Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Investor Presentation (March 2019)
35 slides from Mavi Giyim Sanayi Ve Ticaret A.s's investor presentation, March 2019
Slide 1: Investor Presentation
INVESTOR PRESENTATION March, 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: Mavi Business Overview
MAVI BUSINESS OVERVIEW
Slide 4: Key investment highlights
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 (2018) Brand & Product (2018) Started operations in Istanbul in 1991, Mavi today is globally recognized as a highly successful casual lifestyle brand TRY2,353m Revenue TRY367m EBITDA #1 c.56%3 Lifestyle With strong denim roo
Slide 6: With Strong International Presence
…With Strong International Presence Canada Europe Russia 372 # Retail Stores: 3 # Retail Stores: 3 # Retail Stores: 14 # Wholesale Doors: c.1,650 # Wholesale Doors: c.1,700 # Franchised Stores: 16 # FTEs: 64 # FTEs: 85 # Wholesale Doors: c.122 Mono-Brand # FTEs: 112 Stores in Turkey 55 International
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 • New Store Openings • 1+ mn new customer Acquisition 300 Stores in 80 Cities Every year • LFL Growth Above 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… 44% 22% 14% 9% 7% 4% 44% Denim / 56% Lifestyle(share) 1 Data for Turkey retail only. 2 Including shoes. 3 Including kids. % of 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 44% 22% 14% 320 199 235 188 147 159 104 651 87 526 397 2015 2016 2017 2018 2015 2016 2017 2018 330 Jackets Accessories1 9% 7% 135 97 98 2015 2016 2017 2018 65 74 42 44 56 2015 2016 2017 2018 2015
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 SS18, FW18, 51% 49% Gold Casual Glam Pretty Istanbul&Basics Lifestyle excluding Premium Lifestyle Young Everyday Accessories1 FW18, 43% SS18, 57
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 13 1471 Stores 1133 857 704 261 287 300 236 2015 2016 2017 2018 2015 2016 2017 2018 Gross Selling Space Evolution in Turkey (Sqm k) Significant LFL Upside Pote
Slide 13: Supported by High Like-for-like Growth Figures
…Supported by High Like-for-like Growth Figures 22.8% 22.5% 14.7% 1 1 14.7% 14.1% 12.0% 9.9% Transaction2 # 7.3% Growth (%) 10.8% 2015 2016 2017 2018 2015 2016 2017 2018 • Brand recognition leading to new 9.4% customer acquisition and increased 6.9% 7.1% spending 3.9% 1 Basket Size Growth • Right pr
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 7.3M 5.3M % of Turkey’s Total Loyalty Card Active Active Loyalty Card Members per Age Group (%) Population (2018) New Loyalty Card Members per Age Group
Slide 15: Diversified and Reliable Sourcing Model
Diversified and Reliable Sourcing Model Quality Driven Efficient Sourcing Structure 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-established, long term • Denim-lifestyl
Slide 16: International & E-Com Markets
INTERNATIONAL & E-COM MARKETS
Slide 17: Growing Global Footprint
Growing Global Footprint c.5,000 doors in 55 monobrand Online channels c.2 million 35 countries stores share 7.0% denim pieces sold in (20 own- international opearated, markets 35 franchise USA EUROPE 12% Retail 16% E-com 3% E-com Mono-brand retail stores : 3 84% Wholesale 84% Wholesale CANADA RUSSI
Slide 18: E-Commerce Platform to Deliver Future Growth
E-Commerce Platform to Deliver Future Growth Global E-Commerce Revenue1 International E-Commerce Revenue Revenue (TRYm) 35 78 16 39 22 6 14 2 2015 2016 2017 2018 2015 2016 2017 2018 Mavi.com Turkey - Key Statistics Turkey E-Commerce Revenue # 1 Store in Turkey 56% Revenue from Mobile 43 23 302k # of
Slide 19: 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 20: Successful Brand Strategy
SUCCESSFUL BRAND STRATEGY
Slide 21: Best-in-Class Communication
Best-in-Class Communication Leader in the jeans category in ‘Turkey’s Cool Brands’ survey (Marketing Türkiye, September 2018) Solid Brands Research, the most solid brand of the textile and ready-to-wear sector (Marketing Türkiye, February 2019) Most Admired Brands Research, In Top 3 of the ready-to-
Slide 22: Brand Positioning Enhanced Through Global Collaborations
Brand Positioning Enhanced Through Global Collaborations Turkey 3.3 Milyon Social Meida Followers 2012 2013 2014 2015 2016 2016 2016 2017-2018 2018 Adriana Lima Kıvanç Tatlıtuğ Serenay Sarıkaya Serenay Sarıkaya Serenay Sarıkaya Serenay İlker Kaleli Kıvanç Tatlıtuğ Serenay Sarıkaya Barbara Palvin Ker
Slide 23: 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 24: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE
Slide 25: Mavi Delivers Strong Operational Results
Mavi Delivers Strong Operational Results Revenue Evolution (TRYm) Gross Profit Evolution (TRYm) Gross 49.7% 51.0% 50.9% 51.3% Margin (%) 2,353 1,782 1,208 1,368 907 1,053 698 524 2015 2016PF 2017 2018 2015 2016PF 2017 2018 EBITDA Evolution (TRYm) Net Profit (TRYm) EBITDA Profit 12.4% 13.0% 14.1% 15.
Slide 26: Strong Cash Conversion
Strong Cash Conversion Cash Conversion1 Main Working Capital Items TRYm 2015 2016PF 2017 2018 111% 92% 84% 87% Trade & Other Receivables3 89.1 132.9 140.2 188.1 % Sales 8.5% 9.7% 7.9% 8.0% Inventories 177.3 287.8 320.4 457.2 2015 2016PF 2017 2018 % COGS 33.6% 42.9% 36.6% 39.9% Trade & Other Payables
Slide 27: Efficient Capex Management and Healthy Leverage Ratios
Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (31 January 2019) % Sales 5.4% 4.8% 4.1% 2,8% EUR 7% Average Cost of Debt USD 62.6 72.8 66.1 8% 13% CAD TRY 24.0% 57.1 TL 8% RUB USD 4.7% 2% EUR 2.7% RUB 13.0% 2015 2016PF 2017 2018 69% CAD 3.7% 93% Blended 17.8% Local Curre
Slide 28: FY 2019 Guidance
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 0.3x Below 1x Up
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 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
Slide 32: 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
Slide 33: 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
Slide 34: Revenue Channel Performance
Revenue Channel Performance 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 2018 2017 2018 Int
Slide 35: KPI-Focused Rent Management at Turkey Retail Stores
KPI-Focused Rent Management at 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 the
Mavi Giyim Sanayi Ve Ticaret A.S. — Investor Presentation (March 2019) on 6ix