Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — FY2019 Earnings Presentation
27 slides from Migros Ticaret A.s's earnings presentation, 2020
Slide 1: Migros Ticaret A.Ş. 2019 Financial Results
Migros Ticaret A.Ş. 2019 Financial Results
Slide 2: Contents
CONTENTS Market Share Sales Evolution Capital Expansion Expenditures Financial Management Overview Overview Financial Format Results Summary 1
Slide 3: Sales in 2019
Sales in 2019 ▪ Migros recorded 23.9% consolidated sales growth in 2019 Strong growth; Sales in 4Q 2019 (TL million) Sales in 2019 (TL million) Online business 5,997 23,191 4,923 18,717 Enriched fresh lines Competitive prices 4Q 2018 4Q 2019 2018 2019 Sales Growth in 4Q19 21.8% Sales Growth in 2019
Slide 4: Market Share Evolution
Market Share Evolution Market Share Gain Migros FMCG Market Share Evolution (%) • 70 bps market share gain 16.7 17.4 in both modern & total FMCG market. 7.1 7.8 Source: Nielsen Note: FMCG: Fast Moving Consumer Goods, 2018 2019 2018 2019 Modern and total FMCG market include all food-retail formats To
Slide 5: Expansion
Expansion Number of Stores - Total Net Sales Area Split By Banner - 2019 137 2,198 Supermarkets new stores in 2019 2,103 2018 2019 Hypermarkets 32 new stores in 2 months of 2020 Space growth (m2) 2.6%* Net Sales Area (2019) 1,536 K sqm Macrocenter * Hypermarket space optimization (m2) impact: 90 bps
Slide 6: Capital Expenditures
Capital Expenditures Capex (TL million) % of 2.7% 2.6% 2.6% 1.5% Sales 488 Capex 399 ~400 341 prioritization 297 on online penetration Space optimization 2016 2017 2018 2019 2020E almost completed ~9,000 sqm right-sizing projected in 2020 5
Slide 7: Consolidated Gross Profit in 2019
Consolidated Gross Profit in 2019 Gross Profit 4Q (TL million) Gross Profit in 2019 (TL million) 1,515 6,205 1,493 6,121 Competitive prices in fresh 1,327 4,881 lines & basics 4Q 2018 4Q 2019 4Q 2019 2018 2019 2019 [IFRS 16] [IFRS 16] Margin 27.0% 24.9% 25.3% Margin 26.1% 26.4% 26.8% *IFRS 16 differ
Slide 8: Consolidated EBITDA in 2019
Consolidated EBITDA in 2019 EBITDA in 4Q (TL million) EBITDA 2019 (TL million) 462 2,236 359 1,531 317 1,217 EBITDA 4Q 2018 4Q 2019 4Q 2019 2019 2018 2019 [IFRS 16] [IFRS 16] Margin 7.3% 5.3% 7.7% Margin 6.5% 6.6% 9.6% Normalized EBITDA in 4Q (TL million) Normalized EBITDA 2019 (TL million) 462 2,23
Slide 9: Overview
Overview - Online business - Balancing growth with deleveraging - Expectations going forward - Sustainability
Slide 10: Enhancing Online Penetration
Enhancing Online Penetration Launched in 2019 since 1997 60 cities +30,000 SKU 3 cities +2,000 SKU 69 % Same day delivery 40 districts Delivery within 30 mins 213 districts Focus Fresh & FMCG Launched in 2019 Partnership with 81 cities +2,300 SKU Available for courier shipping FMCG Focus 5 cities +1
Slide 11: Deleveraging
Deleveraging Migros 2019 Cash and Leverage Position Gross Euro Debt (in million) Total TL m Cash & Debt Items Total TL m [w/ IFRS 16] Cash & Cash 2,348 2,348 672 equivalents TL m 1,702 1,702 EUR m 105 105 611 Financial Debt 4,407 7,5251 TL m 1,748 4,865 EUR m 430 430 430 Net Debt 2,059 5,177 336* <3
Slide 12: Performance Summary 2019
Performance Summary 2019 Performance Performance vs 2018 Target 2019 Indicator Guidance Expansion Program (Number of NEW Stores) 238 125+ 137 ✓ Top-Line Sales Growth 22.0% 23-25% 23.9% ✓ EBITDA Margin* 6.5% 6.0-6.5% 6.6% ✓ CAPEX TL 488 mn ~TL 320 mn TL 341 mn ✓ * excluding IFRS 16 impact Management
Slide 13: Expectations and Guidance
Expectations and Guidance 2020 Guidance [Consolidated] 2020E Guidance Sales Growth (New Guidance) 16-18% EBITDA Margin 8-8.5%* Expansion Target 120 new stores CAPEX ~TL 400 mn * with IFRS 16 impact Management Agenda in 2020 Growth & Operational Profitability Online Business Deleveraging Coverage Gro
