Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Investor Presentation (December 2020)
37 slides from Mavi Giyim Sanayi Ve Ticaret A.s's investor presentation, December 2020
Slide 1: Investor Presentation December 2020
INVESTOR PRESENTATION December 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 (9M 2020) (inc.IFRS16) Brand & Product (9M 2020) ◼ Started operations in Istanbul in 1991, Mavi today is globally recognized as a highly successful casual lifestyle brand TRY TRY 301m #1 c.56% ◼ With strong denim roots, Mavi has evolve
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: 17 383 Mono-Brand # Wholesale Doors: c.1,650 # Franchised Stores: 15 # FTEs: 64 # FTEs: 58 Stores in Turkey # Wholesale Doors: c.139 # FTEs: 142 53 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) 383 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 44% 25% 12% 6% 6% 6% Denim Knits Shirts Jackets Accessories Others 33% Women WOMEN 67% Men (share) 44% Denim MEN 56% 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 44% 25% 12% 413 (19%) (37%) 233 320 311 199 193 235 251 147 122 806 (28%) 651 611 526 2017 2018 2019 9M2019 9M2020 2017 2018 2019 9M2019 9M2020 440 Jackets Accessories 6% 6% 172 (24%) 135 (26%) 1
Slide 11: Diversified and Reliable Sourcing Model
Diversified and Reliable Sourcing Model Quality Driven Efficient Sourcing Structure with a focus on sustainability 44% Denim c.80% Made in 120+ Responsible c.20% Imported Suppliers 56% 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 3 Stores 1,829 1,471 317 1,133 998 314 300 287 2017 2018 2019 9M 2020 2017 2018 2019 9M 2020 Gross Selling Space Evolution in Turkey (Sqm k) Significant LFL Up
Slide 13: Supported by High Like-for-like Growth Figures
…Supported by High Like-for-like Growth Figures 22.8% 22.5% 20.9% 14.7% 12.0% 1.1% Transaction1 # Growth (%) (4.7%) (15.4%) 2017 2018 2019 Q2-Q3 2020 2017 2018 2019 Q2-Q3 2020 • There is no meaningful LFL store set in 2020. Q2-Q3 data is same stores sales growth after store 19.6% openings (June-Octo
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 5.3M % 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 7.5% 15.1% % Sales 3.1% 8.8% 127.2% 64.6% 264 125 74 (100%) 5% 60 160 55 79 381% 71 248% 7 13 23 82% 65 111 35 66% 67 9M 2019 9M 2020 9M 2019 9M 2020 mavi.com Marketplace Wholesale E-com Internat
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% 49.8% 49.1% Margin (%) (18%) 2,863 (20%) 2,353 2,148 1,405 1,782 1,752 1,208 1,069 907 859 2017 2018 2019 9M 2019 9M 2020 2017 2018 2019 9M 2019 9M 2020 EBITDA Evolution (TRYm) Net
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 9M2019 9M2020 88% 90% 78% 58% Trade & Other Receivables3 140.2 188.1 251.6 274.4 290.3 % Sales 7.9% 8.0% 8.8% 10.1% 11.8% Inventories 320.4 457.2 496.1 515.0 648.2 2
Slide 25: Efficient Capex Management and Healthy Leverage Ratios
Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (31 October 2020) % Sales 4.1% 2.8% 3.1% 3.4% 4.7% 8% Average Cost of Debt 100.6 6% 10% EUR TRY 10.3% 83.0 72.8 73.8 8% USD 66.1 EUR 1.2% 2% CAD USD 3.3% TRY RUB 12.9% RUB 74% CAD 3.0% 2017 2018 2019 9M 2019 9M 2020 92% Blen
Slide 26: Management Outlook for 2020FY
