Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — 9M 2020 Earnings Presentation
26 slides from Migros Ticaret A.s's earnings presentation, 2020
Slide 1: Migros Ticaret A.Ş. 9M 2020 Financial Results
Migros Ticaret A.Ş. 9M 2020 Financial Results
Slide 2: Contents
Contents Market Share Evolution Sales Online Business Expansion Financial Overview Management Overview Financial Results
Slide 3: Market Share Evolution
Market Share Evolution Migros FMCG Market Share Evolution (%) 20 18 17.3 17.3 16 60 bps 14 12 8.7 10 8 8.1 6 4 2 0 9M 2019 9M 2020 9M 2019 9M 2020 Total FMCG Modern FMCG Source: Nielsen 3 Note: FMCG: Fast Moving Consumer Goods, Modern and total FMCG market include all food-retail formats
Slide 4: Sales – 9M 2020 (TL million)
Sales – 9M 2020 (TL million) Sales Sales 3Q 2020 9M 2020 Strong increase in revenues in 3Q despite underperforming seasonal 19.1% 22.8% stores in south 7,695 21,108 6,464 17,195 Exceptional sales performance despite significant traffic loss in shopping center located stores Continuing deterioration
Slide 5: Covid-19: Consumer Trends
Covid-19: Consumer Trends Stocking up Normalization New Normal 1Q 2020 2Q 2020 3Q 2020 LOW HIGH LOW HIGH LOW HIGH F&V, meat, poultry, delicatessen F&V, meat, poultry, delicatessen F&V, meat, poultry, delicatessen Commodity products & basics Commodity products & basics Commodity products & basics Cle
Slide 6: Online Service Channels
Online Service Channels Online Orders Online Orders # of # of Online New Customers Customers Service Stores x2.6 x13.5 x2.5 x2.6 x3 81 cities 10 cities 6 cities 2 cities 81 cities +30,000 SKU +2,000 SKU +13,000 SKU +2,150 SKU +2,300 SKU 499 online service stores 97 online service stores 51 online se
Slide 7: Expansion
Expansion Number of Stores Online Service Stores (Total) (Total) +136 Sales Area +341 2,301 (K sqm) 550 2,165 3.8% 81 city 81 81 1,574 city city 1,517 209 48 city 9M 2019 9M 2020 9M 2019 9M 2020 9M 2019 9M 2020 155 new stores in 10M’20 353 new online service stores in 10M‘20 Ramstore • Exiting from
Slide 8: CAPEX (TL million)
CAPEX (TL million) % of Sales % of Sales 2.6% 2.6% 1.5% 1.2% 1.3% 488 ~470 268 399 341 208 2017 2018 2019 2020E 9M 2019 9M 2020 Continuing expansion 8
Slide 9: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Gross Profit Gross Profit 3Q 2020 9M 2020 11.7% 17.8% 1,979 5,523 1,772 4,690 3Q 2019 3Q 2020 9M 2019 9M 2020 Margin 27.4% 25.7% Margin 27.3% 26.2% Due date charges unfavorable impact: Due date charges unfavorable impact: - 160 bps - 160 bps 9 All numbers in gr
Slide 10: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) Normalized Normalized EBITDA EBITDA 3Q 2020 9M 2020 3.4% 13.1% 1,703 611 1,505 591 EBITDA EBITDA 9M 2020 3Q 2020 -12.4% -4.0% 698 611 1,774 3Q 2019* 3Q 2020 9M 2019* 9M 2020 1,703 9.1% 7.9% 8.8% 8.1% Adverse impact: Adverse impact: IFRS 16: - 70 bps IFRS 16: - 70 bps
Slide 11: Overview
Overview – De-risking – Expectations
Slide 12: De-risking Balance Sheet
De-risking Balance Sheet Gross Euro Debt (mn) Net Debt/EBITDA - Net Debt (TL mn) 611 2,819 2.3x 2,062 462 2,059 430 1.3x 1.3x 547 135 95 0.4x 2018 9M 2019 2019 9M 2020 Oct 2020 2018 9M 2019 2019 9M 2020* without IFRS 16 *Positive impact of tax payment deferrals around Short FX position as of October
Slide 13: Cash Position & Leverage
Cash Position & Leverage Without IFRS 16 With IFRS 16 (Total TL mn) 9M 2019 9M 2020 9M 2019 9M 2020 Cash & Cash Equivalents 2,282 3,267 2,282 3,267 TL 1,598 2,540 1,598 2,540 EUR 111 80 111 80 Financial Debt 4,344 3,814 7,522¹ 6,891¹ TL 1,484 2,583 4,662 5,660 EUR 462 135 462 135 Net Debt 2,062 547
