Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — 9M 2018 Earnings Presentation
20 slides from Migros Ticaret A.s's earnings presentation, 2018
Slide 1: Migros Ticaret A.Ş. 9M 2018 Financial Results
Migros Ticaret A.Ş. 9M 2018 Financial Results
Slide 2: Contents
CONTENTS Market Share Sales Evolution Capital Expansion Expenditures Ataşehir Migros Financial Guidance Overview Financial Format Results Summary 1
Slide 3: Sales in 9M 2018
Sales in 9M 2018 Consolidated sales growth of 24.4% in 3Q 2018 A very good summer seasonal performance, Foreign subsidiaries performance exceeding expectations in 3Q 2018 The strong growth momentum Sales in 3Q 2018 (TL million) Sales in 9M 2018 (TL million) continued in 3Q 2018… 5,331 13,794 4
Slide 4: Market Share Evolution
Market Share Evolution Market Share Gain Migros FMCG Market Share Evolution (%) Migros accounts for 16.9% of 16.7 16.9 FMCG sales in modern FMCG market and 7.1% market share in total FMCG in Turkey; an improvement of 20 bps and 10 7.1 bps respectively. 7.0 9M17 9M18 9M17 9M18 Total FMCG Market Sha
Slide 5: Expansion
Expansion Net Sales Area Split By Banner - 9M 2018 85 Number of Stores - Total new store openings in 3Q18 219 new store +228 openings in 9M18 2,090 1,862 81 cities operating in every city in the Country 9M 2017 9M 2018 2,090 stores as of 3Q18 Space growth (m2) 5.0% 9M 2018 Sales area 1,494K sqm 4
Slide 6: Capital Expenditures
Capital Expenditures Capex (TL million) Capex as a Percentage 2.2% 2.7% 2.7% 2.6% of Sales 370 399 We have over- achieved our 297 expansion target.. 253 Space optimization in large stores has been continuing as 9M 2017 9M 2018 2016 2017 projected. 54 Uyum and Makro stores were converted into Migro
Slide 7: Consolidated Gross Profit in 9M 2018
Consolidated Gross Profit in 9M 2018 Increase in consolidated gross profit was slightly higher than top-line growth in 3Q 2018 Merger synergies and new store acquisitions facilitated the strong gross profitability The more efficient Gross Profit 3Q (TL million) Gross Profit in 9M (TL million) su
Slide 8: Consolidated EBITDA(R) in 9M 2018
Consolidated EBITDA(R) in 9M 2018 EBITDA 3Q (TL million) EBITDA 9M (TL million) More than 388 874 297 646 7% EBITDA margin in 3Q18 driven by better sales performance 3Q 2017 3Q 2018 9M 2017 9M 2018 and strong gross Margin 6.9% 7.3% Margin 5.7% 6.3% profitability EBITDAR 3Q (TL million) EBITDAR 9M (T
Slide 9: Track Record of Deleveraging
Track Record of Deleveraging Migros 9M 2018 Cash and Leverage Position Cash & Debt Items Total TL m TL m EUR m Cash & Cash equivalents 1,858 1,579 40 Financial Debt* 5,192 916 615 Net Debt 3,334 Net Debt / EBITDA LTM 3.0x * Based on amortised costing as indicated in financial statements Deleveraging
Slide 10: Expectations and Guidance
Expectations and Guidance 2018 Guidance [Consolidated] 2018E Previous Guidance New Guidance Sales Growth ~20% ~22% EBITDA Margin 5.5-6.0% 6.0% + Expansion Target 200+ 230+ new stores new stores CAPEX TL 440 mn ~ TL 440 mn Management Agenda in 2018 Vigilant cost management Continued emphasis on p
Slide 11: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 12: Summary of Income Statement – 9M 2018
SUMMARY OF INCOME STATEMENT – 9M 2018 IFRS Consolidated Income Statement Summary (TL Million) 9M 2018 9M 2017 Net Sales 13,793.9 11,321.8 Cost of sales -9,967.0 -8,319.7 Gross Profit 3,826.9 3,002.1 Operating Expenses -3,243.6 -2,616.1 Other Operating Income / (Expense) -282.2 -170.1 Operating Profi
Slide 13: Summary of Balance Sheet – 9M 2018
SUMMARY OF BALANCE SHEET – 9M 2018 IFRS Consolidated Balance Sheet Summary (TL Million) 9M 2018 2017 Current Assets 4,136.8 3,776.3 Non-current Assets 6,682.4 6,526.4 Total Assets 10,819.2 10,302.7 Current Liabilities 6,180.3 5,516.1 Non-current Liabilities 4,380.8 3,259.4 Total Liabilities 10,561.1
Slide 14: Migros, Largest National Supermarket Chain
Migros Migros, Largest National Supermarket Chain Number of stores: 1,980 including 1,153 Supermarkets. 58 Hypermarkets, and 769 Migros Jet stores, Penetration: 81 cities ─ (40*-4,500) sqm / (1,800* – 18,000) SKUs ─ Differentiated offering and service on fresh product categories ─ Wide branded a
Slide 15: Macrocenter
Macrocenter Exclusive shopping Number of stores: 50 400 - 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 16: Wholesale & Food Service
Wholesale & Food Service Focus on Horeca Penetration Currently operating in 7 regions through dedicated sales team. Dedicated warehouses and customer delivery 18 Wholesale stores Penetration: 13 cities 15
Slide 17: 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 18: 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: 26 Owns 1 shopping mall in Almaty
Slide 19: Store Portfolio
Store Portfolio 9M 2017 9M 2018 1,922 # of stores # of stores Supermarkets (incl. 769 Migros Jet stores) Supermarkets 1,694 1,922 Hypermarkets 71 58 58 Hypermarkets Wholesale 16 18 Macrocenter 43 50 50 Macrocenter stores Domestic Total 1,824 2,048 Upscale format Ramstores 38 42 42 Grand Total 1,862
Slide 20: 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