Management Outlook for 2020FY Outlook Provided in September • New restrictions in Turkey including weekend lockdowns effective as of Consolidated Revenue Growth -11% (± 2%) December 1, 2020 will have a significant impact on our revenue 4 net new stores stream (hence downside risk on Turkey Retail St
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 • All retail and franchise stores in Turkey are open since June 1, 2020. Working hour limitations on weekdays and weekend curfew (stores will be closed) imposed as of December 1 • European markets re-opened in May. Across the countries we operate, there are va
Slide 29: Recovering Business Trend
Recovering Business Trend Consolidated Revenue (TRYm) Q3 2020 HIGHLIGHTS #of Days TR Stores 89 Days 46 Days 92 Days 61 Days 92 Days 92 Days Open 32% (3%) (40%) (22%) 2% 808 827 International Turkey 648 692 538 Sales Growth Sales Growth 387 Q1 2019 Q1 2020 Q2 2019 Q2 2020 Q3 2019 Q32020 13% 50.4% 120
Slide 30: Revenue Evolution in Sales Channels
Revenue Evolution in Sales Channels Global Revenue (TRYm) Turkey Revenue (TRYm) (3%) (20%) 2% (18%) Channel 1,773 Growth 1,417 161% 2,148 48 1,752 372 125 89 113% 678 655 (21%) 294 660 19 42 190 145 1,353 808 827 (20%) 140 531 998 (26%) 35 69 513 474 245 267 1,399 1,031 (26%) 528 491 Q3 2019 Q3 2020
Slide 31: Consolidated Gross Margins
Consolidated Gross Margins Revenue (TRYm) Gross Profit (TRYm) 50.5% 50.4% 49.8% 49.1% 2% (18%) 2,148 2% (20%) 1,752 1,069 859 808 827 417 408 Q3 2019 Q3 2020 9M 2019 9M 2020 Q3 2019 Q3 2020 9M 2019 9M 2020 • Normalized gross margin with current imputed interest rate is 50.4% for Q3 2019 and 48.8% fo
Slide 32: Consolidated EBITDA and Net Income
Consolidated EBITDA and Net Income EBITDA exc.IFRS16 (TRYm) EBITDA inc.IFRS16 (TRYm) 18.8% 17.8% 15.4% 9.7% 26.4% 24.1% 23.7% 17.2% (3%) (49%) (6%) 510 (41%) 330 301 152 147 170 213 200 Q3 2019 Q3 2020 9M 2019 9M 2020 Q3 2019 Q3 2020 9M 2019 9M 2020 Net Income exc.IFRS16 (TRYm) Net Income inc.IFRS16
Slide 33: Thank You
THANK YOU Contact : investorrelations@mavi.com duygu.inceoz@mavi.com
Slide 34: Financial Statements
Financial Statements Income Statement (inc. IFRS 16) TRYm Q3 2019 Q3 2020 Change (%) 9M 2019 9M 2020 Change (%) Revenue 808.1 827.0 2% 2,148.3 1,751.9 (18%) Cost of Sales (400.4) (410.4) 2% (1,079.2) (892.5) (17%) Gross Profit 407.7 416.6 2% 1,069.1 859.5 (20%) Gross Margin 50.5% 50.4% 49.8% 49.1% A
Slide 35: Financial Statements
Financial Statements Balance Sheet (inc. IFRS 16) TRYm 31 January 2020 31 October 2020 Change (%) Assets Current Assets Cash and Cash Equivalents 310.8 905.8 191% Trade Receivables 231.1 279.8 21% Inventories 496.1 648.2 31% Other Current Assets 80.7 96.6 20% Total Current Assets 1,118.7 1,930.3 73%
Slide 36: Financial Statements
Financial Statements Cash Flow Statement (inc. IFRS 16) TRYm 9M 2019 9M 2020 Profit¹ 95.0 25.5 Adjustments 438.4 365.1 Cash Flow from Operating Activities 533.4 390.6 Δ in Net Working Capital² (72.9) (72.0) Income Tax Paid (12.0) (9.2) Net Cash from Operating Activities 448.5 309.4 Capex (73.8) (83.
Slide 37: 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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