Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — H1 2015 Earnings Presentation
24 slides from Migros Ticaret A.s's earnings presentation, 2015
Slide 1: Migros Ticaret A.Ş. 1H 2015 Financial Results
Migros Ticaret A.Ş. 1H 2015 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 Sales Expansion Financial Key Financial Overview Metrics Ataşehir Migros Recent Guidance Developments Financial Format Results Summary 2
Slide 4: Sales in 1H 2015
Sales in 1H 2015 A robust domestic growth rate of 17.8% in 1H 2015, Consolidated sales reached TL 4,369 million in 1H 2015 corresponding to yearly growth rate of 16.9%, Sustainable increase in sales across the new and existing stores Quarterly Sales (TL million) Sales (TL million) 2,295 4,369 2,074
Slide 5: Market Share Evolution
Market Share Evolution Strong market share in FMCG FMCG Market Share Evolution Migros Market Share (%) Market share gain in 1H15 10 bps 13.8% 13.6% 13.7% Market share of FMCG sales 5.3% 5.2% 5.2% 5.3% 1H 2013 1H 2014 1H 2015 Migros improved its market share by 10 bps in 1H 2015 In total FMCG marke
Slide 6: Expansion
Expansion Net Sales Area Split By Banner - 1H 2015 New store openings in 2Q15 77 New store openings in 1H15 123 Small/mid/large supermarkets Y-o-Y Net store addition 217 New store openings in 2014 199 Compact hypermarkets Number of Stores as of 2Q15 1,296 Small/mid/large supermarkets Number of Sto
Slide 7: Financial Overview: Gross Profit in 1H 2015
Financial Overview: Gross Profit in 1H 2015 Solid Gross Profit Generation Gross profit increased by 17.6% y-o-y to TL 1,170 million with a margin of 26.8% in 1H2015, A strong and resilient gross profitability while improving price competitiveness, Improved margin with volume gains and better supply
Slide 8: Financial Overview: EBITDA(R) in 1H 2015
Financial Overview: EBITDA(R) in 1H 2015 Solid EBITDA(R) Generation EBITDA grew by 14.9% y-o-y to TL 270 million, and EBITDAR by 16.7% y-o-y to TL 498 million in 1H 2015. Quarterly EBITDA* (TL million) EBITDA* (TL million) 137 270 134 120 235 115 1Q 2014 1Q 2015 2Q 2014 2Q 2015 1H 2014 1H 2014 1H 1H
Slide 9: Key Financial Metrics
Key Financial Metrics Sustainable Sales Growth Sustainable EBITDA generation CAGR: 12.7% CAGR: 10.6% (mn TL) Sales (mn TL) EBITDA (*): excluding divested operations (*): excluding divested operations Stable Negative Cash Conversion** Net Debt/EBITDA LTM Working Net Debt / Capital EBITDA (*): includi
Slide 10: Recent Developments: Shareholder Structure Change
Recent Developments Shareholder Structure Change Anadolu Endüstri Holding A.Ş. ("AEH") indirectly acquired 40.25% Migros shares through purchasing 80.50% of MH Perakendecilik ve Ticaret A.Ş. ("MH"). Corresponding transaction price is TL 26.86 per Migros share with the closing day exchange rate,
Slide 11: Recent Developments: Competitiveness
Recent Developments Competitiveness Increased competitiveness on Private Label and Fresh products, Specific emphasize on exclusive products sold only in Migros stores, Space optimization in big stores continues, Sales efficiency of proximity stores continuously improves, Closer to the consumers with
Slide 12: Recent Developments: Refinance of the existing loan
Recent Developments Refinance of the existing loan Refinancing of Company's current debt of EUR 830 million; Euro tranche of 730 million, TL tranche of 286 million, 8 years maturity, Back-loaded amortization with EUR 14 mn in year 1 and EUR 29 mn in year 2, Commitment for deleveraging will conti
Slide 13: Guidance 2015
Guidance 2015 .Sales growth : Double digit sales growth EBITDA margin : Full year EBITDA margin range 6.0% – 6.5% .Expansion target : Revised to 175 - 200 new stores Double digit 175-200 sales growth new stores Full year EBITDA margin range 6.0% - 6.5% 12
Slide 14: Financials & Format Summary
Financials & Format Summary - Financials - Operations
Slide 15: Summary of Income Statement – 1H 2015
SUMMARY OF INCOME STATEMENT – 1H 2015 IFRS Consolidated Income Statement Summary (TL Million) 1H 2015 1H 2014 Net Sales 4,369.2 3,737.7 Cost of sales -3,199.0 -2,742.4 Gross Profit 1,170.2 995.3 Operating Expenses -1,014.7 -862.5 Other Operating Income / (Expense) -50.5 -39.4 Operating Profit 105.0
Slide 16: Summary of Balance Sheet – 1H 2015
SUMMARY OF BALANCE SHEET – 1H 2015 IFRS Consolidated Balance Sheet Summary (TL Million) 1H 2015 2014 Current Assets 2,020.1 1,736.2 Non-current Assets 3,867.8 3,857.3 Total Assets 5,888.0 5,593.5 Current Liabilities 2,599.3 2,779.8 Non-current Liabilities 2,469.6 1,894.6 Total Liabilities 5,069.0 4,
Slide 17: Migros Today
Migros Today Since 1954 Largest national supermarket operator − Operates 1,296 stores across 70 cities in Turkey as well as in Kazakhstan and Macedonia, as of June 30, 2015 − 13.6% market share in organized grocery FMCG retail sales in Turkey¹ Consistent double digit sales growth2 since 2006, un
Slide 18: Migros
Migros Largest National Supermarket Chain Number of stores: 1058* ─ (40*-3,000) sqm / (1,800* – 18,000) SKUs ─ Broad variety of fresh food products ─ Wide branded assortment of FMCG products ─ Modern, fashionable, complementary and seasonal non- food selection CRM applications for different cust
Slide 19: Migros Jet
Migros Jet Fastest growing proximity stores Store size between 40*-300 sqm, 370 stores as of June 2015 Between 1,800* and 3,000 SKUs ─ Consistent Every Day Low Pricing on commodity Private Label product lines ─ Differentiated offering and service including rich fresh assortment ─ Large variety o
Slide 20: Tansaş
Tansaş Regional brand in the west coast Number of stores: 137 150-1,500 sqm / 3,000 – 15,000 SKUs ─ Regional brand & competitive pricing strategy ─ Diverse fresh food emphasis on meat and F&V ─ Friendly service / warm and localized layout Penetration: 5 cities 19
Slide 21: Macrocenter
Macrocenter Exclusive shopping Number of stores: 32 400 - 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 22: 5M Migros
5M Migros Lowest prices and wide assortment Number of stores: 23 Average size 4,500 sqm / 25,000 SKUs ─ Wide product range; rich FMCG and non-food assortment ─ N/F product portfolio focusing on kids & women; especially kitchenware & household textile, toys and cosmetics ─ Competitive pricing 1
Slide 23: Wholesale & Food Service
Wholesale & Food Service Focus on Horeca Penetration Currently operating in 7 regions through dedicated sales team. Dedicated warehouses and customer delivery Penetration: 7 regions 22
Slide 24: International Operations
International Operations Kazakhstan Macedonia Number of stores: 29, including 4 hypermarkets, 24 Number of supermarkets: 17 supermarkets and 1 Macrocenter. Owns 1 shopping mall in Almaty Owns 1 shopping mall in Skopje Total sales area of 49,675 sqm Total sales area of 15,524 sqm ─ Serving