Migros Ticaret A.Ş. results for Q4 2012 and for the 12 months to 31 December 2012

• Sales

FY12: TL 6,482m +12.7% (FY11 TL 5,753m)
Q4 TL 1,650m +10.0% (Q4 2011 TL 1,500 m)

• Gross Profit

FY12: TL 1,705m +14.1% (FY11 TL 1,494m)
Q4 TL 438m +11.1% (Q4 2011 TL 394 m)

• EBITDA

FY12: TL 430m +8.0% (FY11 TL 398m)
Q4 TL 110m +7.9% (Q4 2011 TL 102 m)

Migros Ticaret A.Ş. has delivered a strong performance in the 12 months to December 2012, with market share gains, a net sales area growth and stronger same store sales helping to drive double digit year on year consolidated sales growth of 12.7%. The sales loss from divesting the discount business in 2011 is now fully recovered with a more profitable supermarket business just in two years. In Q4, consolidated sales increased by 10.0%. International operations delivered a sales revenue of TL396m, an increase of 12.3% on FY2011.

Migros has continued to successfully implement its new store opening strategy, which is focused primarily on the Group’s core Migros Supermarket brand. During 2012, total number of stores reached 882 stores; 159 Supermarkets, 2 hypermarkets and 5 Ramstores were opened.

Consolidated gross profit increased by 14.1% year-on-year to TL 1.7bn. Migros exceeded its gross margin target reporting a margin of 26.3% for FY12, a improvement on the prior year margin of 26.0%. Consolidated EBITDA increased by 8.0% year on year with a margin of 6.6% was ahead of the target.

Migros’ net debt (translated into TL) stood at TL 1.45bn at 31 December 2012, slightly better than management’s target. Over the last few years growth strategy of Migros has successfully delivered double digit top line growth without sacrificing profitability. Ongoing expansion, combined with vigilance over the cost base and an enhanced competitive position has enabled Migros to deliver sustained profitability. Working capital management, enhanced central distribution systems and effective use of technology in supply chain management contributed Migros to achieve its targets. The result has been the facilitation of a healthier balance sheet structure with net debt to EBITDA having come down to 3.4x in FY12 from 4.3x in 2010.

Going forward Migros Ticaret A.Ş. remains focused on growing its core Supermarket business, which comprises 87% of the Group’s domestic sales area and where it sees further opportunities to consolidate its leading market position. Migros expects to add a further 100-150 new supermarkets and 2-3 hypermarkets to the total in 2013. The company targets to increase its market share in the organized retail in Turkey. Expansion in Kazakhstan and Macedonia will also support the company’s top-line growth.

Migros Ticaret A.Ş.