Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — H1 2017 Earnings Presentation
23 slides from Migros Ticaret A.s's earnings presentation, 2017
Slide 1: Migros Ticaret A.Ş. 1H 2017 Financial Results
Migros Ticaret A.Ş. 1H 2017 Financial Results Migros 2016 Sustainability Report released
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 Financial Expansion Overview Ataşehir Migros Key Financial Guidance Metrics Financial Format Results Summary 2
Slide 4: Sales in 1H 2017
Sales in 1H 2017 Consolidated sales increased by 47.1% with the 3 months sales contribution of Kipa in 2Q 2017 24.4% top-line growth in 2Q 2017 even w/o Kipa operations heralds important market share gain 47.9% Domestic sales growth with Kipa operations in 2Q17 Sales in 2Q 2017 (TL million) Sale
Slide 5: Market Share Evolution
Market Share Evolution FMCG Market Share Evolution (%) Migros improved its market share by 50 bps 16.8 w/Kipa Market share not only in total FMCG but also in modern FMCG gain market w/o Kipa operations in 1H 2017 over a 14.2 continued year ago. with Kipa and 7.1 w/Kipa 13.7 w/o Kipa Migros accou
Slide 6: Organic Expansion
Organic Expansion Net Sales Area Split By Banner - 1H 2017 57 Number of Stores - Total new store openings in 2Q17 1,844 170* 99 +316 new store 1,528 openings in 1H17 +232 1,296 1,674 1,844 number of stores as of 1H17 1H 2015 1H 2016 1H 2017 1H17 Sales area 1,429K sqm with Kipa stores 1H17 Sales area
Slide 7: Consolidated Gross Profit in 1H 2017
Consolidated Gross Profit in 1H 2017 Consolidated Gross profit grew by 43.0% y-o-y and exceeded TL 1 billion in 2Q 2017 Investment on pricing continued with effective Ramadan campaigns in 2Q 2017 Solid Gross Profit Generation 26.1% Gross Profit in 2Q 2017 (TL million) Gross Profit in 1H 2017 (TL
Slide 8: Consolidated EBITDA(R) in 1H 2017
Consolidated EBITDA(R) in 1H 2017 EBITDA in 2Q 2017 (TL million) EBITDA in 1H 2017 (TL million) 29.7% 349 w/o Kipa increase in 193 w/Kipa EBITDA with Kipa in 2Q17 149 184 296 348 w/Kipa EBITDA margin is flat w/o Kipa in 2Q17 over a year ago 2Q 2016 2Q 2017 1H 2016 1H 2017 Margin 5.6% 4.9% Margin 5.8
Slide 9: Key Financial Metrics
Key Financial Metrics Accelerated growth, solid EBITDA generation Domestic Sales Growth Y-o-Y (%) Transitional decrease in EBITDA margin 47.9% 5.9% 5.6% 5.6% with w/o Kipa Kipa 18.6% 17.0% 24.6% 4.9% w/o with Kipa Kipa 2Q 2015 2Q 2016 2Q 2017 2Q 2015 2Q 2016* 2Q 2017 * restated Stable Negative Cash
Slide 10: Track Record of Deleveraging
Track Record of Deleveraging Migros 1H 2017 Cash and Leverage Position Cash & Debt Items Total TL m TL m EUR m Cash & Cash equivalents 1,289 1,007 70 Financial Debt* 3,613 842 693 Net Debt 2,324 Net Debt / EBITDA 3.2x * Based on amortised costing as indicated in financial statements Net debt/EBITD
Slide 11: Capital Expenditure
Capital Expenditure Capex (TL million) Capex as a Percentage 2.9% 3.0% 2.7% 2.8% 2.2% of Sales 297 154* 281 154 mn TL 232 143 Capex in 1H 2017 2014 2015 2016 1H 2016 1H 2017 * with Kipa 10
Slide 12: Kipa integration is at full steam
Kipa integration is at full steam Store layout plans Marketing Right-sizing of Kipa stores Optimizing product portfolio Improvement efforts for supply chain processes Supply Chain & Logistics Training of DC employees Integrated logistics management systems Store classifications and str
Slide 13: Expectations and Guidance
Expectations and Guidance Targets revised upwards [including 10 months Kipa] 2017E Previous Guidance1 New Guidance1 Sales Growth 30-35% 35%+ EBITDA Margin 5.0-5.5% 5.0-5.5% Expansion Target 120-150 new stores 180+ new stores Management Message Domestic sales of 24.6% w/o Kipa in 2Q 2017 mainly dri
Slide 14: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 15: Summary of Income Statement – 1H 2017
SUMMARY OF INCOME STATEMENT – 1H 2017 IFRS Consolidated Income Statement Summary 1H 2016 (TL Million) 1H 2017 (restated) Net Sales 7,036.9 5,079.0 Cost of sales -5,205.1 -3,710.1 Gross Profit 1,831.9 1,369.0 Operating Expenses -1,667.1 -1,207.2 Other Operating Income / (Expense) -111.9 -70.2 Operati
Slide 16: Summary of Balance Sheet – 1H 2017
SUMMARY OF BALANCE SHEET – 1H 2017 IFRS Consolidated Balance Sheet Summary 2016 (TL Million) 1H 2017 (restated) Current Assets 3,218.5 2,471.3 Non-current Assets 5,685.7 3,805.4 Total Assets 8,904.2 6,276.7 Current Liabilities 4,922.1 3,320.8 Non-current Liabilities 2,933.5 2,763.4 Total Liabilities
Slide 17: Migros at a Glance
Migros at a Glance 63rd Year! Operating in 3 countries Geographical Footprint — Turkey (73 cities out of 81) — Macedonia and Kazakhstan (37 stores) 1,581 (supermarkets) 41 (upscale supermarkets) 170 (Supermarkets and Hypermarkets) 1,844 Stores1 15 (wholesale and foodservice stores) with Ki
Slide 18: Migros
Migros Migros, Largest National Supermarket Chain Number of stores: 1,581 including 431 5M, MMM & MM stores and 1,150 Migros Jet & M stores, Penetration: 73 cities ─ (40*-4,500) sqm / (1,800* – 18,000) SKUs ─ Differentiated offering and service on fresh product categories ─ Wide branded assortme
Slide 19: Macrocenter
Macrocenter Exclusive shopping Number of stores: 41 400 - 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 20: Wholesale & Food Service
Wholesale & Food Service Focus on Horeca Penetration Currently operating in 7 regions through dedicated sales team. Dedicated warehouses and customer delivery 15 Wholesale stores Penetration: 11 cities 19
Slide 21: Online Business
Online Business Turkey’s first and leading e-commerce web site in food retail Top-line growth is 2-3x higher than the Company average Improved operational efficiency through picking automation Direct delivery from stores (110 stores in 24 cities across Turkey) Healthy Organic Natural Fresh 2
Slide 22: International Operations
International Operations Kazakhstan Macedonia 1.5% of consolidated sales from Kazakh operations 1.2% of consolidated sales from Macedonian operations Number of stores: 17, including 2 hypermarkets, 14 supermarkets and 1 Macrocenter. Owns 1 shopping Number of supermarkets: 20 mall in Almaty
Slide 23: Ownership Structure
Ownership Structure JV Structure between BC Partners & Anadolu Group Current Shareholding Structure Anadolu Endüstri Holding A.Ş. 100.00% MH Kenan Moonlight Capital Free Float Perakendecilik Investments S.A. S.A. ve Ticaret A.Ş. 19.49% 15.37% 15.13% 50.00% Migros Ticaret A.Ş Anadolu Endüstri Holdi