 8,881 Margin Margin 6.7% 4.9% 3,221 -6,201 Margin 1.8% Inventory 2023 Depreciation Inventory Asset & Due date Financial Tax Net Income 2023 EBITDA P&L inflation adj. inflation adj. Other charges & EBI
Slide 13: Total Assets & Total Equity (TL million)
Total Assets & Total Equity (TL million) Total Assets Total Equity 13% 32% 36,254 92,129 27,507 81,620 with IAS 29 inflation accounting | 2022 2023 2022 2023 1.9% 1.9% 79% 184% 65,267 11,632 without IAS 29 36,424 inflation accounting 4,090 2022 2023 2022 1.9% | 2023 1.9% 13 | | 6.3% | 5.1%
Slide 14: Net Cash Position (TL million)
Net Cash Position (TL million) Total Financial Debt* Net Cash* -54% 21% 4,351 2,019 8,940 10,798 with IAS 29 inflation accounting | 2022 2023 2022 2023 *w/o IFRS 16 1.9%*w/o IFRS 161.9% -24% 99% 2,641 without IAS 29 2,019 10,798 inflation accounting 5,426 2022 2023 14 | | *w/o IFRS 16 2022 1.9% 6.3%
Slide 15: Strategy Update
Online Operations & Strategy Update Strategy Update
Slide 16: Core Trade – New Developments in Formats
Core Trade – New Developments in Formats All formats in online Macro space Format Category network allocation development specialized formats for small towns Offers a further Under revision in geographical large stores based on expansion current trends on opportunity Migros’ big data Personal Care A
Slide 17: Operational Initiatives
Operational Initiatives 1 2 3 Distribution Centers expansion Strengthening our competitive advantage in fresh Acquisition of 50% stake in Gurmepack & key commodity products Category & format Acquired 17,000 m2 Devoloping 15,000 m2 Packed ready meal production specialization Packaging Facility for De
Slide 18: Migros' subsidiaries
Migros’ subsidiaries Online Last-mile Packed Fintech Migros’ offline Charging grocery & delivery ready-to-eat financial & online retail services for meal business solution meal production solutions media assets electric vehicles Migros is investing in the future of retail to accelerate its long-term
Slide 19: Migros One
Migros One Migros One Meal Businesses Last mile solution Wide-ranging restaurant network 81 with affordable cities options in 81 cities Scheduled 9 Grocery cities Operating own Delivery delivery model in Logistics for 5 10 cities and 66 cities online platforms districts, expanding & restaurants Ultr
Slide 20: Online Operations Expanding
Online Operations Expanding Online Business Share in Sales in 2023 without IAS 29 inflation accounting (w/o tobacco & alcohol) 17.0% GMV # of orders (TL billion) (mn) 127% 55% 65.2 22.3 42.1 9.8 2022 2023 2022 2023 20
Slide 21: MoneyPay
MoneyPay without IAS 29 inflation accounting Consumer (B2C) Pay with MoneyPay e-wallet, QR & Card at • all Migros online & offline stores • third party merchants TPV (TL billion) Money Loyalty Program Integrated Payment Solutions in one App 444% 4.9 BNPL, DCB & Credit Marketplace 0.9 Other Value Add
Slide 22: Summary & Guidance
Online Operations & Summary & Guidance Strategy Update
Slide 23: 2023 Underlying Performance
2023 Underlying Performance with IAS 29 inflation accounting without IAS 29 inflation accounting Net Sales Sales Growth Net Sales Sales Growth EBITDA* EBITDA* Margin Net Profit Margin Net Profit 23 * EBITDA = Operating Profit + Amortization - Other Income + Other Expenses
Slide 24: 2024 Guidance (Consolidated)
2024 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target with IAS 29 inflation accounting 2024E 2024E High Margin single digit improvement 2024E 2023: 29% 2023: 1.8% 250+ new stores 250+ new stores 2024E 2024E 2024E: TL ~8,500 mn CAPEX without IAS 29 inflation accounting +70% 7.5-8.0
