Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Q1 2019 Earnings Presentation
19 slides from Mavi Giyim Sanayi Ve Ticaret A.s's earnings presentation, May 31, 2019
Slide 1: Q1 2019 Results Presentation
Q1 2019 RESULTS PRESENTATION May 31, 2019 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: Continued Revenue Growth in Q1 2019
Continued Revenue Growth in Q1 2019 GROUP HIGHLIGHTS1 TURKEY RETAIL HIGHLIGHTS • Consolidated revenue increased by 21% to 648 TRYm 21% 2.3% 70% 15.5% Revenue EBITDA % of Turkey LFL Growth • EBITDA grew by 2.3% to 74 TRYm Growth Growth Revenue resulting in 11.4% EBITDA margin • Net profit contracted
Slide 4: Revenue Growth in all Channels and Regions
Revenue Growth in all Channels and Regions Global Revenue (TRYm) Turkey Revenue (TRYm) Channel 524 Growth 441 100% 15 7 144 648 536 114% 129 12% 27 306 365 13 20% 242 18% 204 Q1 2018 Q1 2019 319 379 19% International Revenue (TRYm) Q1 2018 Q1 2019 Retail Wholesale E-com Total revenue consists of 5
Slide 5: Turkey Retail Operations
Turkey Retail Operations # of Retail Stores Turkey Retail Revenue (TRYm) 11 3 Net 26 13 0 45 New Stores 365 306 287 300 300 2017 2018 Q1 2019 Q1 2018 LFL Growth New Store Expansion Q1 2019 Gross Selling Space in Turkey (Sqm K) Avg. Sqm/ 498sqm 498sqm • 3 store openings and 3 closures resulting in Re
Slide 6: Basket-Driven Like-for-like Growth
Basket-Driven Like-for-like Growth 22.8% 22.5% 14.7% 1 15.5% 1 12.0% 14.1% 9.9% Transaction2 # Growth (%) 10.8% 2016 2017 2018 Q1 2019 2016 2017 2018 Q1 2019 -7.8% • Uncertain conditions and late season transitioning impacted traffic and conversion 25.3% • Competitive market positioning maintained d
Slide 7: Sales in Denim & Lifestyle Categories
Sales in Denim & Lifestyle Categories Denim Products (TRYm) Lifestyle Products (TRYm) Denim All Knits Shirts 49% 19% 15% 70 53 48 59 180 148 1Q 2018 1Q 2019 1Q 2018 1Q 2019 Jackets 6% Accessories1 6% 23 1Q 2018 1Q 2019 23 20 18 1Q 2018 1Q 2019 1Q 2018 1Q 2019 % Share in Q1 2019 Turkey retail net sal
Slide 8: Focus on Online Sales Growth
Focus on Online Sales Growth Global Online Sales (TRYm) Turkey Online Sales (TRYm) % Sales 5.3% 8.4% % Sales 2.5% 3.9% 20.2 5.7 11.1 50% 54.2 3.8 14.5 49,9% 7.3 100% 26.7 28.6 Q1 2018 Q1 2019 69% 15.8 International Online Sales (TRYm) 27.5 114% % Sales 19% 27% 12.9 Q1 2018 Q1 2019 49,9 34.0 Mavi.com
Slide 9: Consolidated Financial Metrics
Consolidated Financial Metrics Revenue (TRYm) Gross Profit (TRYm) 49.9% 47.3% 648 307 536 267 Q1 2018 Q1 2019 Q1 2018 Q1 2019 EBITDA (TRYm) Net Income (TRYm) 13.5% 11.4% 20.4% 4.7% 2.4% 1.6% 133 72 74 25 15 10 Q1 2018 Q1 2019 Q1 2019 Q1 2018 Q1 2019 Q1 2019 (IFRS 16) (IFRS 16) % Growth % Margin 88
Slide 10: Cash Conversion and Working Capital Management
Cash Conversion and Working Capital Management Cash Conversion (exc. IFRS16) Main Working Capital Items 54% TRYm 2018 Q1 2018 Q1 2019 Trade & Other Receivables 188.1 216.6 241.9 % LTM Sales 8.0% 11.5% 9.8% 8% Inventories 457.2 338.5 508.0 Q1 2018 Q1 2019 39.9% 36.6% 41.7% % LTM COGS Trade & Other 51
Slide 11: Capex and Leverage
Capex and Leverage CAPEX Debt Breakdown (30 April 2019) Average Cost of Debt % Sales 3.1% 3.1% 5% TRY 21.8% 8% 12% EUR USD 4.4% 20.2 6% USD 16.8 2% EUR 2.8% CAD TL RUB 13.1% 72% RUB CAD 3.7% Q1 2018 Q1 2019 95% Blended 17.3% Local Currency Foreign Currency Net Debt / LTM EBITDA (exc. IFRS 16) 0.3x 0
Slide 12: FY 2019 Guidance Unchanged
FY 2019 Guidance Unchanged • Consolidated Revenue Growth : 25% • Turkey Retail Stores : Net 15 store openings and 10 sqm expansions • Turkey Retail LFL Growth : 18% • EBITDA margin 14.5% • Net Debt / EBITDA below 1x • Capex 4% of Revenue Note: 2019 EBITDA margin and Net Debt/EBITDA target does not r
Slide 13: investorrelations@mavi.com
investorrelations@mavi.com 12
Slide 14: Appendix
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Slide 15: Financial Statements
Financial Statements Income Statement (2019 figures inc. IFRS 16) TRYm Q1 2018 Q1 2019 Change (%) Rev enue 535.8 648.4 21.0% Cost of Sales (268.5) (341.4) 27.1% Gross Profit 267.3 307.0 14.8% Gross Margin 49.9% 47.3% Administrativ e Expenses (29.8) (36.7) 23.0% Selling and Marketing Expenses (174.8)
Slide 16: Financial Statements
Financial Statements Balance Sheet (2019 figures inc. IFRS 16) TRYm 31 January 2019 30 April 2019 Change (%) Assets Current Assets Cash and Cash Equiv alents 266.6 349.6 31.1% Trade Receiv ables 168.6 227.1 34.7% I nv entories 457.2 508.0 11.1% Other Current Assets 92.9 112.2 20.8% Total Current Ass
Slide 17: Financial Statements
Financial Statements Cash Flow Statement (2019 figures inc. IFRS 16) TRYm Q1 2018 Q1 2019 Profit¹ 25.1 10.1 D&A Expense 16.1 65.2 Net Finance Expense / (I ncome) 18.3 59.4 Tax Expense 7.6 2.1 Other Non-Cash I tems 4.2 13.4 Cash Flow from Operating Activ ities 71.3 150.1 Δ in Net Working Capital² (33
Slide 18: Financial Statements – IFRS 16 Impacts
Financial Statements – IFRS 16 Impacts IFRS 16 APPLIED AS OF FEBRUARY 1, 2019 Q1 2019 Effect (TRY in millions) Decrease as all non-performance leases are capitalized RENT EXPENSE -58.6 and are subjected to depreciation and interest expense DEPRECIATION & Increase due to depreciation of capitalized o
Slide 19: Global Footprint as at April 2019
Global Footprint as at 30 April 2019 Canada Europe Russia # Retail Stores: 4 # Wholesale Doors: c.1,650 # Retail Stores: 2 # Wholesale Doors: c.1,700 # Retail Stores: 14 # Franchise Stores: 16 370 Mono-Brand # Employee: 72 # Employee: 90 Stores in Turkey # Wholesale Doors: c.135 # Employee: 116 55 I
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