Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — H1 2018 Earnings Presentation
22 slides from Migros Ticaret A.s's earnings presentation, 2018
Slide 1: Migros Ticaret A.Ş. 1H 2018 Financial Results
Migros Ticaret A.Ş. 1H 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 1H 2018
Sales in 1H 2018 Consolidated sales turnover increased by 20.3% and reached TL 8,463 million in 1H2018 Domestic sales growth excluding Kipa was stronger in 2Q 2018 with 19.3% vs 17.9% in 1Q 2018 19.3% Domestic sales growth w/o Kipa operations in 2Q 2018 Sales in 2Q 2018 (TL million) Sales in 1H
Slide 5: Market Share Evolution
Market Share Evolution Market Share Gain Migros FMCG Market Share Evolution (%) Migros on a consolidated basis 16.1 16.0 maintained its market shares in FMCG markets. However, Migros brand continued its market share gains. 6.8 6.8 1H17 1H18 1H17 1H18 Total FMCG Market Share Modern FMCG Market Sh
Slide 6: Organic Expansion
Organic Expansion Net Sales Area Split By Banner - 1H 2018 83 new store Number of Stores - Total openings in 2Q18 134 new store openings in 1H18, +167 41 in July 2018 2,011 1,844 81 / 81 operating in all cities in Turkey 1H 2017 1H 2018 2,011 number of stores as of 2Q18 Space growth* 2% (*): June 20
Slide 7: Capital Expenditures
Capital Expenditures Capex (TL million) 12 Kipa stores Capex as a Percentage 2.2% 3.2% 2.7% 2.6% Space optimization of Sales 271 399 completed 297 154 TL 440m Targeted consolidated capex in 2018 1H 2017 1H 2018 2016 2017 Capex as a percentage of sales is expected to remain at 2017 level at the year
Slide 8: Consolidated Gross Profit in 1H 2018
Consolidated Gross Profit in 1H 2018 Consolidated Gross profit reached TL 2,338 million with an increase of 27.6% in 1H 2018 2018 FY gross profit margin expansion is expected to exceed the Company’s targets for the year Gross Profit 2Q (TL million) Gross Profit in 1H (TL million) Targets exceed
Slide 9: Consolidated EBITDA(R) in 1H 2018
Consolidated EBITDA(R) in 1H 2018 EBITDA 2Q (TL million) EBITDA 1H (TL million) 275 486 193 348 42.9% EBITDA increase in 2Q18 2Q 2017 2Q 2018 1H 2017 1H 2018 Margin 4.9% 6.1% Margin 5.0% 5.7% EBITDAR 2Q (TL million) EBITDAR 1H (TL million) 11.3% 512 936 EBITDAR 387 704 margin in 2Q18 2Q 2017 2Q 2018
Slide 10: Track Record of Deleveraging
Track Record of Deleveraging Migros 1H 2018 Cash and Leverage Position Cash & Debt Items Total TL m TL m EUR m Cash & Cash equivalents 1,359 1,238 23 Financial Debt* 4,092 865 608 Net Debt 2,733 Net Debt / EBITDA LTM 2.7x * Based on amortised costing as indicated in financial statements Net debt/E
Slide 11: Expectations and Guidance
Expectations and Guidance 2018 Guidance [Consolidated] 2018E Previous Guidance New Guidance Sales Growth 15-18% ~20% EBITDA Margin 5.5-6.0% 5.5-6.0% Expansion Target 120-150 200+ new stores new stores CAPEX Target TL 400 mn TL 440 mn Management Agenda in 2018 Merger of Migros & Kipa by the Total
Slide 12: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 13: Summary of Income Statement – 1H 2018
SUMMARY OF INCOME STATEMENT – 1H 2018 IFRS Consolidated Income Statement Summary (TL Million) 1H 2018 1H 2017 Net Sales 8,463.4 7,036.9 Cost of sales -6,125.4 -5,205.1 Gross Profit 2,338.0 1,831.9 Operating Expenses -2,054.7 -1,667.1 Other Operating Income / (Expense) -154.3 -111.9 Operating Profit
Slide 14: Summary of Balance Sheet – 1H 2018
SUMMARY OF BALANCE SHEET – 1H 2018 IFRS Consolidated Balance Sheet Summary (TL Million) 1H 2018 2017 Current Assets 3,623.0 3,776.3 Non-current Assets 6,684.7 6,526.4 Total Assets 10,307.8 10,302.7 Current Liabilities 5,778.3 5,516.1 Non-current Liabilities 3,512.7 3,259.4 Total Liabilities 9,291.0
Slide 15: Migros, Largest National Supermarket Chain
Migros Migros, Largest National Supermarket Chain Number of stores: 1,742 including 469 5M, MMM & MM stores and 1,273 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: 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 17: Kipa
Kipa Focused on the Western regions of Turkey Number of stores: 161 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 Penetration: 20 cities 16
Slide 18: 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 Penetration: 12 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 1.4% of consolidated sales from Macedonian operations Number of stores: 16, including 2 hypermarkets, 13 supermarkets and 1 Macrocenter. Number of supermarkets: 25 Owns 1 shopping mall in Almaty
Slide 21: Store Portfolio
Store Portfolio 1,273 1H 2017 1H 2018 Migros Jet & M stores # of stores # of stores Proximity stores Migros (M, MM,MMM) 950 1,039 469 Migros Jet 608 680 MM, MMM & 5M stores Large supermarkets 5M 23 23 Wholesale 15 17 50 Macrocenter stores Macrocenter 41 50 Upscale format Kipa 170 161 161 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. 21