Kipa Acquisition Operational Rationale
MIGROS
Expectations and Guidance
Domestic sales growth doubled in 3 years thanks to long-term effective strategies
(2013 Growth: 10.2%, 2016 Growth: 19.7%)
Dilutive impact of employee cost and rent cost increases minimized in 2016 thanks to opex control and strong sales
performance,
Kipa acquisation is expected to support Migros' long term growth and create shareholder value
Financial results of Kipa between (Mar 01 and Dec 31) will be consolidated into Migros results in 2017
Performance Summary
2017 Guidance for Migros
Excluding Kipa¹
Including Kipa²
Performance
Indicator
2014 2015 Target 2016
Performance
vs Guidance
Sales Growth
15-18%
30-35%
Expansion
Program
199
257
220+
232
(Number of NEW
Stores)
EBITDA Margin
6.0-6.5%
5.0-5.5%
Top-Line Sales
14.0% 15.6%
Growth
Double
Digit
17.8%
EBITDA
Expansion Target
120-150 new stores
120-150 new stores
6.5%
6.4% 6.0-6.5% 6.2%
Margin
■Number of stores reached 1,605 as of 2016. The company opened more
than 1,000 new stores in the last 5 years
1 Expectations excluding consolidation of 10 months Kipa results in 2017.
2 Including consolidation with 10 months Kipa results.
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