Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Investor Presentation (March 2021)
34 slides from Mavi Giyim Sanayi Ve Ticaret A.s's investor presentation, March 2021
Slide 1: Investor Presentation March 2021
INVESTOR PRESENTATION March 2021
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 positioning, inspiring the customer, employees and business partners. Managing the quality and efficiency strategy with a focus on sustainability and innovation as a priority. Effective supply chain and flexible product plann
Slide 5: Highly Successful Lifestyle Brand…
Highly Successful Lifestyle Brand… Business Overview Key Metrics (2020) (inc.IFRS16) Brand & Product (2020) ◼ Started operations in Istanbul in 1991, Mavi today is globally recognized as a highly successful casual lifestyle brand TRY TRY #1 c.58% ◼ With strong denim roots, Mavi has evolved into an 2
Slide 6: …With Strong International Presence
…With Strong International Presence Canada # Retail Stores: 4 # Wholesale Doors: c.1,000 Europe # Retail Stores: 1 Russia # Retail Stores: 17 384 Mono-Brand # Wholesale Doors: c.1,100 # Franchised Stores: 15 # FTEs: 66 # FTEs: 59 Stores in Turkey # Wholesale Doors: c.139 # FTEs: 142 55 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) 384 Stores in 80 Cities New Stores 600-800 sqm • New customer acquisition* 1mn+ every year • Online Sales Growth mavi.c
Slide 9: Offering a Lifestyle Product Portfolio Across Women and Men…
Offering a Lifestyle Product Portfolio Across Women and Men… Key Product Categories 42% 25% 11% 11% 6% 5% Denim Knits Shirts Jackets Accessories Others 33% WOMEN Women 67% Men (share) 42% Denim MEN 58% Lifestyle (share) Minimising Fashion Risk and Seasonality With Various Styles Across Lifestyle Pro
Slide 10: …And Growing Significantly in Each Category
…And Growing Significantly in Each Category (disrupted in 2020 by Covid19) Denim Products (TRYm) Lifestyle Products (TRYm) Knits Shirts 42% 25% 11% (18%) 413 (37%) 233 320 338 199 235 147 146 806 (30%) 651 568 526 2017 2018 2019 2020 2017 2018 2019 2020 Jackets Accessories 11% 6% (16%) 172 (26%) 135
Slide 11: 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 6 Stores (26%) 1,829 1,471 1,356 1,133 314 320 300 287 2017 2018 2019 2020 2017 2018 2019 2020 Gross Selling Space Evolution in Turkey (Sqm k) Significant LFL
Slide 12: Significantly Impacted by Covid19 Pandemic Restrictions in 2020
Significantly Impacted by Covid19 Pandemic Restrictions in 2020 Turkey Retail Revenue 2020/2019 141% 126% 100% 108% 98% 87% 80% 75% 62% 64% 54% 10% FEB MAR 0% APR MAY JUN JUL AUG SEP OCT NOV DEC JAN 2020/2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Trading Hours (47%) (53%) (25%) (35%) Traffic on (4%) (33%)
Slide 13: Like-for-like Growth Figures
Like-for-like Growth Figures 22.5% 20.9% 12.0% 17.3% 1.1% 2.1% Transaction1 # Growth (%) -20.8% -11.0% -36.0% 2018 2019 2020 2020* Q4* 2020 -27.3% 2018 2019 2020 2020* Q4* 2020 19.6% • 2020* and Q4* 2020 values are same store 13.6% 14.9% 12.4% sales performance including only open days in 9.4% Baske
Slide 14: Diversified and Reliable Sourcing Model
Diversified and Reliable Sourcing Model Quality Driven Efficient Sourcing Structure with a focus on sustainability 42% Denim c.80% Made in 120+ Responsible c.20% Imported Suppliers 58% Non-Denim Turkey • Turkey Retail Net Sales Split • Quality textile ecosystem • Mainly outerwear and • Well-establis
Slide 15: 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 5.1M % of Turkey’s Total Loyalty Card Active Active Loyalty Card Members per Age Group (%) Population (2019) New Loyalty Card Members per Age Group
Slide 16: Successful Brand Strategy
BRAND STRATEGY — — Li ”Y Y LL O O — Y
Slide 17: Best-in-Class Communication
Best-in-Class Communication Aspirational denim centric lifestyle brand with celebrity endorsements Turkey’s Most Loved Brand and 3,3 M #1 in brand Social Media awareness. Followers Bronze Effie in the fashion category for the “Mavi Benim” campaign with Serenay Sarıkaya at the prestigious Effie Award
