Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Q2 2019 Earnings Presentation
18 slides from Mavi Giyim Sanayi Ve Ticaret A.s's earnings presentation, Sep 20, 2019
Slide 1: Q2 2019 Results Presentation
Q2 2019 RESULTS PRESENTATION September 20, 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: First Half 2019 Highlights
First Half 2019 Highlights GROUP HIGHLIGHTS1 TURKEY RETAIL HIGHLIGHTS • Consolidated revenue increased by 26% to 1,340 TRYm 26% 14% 77% 20.8% Revenue EBITDA % of Turkey LFL Growth • EBITDA grew by 14% to 178 TRYm Growth Growth Revenue resulting in 13.3% EBITDA margin • Net profit contracted by 14% a
Slide 4: Revenue Growth in All Sales Channels
Revenue Growth in All Sales Channels Global Revenue (TRYm) Turkey Revenue (TRYm) Channel Growth 1,095 875 29 91% 571 15 226 1,340 112% 434 14 182 1,062 8 83 25% 55 53 527 692 26 26% 679 840 415 475 24% 27 328 373 13 124 173 708 871 390 492 23% Q2 2018 Q2 2019 H1 2018 H1 2019 Q2 2018 Q2 2019 H1 2018
Slide 5: Turkey Retail Operations
Turkey Retail Operations # of Retail Stores Turkey Retail Revenue (TRYm) 134 24 4 Net 26 13 6 New Stores 840 679 287 300 306 2017 2018 H1 2019 H1 2018 LFL Growth New Store Expansion H1 2019 Gross Selling Space in Turkey (Sqm K) Avg. Sqm/ 498sqm 500sqm Retail 6 net new store openings in H1 2019 Sto
Slide 6: Basket-Driven Like-for-like Growth
Basket-Driven Like-for-like Growth 22.8% 22.5% 20.8% 1 14.7% 14.1% 1 12.0% Transaction2 9.9% # Growth (%) 10.8% -1.7% 2016 2017 2018 H1 2019 2016 2017 2018 H1 2019 22.9% • Strong Q2 LFL performance (25.0%) with positive traffic and transaction growth 9.4% Basket Size 7.1% 1 Growth 3.9% • Price posit
Slide 7: Sales in Denim & Lifestyle Categories
Sales in Denim & Lifestyle Categories Denim Products (TRYm) Lifestyle Products (TRYm) Denim All Knits Shirts 46% 24% 15% 198 128 107 152 386 316 H1 2018 H1 2019 H1 2018 H1 2019 Jackets 3% Accessories1 6% 24 20 51 H1 2018 H1 2019 44 H1 2018 H1 2019 H1 2018 H1 2019 % Share in H1 2019 Turkey retail net
Slide 8: Focus on Online Sales Growth
Focus on Online Sales Growth Global Online Sales (TRYm) Turkey Online Sales (TRYm) % Sales 5.4% 8.0% % Sales 2.4% 3.3% 35.6 7.0 20.6 107.4 24% 5.6 28.7 15.0 91% 52.8 57.8 H1 2018 H1 2019 65% International Online Sales (TRYm) 32.0 112% 54.6 % Sales 19.9% 29.3% 25.8 H1 2018 H1 2019 71.8 mavi.com & Mar
Slide 9: Consolidated Financial Metrics
Consolidated Financial Metrics Revenue (TRYm) Gross Profit (TRYm) 55.0% 51.2% 52.4% 49.3% 1,340 661 1,062 557 692 354 527 290 Q2 2018 Q2 2019 H1 2018 H1 2019 Q2 2018 Q2 2019 H1 2018 H1 2019 EBITDA (TRYm) Net Income (TRYm) 15.8% 15.0% 23.8% 14.7% 13.3% 22.2% 5.3% 4.4% 3.1% 5.0% 3.4% 2.4% 297 53 46 16
Slide 10: Cash Conversion and Working Capital Management
Cash Conversion and Working Capital Management Cash Conversion (Exc. IFRS16) Main Working Capital Items TRYm 2018 H1 2018 H1 2019 89% 73% Trade & Other Receivables 188.1 151.7 218.2 % LTM Sales 8.0% 7.5% 8.3% H1 2018 H1 2019 Inventories 457.2 393.9 515.0 % LTM COGS 39.9% 40.5% 39.1% TRYm H1 2018 H1
Slide 11: Capex and Leverage Ratios
Capex and Leverage Ratios CAPEX Debt Breakdown (31 July 2019) % Sales 3.2% 3.9% 10% Average Cost of Debt 7% 2% TRY TRY 22.4% 8% 52.9 EUR EUR 1.9% 15% USD USD 4.9% 33.6 RUB 68% RUB 13.2% CAD CAD 4.0% 90% Blended 16.9% H1 2018 H1 2019 Local Currency Foreign Currency Net Debt / LTM EBITDA (exc. IFRS 16
Slide 12: FY 2019 Guidance Unchanged
FY 2019 Guidance Unchanged • Consolidated Revenue Growth : 25% • Turkey Retail Stores : Net 15 store openings and 10 store 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
Slide 13: investorrelations@mavi.com
investorrelations@mavi.com 12
Slide 14: Financial Statements
Financial Statements Income Statement (2019 figures inc. IFRS 16) TRYm Q2 2018 Q2 2019 Change (%) H1 2018 H1 2019 Change (%) Rev enue 526.6 691.8 31.4% 1,062.5 1,340.1 26.1% Cost of Sales (237.0) (337.4) 42.4% (505.5) (678.8) 34.3% Gross Profit 289.6 354.4 22.4% 557.0 661.3 18.7% Gross Margin 55.0%
Slide 15: Financial Statements
Financial Statements Balance Sheet (2019 figures inc. IFRS 16) TRYm 31 January 2018 31 July 2019 Change (%) Assets Current Assets Cash and Cash Equiv alents 266.6 399.0 49.7% Trade Receiv ables 168.6 203.0 20.4% I nv entories 457.2 515.0 12.6% Other Current Assets 92.9 83.0 (10.7%) Total Current Ass
Slide 16: Financial Statements
Financial Statements Cash Flow Statement (2019 figures inc. IFRS 16) TRYm H1 2018 H1 2019 Profit¹ 52.8 31.6 D&A Expense 34.9 136.4 Net Finance Expense / (I ncome) 43.5 120.6 Tax Expense 15.1 9.2 Other Non-Cash I tems 11.3 6.1 Cash Flow from Operating Activ ities 157.5 304.0 Δ in Net Working Capital²
Slide 17: Financial Statements – IFRS 16 Impacts
Financial Statements – IFRS 16 Impacts IFRS 16 APPLIED AS OF FEBRUARY 1, 2019 H1 2019 Effect (TRY in millions) Decrease as all non-performance leases are capitalized RENT EXPENSE -119.1 and are subjected to depreciation and interest expense DEPRECIATION & Increase due to depreciation of capitalized
Slide 18: Global Footprint as at July 2019
Global Footprint as at 31 July 2019 Canada Europe Russia # Retail Stores: 4 # Wholesale Doors: c.1,650 # Retail Stores: 2 # Wholesale Doors: c.1,700 # Retail Stores: 15 # Franchise Stores: 16 376 Mono-Brand # Employee: 68 # Employee: 71 Stores in Turkey # Wholesale Doors: c.135 # Employee: 130 57 In
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