Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — FY2020 Earnings Presentation
32 slides from Migros Ticaret A.s's earnings presentation, 2021
Slide 1: Migros Ticaret A.Ş. 2020 Financial Results
Migros Ticaret A.Ş. 2020 Financial Results
Slide 2: Contents
Contents Sales Online Business Expansion Market Share Evolution Financial Overview Strategy Update & Guidance Operations & Financials Details
Slide 3: Sales – 2020 (TL million)
Sales – 2020 (TL million) Sales Sales 4Q 2020 2020 Strong sales growth performance 25.9% especially in November & December 34.1% in 4Q 7,927 28,790 22,865 5,912 Increased home consumption due to lockdown in restaurants Accelerated sales performance in online & offline stores 4Q 2019 4Q 2020 2019 202
Slide 4: Online Service Channels
Online Service Channels Online Orders Online Orders # of # of Online New Customers Customers Service Stores x2.7 x16.3 x2.6 x2.7 x3 81 cities 23 cities 7 cities 2 cities 81 cities +30,000 SKU +2,000 SKU +13,000 SKU +2,150 SKU +2,300 SKU 529 online service stores 107 online service stores 51 online s
Slide 5: Expansion
Expansion Number of Stores Online Service Stores (Total) (Total) +121 Sales Area +336 2,319 (K sqm) 529 2,198 2.9% 81 city 81 81 1,580 city city 1,536 193 60 city 2019 2020 2019 2020 2019 2020 26 new stores in 2M 2021 132 new online service stores in 2M 2021 5
Slide 6: CAPEX (TL million)
CAPEX (TL million) % of Sales 1.5% 1.9% 539 ~600 341 2019 2020 2021E Concentration on store automation Accelerated store expansion & fulfillment center automation 6
Slide 7: Market Share Evolution
Market Share Evolution Migros FMCG Market Share Evolution (%) 10 bps 20 17.1 17.2 18 16 70 bps 14 12 8.7 10 8 8.0 6 4 2 0 2019 2020 2019 2020 Total FMCG Modern FMCG Source: Nielsen 7 Note: FMCG: Fast Moving Consumer Goods, Modern and total FMCG market include all food-retail formats
Slide 8: Financial Overview
@ Vir Financial Overview
Slide 9: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Gross Profit Gross Profit 4Q 2020 2020 30.0% 20.9% 1,939 7,399 1,492 6,119 4Q 2019 4Q 2020 2019 2020 Margin 25.2% 24.5% Margin 26.8% 25.7% Due date charges impact: Due date charges impact: - 28 bps - 125 bps 9 All numbers in graphs w/ IFRS 16 impact * Restated
Slide 10: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) Normalized EBITDA Normalized EBITDA (w/o IFRS 16) (w/o IFRS 16) 4Q 2020 2020 35.5% 26.2% 396 1,538 292 1,219 EBITDA EBITDA (w IFRS 16) (w IFRS 16) 4Q 2020 2020 21.5% 5.4% 605 498 2,352 4Q 2019* 4Q 2020 2019* 2020 2,232 4.9% 5.0% 5.3% 5.3% 4Q 2019 4Q 2020 2019 2020 Ma
Slide 11: De-risking Balance Sheet
De-risking Balance Sheet Gross Euro Debt (mn) Net Debt/EBITDA - Net Debt (TL mn) 611 2,868 2.4x 430 2,059 1.4x 604 95 0.4x 50 2018 2019 2020 Feb 2021 2018 2019 2020 without IFRS 16 Short FX position is € 15 mn as of 2020, nil as of Feb 2021 Significant improvement in net debt position 11 * Restated
Slide 12: Cash Position & Leverage
Cash Position & Leverage Without IFRS 16 With IFRS 16 (Total TL mn) 2019 2020 2019 2020 Cash & Cash Equivalents 2,348 3,237 2,348 3,237 TL 1,653 2,503 1,653 2,503 EUR 105 81 105 81 Financial Debt 4,407 3,840 6,842¹ 6,775¹ TL 1,551 2,987 3,985 5,922 EUR 430 95 430 95 Net Debt 2,059 604 4,494 3,538 EB
Slide 13: Performance Summary 2020
Performance Summary 2020 Performance Performance vs 2019 Target 2020 Indicator Guidance Expansion Program 137 160+ 183 (Number of NEW Stores) Top-Line Sales Growth* 24.1% 22-23% 25.9% EBITDA Margin* 9.8% ~ 8% 8.2% (with IFRS 16 impact) CAPEX TL 341 mn ~ TL 470 mn TL 539 mn * Restated figures, exclud
Slide 14: Strategy Update & Guidance
Strategy Update & Guidance − Foreign Operations − New Normal Initiatives
Slide 15: Divestiture of North Macedonia & Kazakhstan Operations
Divestiture of North Macedonia & Kazakhstan Operations North Macedonia ◼ Preliminary sales agreement ◼ 28 Supermarkets ◼ 1 shopping mall in Skopje Kazakhstan ◼ Exited retail business ◼ Currently: 1 shopping mall in Almaty ◼ North Macedonia & Kazakhstan Operations: TL 503 million sales & TL 14 millio
Slide 16: Adapting Product Portfolio
Adapting Product Portfolio Ready Meal Offline : 95 Offline : 720 Food Atelier Enriching Frozen Portfolio Sanalmarket 62 Sanalmarket (frozen) 338 Online : Migros Hemen 56 Online : Migros Hemen 55 16
Slide 17: Building New Ecosystem
