Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — 9M 2019 Earnings Presentation
26 slides from Migros Ticaret A.s's earnings presentation, 2019
Slide 1: Migros Ticaret A.Ş. 9M 2019 Financial Results
Migros Ticaret A.Ş. 9M 2019 Financial Results Migros Sustainability Report 2018
Slide 2: Contents
CONTENTS Market Share Sales Evolution Capital Expansion Expenditures Ataşehir Migros Financial Management Overview Overview Financial Format Results Summary 1
Slide 3: Sales in 9M 2019
Sales in 9M 2019 ▪ Migros recorded 24.7% sales growth in 9M 2019 ▪ Strong customer traffic at existing Migros stores 21.3% Sales in 3Q (TL million) Sales in 9M (TL million) top-line growth in 3Q19 despite 6,464 17,195 relatively low space growth of 1.6% y-o-y 5,331 13,794 3Q 2018 3Q 2019 9M 2018 9M
Slide 4: Market Share Evolution
Market Share Evolution Market Share Gain Migros FMCG Market Share Evolution (%) ◼ 80 bps market share gain in 17.7 16.9 modern FMCG market. ◼ 80 bps market share gain in total FMCG market. 7.9 7.1 Source: Nielsen Note: FMCG stands for Fast Moving Consumer Goods; 9M 2019 9M 2018 9M 2019 9M 2018 Moder
Slide 5: Expansion
Expansion Number of Stores - Total Net Sales Area Split By Banner - 9M 2019 96 new store +75 openings in 9M 2019 2,165 2,090 9 new store openings in October 2019 9M 2018 9M 2019 81 cities operating in every Space growth (m2) 1.6%* city in the Country Net Sales Area (3Q19) 1,517 K sqm 2,165 number of
Slide 6: Capital Expenditures
Capital Expenditures Capex (TL million) % of Sales 2.7% 2.6% 2.6% 1.2% 2.7% 488 Cautious stand in 399 370 capex plans 297 continues 208 Space optimization in large stores 2016 2017 2018 9M 2018 9M 2019 continues 21 completed since Kipa acquisition (including 7 in the current year) 5
Slide 7: Consolidated Gross Profit in 9M 2019
Consolidated Gross Profit in 9M 2019 Gross Profit 3Q (TL million) Gross Profit in 9M (TL million) 1,772 4,690 More value to the 1,749 4,628 customers through 1,387 3,553 reduced prices in fruits & vegetables and fresh meat 3Q 2018 3Q 2019 3Q 2019 9M 2018 9M 2019 9M 2019 [IFRS 16] [IFRS 16] Margin 26
Slide 8: Consolidated EBITDA(R) in 9M 2019
Consolidated EBITDA(R) in 9M 2019 EBITDA in 3Q (TL million) EBITDA 9M (TL million) 698 1,774 7.8% 503 1,214 EBITDA margin in 383 859 3Q19, w/o IFRS 16 impact 3Q 2018 3Q 2019 3Q 2019 9M 2018 9M 2019 9M 2019 [IFRS 16] [IFRS 16] Margin 7.2% 7.8% 10.8% Margin 6.2% 7.1% 10.3% EBITDAR 3Q (TL million) EBIT
Slide 9: Enhancing online penetration
Enhancing online penetration 2019 Initiatives 1 Six online channels ▪ Same day delivery, ▪ Delivery within 30 minutes ▪ Over 28,000 SKUs, only ▪ Service available in 48 cities, ▪ Same prices with Migros ▪ Night delivery between 22:00- stores 24:00 in selected regions ▪ Over 1,800 SKUs 2 ▪ Delivery w
Slide 10: Deleveraging
Deleveraging Migros 9M 2019 Cash and Leverage Position Gross Euro Debt (in million) Total TL m Cash & Debt Items Total TL m [w/ IFRS 16] Cash & Cash equivalents 2,282 2,282 692 TL m 1,598 1,598 EUR m 111 111 672 Financial Debt 4,344 7,5221 611 TL m 1,484 4,662 EUR m 462 462 462 432 Net Debt 2,062 5,
Slide 11: Expectations and Guidance
Expectations and Guidance 2019 Guidance [Consolidated] 2019E Guidance Sales Growth 23-25% EBITDA Margin 6-6.5%* Expansion Target 125+ new stores CAPEX ~TL 320 mn * excluding IFRS 16 impact Management Agenda in 2019 Growth & Operational Profitability Online Business Deleveraging • Operational perform
Slide 12: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 13: Summary of Income Statement – 9M 2019
Summary of Income Statement – 9M 2019 IFRS Consolidated Income Statement Summary (TL Million) 9M 2019 9M 2018 Net Sales 17,195 13,794 Cost of sales -12,504 -10,240 Gross Profit 4,690 3,553 Operating Expenses -3,635 -2,985 Other Operating Income / (Expense) -358 -282 Operating Profit 697 286 Income /
