Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Investor Presentation (December 2018)
34 slides from Mavi Giyim Sanayi Ve Ticaret A.s's investor presentation, December 2018
Slide 1: Investor Presentation December 2018
INVESTOR PRESENTATION December, 2018 0
Slide 2: Disclaimer
Disclaimer This document does not constitute or form part of any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of the Company. The information, statements and opinions contained in this presentation do
Slide 3: Mavi Business Overview
MAVI BUSINESS OVERVIEW
Slide 4: Key strengths of the Mavi brand and business
ASPIRATIONAL lifestyle and customer- 1 centric BRAND with broad appeal and celebrity endorsements 2 Locally sourced WORLD-CLASS PRODUCTS with well segmented ranges 3 MULTI-CHANNEL EXECUTION with robust retail store economics 4 BEST-IN-CLASS COMMUNICATION STRATEGY enhancing brand awareness acro
Slide 5: Mavi: Highly Successful Lifestyle Brand
Mavi : Highly Successful Lifestyle Brand… Business Overview Key Metrics (9M 2018) Brand & Product (9M 2018) Started operations in Istanbul in 1991, Mavi today is globally recognized as a highly successful casual lifestyle brand TRY1,778m Revenue TRY304m EBITDA #1 c.54%3 Lifestyle With strong den
Slide 6: With Strong International Presence
…With Strong International Presence Canada Europe Russia 368 # Retail Stores: 3 # Retail Stores: 5 # Retail Stores: 14 # Wholesale Doors: c.1,800 # Wholesale Doors: c.1,400 # Franchised Stores: 16 # FTEs: 61 # FTEs: 111 # Wholesale Doors: c.105 Mono-Brand # FTEs: 106 Stores in Turkey 57 Internationa
Slide 7: Retail Expertise in Turkey
, PRETAIL EXPERTISE | IN TURKEY
Slide 8: Multi Pillar Growth Strategy in Turkey Retail
Multi Pillar Growth Strategy in Turkey Retail • Average 25 Net New Store Openings/year • 1 mn new customer Acquisition 294 Stores in 80 Cities Every year • LFL Growth Average 16% Annual • Expansion of store space Average Selling Space 498 sqm New Stores 600-800 sqm 77
Slide 9: Offering a Lifestyle Product Portfolio Across Women and Men
Offering a Lifestyle Product Portfolio Across Women and Men… 1 Data for Turkey retail only. 2 Including shoes. 3 Including kids. % of 9M 2018 Net Sales1 88
Slide 10: And Growing Significantly in Each Category
…And Growing Significantly in Each Category Denim Products (TRYm) Lifestyle Products (TRYm) Knits Shirts 46% 22% 15% 235 239 165 147 188 159 171 118 526 104 87 501 397 401 2015 2016 2017 9M'17 9M'18 2015 2016 2017 9M'17 9M'18 330 Jackets Accessories1 6% 6% 97 74 70 65 63 56 53 42 44 44 2015 2016 201
Slide 11: Minimising Fashion Risk and Seasonality With Various Styles
Minimising Fashion Risk and Seasonality With Various Styles Across Lifestyle Product Offering Breakdown by Season (units) Mavi Women Style Groups Denim All FW17, SS17, 48% 52% Gold Casual Glam Pretty Istanbul&Basics Lifestyle excluding Premium Lifestyle Young Everyday Accessories1 FW17, SS17, 45% 55
Slide 12: Strong Track Record of Retailization in Turkey
