Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — H1 2021 Earnings Presentation
33 slides from Migros Ticaret A.s's earnings presentation, 2021
Slide 1: Migros Ticaret A.Ş. 1H 2021 Financial Results
Migros Ticaret A.Ş. 1H 2021 Financial Results Company Presentation
Slide 2: Contents
Contents Sales Online Channels Expansion Market Share Evolution Financial Overview Strategy Update & Guidance Operations & Financials Details
Slide 3: Sales – 1H 2021 (TL million)
Sales – 1H 2021 (TL million) Sales Sales 2Q 2021 1H 2021 21.9% 21.5% 8,415 16,104 22.5% domestic growth 13,254 in 2Q 2021 6,906 Strong performance in neighbourhood stores & online business 2Q 2020 2Q 2021 1H 2020 1H 2021 3
Slide 4: Migros’ Online Channels
Migros’ Online Channels Online Geographical Channels Shares Coverage (1H 2021) (district) 260 197 82.5% 9.2% 8.3% 1H 2020 1H 2021 Sanalmarket Migros Hemen Other Online Cumulative Service Stores Sales Turnover Growth (total) 9.4x** 826 583 2.0x* 5.3x 3.2x* 1.7x* 1H 2020 1H 2021 2019 2020 1H 2021 * vs
Slide 5: 1H 2021 Online Service Channels
1H 2021 Online Service Channels Online Orders Online Orders # of Customers New Customers x2.0 x7.7 x1.8 x1.4 2020 vs 2019: x2.7 2020 vs 2019: x16.3 2020 vs 2019: x2.6 2020 vs 2019: x3 81 cities 34 cities 7 cities 6 cities +30,000 SKU ~2,500 SKU +13,000 SKU +2,150 SKU 631 stores 194 stores 65 stores
Slide 6: Offline & Online Expansion
Offline & Online Expansion Number of Stores Online Service Stores (Total) (Total) +156 Sales Area +243 2,405 (K sqm) 826 2,249 4.4% 1,605 583 1,537 1H 2020* 1H 2021 1H 2020 1H 2021 1H 2020* 1H 2021 7M 2021: 176 new stores 7M 2021: 306 new online service stores 6 * Excluding discontinued North Macedo
Slide 7: CAPEX (TL million)
CAPEX (TL million) % of Sales % of Sales 1.5% 1.9% 1.3% 1.9% ~800 303 539 168 341 2019 2020 2021E 1H 2020 1H 2021 7
Slide 8: Market Share Evolution
Market Share Evolution Migros FMCG Market Share Evolution (%) -10 bps 20 16.8 16.7 18 16 10 bps 14 12 10 8.9 8 8.8 6 4 2 0 1H 2020 1H 2021 1H 2020 1H 2021 Total FMCG Modern FMCG Source: Nielsen 8 Note: FMCG: Fast Moving Consumer Goods, Modern and total FMCG market include all food-retail formats
Slide 9: Financial Overview
@ Vir Financial Overview
Slide 10: Consolidated Gross Profit (TL million)
Consolidated Gross Profit (TL million) Restated* Gross Profit Gross Profit 2Q 2021 1H 2021 26.8% 23.3% 2,025 3,924 1,597 3,183 2Q 2020 2Q 2021 1H 2020 1H 2021 Margin 23.1% 24.1% Margin 24.0% 24.4% Normalized Gross Profit** increase: 21.7% Normalized Gross Profit** increase: 19.7% * Online business e
Slide 11: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) EBITDA EBITDA (w/o IFRS 16) (w/o IFRS 16) 2Q 2021 1H 2021 32.3% 30.3% 446 903 337 693 EBITDA EBITDA 2Q 2021 1H 2021 26.3% 23.7% 670 1,340 531 2Q 2020 2Q 2021 1,083 1H 2020 1H 2021 4.9% 5.3% 5.2% 5.6% Normalized EBITDA** increase: Normalized EBITDA** increase: 10.3% 1
Slide 12: Improved Balance Sheet Structure
Improved Balance Sheet Structure Total Financial Debt Net Debt (TL mn) (TL mn) Net Debt/EBITDA No hard-currency exposure 4,085 1,156 0.8x 2,847 30% reduction in total TL debt 379 0.2x Significant improvement in Net Debt/EBITDA 1H 2020 1H 2021 1H 2020 1H 2021 w/o IFRS 16 w/o IFRS 16 12
Slide 13: Strategy Update & Guidance
4 Strategy Update & Guidance
Slide 14: Omni-Channel Food Retailer
Omni-Channel Food Retailer Acquisition of Tazedirekt, Strategic shift towards Progressing online operations dedicated to omni-channel Migros integrated initiatives fresh categories app 1997 2016 2018 2019 2021 Re-launched Strong commitment Launched Macrocenter online to attaining sustainable the fir
Slide 15: Enriching Fresh Categories & Ready Meal Portfolio
Enriching Fresh Categories & Ready Meal Portfolio Ready Meal Pizza Mi-Go Store: 727 Store: 1,700 Online: 181 Online: 540 Instant Delivery: 98 Instant Delivery: 68 Dark Kitchen Macrocenter Food Atelier − in 5M store − Take-away − Migros Hemen Miget Meat Production Plant Gebze F&V Packaging Facility 1
