Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — FY2021 Earnings Presentation
36 slides from Migros Ticaret A.s's earnings presentation, 2022
Slide 1: Company Presentation 2021 Results
Company Presentation 2021 Results 1 Omni-channel Retailer
Slide 2: Contents
Contents Sales Expansion Market Share Evolution Financial Overview Online Operations & Strategy Update Summary & Guidance Operations & Financials Details
Slide 3: Sales – 2021 (TL million)
Sales – 2021 (TL million) Sales Sales 4Q 2021 2021 30.6% 26.0% 36,272 Growth fueled by 10,351 omni-channel capability 28,790 7,927 Online growth is here to stay 4Q 2020 4Q 2021 2020 2021 3
Slide 4: Offline & Online Expansion
Offline & Online Expansion Number of Stores Online Service Stores (Total) (Total) +246 Sales Area +338 2,565 (K sqm) 867 2,319 6.2% 1,679 529 1,580 2020* 2021 2020 2021 2020* 2021 4 * 2020 figures include 30 stores abroad. Migros discontinued its international retail operations in 1Q 2021.
Slide 5: CAPEX (TL million)
CAPEX (TL million) % of Sales 1.9% 2.7% ~1,200 969 539 2020 2021 2022E Focusing on IT infrastructure & Accelerated store expansion fulfillment center automation 5
Slide 6: Market Share Evolution
Market Share Evolution Migros FMCG Market Share Evolution (%) -10 bps 20 18 17.2 17.1 16 20 bps 14 12 10 8.9 8 8.7 6 4 2 0 2020 2021 2020 2021 Total FMCG Modern FMCG Source: Nielsen 6 Note: FMCG: Fast Moving Consumer Goods, Modern and total FMCG market include all food-retail formats
Slide 7: Financial Overview
Financial Overview
Slide 8: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Restated* Gross Profit Gross Profit 4Q 2021 2021 35.7% 29.3% 2,422 8,755 1,785 6,771 4Q 2020 4Q 2021 2020 2021 Margin 22.5% 23.4% Margin 23.5% 24.1% Normalized Gross Profit** increase: 30.3% Normalized Gross Profit** increase: 24.4% * Online business expenses &
Slide 9: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) EBITDA EBITDA (w/o IFRS 16) (w/o IFRS 16) 4Q 2021 2021 52.2% 43.5% 582 2,148 382 1,497 EBITDA EBITDA 4Q 2021 2021 35.2% 32.2% 810 3,055 599 4Q 2020 4Q 2021 2,311 2020 2021 4.8% 5.6% 5.2% 5.9% Normalized EBITDA** increase: Normalized EBITDA** increase: 27.5% 22.6% 4Q
Slide 10: Net Cash Position
Net Cash Position Total Financial Debt* Net Cash / EBITDA* (TL million) (TL million) 660 3,839 2,974 0.2x 0.3x No hard-currency 2020 exposure 2021 -0.4x 2020 2021 -604 *w/o IFRS 16 *w/o IFRS 16 10
Slide 11: Online Operations & Strategy Update
Online Operations & Strategy Update
Slide 12: Migros' Online Ecosystem
Migros’ Online Ecosystem Digital Platforms Fast & Scheduled Delivery Scheduled Delivery Fast & Scheduled Delivery Ultra Fast Delivery Non-food e-Commerce 12
Slide 13: Migros' Geographical Coverage in Online
Migros’ Geographical Coverage in Online 81 +40,000 SKU 42 49 ~2,500 SKU cities 710 stores cities 228 stores Delivery within 20 mins 9 +15,000 SKU cities High-end gourmet 70 stores 6 +3,000 SKU cities Fresh categories Direct from farm to consumers 13
Slide 14: Sales Contribution of Online Operations
Sales Contribution of Online Operations Online Sales Online Share (TL billion) in Total Sales 2021 (w/o tobacco & alcohol) 87% 4.8 15.5% 2.6 2020 2021 14
Slide 15: Food Focus
Food Focus pizzaMi-Gy arumdan dein ere, taptaray Macroacenter Aombinede Milk; homemade macraacenter MIGROS LEZZET MEYDANI MiGROS
Slide 16: Technology & Innovation Focus
Technology & Innovation Focus Supply Chain and Efficiency Solutions Self-Service Solutions 7/24 vending machine Self-service formats Shelf replenishment with RPA – Automating repetitive (piloting in 5 cities) image processing (AI) tasks through algorithms Customer interaction Kargopark TARO Blockcha
Slide 17: Focus With New Subsidiaries & Startups
Focus With New Subsidiaries & Startups AI based influencer WAMO Vehicle for logistics 17
Slide 18: Summary & Guidance
Summary & Guidance
Slide 19: Performance Summary 2021