Strong Track Record of Retailization in Turkey… # of Retail Stores Evolution in Turkey Turkey Retail Sales Evolution (TRYm) Net New 27 25 26 7 Stores 1,133 1,094 857 831 704 236 261 287 294 2015 2016 2017 9M 2018 2015 2016 2017 9M 2017 9M 2018 Gross Selling Space Evolution in Turkey (Sqm k) Signific
Slide 13: Supported by High Like-for-like Growth Figures
…Supported by High Like-for-like Growth Figures 22.8% 23.5% 13.6% 13.7% 14.7% 1 1 9.9% 14.1% 7.3% Transaction2 # Growth (%) 10.8% 2015 2016 2017 9M 2018 2015 2016 2017 9M 2018 • Brand recognition leading to new customer 8.6% acquisition and increased spending 6.9% 7.1% 1 3.9% • Right product at the
Slide 14: Best-in-Class Loyalty Program (Kartuş) Since 2007
Best-in-Class Loyalty Program (“Kartuş”) Since 2007 Strong Appeal to Under 35 Across Majority of New Loyalty Card Both Genders Holders are Under 35 7.1M 5.2M % of Turkey’s Total Loyalty Card Active Active Loyalty Card Members per Age Group (%) Population (2017) New Loyalty Card Members per Age Group
Slide 15: International & E-Com Markets
INTERNATIONAL & E-COM MARKETS
Slide 16: Growing Global Footprint
Growing Global Footprint USA EUROPE CANADA RUSSIA Note: Number of stores as of Jan. 2018 15 15
Slide 17: E-Commerce Platform to Deliver Future Growth
E-Commerce Platform to Deliver Future Growth Global E-Commerce Revenue1 International E-Commerce Revenue Revenue (TRYm) 45 21 39 16 25 22 10 14 6 2 2015 2016 2017 9M 2017 9M 2018 2015 2016 2017 9M 2017 9M 2018 Mavi.com Turkey - Key Statistics Turkey E-Commerce Revenue # 1 Store in Turkey 52% Revenue
Slide 18: E-Commerce Potential in Turkey
E-Commerce Potential in Turkey Turkey Has a Strong E-Commerce Potential E-Commerce Penetration Mavi Share of Online Sales Still Below Overall Comparable Markets 4.1% % Share of E-Commerce in Apparel and Footwear (2016)1 E-Commerce penetration in Turkey (China 20.4%, USA 11.8%, Germany 9.1%) 17 Faceb
Slide 19: Successful Brand Strategy
aS | CCESSFUL BRAND STRATEGY
Slide 20: Best-in-Class Communication
Best-in-Class Communication According to the Consumer’s Voice Survey, Mavi, with its product and service quality, is the leader of the apparel industry among the brands that create highest customer loyalty. (Mediacat & IPSOS & Kalder, April 2017) Social Media Awards Turkey, Social Brands Data Analyt
Slide 21: Brand Positioning Enhanced Through Global Collaborations
Brand Positioning Enhanced Through Global Collaborations 3.3 Turkey Milyon Social Meida Followers 2012 2013 2014 2015 2016 2016 2016 2017-2018 Adriana Lima Kıvanç Tatlıtuğ Serenay Sarıkaya Serenay Sarıkaya Serenay Sarıkaya Serenay Sarıkaya İlker Kaleli Kıvanç Tatlıtuğ Barbara Palvin Kerem Bürsin Ker
Slide 22: Celebrities
Celebrities Richard Katherine Heidi Kate Colin Kendall Liam Branson Heigl Klum Hudson Farrell Jenner Hemsworth “Mavi is a brand of superior quality, which is the foremost attribute I look for when I, as an entrepreneur, invest because quality is always Matthew Lady Jessica Anna Fergie appreciated.”