Slide 16: Building a New Ecosystem of Complementing Initiatives
Building a New Ecosystem of Complementing Initiatives Last-mile Delivery Logistics Migros with Startups − Migros: 25% ownership − Collaboration opportunities − Engaging with young talents − Agile solutions for problem solving FinTech Subsidiary Fulfillment Center Automation − e-wallet − TARO Robots
Slide 17: 1H 2021 Underlying Performance
1H 2021 Underlying Performance Net Sales Domestic EBITDA Net Profit Sales Growth Margin TL 16,104 22.4% 8.3% TL 211 in million in million 17
Slide 18: 2021 Guidance (Consolidated)
2021 Guidance (Consolidated) Sales Growth EBITDA Margin Expansion Target CAPEX 18-20% 8-8.5% 300+ ~ TL 800 new stores mn from 15-18% maintained from ~ 170 from ~ 600 18
Slide 19: Appendix
Appendix − Operations − Financials
Slide 20: Migros at a Glance
Migros at a Glance TL 28.8 billion 40,730 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 2,405 stores in
Slide 21: Sales Area Split – 1H 2021
Sales Area Split – 1H 2021 40 sqm - 3,500 sqm 3,500 sqm – 8,500 sqm 250 sqm – 2,000 sqm 200 sqm – 1,600 sqm Supermarkets Hypermarkets Macrocenter Wholesale 79% 17% 3% 1% 2,253 56 73 23 21
Slide 22: Store Portfolio
Store Portfolio 30 June 2020 30 June 2021 Sales area Sales area 2,253 # of stores (th sqm) # of stores (th sqm) Supermarkets Migros 1,243 1,022.0 1,353 1,089.7 (M, MM,MMM) 56 Migros Jet 858 176.4 900 187.6 Hypermarkets 5M 55 268.9 56 268.5 Wholesale 20 11.5 23 13.4 73 Macrocenter Macrocenter 60 41.6
Slide 23: IFRS Consolidated Income Statement Summary – 1H 2021
IFRS Consolidated Income Statement Summary – 1H 2021 (TL million) 1H 2020 1H 2021 Net Sales 13,254 16,104 Cost of sales -10,071 -12,180 Gross Profit 3,183 3,924 Operating Expenses -2,584 -3,116 Other Operating Income / (Expense) -140 -306 Operating Profit 460 502 Income / (Expense) from Investment a
Slide 24: IFRS Consolidated Balance Sheet Summary – 1H 2021
IFRS Consolidated Balance Sheet Summary – 1H 2021 (TL million) 2020 1H 2021 Current Assets 7,331 6,809 Non-current Assets 8,047 8,152 Total Assets 15,378 14,960 Current Liabilities 10,403 10,876 Non-current Liabilities 4,942 4,069 Total Liabilities 15,345 14,945 Equity 33 15 Total Liabilities and Eq
Slide 25: Cash Position & Leverage
Cash Position & Leverage Without IFRS 16 With IFRS 16 (Total TL mn) 1H 2020 1H 2021 1H 2020 1H 2021 Cash & Cash Equivalents 2,929 2,468 2,929 2,468 TL 2,390 2,285 2,390 2,285 EUR 70 18 70 18 Financial Debt 4,085 2,847 6,676¹ 5,795¹ TL 2,662 2,799 5,252 5,747 EUR 185 5* 185 5* Net Debt 1,156 379 3,74
Slide 26: Ownership Structure
Ownership Structure 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. Migros Ticaret A.Ş.
Slide 27: Sustainability
e@ Sustainability
Slide 28: Migros Better Future Plan
Migros Better Future Plan Better for our Better for Innovative Better for our Customers Better for our World Transformation and Stakeholders Employees EXTENSIVE COMBAT AGAINST CLIMATE SUPPORTING EMPLOYEE CHANGE INNOVATIVE HEALTHY LIVING DEVELOPMENT AND Doing studies to measure APPLICATIONS To manage
Slide 29: 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 30: Social Responsibility Efforts
Social Responsibility Efforts Family Clubs Aegean Forest Foundation Growing Healthy with Migros P&G - Turkey Special Olympics 121,000 members / 105 different 553,048 sapling donation good living & conscious shopping Committee Collaboration trainings in 30 locations in 14 years trainings to 176,000 c
Slide 31: Annex
Annex − Quarterly Consolidated Income Statements (Restated figures, excluding discontinued North Macedonian operations)
Slide 32: IFRS Consolidated Income Statement Summary - Quarterly
IFRS Consolidated Income Statement Summary - Quarterly (Restated*) 2020 2021 (TL million) 1Q 2020 2Q 2020 3Q 2020 4Q 2020 1Q 2021 2Q 2021 Net Sales 6,348 6,906 7,610 7,927 7,689 8,415 Cost of sales -4,762 -5,309 -5,805 -6,142 -5,790 -6,390 Gross Profit 1,586 1,597 1,805 1,785 1,899 2,025 Operating E
Slide 33: 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