Building New Ecosystem Last-mile Delivery Fintech Subsidiary 7/24 Self-Service Concept Migros with Startups ✓ e-wallet Piloting ✓ Collaboration opportunities ✓ Money transfer & Bill-payment ✓ Engaging with young talents ✓ Product financing ✓ Agile solutions for problem solving 17
Slide 18: 2021 Guidance (Consolidated)
2021 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX 15-18% 8-8.5% ~ 170 ~ TL 600 new stores mn * with IFRS 16 impact 18
Slide 19: Appendix
Appendix − Operations − Financials
Slide 20: Migros at a Glance
Migros at a Glance TL 28.8 billion 38,458 1,500+ 49.18% sales in 2020 employees suppliers free float The only food retailer listed in BIST Sustainability Index for 7 years in a row Included BIST Corporate Governance Index since 2015 Business Option Best retailer for 17 years in a row 2,319 stores in
Slide 21: Sales Area Split – 2020
Sales Area Split – 2020 40 sqm - 3,500 sqm 3,500 sqm – 8,500 sqm 250 sqm – 2,000 sqm 200 sqm – 1,600 sqm 200 sqm – 3,500 sqm Supermarkets Hypermarkets Macrocenter Wholesale Ramstore 77% 17% 3% 1% 2% 2,148 55 64 22 30 21
Slide 22: Store Portfolio
Store Portfolio 31 December 2019 31 December 2020 Sales area Sales area 2,148 # of stores (th sqm) # of stores (th sqm) Supermarkets Migros 1,194 998.1 1,283 1,050.3 (M, MM,MMM) 55 Migros Jet 824 166.5 865 179.5 Hypermarkets 5M 56 274.0 55 266.9 Wholesale 21 12.0 22 13.0 64 Macrocenter Macrocenter 5
Slide 23: IFRS Consolidated Income Statement Summary – 2020
IFRS Consolidated Income Statement Summary – 2020 (TL million) 2019 2020 Net Sales 22,865 28,790 Cost of sales -16,746 -21,391 Gross Profit 6,119 7,399 Operating Expenses -4,771 -6,018 Other Operating Income / (Expense) -517 -347 Operating Profit 831 1,034 Income / (Expense) from Investment activiti
Slide 24: IFRS Consolidated Income Statement Summary – 4Q 2020
IFRS Consolidated Income Statement Summary – 4Q 2020 (TL million) 4Q 2019 4Q 2020 Net Sales 5,912 7,927 Cost of sales -4,420 -5,988 Gross Profit 1,492 1,939 Operating Expenses -1,233 -1,581 Other Operating Income / (Expense) -158 -133 Operating Profit 101 225 Income / (Expense) from Investment activ
Slide 25: IFRS Consolidated Balance Sheet Summary – 2020
IFRS Consolidated Balance Sheet Summary – 2020 (TL million) 2019 2020 Current Assets 5,274 7,331 Non-current Assets 8,543 8,047 Total Assets 13,817 15,378 Current Liabilities 7,788 10,403 Non-current Liabilities 5,675 4,942 Total Liabilities 13,463 15,345 Equity 354 33 Total Liabilities and Equity 1
Slide 26: Ownership Structure
Ownership Structure As of February 2021 Direct Shareholding Structure Indirect Shareholding Structure AG Anadolu Grubu Holding A.Ş. 100.00% AG Anadolu Grubu Free Float Holding A.Ş. 50.00% 50.00% MH Perakendecilik Free Float Migros Ticaret A.Ş.* ve Ticaret A.Ş. 49.18% 1.64% 49.18% Migros Ticaret A.Ş.
Slide 27: Sustainability
e@ Sustainability
Slide 28: Migros Better Future Plan
Migros Better Future Plan Combating climate Waste management change and circular economy Consistent and rapid Preventative flow of product data solutions for pollution Innovative Efficient use of implementations resources Compliance with Value added human rights and activities to raise equal opportu
Slide 29: Sustainability
Sustainability* Carbon Footprint Food Waste 2019: 26.6%** 2019: 17% (completed 2023 target) by 2030: 50% by 2024: 7% 3 times among Climate Leaders in 2020 among Water Leaders Energy Consumption Gender Equality 2019: 16.3% Current: 28% Current: 18% 50% by 2024: 18.5% by 2024: 30% by 2023: 23% (manage
Slide 30: Initiatives on Sustainability
Initiatives on Sustainability Sustainable Healthier Lives Food Waste Product Data Gender Equality Agriculture & Biodiversity WellBeing Journey: Regenerative Agriculture: The only retailer in Turkey Leading the industry in Leading Programme in the ‘CEO Pledge’ ‘10x20x30’ initiative Turkey for transfo
Slide 31: Waste Management & Biodiversity Conservation
Waste Management & Biodiversity Conservation Combating Food Waste Combating Plastic Waste Day-end clearance on perishables: Plastic bags: 66% 4,474 tons of food 373 tons less plastic on PL products Food Donation: 2.5 million meals Good Agricultural Practices GAP certified F&V: 963,413 tons Fresh Lef
Slide 32: 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