Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Investor Presentation (September 2020)
35 slides from Mavi Giyim Sanayi Ve Ticaret A.s's investor presentation, September 2020
Slide 1: Investor Presentation September 2020
INVESTOR PRESENTATION September, 2020 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: Why We Believe Mavi is Exciting
Why We Believe Mavi is Exciting Aspirational denim centric lifestyle brand with broad appeal and celebrity endorsements World-class products and well-segmented- ranges with a focus on quality, sustainability and efficient supply chain Global multi-channel execution with Turkey retail, international
Slide 5: Highly Successful Lifestyle Brand
Highly Successful Lifestyle Brand… Business Overview Key Metrics (H1 2020 (inc.IFRS16)) Brand & Product (H1 2020) ◼ Started operations in Istanbul in 1991, Mavi today is globally recognized as a highly successful casual lifestyle brand TRY 925m TRY 101m #1 c.55% Lifestyle ◼ With strong denim roots,
Slide 6: With Strong International Presence
…With Strong International Presence Canada # Retail Stores: 4 # Wholesale Doors: c.1,300 Europe # Retail Stores: 1 Russia # Retail Stores: 18 379 Mono-Brand # Wholesale Doors: c.1,650 # Franchised Stores: 15 # FTEs: 68 # FTEs: 59 Stores in Turkey # Wholesale Doors: c.139 # FTEs: 133 54 International
Slide 7: Retail Expertise in Turkey
RETAIL EXPERTISE IN TURKEY
Slide 8: Multi Pillar Growth Strategy in Turkey Retail
Multi Pillar Growth Strategy in Turkey Retail • Physical Space Growth Expansion of store space LFL Growth New Store Openings Average Selling Space 500 sqm Above 20% (Last 3 years) 379 Stores in 80 Cities New Stores 600-800 sqm • New customer acquisition 1mn+ every year • Online Sales Growth mavi.com
Slide 9: Offering a Lifestyle Product Portfolio Across Women and Men
Offering a Lifestyle Product Portfolio Across Women and Men… Key Product Categories 45% 26% 13% 3% 6% 7% Denim Knits Shirts Jackets Accessories Others 31% Women WOMEN 69% Men (share) 45% Denim MEN 55% Lifestyle (share) Minimising Fashion Risk and Seasonality With Various Styles Across Lifestyle Prod
Slide 10: And Growing Significantly in Each Category
…And Growing Significantly in Each Category Denim Products (TRYm) Lifestyle Products (TRYm) Knits Shirts 45% 26% 13% 413 233 (48%) 320 (32%) 199 235 147 128 198 806 135 67 651 526 (39%) 2017 2018 2019 H12019 H12020 2017 2018 2019 H12019 H12020 386 Jackets Accessories 3% 6% 235 172 135 115 (34%) 2017
Slide 11: Diversified and Reliable Sourcing Model
Diversified and Reliable Sourcing Model Quality Driven Efficient Sourcing Structure with a focus on sustainability 45% Denim c.80% Made in 120+ Responsible c.20% Imported Suppliers 55% Non-Denim Turkey • Turkey Retail Net Sales Split • Quality textile ecosystem • Mainly outerwear and • Well-establis
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 26 13 14 (1) Stores 1,829 1,471 1,133 314 313 300 287 524 2017 2018 2019 H1 2020 2017 2018 2019 H1 2020 Gross Selling Space Evolution in Turkey (Sqm k) Significant LFL
Slide 13: Supported by High Like-for-like Growth Figures
…Supported by High Like-for-like Growth Figures 22.8% 22.5% 20.9% 9.9% 14.7% 13.0% 1 Transaction1 12.0% # Growth (%) -5.9% 2017 2018 2019 Q2 2020* 2017 2018 2019 Q2 2020* • There is no LFL store set in 2020. Q2 2020 19.6% 20.1% data is same stores sales growth including only open days and adjusting
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 Holders Both Genders are Under 35 8.1M 5.4M % of Turkey’s Total Loyalty Card Active Active Loyalty Card Members per Age Group (%) Population (2019) New Loyalty Card Members per Age Group
Slide 15: Successful Brand Strategy
SUCCESSFUL BRAND STRATEGY
Slide 16: Best-in-Class Communication
Best-in-Class Communication Aspirational denim centric lifestyle brand with celebrity endorsements 60+% 3M Brand Social Media 263 M+ Awareness with Impressions Followers Top of Mind Mavi is recognized with a Bronze Effie, the prestigious award of the advertising world, for its "Çok Serenay" campaign
Slide 17: Celebrities
Celebrities “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 appreciated.” Richard Branson (Istanbultalks, 2016) Richard Branson Katherine Heigl Heidi Klum Kate Hudson Colin Farrell Kendall Jenner Liam Hemsw
Slide 18: International & E-Com Markets
INTERNATIONAL & E-COM MARKETS
Slide 19: Growing Global Footprint (2019)
Growing Global Footprint (2019) c.5,000 doors in 59 monobrand Online channels c.2 million denim 35 countries stores share 29.0% (inc. pieces sold in Wholesale e- international (24 own- com) markets opearated, 36 franchise USA EUROPE 12% Retail 16% E-com 3% E-com c.1,350 Wholesale: Online wholesale c