Performance Summary 2021 Performance 2020 Target 2021 Indicators Expansion Program 183 300+ 307 (Number of NEW Stores) Top-Line Sales Growth* 25.9% ~ 23% 26.0% EBITDA Margin* 8.2% 8 – 8.5% 8.4% (with IFRS 16 impact) CAPEX TL 539 mn ~ TL 800 mn TL 969 mn * Restated figures, excluding discontinued for
Slide 20: 2021 Underlying Performance
2021 Underlying Performance Net Sales Domestic EBITDA Net Profit* Sales Growth Margin TL 36,272 26.5% 8.4% TL 359 in million in million consolidated: 26.0% 20 * includes TL 388 mn provision of Competition Authority’s monetary fine which was paid in February 2022
Slide 21: 2022 Guidance (Consolidated)
2022 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX 40-45% 8-8.5% 200+ ~ TL 1,200 new stores mn 21
Slide 22: Migros Sustainability Targets
Migros Sustainability Targets By 2030 By 2030 By 2030 35% 10% 35% Reducing Electricity Reducing Water Reducing Greenhouse Gas Consumption per sqm Consumption per sqm Emission per sqm Base Year: 2019 Base Year: 2019 Base Year: 2019 Progress 2019- 2021: 15% Progress 2019- 2021: 32% Progress 2019- 2021
Slide 23: Appendix
Appendix
Slide 24: 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 2,565 stores in all 81 cities th 67 year 9.7 millio
Slide 25: Offline & Online – 2021
Offline & Online – 2021 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 2,373 57 110 25 867 25
Slide 26: Store Portfolio
Store Portfolio 31 December 2020 31 December 2021 Sales area Sales area 2,373 # of stores # of stores (th sqm) (th sqm) Supermarkets Migros 1,283 1,050 1,437 1,144 (M, MM,MMM) 57 Migros Jet 865 179 936 196 Hypermarkets 5M 55 267 57 269 Wholesale 22 13 25 14 110 Macrocenter Macrocenter 64 44 110 56 D
Slide 27: IFRS Consolidated Income Statement Summary – 2021
IFRS Consolidated Income Statement Summary – 2021 (TL million) 2020 2021 Net Sales 28,790 36,272 Cost of sales -22,019 -27,518 Gross Profit 6,771 8,755 Operating Expenses -5,390 -6,768 Other Operating Income / (Expense) -347 -1,128 Operating Profit 1,034 859 Income / (Expense) from Investment activi
Slide 28: IFRS Consolidated Balance Sheet Summary – 2021
IFRS Consolidated Balance Sheet Summary – 2021 (TL million) 2020 2021 Current Assets 7,331 8,704 Non-current Assets 8,047 9,397 Total Assets 15,378 18,100 Current Liabilities 10,403 13,109 Non-current Liabilities 4,942 4,455 Total Liabilities 15,345 17,564 Equity 33 536 Total Liabilities and Equity
Slide 29: IFRS Consolidated Income Statement Summary - Quarterly
IFRS Consolidated Income Statement Summary - Quarterly (Restated*) (TL million) 2020 2021 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Net Sales 6,348 6,906 7,610 7,927 7,689 8,415 9,817 10,351 Cost of sales -4,762 -5,309 -5,806 -6,142 -5,790 -6,390 -7,408 -7,930 Gross Profit 1,58
Slide 30: Cash Position & Leverage
Cash Position & Leverage Without IFRS 16 With IFRS 16 (Total TL mn) 2020 2021 2020 2021 Cash & Cash Equivalents 3,236 3,635 3,236 3,635 TL 2,502 3,352 2,502 3,352 EUR 81 17 81 17 Financial Debt 3,839 2,974 6,7751 6,0831 TL 2,987 2,905 5,923 6,013 EUR 95 5* 95 5* Net Cash (Net Debt) (604) 660 (3,539)
Slide 31: 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 32: Sustainability
Sustainability
Slide 33: Migros Better Future Plan
Migros Better Future Plan Better for our Better for Innovative Better for our Customers Better for our World Transformation and Stakeholders Employees EXTENSIVE COMBAT AGAINST CLIMATE SUPPORTING EMPLOYEE CHANGE INNOVATIVE HEALTHY LIVING DEVELOPMENT AND Doing studies to measure APPLICATIONS To manage
Slide 34: 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 211 tons less plastic Food Donation: 5.9 million meals Good Agricultural Practices GAP certified
Slide 35: Social Responsibility Efforts
Social Responsibility Efforts Family Clubs Aegean Forest Foundation Growing Healthy with Migros P&G - Turkey Special Olympics 167,000 members / 128 different 554,148 sapling donation F2f conscious shopping trainings to Committee Collaboration trainings in 33 locations in 14 years 176,000 children. 2
Slide 36: 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