Slide 18: 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 19: International & E-Com Markets
INTERNATIONAL & E-COM MARKETS
Slide 20: Growing Global Footprint (2020)
Growing Global Footprint (2020) c.4,500 doors in 55 monobrand Online channels 33 countries stores share in global 44.2% (inc. (23 own- Wholesale opearated, e-com) 32 franchise USA EUROPE 1% Retail 21% 25% c.1200 Wholesale: Online wholesale -1,100 Wholesale: Mono-brand E-com E-com wholesale Nordstrom
Slide 21: E-Commerce Platform to Deliver Future Growth
E-Commerce Platform to Deliver Future Growth Global E-Commerce Revenue Turkey E-Commerce Revenue % Sales 8.3% 17.2% % Sales 3.8% 10.7% 412 132.0% 207 73.2% 107 (100%) 238 99 15% 125 89 93 7 270% 42 201% 27 107 180 55 94% 104 74% 2019 2020 2019 2020 mavi.com Marketplace Wholesale E-com International
Slide 22: 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 23: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE
Slide 24: Operational Results Impacted by Covid-19 Pandemic in 2020
Operational Results Impacted by Covid-19 Pandemic in 2020 Revenue Evolution (TRYm) Gross Profit Evolution (TRYm) Gross 50.9% 51.3% 49.1% 48.3% Margin (%) (16%) 2,863 (17%) 2,353 2,402 1,405 1,782 1,208 1,160 907 2017 2018 2019 2020 2017 2018 2019 2020 EBITDA Evolution (TRYm) Net Profit (TRYm) EBITDA
Slide 25: 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 2020 88% 90% 83% Trade & Other Receivables3 140.2 188.1 251.6 247.9 % Sales 7.9% 8.0% 8.8% 10.3% Inventories 320.4 457.2 496.1 560.1 2017 2018 2019 2020 % COGS 36.6%
Slide 26: Efficient Capex Management and Healthy Leverage Ratios
Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (31 January 2021) % Sales 4.1% 2.8% 3.1% 4.2% 7% Average Cost of Debt 100.6 101.3 5% 9% EUR TRY 11.5% 7% USD 72.8 66.1 EUR 0.9% 2% CAD USD 3.3% TRY RUB 12.5% RUB 77% CAD 3.0% 2017 2018 2019 2020 93% Blended 9.9% Net Debt / L
Slide 27: 2020: A Year Marked by Covid19
2020: A YEAR MARKED BY COVID19
Slide 28: 2020 Business Overview
2020 Business Overview A Year Marked by Covid19 Pandemic • Throughout 2020, our priority as a leading and responsible brand was to protect the health of our employees, customers, business partners, and the public. As the Mavi management, we would like to thank the entire Mavi team for standing in un
Slide 29: Future Ready Company
Future Ready Company Towards a more digital future • Digitalization and CRM investments on the core of our strategy of winning • SAP transformation project continues on-time, planned to go live June 2021 • Mavi.com platform globally attracts new customers with world class capabilities Mavi : Love Br
Slide 30: Thank You
THANK YOU Contact : investorrelations@mavi.com duygu.inceoz@mavi.com
Slide 31: Financial Statements
Financial Statements Income Statement (inc. IFRS 16) TRYm Q4 2019 Q4 2020 Change (%) 2019 2020 Change (%) Revenue 714.6 649.9 (9%) 2,862.9 2,401.8 (16%) Cost of Sales (379.1) (349.2) (8%) (1,458.3) (1,241.7) (15%) Gross Profit 335.5 300.7 (10%) 1,404.6 1,160.1 (17%) Gross Margin 47.0% 46.3% 49.1% 48
Slide 32: Financial Statements
Financial Statements Balance Sheet (inc. IFRS 16) TRYm 31 January 2020 31 January 2021 Change (%) Assets Current Assets Cash and Cash Equivalents 310.8 889.9 186% Trade Receivables 231.1 231.4 0% Inventories 496.1 560.1 13% Other Current Assets 80.7 105.4 31% Total Current Assets 1,118.7 1,786.7 60%
Slide 33: Financial Statements
Financial Statements Cash Flow Statement (inc. IFRS 16) TRYm 2019 2020 Profit¹ 107.9 8.0 Adjustments 565.6 441.4 Cash Flow from Operating Activities 673.5 449.4 Δ in Net Working Capital² (38.3) (34.8) Income Tax Paid (32.0) (25.2) Net Cash from Operating Activities 603.2 389.4 Capex (100.6) (101.3)
Slide 34: 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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