Slide 20: E-Commerce Platform to Deliver Future Growth
E-Commerce Platform to Deliver Future Growth Global E-Commerce Revenue Turkey E-Commerce Revenue % Sales % Sales 3.3% 10.9% 8.0% 17.3% 49.3% 132.7% 160.3 82.9 38.9 (100%) 107.3 (26%) 40.4 52.0 35.6 52.8 294% 486% 7.0 13.2 6.9 42.5 69.4 95% 41.4 68% 21.8 H1 2019 H1 2020 H1 2019 H1 2020 mavi.com Marke
Slide 21: E-Commerce Potential in Turkey
E-Commerce Potential in Turkey Turkey Has a Strong E-Commerce Potential3 E-Commerce Penetration Turkey Share of Online Sales Still Below Overall Comparable Markets 5.3% % Share of E-Commerce in Apparel & Footwear (2019)1 E-Commerce penetration in Turkey (China 24%, USA 14%, UK 17%, Germany 11%) Inte
Slide 22: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE
Slide 23: Operational Results Impacted by Covid-19
Operational Results Impacted by Covid-19 Revenue Evolution (TRYm) Gross Profit Evolution (TRYm) Gross 50.9% 51.3% 49.1% 49.3% 47.9% Margin (%) (31%) 2,863 (33%) 2,353 1,405 1,782 1,208 1,340 907 925 661 443 2017 2018 2019 H1 2019 H1 2020 2017 2018 2019 H1 2019 H1 2020 EBITDA Evolution (TRYm) Net Pro
Slide 24: Effective Working Capital and Inventory Management
Effective Working Capital and Inventory Management Cash Conversion1 (exc. IFRS 16) Main Working Capital Items 111% TRYm 2017 2018 2019 H12019 H12020 88% 90% 73% Trade & Other Receivables3 140.2 188.1 251.6 218.2 210.8 53% % Sales 7.9% 8.0% 8.8% 8.3% 8.6% Inventories 320.4 457.2 496.1 515.0 590.5 201
Slide 25: Efficient Capex Management and Healthy Leverage Ratios
Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (31 July 2020) % Sales 4.1% 2.8% 3.1% 3.9% 6.7% 10% Average Cost of Debt 100.6 6% 13% EUR TRY 9.5% 72.8 7% USD 66.1 61.7 EUR 1.0% 52.8 4% CAD TRY USD 3.3% RUB RUB 12.9% 70% 90% CAD 3.0% 2017 2018 2019 H1 2019 H1 2020 Blended
Slide 26: Management Outlook for 2020FY
Management Outlook for 2020FY Updated Outlook Consolidated Revenue Growth -11% (± 2%) 4 net new stores Turkey Retail Stores 10 store expansions 8.0% (±1%) (exc. IFRS16) EBITDA Margin 16.0% (±1%) (inc. IFRS16) Net Debt/EBITDA 0.1x (exc. IFRS16) CAPEX 4% of consolidated sales Important Notice: The unc
Slide 27: Covid-19 Update and Q2 Results
COVID-19 UPDATE AND Q2 RESULTS
Slide 28: Covid-19 Update
Covid-19 Update Current Business Status Effective Business Measures • All retail and franchise stores in Turkey are • Effective sell-through rates were achieved open since June 1, 2020 through planning efforts preserving gross margins • Stores in Germany and Canada re- opened in May • In season orde
Slide 29: Business Trend in Q2 2020
Business Trend in Q2 2020 Consolidated Revenue (TRYm) Q2 2020 HIGHLIGHTS #of Days TR Stores 89 Days 46 Days 92 Days 61 Days Open (20%) 333% (40%) (22%) 648 692 Total Turkey Turkey Online 538 Sales Growth Sales Growth 387 Q1 2019 Q1 2020 Q2 2019 Q2 2020 13% 11 Ppts Consolidated EBITDA (TRYm) Same Sto
Slide 30: Revenue Evolution in Sales Channels
Revenue Evolution in Sales Channels Global Revenue (TRYm) Turkey Revenue (TRYm) (20%) (30%) (22%) (31%) Channel 1,095 Growth 189% 1,340 29 761 571 457 226 55 122% 83 925 14 (32%) 692 415 83 61 154 538 121 61 840 27 (36%) 475 524 (38%) 264 334 173 83 112 871 492 540 (38%) Q2 2019 Q2 2020 H1 2019 H1 2
Slide 31: Thank You
THANK YOU Contact : investorrelations@mavi.com duygu.inceoz@mavi.com
Slide 32: Financial Statements: Income Statement
Financial Statements Income Statement (inc. IFRS 16) TRYm Q2 2019 Q2 2020 Change (%) H1 2019 H1 2020 Change (%) Revenue 691.8 537.8 (22%) 1,340.1 924.9 (31%) Cost of Sales (337.4) (270.7) (20%) (678.8) (482.1) (29%) Gross Profit 354.4 267.1 (25%) 661.3 442.8 (33%) Gross Margin 51.2% 49.7% 49.3% 47.9
Slide 33: Financial Statements: Balance Sheet
Financial Statements Balance Sheet (inc. IFRS 16) TRYm 31 January 2020 31 July 2020 Change (%) Assets Current Assets Cash and Cash Equivalents 310.8 738.2 137% Trade Receivables 231.1 198.5 (14%) Inventories 496.1 590.5 19% Other Current Assets 80.7 101.5 26% Total Current Assets 1,118.7 1,628.7 46%
Slide 34: Financial Statements: Cash Flow Statement
Financial Statements Cash Flow Statement (inc. IFRS 16) TRYm H1 2019 H1 2020 Profit¹ 31.6 (58.3) Adjustments 273.3 208.0 Cash Flow from Operating Activities 304.9 149.6 Δ in Net Working Capital² (48.2) (10.6) Income Tax Paid (0.4) (7.7) Net Cash from Operating Activities 256.3 131.3 Capex (52.8) (61
Slide 35: 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 2006 ◼ Mavi’s Chief Executive Officer ◼ Primarily responsible for Mavi’s ◼ Previously worked at McKinsey since 2008
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