Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — 9M 2022 Earnings Presentation
35 slides from Migros Ticaret A.s's earnings presentation, 2022
Slide 1: Company Presentation 9M 2022 Financial Results
Company Presentation 9M 2022 Financial Results
Slide 2: Contents
Contents Sales Expansion Market Share Evolution Financial Overview Strategy Update & Online Operations Summary & Guidance Operations & Financials Details
Slide 3: Sales (TL million)
Sales (TL million) Quarterly Year-to-Date (9M) 122% 93% Strong tourism season 21,819 50,054 Strong back-to-school 25,921 9,817 performance Competitive pricing strategies 3Q 2021 3Q 2022 9M 2021 9M 2022 3
Slide 4: Offline & Online Expansion
Offline & Online Expansion Number of Stores Online Service Stores (Total) (Total) +266 2,750 +83 931 2,484 Sales Area 848 (K sqm) 1,645 6% 1,739 9M 2021 9M 2022 9M 2021 9M 2022 9M 2021 9M 2022 4
Slide 5: CAPEX (TL million)
CAPEX (TL million) % of Sales % of Sales 1.9% 2.7% 2.0% 1.8% ~2,200 899 508 969 539 2020 2021 2022E 9M 2021 9M 2022 TL 899 million CAPEX in 9M 2022 o 55% new stores & DCs o 45% maintenance, IT, energy projects, other 5
Slide 6: Market Share Evolution
Market Share Evolution Migros FMCG Market Share Evolution (%) +10 bps 15.3 15.5 15.6 +40 bps Resilient positioning 8.2 8.4 8.8 in the market despite trading-down environment 9M 9M 9M 9M 9M 9M 2020 2021 2022 2020 2021 2022 Total FMCG Modern FMCG Source: Nielsen 6 Note : FMCG: Fast Moving Consumer Goo
Slide 7: Financial Overview
Financial Overview
Slide 8: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Quarterly Year-to-Date (9M) 123% 5,362 98% 12,545 6,333 2,408 3Q 2021 3Q 2022 9M 2021 9M 2022 Margin 24.5% 24.6% Margin 24.4% 25.1% 8
Slide 9: Consolidated EBITDA after ETB & unused vacation provisions (TL million)
Consolidated EBITDA after ETB & unused vacation provisions (TL million) Quarterly Year-to-Date (9M) 124% 2,037 106% 4,417 908 2,149 (w/o IFRS 16) (w/o IFRS 16) 162% 1,741 145% 3,594 3Q 2021 3Q 2022 9M 2021 9M 2022 1,469 665 Margin 9.2% 9.3% Margin 8.3% 8.8% 3Q 2021 3Q 2022 9M 2021 9M 2022 9.2%** 9.3
Slide 10: OPEX (TL million)
OPEX (TL million) Quarterly Year-to-Date (9M) Energy Energy Costs Costs 85% 110% 3,641 8,976 4,851 Significant increase in energy costs 1,736 will accelerate investments on 212% solar panel systems 199% 157 491 340 1,016 3Q 2021 3Q 2022 9M 2021 9M 2022 Margin 17.7% 16.7% Margin 18.7% 17.9% Energy En
Slide 11: Net Cash Position
Net Cash Position Total Financial Debt* Net Cash / EBITDA* (TL million) (TL million) Favorable borrowing conditions: 2,903 4,297 2-years avg. maturity & 2,754 18% avg. interest cost 1.0x Normalization in cash generation in 4Q 449 0.2x 9M 2021 9M 2022 9M 2021 9M 2022 *w/o IFRS 16 *w/o IFRS 16 11
Slide 12: Strategy Update & Online Operations
Strategy Update & Online Operations
Slide 13: Food & Service Focus Proposition to Increase Wallet Share
Food & Service Focus Proposition to Increase Wallet Share Home cooking Shopping ingredients from brick-and-morter stores & online shopping Dining at home, work Ordering meal via online delivery platform, MigrosOne 13
Slide 14: Migros' Online Operations Expanding
Migros’ Online Operations Expanding Migros Sanal Migros Hemen Market # of Service Stores # of Service Stores +83 +139 710 335 627 196 81 cities +35,000 SKU 81 ~2,500 SKU cities Delivery within minutes 9M 2021 9M 2022 9M 2021 9M 2022 Macroonline 10 +15,000 SKU # of Service Stores High-end gourmet cit
Slide 15: Sales Contribution of Online Operations
Sales Contribution of Online Operations Quarterly Year-to-Date (9M) GMV GMV (TL billion) (TL billion) 139% 2.6 89% 6.4 1.1 3.4 3Q 2021 3Q 2022 9M 2021 9M 2022 Online Share in Total Sales 9M 2022 (w/o tobacco & alcohol) • Growth without VAT: 3Q22: 153% & 9M22: 99% 15.2% 15
Slide 16: Migros Yemek
Migros Yemek Online Meal Delivery Platform Launched in June 2022 73% Fast roll-out: Operating in 34 districts in 7 big cities as of September 10+ cities with significant coverage by year-end 2022 Delivery by Migros option to go live by early 2023 16
Slide 17: Summary & Guidance
Summary & Guidance
Slide 18: 9M 2022 Underlying Performance
