Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — 9M 2023 Earnings Presentation
33 slides from Migros Ticaret A.s's earnings presentation, 2023
Slide 1: Company Presentation 9M 2023 Financial Results
Company Presentation 9M 2023 Financial Results
Slide 2: Contents
Contents Market Share Evolution Expansion Financial Overview Online Operations & Strategy Update Summary & Guidance Operations & Financials
Slide 3: Migros' market share gain continues
Migros’ market share gain continues Migros FMCG Market Share Evolution (%) 8.2 Growth Focus Omni channel, Multi format +140 bps 16.3 15.1 14.9 +80 bps 9.4 Market 8.4 8.6 Price Share Gain Further Investments penetration in rural districts 14.2 9M 9M 9M 9M 9M 9M 2021 2022 2023 2021 2022 2023 Total FMC
Slide 4: Physical & Online Expansion
Physical & Online Expansion Number of Stores Online Service Stores (Total) (Total) +455 3,205 +122 1,053 2,750 Sales Area 931 (K sqm) 9.1% 1,897 1,739 9M 2022 9M 2023 9M 2022 9M 2023 9M 2022 9M 2023 4
Slide 5: CAPEX (TL million)
CAPEX (TL million) % of Sales % of Sales 1.8% 3.0% 2.7% 3.0% 3,014 2,262 969 899 9M 2022 9M 2023 2021 2022 5
Slide 6: Financial Overview
Financial Overview
Slide 7: Consolidated Sales (TL million)
Consolidated Sales (TL million) Sales Sales 91% 41,722 103% 101,856 21,819 50,054 Strong year-to-date sales growth 3Q 2022 3Q 2023 9M 2022 9M 2023 7
Slide 8: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Gross Profit Gross Profit 87% 92% 9,998 24,051 5,349 12,524 Price investments across all categories 3Q 2022 3Q 2023 9M 2022 9M 2023 Margin 24.5% 24.0% Margin 25.0% 23.6% 8
Slide 9: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) EBITDA EBITDA 3,036 6,995 49% 58% 2,037 4,417 EBITDA EBITDA (w/o IFRS 16) (w/o IFRS 16) 45% 2,518 57% 5,631 1,741 3,594 3Q 2022 3Q 2023 9M 2022 9M 2023 Margin 9.3% 7.3% 3Q 2022 3Q 2023 Margin 8.8% 6.9% 9M 2022 9M 2023 8.0% 6.0% 7.2% 5.5% 9 * EBITDA after ETB & unused
Slide 10: Net Income (TL million)
Net Income (TL million) Net Income Net Income 2,185 201% 4,266 169% 542* 830* One-off One-off income income 812 1,642 3,435 Margin: 1,415 Margin: 3.9% 3.4% 3Q 2022 3Q 2023 9M 2022 9M 2023 Margin 3.7% 5.2% Margin 2.8% 4.2% 10 * Mainly from asset sales & deferred tax impact
Slide 11: Net Cash Position
Net Cash Position Total Financial Debt* Net Cash / EBITDA* (TL million) (TL million) 2,903 12,106 2,708 Strong cash generation from operations 4,297 1.8x 1.0x 9M 2022 9M 2023 9M 2022 9M 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 GMV GMV (TL billion) (TL billion) 128% 5.9 132% 14.9 2.6 6.4 Scheduled Delivery Ultra Fast Delivery # of Service Stores # of Service Stores +230 1,022 +169 504 3Q 2022 3Q 2023 9M 2022 9M 2023 792 335 Online Grocery Share in Sales in 9M 2023 (w/o tobacco & alcohol)
Slide 14: Migros Yemek Cloud Kitchen, One Kitchen
Migros Yemek Cloud Kitchen, One Kitchen Fast roll-out: Operating in all Operating with 35 cities cloud kitchens & 2 MigrosOne kitchens Own Delivery Model: Operating in 33 districts in 10 15 own brands cities Rich selection of Acquisition of 50% ready made of CRC A.Ş. meals offering in (GurmePack) of
Slide 15: Moneypay Migen Energy
Moneypay Migen Energy 1,2 million+ registered MoneyPay users Currently 55 EV charging stations EV Pay with MoneyPay e-wallet • Pay with QR at all Migros store network & all other Operational in 19 cities third party merchants Pay with e-wallet in all verticals of Migros Online ~ 150 stations by 2024
Slide 16: Paket Taxi Mimeda
