Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — Q1 2018 Earnings Presentation
22 slides from Migros Ticaret A.s's earnings presentation, 2018
Slide 1: Migros Ticaret A.Ş. 1Q 2018 Financial Results
Migros Ticaret A.Ş. 1Q 2018 Financial Results
Slide 2: 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
Slide 3: Contents
CONTENTS Market Share Sales Evolution Capital Expansion Expenditures Ataşehir Migros Financial Guidance Overview Financial Format Results Summary 2
Slide 4: Sales in 1Q 2018
Sales in 1Q 2018 Consolidated sales turnover increased by 26.5% and reached TL 3,940 million in 1Q2018 Strong sales performance of Migros stores continued 17.9% Domestic sales growth w/o Kipa operations Sales 1Q (TL million) Sales in 2017 (TL million) 3,940 15,344 3,114 11,059 Strong growth mome
Slide 5: Market Share Evolution
Market Share Evolution Market Share Gain FMCG Market Share Evolution (%) Migros improved its market share 16.1 by 210 bps in modern FMCG 14.0 market and 80 bps in total FMCG market y-o-y. 5.8 6.6 Migros accounts for 16.1% of FMCG sales in modern FMCG market and 6.6% market share in total FMCG in
Slide 6: Organic Expansion
Organic Expansion Net Sales Area Split By Banner - 1Q 2018 51 new store Number of Stores - Total openings in 1Q18 81/81 operating now in all cities in +137 Turkey* 1,933 1,796 17 new store openings in April 2018 1Q 2017 1Q 2018 1,933 number of stores Avg. space as of 1Q18 growth 6.8% 3.7% w/o Kipa *
Slide 7: Capital Expenditures
Capital Expenditures Capex (TL million) 4 Kipa stores Capex as a Percentage 2.0% 2.0% 2.7% 2.6% Space optimization of Sales 77 399 completed in 2017 62 297 8 Kipa stores Space optimization completed so far in 2018 1Q 2017 1Q 2018 2016 2017 TL 400m Targeted consolidated capex in 2018 6
Slide 8: Consolidated Gross Profit in 1Q 2018
Consolidated Gross Profit in 1Q 2018 Consolidated Gross profit reached TL 1,077 million with an increase of 31.8% in 1Q 2018 2018 FY gross margin is expected to converge to historical averages Solid Gross Profit Gross Profit 1Q (TL million) Gross Profit in 2017 (TL million) Generation 1,077 4,08
Slide 9: Consolidated EBITDA(R) in 1Q 2018
Consolidated EBITDA(R) in 1Q 2018 EBITDA 1Q (TL million) EBITDA 2017 (TL million) 211 872 156 677 35.5% EBITDA increase in 1Q18 1Q 2017 1Q 2018 2016 2017 Margin 5.0% 5.4% Margin 6.1% 5.7% EBITDAR (TL million) EBITDAR 2017 (TL million) 11.5% EBITDAR 423 1,634 margin in 1Q18 317 1,231 w/o Kipa operati
Slide 10: Track Record of Deleveraging
Track Record of Deleveraging Migros 1Q 2018 Cash and Leverage Position Cash & Debt Items Total TL m TL m EUR m Cash & Cash equivalents 1,197 1,043 32 Financial Debt* 3,948 872 632 Net Debt 2,751 Net Debt / EBITDA LTM 3.0x * Based on amortised costing as indicated in financial statements Net debt/E
Slide 11: Expectations and Guidance
Expectations and Guidance 2018 Guidance [consolidated] Sales Growth 15-18% EBITDA Margin 5.5-6.0% Expansion Target 120-150 new stores Management Agenda in 2018 Merger of Migros & Kipa Total gross Euro debt decreased Focus on digitalization of Space optimisation in large by almost 6% in 1Q18
Slide 12: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 13: Summary of Income Statement – 1Q 2018
SUMMARY OF INCOME STATEMENT – 1Q 2018 IFRS Consolidated Income Statement Summary (TL Million) 1Q 2018 1Q 2017 Net Sales 3,940.1 3,113.6 Cost of sales -2,863.1 -2,296.3 Gross Profit 1,077.1 817.3 Operating Expenses -962.5 -742.1 Other Operating Income / (Expense) -59.7 -44.1 Operating Profit 54.9 31.
Slide 14: Summary of Balance Sheet – 1Q 2018
SUMMARY OF BALANCE SHEET – 1Q 2018 IFRS Consolidated Balance Sheet Summary (TL Million) 1Q 2018 2017 Current Assets 3,251.7 3,776.3 Non-current Assets 6,539.6 6,526.4 Total Assets 9,791.3 10,302.7 Current Liabilities 4,988.6 5,516.1 Non-current Liabilities 3,514.2 3,259.4 Total Liabilities 8,502.8 8
Slide 15: Migros, Largest National Supermarket Chain
Migros Migros, Largest National Supermarket Chain Number of stores: 1,668 including 447 5M, MMM & MM stores and 1,221 Migros Jet & M stores, Penetration: 81 cities ─ (40*-4,500) sqm / (1,800* – 18,000) SKUs ─ Differentiated offering and service on fresh product categories ─ Wide branded assortme
Slide 16: Macrocenter
Macrocenter Exclusive shopping Number of stores: 46 400 - 2,500 sqm / 10,000 SKUs ─ Upscale gourmet store serving with strong brand loyalty ─ Wide product range in delicatessen, appetizers and spirits. Premium quality in fresh products ─ Complementary and premium non-food Customized service su
Slide 17: Wholesale & Food Service
Wholesale & Food Service Focus on Horeca Penetration Currently operating in 7 regions through dedicated sales team. Dedicated warehouses and customer delivery 17 Wholesale stores 31.03.2018 Penetration: 12 cities 16
Slide 18: Kipa
Kipa Focused on the Western regions of Turkey Number of stores: 162 Space optimization in 4 Kipa stores completed in 2017 Space optimization in 8 more stores completed so far in 2018, 6 more in 2018 pipeline Product portfolio optimization is in progress 31.03.2018 Penetration: 20 cities 17
Slide 19: Online Business
Online Business Turkey’s first and leading e-commerce web site in food retail Top-line growth is significantly higher than the Company average Improved operational efficiency through picking automation Direct delivery from stores (111 stores in 28 cities across Turkey) Healthy Organic Natura
Slide 20: International Operations
International Operations Kazakhstan Macedonia 1.3% of consolidated sales from Kazakh operations 1.5% of consolidated sales from Macedonian operations Number of stores: 16, including 2 hypermarkets, 13 supermarkets and 1 Macrocenter. Number of supermarkets: 24 Owns 1 shopping mall in Almaty
Slide 21: Store Portfolio
Store Portfolio 1,221 1Q 2017 1Q 2018 Migros Jet & M stores # of stores # of stores Proximity stores Migros (M, MM,MMM) 923 1,002 447 Migros Jet 587 645 MM, MMM & 5M stores Large supermarkets 5M 23 21 Wholesale 15 17 46 Macrocenter stores Macrocenter 40 46 Upscale format Kipa 170 162 162 Domestic To
Slide 22: Ownership Structure
Ownership Structure JV Structure between BC Partners & Anadolu Group Current Shareholding Structure AG Anadolu BC Partners Grubu Holding A.Ş. & related funds MH Kenan Moonlight Perakendecilik Investments Free Float Capital S.A. ve Ticaret A.Ş. S.A. 26.8% 8.07% 50.00% 15.13% Migros Ticaret A.Ş. Moo