9M 2022 Underlying Performance Net Sales Sales Growth EBITDA Margin Net Profit TL 50,054 93% 8.8%* TL 1,415 in million after ETB & in million unused vacation provisions 3Q 2022: 122% 9.3%** 3Q 2022: TL 812 mn * EBITDA after ETB & unused vacation provisions = Operating Profit + Amortization - Other I
Slide 19: Key Takeaways
Key Takeaways Operational Performance Stronger Balance Sheet • Triple-digit topline growth in 3Q22 • Strong cash generation • Improved operational profitability • Supporting suppliers o Despite energy & logistics cost pressures under current credit conditions • Net income margin: 2.8% in 9M22 (9M21:
Slide 20: 2022 Guidance (Consolidated)
2022 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX ~100% ~8.5%* ~365 ~TL 2,200 new stores mn from 80-85% from ~8.0% from ~350 from ~TL 1,650 mn 20 * EBITDA after ETB & unused vacation provisions = Operating Profit + Amortization - Other Income + Other Expenses
Slide 21: 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 2020-2021: 4.58% 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 22: Appendix
Appendix
Slide 23: Migros at a Glance
Migros at a Glance TL 36.3 billion 40,470 1,500+ 49.18% sales in 2021 employees suppliers free float The only food retailer listed in BIST Sustainability Index for 8 years in a row Included BIST Corporate Governance Index since 2015 Business Option th 2,750 stores in all 81 cities 68 year 10.1 milli
Slide 24: Transforming our Ecosystem with New Subsidiaries
Transforming our Ecosystem with New Subsidiaries Online business Focused on online grocery Focusing on gearing up the business and ready-made meals development of Migros’ Migros shareholding: 100% online channels Fintech company E-wallet, money transfer, Financial solutions utility payment, BNPL and
Slide 25: Offline & Online – 9M 2022
Offline & Online – 9M 2022 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 2,541 56 127 26 931 25
Slide 26: Store Portfolio
Store Portfolio 2,541 30 September 2021 30 September 2022 Supermarkets Sales area Sales area # of stores # of stores (th sqm) (th sqm) 56 Migros 1,393 1,119.3 1,542 1,195.2 (M, MM,MMM) Hypermarkets Migros Jet 916 190.8 999 210.2 5M 57 269.3 56 259.3 127 Macrocenter Wholesale 24 13.9 26 14.7 Macrocen
Slide 27: IFRS Consolidated Income Statement Summary – 9M 2022
IFRS Consolidated Income Statement Summary – 9M 2022 (TL million) 9M 2022 9M 2021 Net Sales 50,054 25,921 Cost of Sales -37,509 -19,588 Gross Profit 12,545 6,333 Operating Expenses -8,976 -4,851 Other Operating Income / (Expense) -970 -505 Operating Profit 2,598 976 Income / (Expense) from Investmen
Slide 28: IFRS Consolidated Balance Sheet Summary – 9M 2022
IFRS Consolidated Balance Sheet Summary – 9M 2022 (TL million) 9M 2022 2021 Current Assets 17,198 8,704 Non-current Assets 11,247 9,397 Total Assets 28,445 18,100 Current Liabilities 21,253 13,109 Non-current Liabilities 5,160 4,455 Total Liabilities 26,413 17,564 Equity 2,032 536 Total Liabilities
Slide 29: Cash Position & Leverage
Cash Position & Leverage Without IFRS 16 With IFRS 16 (Total TL mn) 9M 2021 9M 2022 9M 2021 9M 2022 Cash & Cash Equivalents 3,202 7,200 3,202 7,200 TL 2,911 6,881 2,911 6,881 USD 7 13 7 13 Financial Debt 2,754 2,903 5,9421 7,0871 TL 2,706 2,903 5,895 7,084 EUR 5* 0 5* 0 Net Cash (Net Debt) 449 4,297
Slide 30: 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 31: Sustainability
Sustainability
Slide 32: 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 33: Waste Management & Biodiversity Conservation
Waste Management & Biodiversity Conservation Combating Food Waste* Combating Plastic Waste* Day-end clearance on perishables: Plastic bags: 59% 3,967 tons of food Plastic Initiative from the Business World 247 tons less plastic in 1 year Food Donation: 5.9 million meals Good Agricultural Practices G
Slide 34: Social Responsibility Efforts
Social Responsibility Efforts Family Clubs Aegean Forest Foundation Growing Healthy with Migros P&G - Turkey Special Olympics 227,000 members / 158 different 576,395 sapling donation F2f conscious shopping trainings to Committee Collaboration trainings in 33 locations in 15 years 176,000 children. 2
Slide 35: 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