Paket Taxi Mimeda Online Insight Instore Retail Media Digital Content Last mile solution for online Migros, Media, Data platforms & restaurants 25+ years CRM activity, since 1997 5,000+ riders 16 Offering data driven analysis 550+ vehicle fleet 16
Slide 17: Mion
Mion A wide range of health & beauty products 9,000+ SKUs with affordable prices Currently 30 stores Mion online channel launched in August 2023 ~150 stores by the end of 2024 17
Slide 18: Migros' Subsidiaries and follow-up KPIs
Migros’ Subsidiaries and follow-up KPIs Migros’ offline & Charging services for Online grocery & meal Fintech Financial Last-mile delivery online media assets electric vehicles business solutions solution Media EV Online Fintech Logistics assets services Business company start-up # of Moneypay Users
Slide 19: Summary & Guidance
Summary & Guidance
Slide 20: 9M 2023 Underlying Performance
9M 2023 Underlying Performance Net Sales Sales Growth EBITDA Margin* Net Profit** TL 101,856 103% 6.9% TL 4,266 in mn in mn 2022: TL 74,502 mn 2022: 105% 2022: 8.0% 2022: TL 2,580 mn 20 * EBITDA after ETB & unused vacation provision = Operating Profit + Amortization - Other Income + Other Expenses *
Slide 21: 2023 Guidance (Consolidated)
2023 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX ~95% 6.5-7.0%* 500+ TL ~6,000 new stores mn from ~ 90% maintained from ~ 450 maintained * EBITDA = Operating Profit + Amortization - Other Income + Other Expenses 21
Slide 22: Appendix
Appendix
Slide 23: Migros at a Glance
Migros at a Glance TL 126.3 bn 51,275 +2,000 49.18% sales 9M23 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 3,205 stores in all 81 cities As of 3Q23 11.4 mn households, Money Card As of
Slide 24: Store Portfolio: Physical & Online Network – 9M 2023
Store Portfolio: Physical & Online Network – 9M 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 2,956 56 148 27 1,053 30 September 2022 30 September 2023 Sales area Sales area # of sto
Slide 25: Migros One - Online Platform
Migros One - Online Platform 81 cities 20,000+ SKUs 9 10,000+ SKUs Scheduled Delivery cities Upscale grocery 5 3,000+ SKUs cities Fresh categories Direct from farm to consumers Express Delivery 81 ~2,500 SKUs cities Delivery in 15 minutes 81 Cosmetic & Beauty cities 7,000+ SKUs 81 all cities cities
Slide 26: IFRS Consolidated Income Statement Summary – 9M 2023
IFRS Consolidated Income Statement Summary – 9M 2023 (TL million) 9M 2023 9M 2022 Net Sales 101,856 50,054 Cost of Sales -77,805 -37,530 Gross Profit 24,051 12,524 Operating Expenses -18,556 -8,955 Other Operating Income / (Expense) -1,563 -1,248 Operating Profit 3,932 2,321 Income / (Expense) from
Slide 27: IFRS Consolidated Balance Sheet Summary – 9M 2023
IFRS Consolidated Balance Sheet Summary – 9M 2023 (TL million) 9M 2023 2022 Current Assets 35,306 20,123 Non-current Assets 20,689 16,301 Total Assets 55,995 36,424 Current Liabilities 40,376 26,010 Non-current Liabilities 7,412 6,324 Total Liabilities 47,788 32,334 Equity 8,207 4,090 Total Liabilit
Slide 28: 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 29: Sustainability
Sustainability
Slide 30: Sustainability Targets
Sustainability Targets Reducing Reducing Increasing Greenhouse Reducing Food Water Women Participation Gas Emission Waste Consumption in Management 42% 50% 10% 27-33% by 2030 by 2030 by 2030 by 2026 (base year 2020) (base year 2018) (base year 2021) (base year 2018) 30
Slide 31: 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 32: 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 33: 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