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

Mavi Giyim Sanayi Ve Ticaret A.s — H1 2018 Earnings Presentation

17 slides from Mavi Giyim Sanayi Ve Ticaret A.s's earnings presentation, Sep 11, 2018

  1. Slide 1: H1 2018 Results Presentation

    H1 2018 RESULTS PRESENTATION September 11, 2018 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: Continued Profitable Growth in the First Half 2018

    Continued Profitable Growth in the First Half 2018 PROFITABLE GROWTH TURKEY RETAIL HIGHLIGHTS  Consolidated revenue increased by 28% to 1,062 TRYm 28% 39% 78% 20.9% Revenue EBITDA % of Turkey LFL Growth  EBITDA grew by 39% to 156 TRYm Growth Growth Revenue resulting in 14.7% EBITDA margin  Net Pr

  4. Slide 4: Revenue Growth in All Sales Channels

    Revenue Growth in All Sales Channels Global Revenue (TRYm) Turkey Revenue (TRYm) Channel Growth 875 677 15 56% 434 10 182 1,062 65% 328 8 143 27% 829 5 53 26 34 679 401 527 16 328 24% 525 289 373 29% 7 13 265 92 124 708 390 548 29% Q2 2017 Q2 2018 H1 2017 H1 2018 302 Q2 2017 Q2 2018 H1 2017 H1 2018

  5. Slide 5: Strong Performance of Turkey Retail Operations

    Strong Performance of Turkey Retail Operations… # of Retail Stores Turkey Retail Revenue (TRYm) Net 19 New 25 26 7 99 36 Stores 679 287 294 261 525 2016 2017 H1 2018 H1 2017 LFL Growth New Store Expansion H1 2018 Gross Selling Space in Turkey (Sqm K) Avg. Sqm/ 484sqm 497sqm  7 net new store opening

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

    …Supported by High Like-for-like Growth Figures 22.8% 20.9% 14.7% 13.3% 1 14.7% 1 9.9% 14.1% 7.3% Transaction2 # Growth (%) 10.8% 2015 2016 2017 H1 2018 2015 2016 2017 H1 2018 • Brand recognition leading to new customer 6.9% 7.1% 6.7% acquisition and increased spending 1 Basket Size 3.9% • Right pro

  7. Slide 7: Accelerated Sales Growth in All Categories

    Accelerated Sales Growth in All Categories Denim Products (TRYm) Lifestyle Products (TRYm) Denim All Knits Shirts 46% 22% 16% 152 107 111 75 316 262 H1 2017 H1 2018 H1 2017 H1 2018 Jackets 3% Accessories1 6% 20 44 H1 2017 H1 2018 34 11 H1 2017 H1 2018 H1 2017 H1 2018 % Share in H1 2018 Turkey retail

  8. Slide 8: Margin Targets Remain on Track

    Margin Targets Remain on Track Revenue (TRYm) Gross Profit (TRYm) 52.7% 55.0% 50.6% 52.4% 1,062 557 829 419 527 290 401 211 Q2 2017 Q2 2018 H1 2017 H1 2018 Q2 2017 Q2 2018 H1 2017 H1 2018 EBITDA (TRYm) Net Income (TRYm) 14.0% 15.8% 13.5% 14.7% 4.5% 5.3% 4.3% 5.0% 156 53 112 83 36 28 56 18 Q2 2017 Q2

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

    Strong Cash Conversion, Efficient Working Capital Management Cash Conversion Main Working Capital Items TRYm 2017 H1 2017 H1 2018 125% Trade & Other 89% Receivables 140.2 123.2 151.7 % LTM Sales 7.9% 7.9% 7.5% H1 2017 H1 2018 Inventories 320.4 296.4 393.9 % LTM COGS 36.6% 38.9% 40.5% TRYm H1 2017 H1

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

    Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (31 July 2018) CAD % Sales 4.8% 4.1% 3.2% 2% Cost of Debt RU 9% TRY 13.91% - 23.71% 72.8 62.6 USD TRY USD 4.05% - 5.35% 16% 33.6 49% EUR 0.00% - 3.50% RUB 12,95% EUR 24% CAD 3.70% 2016 2017 H1 2018 Blended 10.2% Net Debt / L

  11. Slide 11: KPI-Based Rent Management for Turkey Retail Stores

    KPI-Based Rent Management for Turkey Retail Stores 160 135 147 110 134 Rent/Net Sales 110 Rent/Net Sales(i) 100 104 99 99 USD(i) EUR(i) 18.0% 18.7% 17.8% 17.8% 2015 2016 2017 H1 2018 1 Calculated as ratio of Turkey Retail Rent Expenses divided by Turkey Retail Revenue. (i) : indexed at 2015=100  Ar

  12. Slide 12: FY 2018 Guidance Revised Up

    FY 2018 Guidance Revised Up Initial Guidance Revised Guidance Consolidated Revenue Growth 25% 30% Turkey Retail Stores 25 net new stores 20 net new stores 15 store expansions Turkey Retail LFL Growth 16% 20% EBITDA Margin Above 14% Above 14% maintained Net Debt/EBITDA Below 1x Below 1x maintained Up

  13. Slide 13: investorrelations@mavi.com

    investorrelations@mavi.com 12

  14. Slide 14: Financial Statements: Income Statement

    Financial Statements Income Statement 2Ç 2017 2Ç 2018 Değişim (%) 1.YY 2017 1. YY 2018 Değişim (%) Rev enue 400.6 526.6 31.5% 828.8 1,062.5 28.2% Cost of Sales (189.5) (237.0) 25.1% (409.4) (505.5) 23.5% Gross Profit 211.2 289.6 37.1% 419.4 557.0 32.8% Gross Margin 52.7% 55.0% 50.6% 52.4% Administra

  15. Slide 15: Financial Statements: Balance Sheet

    Financial Statements Balance Sheet TRYm 31 January 2018 31 July 2018 Change (%) Assets Current Assets Cash and Cash Equiv alents 266.3 217.9 (18.2%) Trade Receiv ables 113.0 136.0 20.4% I nv entories 320.4 393.9 23.0% Other Current Assets 61.8 66.8 8.2% Total Current Assets 761.4 814.7 7.0% Non-Curr

  16. Slide 16: Financial Statements: Cash Flow Statement

    Financial Statements Cash Flow Statement TRYm H1 2017 H1 2018 Profit¹ 35.7 52.8 D&A Expense 28.6 34.9 Net Finance Expense / (I ncome) 33.3 43.5 Tax Expense 11.1 15.1 Other Non-Cash I tems 9.0 11.3 Cash Flow from Operating Activ ities 117.7 157.5 Δ in Net Working Capital² 28.2 (17.4) I ncome Tax Paid

  17. Slide 17: Global Footprint as at 31 July 2018

    Global Footprint as at 31 July 2018 Canada Europe Russia # Retail Stores: 3 # Wholesale Doors: c.1,800 # Retail Stores: 5 # Wholesale Doors: c.1,400 # Retail Stores: 15 # Franchised Stores: 17 368 Mono-Brand # Employee: 55 # Employee: 132 Stores in Turkey # Wholesale Doors: c.105 # Employee: 114 60

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