Slide 14: 2020 Guidance (Consolidated)
2020 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX 22-23% ~ 8%* 160+ ~ TL 470 new stores mn from 20-22% from 8-8.5% from 160 from ~ 440 * with IFRS 16 impact 14
Slide 15: Appendix - I
Appendix - I − Operations − Sustainability
Slide 16: Migros at a Glance
Migros at a Glance 2,301 Stores The only food retailer listed in BIST Sustainability TL 23 CDP Turkey Climate Leader Index for in all 81 cities 33,399 billion 1,500+ 6 years in a row employees sales suppliers in 2019 2019 CDP Grade: International Operations Included BIST Corporate in 2 countries Gov
Slide 17: Sales Area Split – 9M 2020
Sales Area Split – 9M 2020 40 sqm - 3,500 sqm 3,500 sqm – 8,500 sqm 250 sqm – 2,000 sqm 200 sqm – 1,600 sqm 200 sqm – 3,500 sqm Supermarkets Hypermarkets Macrocenter Wholesale Ramstore 77% 17% 3% 1% 2% 2,125 55 60 21 40 17
Slide 18: Store Portfolio
Store Portfolio 30 September 2019 30 September 2020 Sales area Sales area 2,125 # of stores (th sqm) # of stores (th sqm) Supermarkets Migros 1,170 980.4 1,263 1,035.1 (M, MM,MMM) 55 Migros Jet 818 165.7 862 178.0 Hypermarkets 5M 56 274.1 55 268.9 Wholesale 21 12.0 21 12.4 60 Macrocenter Macrocenter
Slide 19: Migros Better Future Plan
Migros Better Future Plan Combating climate Waste management change and circular economy Consistent and rapid Preventative flow of product data solutions for pollution Innovative Efficient use of implementations resources Compliance with Value added human rights and activities to raise equal opportu
Slide 20: Sustainability
Sustainability Carbon Footprint Food Waste 2019: 26.6%* 2019: 17% (completed 2023 target) by 2030: 50% by 2024: 7% Score: A- Energy Consumption Gender Equality 2019: 16.3% Current: 28% 50% by 2024: 18.5% by 2024: 30% (executive +) 20 *2019 data has been independently verified on the basis of ISO 140
Slide 21: Waste Management & Biodiversity Conservation
Waste Management & Biodiversity Conservation Combating Food Waste Combating Plastic Waste Day-end clearance on perishables: Plastic bags: 74% 4,956 tons of food 405 tons less plastic on PL products Food Donation: 4,029,533 meals Good Agricultural Practices GAP certified F&V: 812,114 tons Fresh Lefto
Slide 22: Appendix - II
e@ Vir Appendix - Il — Financials
Slide 23: IFRS Consolidated Income Statement Summary – 9M 2020
IFRS Consolidated Income Statement Summary – 9M 2020 (TL million) 9M 2020 9M 2019 Net Sales 21,108 17,195 Cost of sales -15,585 -12,504 Gross Profit 5,523 4,690 Operating Expenses -4,527 -3,635 Other Operating Income / (Expense) -217 -358 Operating Profit 779 697 Income / (Expense) from Investment a
Slide 24: IFRS Consolidated Balance Sheet Summary – 9M 2020
IFRS Consolidated Balance Sheet Summary – 9M 2020 (TL million) 9M 2020 2019 Current Assets 6,752 5,277 Non-current Assets 8,385 9,184 Total Assets 15,138 14,461 Current Liabilities 9,402 7,544 Non-current Liabilities 5,637 6,594 Total Liabilities 15,039 14,138 Equity 98 323 Total Liabilities and Equ
Slide 25: Ownership Structure
Ownership Structure Direct Shareholding Structure Indirect Shareholding Structure AG Anadolu Grubu BC Partners Holding A.Ş. & related funds AG Anadolu Grubu BC Partners 100.00% Free Float Holding A.Ş. & related funds 38.04% 50.00% 11.96% MH Perakendecilik Kenan Investments Free Float Migros Ticaret
Slide 26: 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