Slide 25: Management Agenda
Management Agenda Omni- Growth Prudential Focus on Cross Beyond channel Go local leading to cost mgmt free cash fertilization trade, core multi- flow across business format generation online & supportive strategy offline business lines Price Market New 6 Focus on OPEX Inventories regional investment
Slide 26: Appendix
Online Operations & Appendix Strategy Update
Slide 27: Migros at a Glance
Migros at a Glance TL 181.7 bn Sales 2023 50,915 employees 3,363 stores 2023 +2,000 suppliers In BIST Sustainability Index for 9 years in a row %49.18 free float Included BIST Corporate Governance Index since 2015 Subsidiaries Money Card 11.5 mn households 18.8 mn active cards 27
Slide 28: Store Portfolio: Physical & Online Network – 2023
Store Portfolio: Physical & Online Network – 2023 Supermarkets Hypermarkets Macrocenter Wholesale Online 3,054 55 156 28 1,093 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 # of Sales area (th sqm) stores Migros (M, 1,899 1,346 MM,MMM) Migros
Slide 29: Energy Sustainability Investments
Energy Sustainability Investments 4 solar plants at DC’s rooftop y Sustainability Hedging volatile rg I e nv En energy cost in Opex est via greenfield ments investments 1/3 of total energy consumption is expected to be from Migros’ Izmir MİGET meat production facility owned solar plants in 2026 29
Slide 30: IAS 29 Consolidated Income Statement Summary – 2023
IAS 29 Consolidated Income Statement Summary – 2023 (TL million) 2023 2022 Net Sales 181,674 140,480 Cost of Sales -147,671 -114,210 Gross Profit 34,003 26,270 Operating Expenses -36,983 -27,254 Other Operating Expense -3,630 -3,838 Operating Profit -6,610 -4,823 Income / Expense from Investment Act
Slide 31: IAS 29 Consolidated Balance Sheet Summary – 2023
IAS 29 Consolidated Balance Sheet Summary – 2023 (TL million) 2023 2022 Current Assets 37,876 33,625 Non-current Assets 54,254 47,996 Total Assets 92,129 81,620 Current Liabilities 44,896 42,858 Non-current Liabilities 10,980 11,255 Total Liabilities 55,875 54,113 Equity 36,254 27,507 Total Liabilit
Slide 32: IAS 29 Impact on Financials
IAS 29 Impact on Financials with IAS 29 without IAS 29 inflation accounting inflation accounting (TL million) 2023 2022 2023 2022 Selected Balance Sheet Items Total Assets 92,129 81,620 65,267 36,424 Total Liabilities 55,875 54,113 53,635 32,334 Total Equity 36,254 27,507 11,632 4,090 Selected Incom
Slide 33: Ownership Structure
Ownership Structure Direct Shareholding Structure Indirect Shareholding Structure AG Anadolu Grubu AG Anadolu Grubu Free Float Holding A.Ş. Holding A.Ş. 50.00% 100.00% 50.00% MH Perakendecilik ve Free Float Migros Ticaret A.Ş.* Migros Ticaret A.Ş. Ticaret A.Ş. 49.18% 1.64% 49.18% Migros Ticaret A.Ş.
Slide 34: Sustainability
Online Operations & Sustainability Strategy Update
Slide 35: Sustainability Targets
Sustainability Targets Reducing Greenhouse Gas Emission 42% 50% Reducing Food Waste by 2030 (base year 2020) by 2030 (base year 2018) by 2026 (base year 2018) Increasing 27-33% 10% Reducing Women Participation in Management Water Consumption by 2030 (base year 2023) 35
Slide 36: 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 37: Waste Management & Biodiversity Conservation
Waste Management & Biodiversity Conservation Preventing Food Waste* Reducing Plastic Waste* Prevented food loss with Expiry Date discounts: 8,565 tons of food Business Plastic Initiative (IPG) 512 tons less plastic Food Donation: 11 million meals Good Agricultural Practices GAP certified F&V: 1,483,