Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — FY2018 Earnings Presentation
26 slides from Migros Ticaret A.s's earnings presentation, 2019
Slide 1: Migros Ticaret A.Ş. 2018 Financial Results
Migros Ticaret A.Ş. 2018 Financial Results
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 2018
Sales in 2018 Consolidated sales growth of 22.4% in 4Q 2018 Sales performance of Migros stores was strong last year Strong consolidated Sales in 4Q 2018 (TL million) Sales in 2018 (TL million) growth in 2018… 4,923 18,717 4,022 15,344 … despite dilutive impact of former large Kipa stores 4Q 2017
Slide 4: Market Share Evolution
Market Share Evolution Market Share Gain Migros FMCG Market Share Evolution (%) 40 bps market share gain in 16.7 16.3 modern FMCG market. 30 bps market share gain in total FMCG market. 7.1 6.8 Source: Nielsen Note: FMCG stands for Fast Moving Consumer Goods; 2017 2018 2017 2018 Modern FMCG marke
Slide 5: Expansion
Expansion Number of Stores - Total Net Sales Area Split By Banner - 2018 238 new store openings in 2018 +206 2,103 81 cities 1,897 operating in every city in the Country 2,103 stores as of 2018 2017 2018 Space growth (m2) 5.7% Net Sales Area (2018) 1,497K sqm 4
Slide 6: Capital Expenditures
Capital Expenditures Capex (TL million) % of Sales 3.0% 2.7% 2.6% 2.6% 488 399 297 Conversion of Kipa, 281 Uyum and Makro stores into Migros format completed 2015 2016 2017 2018 Space optimization in large stores continues 5
Slide 7: Consolidated Gross Profit in 2018
Consolidated Gross Profit in 2018 Consolidated gross profit improved versus last year Merger synergies and new store acquisitions lead to an improvement in gross profitability Increased price Gross Profit 4Q (TL million) Gross Profit in 2018 (TL million) competitiveness 1,422 5,249 1,080 4,082 H
Slide 8: Consolidated EBITDA(R) in 2018
Consolidated EBITDA(R) in 2018 EBITDA in 4Q18 (TL million) EBITDA 2018 (TL million) 7% EBITDA 344 1,217 226 872 margin in 4Q18 driven by better sales performance 4Q 2017 4Q 2018 2017 2018 and strong gross Margin 5.6% 7.0% Margin 5.7% 6.5% profitability EBITDAR in 4Q18 (TL million) EBITDAR 2018 (TL m
Slide 9: Overview
Overview - Balancing growth with deleveraging - Expectations going forward
Slide 10: 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 9
Slide 11: Deleveraging
Deleveraging Migros 2018 Cash and Leverage Position Deleveraging Profile - Net Debt / EBITDA Cash & Debt Items Total TL m TL m EUR m 4,0x Cash & Cash equivalents 1,769 1,470 50 3,2x 2,9x 2,7x 2,6x 2,3x Financial Debt* 4,588 907 611 Net Debt 2,819 Net Debt / EBITDA 2.3x 2013 2014 2015 2016 2017 2018
Slide 12: Performance Summary 2018
Performance Summary 2018 Performance Summary Performance Performance vs 2017 Target 2018 Indicator Guidance Expansion Program (Number of NEW Stores) 193 230+ 238 Top-Line Sales Growth 38.7% ~22% 22.0% EBITDA Margin 5.7% 6.0%+ 6.5% Management Message for 2018 Migros achieved its operational t
Slide 13: Enhancing online penetration..
Enhancing online penetration.. Same day delivery, For over 28,000 SKUs, Service in 28 cities, Night delivery between Migros Online 22:00-24:00 in selected regions Click-collect option for customers Taze direkt Customer Macro Online Migros Now Delivery within 30 minutes only Same prices
Slide 14: Expectations and Guidance
Expectations and Guidance 2019 Guidance [consolidated] Sales Growth 20% EBITDA Margin ~6%* Expansion Target 100 new stores CAPEX Guidance TL 300 m * excluding IFRS 16 impact Management Agenda in 2019 Growth Operational Profitability Deleveraging • Space growth is expected to be • Vigilant cost manag
Slide 15: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 16: Summary of Income Statement – 2018
Summary of Income Statement – 2018 IFRS Consolidated Income Statement Summary (TL Million) 2018 2017 Net Sales 18,717.4 15,344.0 Cost of sales -13,468.8 -11,262.1 Gross Profit 5,248.5 4,082.0 Operating Expenses -4,399.8 -3,554.0 Other Operating Income / (Expense) -407.7 -225.1 Operating Profit 441.1
Slide 17: Summary of Balance Sheet – 2018
Summary of Balance Sheet – 2018 IFRS Consolidated Balance Sheet Summary (TL Million) 2018 2017 Current Assets 4,474.3 3,776.3 Non-current Assets 6,410.6 6,526.4 Total Assets 10,884.9 10,302.7 Current Liabilities 6,674.9 5,516.1 Non-current Liabilities 3,574.9 3,259.4 Total Liabilities 10,249.8 8,775
Slide 18: Migros at a Glance
Migros at a Glance 64th Year! Operating in 3 countries Geographical Footprint — Turkey (81 cities out of 81) — Macedonia and Kazakhstan (44 stores) 1,989 (supermarkets) 51 (upscale supermarkets) 19 (wholesale and foodservice stores) 44 (international stores) 2,103 Stores1 Migros Online —
Slide 19: Migros
Migros Migros, Largest National Supermarket Chain Number of stores: 1,989 including 1,157 Supermarkets. 56 Hypermarkets, and 776 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 20: Macrocenter
Macrocenter Exclusive shopping Number of stores: 51 400 - 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 21: Wholesale & Food Service
Wholesale & Food Service Focus on Horeca Penetration Currently operating in 7 regions through dedicated sales team. Dedicated warehouses and customer delivery 19 Wholesale stores Penetration: 14 cities 20
Slide 22: Online Business
Online Business Turkey’s first and leading e-commerce web site in food retail Improved operational efficiency through picking automation Night-time delivery system in high-potential regions Direct delivery from stores (139 stores in 28 cities across Turkey) Healty Organic Natural Fresh 21
Slide 23: 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: 18, including 2 hypermarkets and 16 supermarkets. Number of supermarkets: 26 Owns 1 shopping mall in Almaty Owns 1 shopp
Slide 24: Store Portfolio
Store Portfolio 2017 2018 # of stores Sales area (th sqm) # of stores Sales area (th sqm) 1,933 Supermarkets Migros (M, MM,MMM) 982 819.1 1,157 967.5 (incl. 776 Migros Jet stores) Migros Jet 632 116.7 776 150.1 56 5M 21 94.7 56 286.0 Hypermarkets Wholesale 17 10.0 19 10.7 51 Macrocenter 44 32.6 51 3
Slide 25: Ownership Structure
Ownership Structure JV Structure between BC Partners & Anadolu Group 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 Moon
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