Slide 14: Summary of Balance Sheet – 9M 2019
Summary of Balance Sheet – 9M 2019 IFRS Consolidated Balance Sheet Summary (TL Million) 9M 2019 2018 Current Assets 5,127 4,474 Non-current Assets 9,289 6,411 Total Assets 14,415 10,885 Current Liabilities 7,448 6,675 Non-current Liabilities 6,512 3,575 Total Liabilities 13,960 10,250 Equity 455 635
Slide 15: Migros at a Glance
Migros at a Glance 65th Year! ◼ Operating in 3 countries Geographical Footprint — Turkey (81 cities out of 81) — North Macedonia and Kazakhstan (44 stores) ◼ 2,044 (supermarkets) ◼ 56 (upscale supermarkets) ◼ 21 (wholesale and foodservice stores) ◼ 44 (international stores) 2,165 Stores1 ◼ Migros On
Slide 16: Three-year Summary
Three-year Summary Consolidated Sales (TL million) 18,717 15,344 11,059 9,390 Consolidated sales & EBITDA 2015 2016 2017 2018 doubled in 3 years Consolidated EBITDA (TL million) 1,217 872 677 602 2015 2016 2017 2018 15
Slide 17: Migros
Migros Migros, Largest National Supermarket Chain ◼ Number of stores: 2,044 including 1,170 Supermarkets. 56 Hypermarkets, and 818 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 18: Macrocenter
Macrocenter Exclusive shopping ◼ Number of stores: 56 ◼ 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 19: Wholesale & Food Service
Wholesale & Food Service Focus on Horeca Penetration ◼ Currently operating in 7 regions through dedicated sales team. ◼ Dedicated warehouses and customer delivery ◼ 21 Wholesale stores Penetration: 16 cities 18
Slide 20: International Operations
International Operations Kazakhstan North Macedonia ◼ 1.1% of consolidated sales from Kazakh operations ◼ 1.4% of consolidated sales from Macedonian operations ◼ Number of stores: 17, including 2 hypermarkets and ◼ Number of supermarkets: 27 15 supermarkets. ◼ Owns 1 shopping mall in Skopje ◼ Owns 1
Slide 21: Store Portfolio
Store Portfolio September 30, 2018 September 30, 2019 1,988 # of stores Sales area (th sqm) # of stores Sales area (th sqm) Supermarkets (incl. 818 Migros Jet stores) Migros (M, MM,MMM) 1,153 959.8 1,170 980.4 56 Migros Jet 769 149.4 818 165.7 Hypermarkets 5M 58 292.6 56 274.1 56 Wholesale 18 10.3 2
Slide 22: Ownership Structure
Ownership Structure Migros Ticaret A.S. Direct Shareholding Structure Indirect Shareholding Structure AG Anadolu Grubu Holding BC Partners A.Ş. & related funds AG Anadolu BC Partners Grubu Holding Free Float 100.00% A.Ş. & related funds 26.81% 50.00% 23.19% MH Kenan Moonlight Migros Ticaret Perakend
Slide 23: Sustainability
Sustainability Carbon Footprint Water Management Energy Management Our Target: Reducing daily carbon Our Target: Reducing daily water Our Target: Reducing daily energy emissions per sales area (m2) by 25% consumption per sales area (m2) by 5% consumption per sales area (m2) by 17% in 2023 compared t
Slide 24: Waste Management & Biodiversity Conservation
Waste Management & Biodiversity Conservation Combating Food Waste Combating Plastic Waste We supported 1,124,023 meals to be delivered to The amount of plastic we use in our 40 different those in need thanks to Respecting Food Project private label products in the detergent and paper category contai
Slide 25: Pillars of Migros Sustainability Vision
Pillars of Migros Sustainability Vision Migros Better Future Plan Consider compliance with human rights in all our activities, and to respect gender and equal Measure, reduce, reuse or recycle waste from opportunities; our operations; Ensure transparent, consistent and rapid flow To combat environme
Slide 26: 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