Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI

Mavi Giyim Sanayi Ve Ticaret A.s — FY2018 Earnings Presentation

17 slides from Mavi Giyim Sanayi Ve Ticaret A.s's earnings presentation, Mar 15, 2019

  1. Slide 1: FY 2018 Results Presentation

    FY 2018 RESULTS PRESENTATION March 15, 2019 0

  2. 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

  3. Slide 3: Solid Growth with Improved Margins

    Solid Growth with Improved Margins PROFITABLE GROWTH TURKEY RETAIL HIGHLIGHTS  Consolidated revenue increased by 32% to 2,353 TRYm 32% 46% 77% 22.5% Revenue EBITDA % of Turkey LFL Growth  EBITDA grew by 46% to 367 TRYm Growth Growth Revenue resulting in 15.6% EBITDA margin  Net Profit grew by 12%

  4. Slide 4: Revenue Growth Above Targets in all Channels

    Revenue Growth Above Targets in all Channels Global Revenue (TRYm) Turkey Revenue (TRYm) 2,353 Channel Growth 1,915 1,782 1,453 43 92% 78 103% 23 401 575 39 743 467 35% 431 345 298 561 19 33% 8 1,471 14 33 36 72 1,133 30% 153 1,531 377 103 1,182 29% 302 315 389 Q4 2017 Q4 2018 2017 2018 Q4 2017 Q4 2

  5. Slide 5: Resilient Performance of Turkey Retail Operations

    Resilient Performance of Turkey Retail Operations # of Retail Stores Turkey Retail Revenue (TRYm) Net 54 50 25 26 13 234 New Stores 1,471 287 300 1,133 261 2016 2017 2018 Gross Selling Space in Turkey (Sqm K) Avg. Sqm/ 484sqm 498sqm  13 net new store openings in 2018 Retail Store 7.9 2.3  10 store

  6. Slide 6: Supported by High Like-for-like Growth Figures

    …Supported by High Like-for-like Growth Figures 22.8% 22.5% 1 14.7% 12.0% 14.7% 1 Transaction2 9.9% 14.1% 7.3% # Growth (%) 10.8% 2015 2016 2017 2018 2015 2016 2017 2018 9.4% 6.9% 7.1% • Brand recognition leading to new 1 customer acquisition and increased Basket Size 3.9% spending Growth (%) • Righ

  7. Slide 7: Accelerated Sales Growth in Denim & Lifestyle Categories

    Accelerated Sales Growth in Denim & Lifestyle Categories Denim Products (TRYm) Lifestyle Products (TRYm) Denim All Knits Shirts 44% 22% 14% 320 199 235 147 651 526 2017 2018 2017 2018 Jackets 9% Accessories1 7% 135 97 98 2017 2018 74 2017 2018 2017 2018 % Share in 2018 Turkey retail net sales Total

  8. Slide 8: Strong Margin Improvements in GM and EBITDA; Negative FX Impact on Net Income

    Strong Margin Improvements in GM and EBITDA Negative FX Volatility Impact on Net Income Revenue (TRYm) Gross Profit (TRYm) 51.4% 48.1% 50.9% 51.3% 2,353 1,208 1,782 906 431 575 277 222 Q4 2017 Q4 2018 2017 2018 Q4 2017 Q4 2018 2017 2018 EBITDA (TRYm) Net Income (TRYm) 10.3% 10.9% 14.1% 15.6% 1.4% (0

  9. Slide 9: Strong Cash Conversion and Efficient Working Capital Management

    Strong Cash Conversion and Efficient Working Capital Management Cash Conversion Main Working Capital Items TRYm 2017 2018 111% 87% Trade & Other Receivables 140.2 188.1 % LTM Sales 7.9% 8.0% 2017 2018 Inventories 320.4 457.2 % LTM COGS 36.6% 39.9% Trade & Other TRYm 2017 2018 (%) 372.7 516.5 Payable

  10. Slide 10: Efficient Capex Management and Healthy Leverage Ratios

    Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown % Sales 4.8% EUR Average Cost of Debt 4.1% 2.8% 7% USD 8% 13% CAD TRY 24.0% TL 72.8 8% USD 4.7% RUB 66.1 2% EUR 2.7% 62.6 RUB 13.0% 69% CAD 3.7% 93% Blended 17.8% 2016 2017 2018 Local Currency Foreign Currency Net Debt / LTM

  11. Slide 11: 2018 Results and FY 2019 Guidance

    2018 Results and FY 2019 Guidance 2018 Initial Guidance 2018 Results 2019 Guidance Consolidated Revenue 25% 32% 25% Growth Net 15 Stores Turkey Retail Stores Net 25 Stores Net 13 Stores 10 Expansions Turkey Retail 16% 22.5% 18% LFL Growth EBITDA Margin Above 14% 15.6% 14.5% Net Debt/EBITDA Below 1x

  12. Slide 12: Thank You

    THANK YOU investorrelations@mavi.com 11

  13. Slide 13: Financial Statements: Income Statement

    Financial Statements Income Statement TRYm Q4 2017 Q4 2018 Change (%) 2017 2018 Change (%) Rev enue 431.2 575.1 33.4% 1,781.7 2,352.9 32.1% Cost of Sales (209.6) (298.4) 42.4% (875.3) (1,144.9) 30.8% Gross Profit 221.6 276.7 24.9% 906.3 1,207.9 33.3% Gross Margin 51.4% 48.1% 50.9% 51.3% Administrati

  14. Slide 14: Financial Statements: Balance Sheet

    Financial Statements Balance Sheet TRYm 31 January 2018 31 January 2019 Change (%) Assets Current Assets Cash and Cash Equiv alents 266.3 266.6 0.1% Trade Receiv ables 113.0 168.6 49.2% I nv entories 320.4 457.2 42.7% Other Current Assets 61.8 92.9 50.5% Total Current Assets 761.4 985.3 29.4% Non-Cu

  15. Slide 15: Financial Statements: Cash Flow Statement

    Financial Statements Cash Flow Statement TRYm 2017 2018 Profit¹ 90.0 100.8 D&A Expense 61.9 69.7 Net Finance Expense / (I ncome) 68.0 109.9 Tax Expense 22.2 31.6 Other Non-Cash I tems 16.1 41.7 Cash Flow from Operating Activ ities 258.2 353.7 Δ in Net Working Capital² 27.9 (48.1) I ncome Tax Paid (1

  16. Slide 16: KPI-Focused Rent Management for Turkey Retail Stores

    KPI-Focused Rent Management for Turkey Retail Stores Rent/Net Sales 18.0% 18.7% 17.8% 17.8% 2015 2016 2017 2018 1 Calculated as ratio of Turkey Retail Rent Expenses divided by Turkey Retail Revenue.  We continue to manage rental costs with a focus on target rent/sales ratio.  In accordance with th

  17. Slide 17: Global Footprint as at January 2019

    Global Footprint as at 31 January 2019 Canada Europe Russia # Retail Stores: 3 # Wholesale Doors: c.1,650 # Retail Stores: 3 # Wholesale Doors: c.1,700 # Retail Stores: 14 # Franchise Stores: 16 372 Mono-Brand # Employee: 64 # Employee: 85 Stores in Turkey # Wholesale Doors: c.122 # Employee: 112 55

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