Slide 23: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE
Slide 24: Mavi Delivers Strong Operational Results
Mavi Delivers Strong Operational Results Revenue Evolution (TRYm) Gross Profit Evolution (TRYm) Gross 49.7% 51.0% 50.9% 50.7% 52.4% Margin (%) 1,782 1 1,368 907 1,053 698 1,308 1,778 524 1,350 931 667 685 2015 2016 2017 9M 2017 9M 2018 2015 2016 2017 9M 2017 9M 2018 EBITDA Evolution (TRYm) Net Profi
Slide 25: Strong Cash Conversion
Strong Cash Conversion Cash Conversion1 Main Working Capital Items TRYm 2015 2016PF 2017 9M 2017 9M 2018 111% 102% 92% 84% Trade & Other Receivables3 89.1 132.9 140.2 211.5 242.0 75% % Sales 8.5% 9.7% 7.9% 12.6% 11.0% Inventories 177.3 287.8 320.4 292.4 435.9 2015 2016PF 2017 9M 2017 9M 2018 % COGS
Slide 26: Efficient Capex Management and Healthy Leverage Ratios
Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (31 October 2018) CAD % Sales 5.4% 4.8% 4.1% 4,1% 2.4% 1% RU Cost of Debt 62.6 72.8 8% TRY 13.91% - 37.75% 57.1 55.5 USD 43.0 15% USD 4.05% - 5.35% TRY EUR 0.00% - 2.99% 56% EUR RUB 13,00% 20% 2015 2016 2017 9M 2017 9M 2018
Slide 27: KPI-Focused Rent Management at Turkey Retail Stores
KPI-Focused Rent Management at Turkey Retail Stores 183 170 135 Rent/Net Sales 110 134 110 Rent/Net Sales(i) 100 104 97 USD(i) 99 EUR(i) 18.0% 18.7% 17.8% 17.5% 2015 2016 2017 9M 2018 1 Calculated as ratio of Turkey Retail Rent Expenses divided by Turkey Retail Revenue. (i) : indexed at 2015=100 W
Slide 28: FY 2018 Guidance Revised
FY 2018 Guidance Revised Initial Guidance Revised Guidance Consolidated Revenue Growth 25% 30% Turkey Retail Stores 25 net new stores 16 net new stores 13 store expansions Turkey Retail LFL Growth 16% Above 20% EBITDA Margin Above 14% 15% Net Debt/EBITDA Below 1x Below 1x Up to 5% of Up to 4% of CAP
Slide 29: Thank You
THANK YOU Contact : investorrelations@mavi.com duygu.inceoz@mavi.com
Slide 30: Highly Experienced Board of Directors
Highly Experienced Board of Directors Ersin Akarlılar Ahmet Ashaboglu Cüneyt Yavuz Chairperson Independent Non- CEO Executive Director With Mavi since 1991 CFO of Koc Holding since Mavi’s Chief Executive Officer 2006 since 2008 Primarily responsible for Mavi’s international strategy Previo
Slide 31: Financial Statements: Income Statement
Financial Statements Income Statement TRYm Q3 2017 Q3 2018 Change (%) 9M 2017 9M 2018 Change (%) Rev enue 521.6 715.2 37.1% 1,350.4 1,777.7 31.6% Cost of Sales (256.3) (340.9) 33.0% (665.7) (846.5) 27.2% Gross Profit 265.3 374.3 41.1% 684.7 931.3 36.0% Gross Margin 50.9% 52.3% 50.7% 52.4% Administra
Slide 32: Financial Statements: Balance Sheet
Financial Statements Balance Sheet TRYm 31 January 2018 31 October 2018 Change (%) Assets Current Assets Cash and Cash Equiv alents 266.3 283.7 6.5% Trade Receiv ables 113.0 225.1 99.2% I nv entories 320.4 435.9 36.1% Other Current Assets 61.8 77.3 25.2% Total Current Assets 761.4 1,022.0 34.2% Non-
Slide 33: Financial Statements: Cash Flow Statement
Financial Statements Cash Flow Statement TRYm 9M 2017 9M 2018 Profit¹ 84.1 101.2 D&A Expense 43.8 52.1 Net Finance Expense / (I ncome) 50.0 75.0 Tax Expense 20.3 29.5 Other Non-Cash I tems 13.9 36.8 Cash Flow from Operating Activ ities 212.2 294.6 Δ in Net Working Capital² 4.5 (74.8) I ncome Tax Pai
Slide 34: Revenue Channel Performance
Revenue Channel Performance Global Revenue (TRYm) Turkey Revenue (TRYm) Channel Growth 1,448 1,108 25 65% 15 329 1,778 83% 572 1,350 430 10 262 26% 45 5 25 147 1,094 522 715 590 29% 119 831 32% 20 458 307 416 9 193 262 868 1,142 434 32% Q3 2017 Q3 2018 9M 2017 9M 2018 320 Q3 2017 Q3 2018 9M 2017 9M
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