Slide 14: Carbon Footprint, Water and Energy Targets
Carbon Footprint Current: 19.5% reduction so far* Target: 25% until 2023 Score:A- Water Consumption Current: 1.1% reduction so far* Target: 5% until 2023 Gender Equality Score:B 40% Female of All Employees Target: 23% in female representation in executive management until 2023 Energy Consumption Foo
Slide 15: Financials & Format Summary
Financials & Format Summary - Financials - Operations - Migros Better Future Plan
Slide 16: Summary of Income Statement – 2019
Summary of Income Statement – 2019 IFRS Consolidated Income Statement Summary (TL million) 2019 2018 Net Sales 23,191 18,717 Cost of sales -16,986 -13,837 Gross Profit 6,205 4,881 Operating Expenses -4,884 -4,032 Other Operating Income / (Expense) -516 -408 Operating Profit 805 441 Income / (Expense
Slide 17: Summary of Balance Sheet – 2019
Summary of Balance Sheet – 2019 IFRS Consolidated Balance Sheet Summary (TL million) 2019 2018 Current Assets 5,277 4,474 Non-current Assets 9,184 6,411 Total Assets 14,461 10,885 Current Liabilities 7,544 6,675 Non-current Liabilities 6,594 3,575 Total Liabilities 14,138 10,250 Equity 323 635 Total
Slide 18: 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 (45 stores) ◼ 2074 (supermarkets) ◼ 58 (upscale supermarkets) ◼ 21 (wholesale and foodservice stores) ◼ 45 (international stores) 2198 Stores1 ◼ Migros Onli
Slide 19: Migros, Largest National Supermarket Chain
Migros Migros, Largest National Supermarket Chain ◼ Number of stores: 2074 including 1194 Supermarkets, 56 Hypermarkets, and 824 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 ass
Slide 20: Macrocenter
Macrocenter Exclusive shopping ◼ Number of stores: 58 ◼ 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 ◼ 21 Wholesale stores Penetration: 16 cities 20
Slide 22: International Operations
International Operations Kazakhstan North Macedonia ◼ 1.1% of consolidated sales from Kazakh ◼ 1.4% of consolidated sales from Macedonian operations operations ◼ Number of stores: 16, including 2 hypermarkets ◼ Number of supermarkets: 29 and 14 supermarkets. ◼ Owns 1 shopping mall in Skopje ◼ Owns 1
Slide 23: Store Portfolio
Store Portfolio 2018 2019 Sales area Sales area 2018 # of stores (th sqm) # of stores (th sqm) Supermarkets Migros 1157 967.5 1194 998.1 (M, MM,MMM) 56 Migros Jet 776 150.1 824 166.5 Hypermarkets 5M 56 286.0 56 274.0 Wholesale 19 10.7 21 12.0 58 Macrocenter Macrocenter 51 36.6 58 40.4 Domestic Total
Slide 24: Ownership Structure
Ownership Structure Migros Ticaret A.S. Direct Shareholding Structure Indirect Shareholding Structure AG Anadolu Grubu BC Partners Holding A.Ş. AG Anadolu & related funds BC Partners 100.00% Grubu Holding Free Float A.Ş. & related funds 38.04% 50.00% 11.96% MH Perakendecilik Kenan Migros Ticaret Fre
Slide 25: Combating Food and Plastic Waste
Combating Plastic Waste Combating Food Waste Reduction in the use of Saving food amounting to total plastic bags by 74% revenues of 12 MigrosJet stores’ Private label products contain 327 tons through discounted sales of less plastic ripened vegetables & fruits Good Agricultural Practices Respecting
Slide 26: Migros Better Future Plan
Migros Better Future Plan Compliance with Waste management and human rights and circular economy equal opportunities Consistent and rapid Preventative flow of product data solutions for pollution Innovative Efficient use of resources implementations Combating climate Value added activities to change
Slide 27: 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