Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — Q1 2023 Earnings Presentation
30 slides from Migros Ticaret A.s's earnings presentation, 2023
Slide 1: Company Presentation 1Q 2023 Financial Results
Company Presentation 1Q 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) +393 2,991* +69 Sales Area 968 2,598 (K sqm) 899 8% 1,822* 1,683 1Q 2022 1Q 2023* 1Q 2022 1Q 2023 1Q 2022 1Q 2023* * Includes 10 stores in the earthquake region, which were permanently closed down 3
Slide 4: CAPEX (TL million)
CAPEX (TL million) % of Sales % of Sales 1.3% 1.8% 2.7% 3.0% 485 ~4,000 2,262 164 969 1Q 2022 1Q 2023 2021 2022 2023E 4
Slide 5: Growth Focus Leading to Market Share Gain
Growth Focus Leading to Market Share Gain Migros FMCG Market Share Evolution (%) 8.2 Price Investment +160 bps 15.1 15.8 14.2 +120 bps 9.4 Market 8.6 8.2 Share Gain New Growth Customers Focus 14.2 1Q 1Q 1Q 1Q 1Q 1Q 2021 2022 2023 2021 2022 2023 Total FMCG Modern FMCG 5 Source: Nielsen Note: FMCG: Fa
Slide 6: Financial Overview
Financial Overview
Slide 7: Sales (TL million)
Sales (TL million) Quarterly Yearly 122% 105% 27,183 74,502 Strong traffic growth 12,271 36,272 Omni-channel capabilities 1Q 2022 1Q 2023 2021 2022 7
Slide 8: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Quarterly Yearly 109% 103% 6,550 17,800 Price investments driving 3,134 relatively lower margins 8,755 1Q 2022 1Q 2023 2021 2022 Margin 25.5% 24.1% Margin 24.1% 23.9% 8
Slide 9: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) Quarterly Yearly 84% 1,776 106% 5,968 964 2,894 (w/o IFRS 16) (w/o IFRS 16) 94% 1,375 142% 4,803 1Q 2022 1Q 2023 709 2021 2022 1,987 Margin 7.9% 6.5% 1Q 2022 1Q 2023 Margin 8.0% 8.0% 2021 2022 5.8% 5.1% 5.5% 6.4% 9 * EBITDA after ETB & unused vacation provisions = Op
Slide 10: Net Income (TL million)
Net Income (TL million) Quarterly Yearly 257% 619% 2,580 566 993 Deferred Tax Income 159 1,587 Margin: 359 2.1% 1Q 2022 1Q 2023 2021 2022 Margin 1.3% 2.1% Margin 1.0% 3.5% 10
Slide 11: Net Cash Position
Net Cash Position Total Financial Debt* Net Cash / EBITDA* (TL million) (TL million) 3,561 5,687 2,480 1.1x 816 0.4x 1Q 2022 1Q 2023 1Q 2022 1Q 2023 *w/o IFRS 16 *w/o IFRS 16 11
Slide 12: Online Operations & Strategy Update
Online Operations & Strategy Update
Slide 13: Migros' Online Operations Expanding
Migros’ Online Operations Expanding Quarterly Yearly GMV GMV (TL billion) (TL billion) 133% 4.1 103% 9.8 1.8 4.8 Scheduled Delivery Ultra Fast Delivery # of Service Stores # of Service Stores +116 912 +142 413 1Q 2022 1Q 2023 2021 2022 796 271 Online Grocery Share in Sales in 1Q 2023 (w/o tobacco &
Slide 14: Migros Yemek, Cloud Kitchen, Migen Energy
Migros Yemek Cloud Kitchen Migen Energy • Fast roll-out: Operating in • Currently 20 EV charging stations 122 districts in operational in 9 cities 22 cities • 50+ stations in more than 15 cities to • Targeting 81 cities operate at our premises in 2023 • Supportive to store-customer traffic • Deliver
Slide 15: Summary & Guidance
Summary & Guidance
Slide 16: 1Q 2023 Underlying Performance
1Q 2023 Underlying Performance Net Sales Sales Growth EBITDA Margin Net Profit TL 27,183 122% 6.5%* TL 566 in mn in mn 2022: TL 74,502 mn 2022: 105% 2022: 8.0% 2022: TL 2,580 mn 16 * EBITDA after ETB & unused vacation provisions = Operating Profit + Amortization - Other Income + Other Expenses
Slide 17: 2023 Guidance (Consolidated)
2023 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX 80-85% 7.0-7.5%* ~365 TL ~4,000 new stores mn from 75-80% * EBITDA = Operating Profit + Amortization - Other Income + Other Expenses 17
Slide 18: Appendix
Appendix
Slide 19: Migros at a Glance
Migros at a Glance TL 74.5 bn 45,303 +2,000 49.18% sales in 2022 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 2,991* stores in all 81 cities 69 year 11.1 mn loyal households Money Card 1
Slide 20: Transforming our Ecosystem with New Subsidiaries
Transforming our Ecosystem with New Subsidiaries Online grocery Financial solutions Last-mile delivery Marketing Migros’ Charging services business solution offline & online for electric vehicles & media assets to ready-made meals advertisers and third parties Focusing on the • E-wallet Rapidly grow
Slide 21: Store Portfolio: Physical & Online Network – 1Q 2023
Store Portfolio: Physical & Online Network – 1Q 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 2,773 56 132 26 968 31 March 2022 31 March 2023 Sales area Sales area # of stores # of s
Slide 22: 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 22 122 districts cities Online meal delivery 22
Slide 23: IFRS Consolidated Income Statement Summary – 1Q 2023
IFRS Consolidated Income Statement Summary – 1Q 2023 (TL million) 1Q 2023 1Q 2022 Net Sales 27,183 12,271 Cost of Sales -20,634 -9,137 Gross Profit 6,550 3,134 Operating Expenses -5,204 -2,423 Other Operating Income / (Expense) -396 -345 Operating Profit 949 366 Income / (Expense) from Investment Ac
Slide 24: IFRS Consolidated Balance Sheet Summary – 1Q 2023
IFRS Consolidated Balance Sheet Summary – 1Q 2023 (TL million) 1Q 2023 2022 Current Assets 23,009 20,123 Non-current Assets 17,335 16,301 Total Assets 40,344 36,424 Current Liabilities 29,699 26,010 Non-current Liabilities 5,903 6,324 Total Liabilities 35,602 32,334 Equity 4,742 4,090 Total Liabilit
Slide 25: 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 26: Sustainability
Sustainability
Slide 27: 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 28: Migros Better Future Plan
Migros Better Future Plan TRANSPARENT, RESPONSIBLE AND ETHICAL GOVERNANCE FOR A SUSTAINABLE ECOSYSTEM To adopt the governance approach that suits best to our value-oriented business model and integrated mindset, for all our stakeholders. To create a joint value with our stakeholders integrated into
Slide 29: 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 30: 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