Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Q2 2020 Earnings Presentation
20 slides from Mavi Giyim Sanayi Ve Ticaret A.s's earnings presentation, Sep 14, 2020
Slide 1: Q2 2020 Results Presentation
Q2 2020 RESULTS PRESENTATION September 14, 2020 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: Covid-19 Update
Covid-19 Update Current Business Status Effective Business Measures • All retail and franchise stores in Turkey are • Effective sell-through rates were achieved open since June 1, 2020 through planning efforts preserving gross margins • Stores in Germany and Canada re- opened in May • In season orde
Slide 4: H1 2020 Highlights
H1 2020 Highlights GROUP HIGHLIGHTS1 TURKEY HIGHLIGHTS • Consolidated revenue realized 925 (38%) 189% TRYm, declining 31% due to Covid- 925 TRYm 101 TRYm 19 business distruptions Retail Sales Online Sales Revenue EBITDA Decline Growth • EBITDA for the period is 101 TRYm resulting in 10.9% EBITDA mar
Slide 5: Business Trend in Q2 2020
Business Trend in Q2 2020 Consolidated Revenue (TRYm) Q2 2020 HIGHLIGHTS #of Days TR Stores 89 Days 46 Days 92 Days 61 Days Open (20%) 333% (40%) (22%) 648 692 Total Turkey Turkey Online 538 387 Sales Growth Sales Growth Q1 2019 Q1 2020 Q2 2019 Q2 2020 13% 8 Ppts 11 Ppts Consolidated EBITDA (TRYm) I
Slide 6: Revenue Evolution in Sales Channels
Revenue Evolution in Sales Channels Global Revenue (TRYm) Turkey Revenue (TRYm) (20%) (30%) (22%) (31%) Channel 1,095 Growth 189% 1,340 29 761 571 457 226 55 122% 83 (32%) 925 14 692 415 83 61 154 27 538 121 (36%) 61 840 475 524 (38%) 173 83 264 334 112 871 492 343 540 (38%) Q2 2019 Q2 2020 H1 2019
Slide 7: Turkey Retail Operations
Turkey Retail Operations # of Retail Stores Gross Selling Space in Turkey (Sqm K) Net Avg. 13 14 (1) Sqm/ 498sqm 498sqm 499sqm New Stores Retail Store 149.3 156.3 156.3 300 314 313 2018 2019 H1 2020 2018 2019 H1 2020 • With five openings and six closures in the first half of 2020, number of retail s
Slide 8: Same Store Sales Performance after Store Openings in Q2
Same Store Sales Performance after Store Openings in Q2 9.9% 14.7% 22.8% 22.5% 20.9% 1 13.0% Transaction1 12.0% # Growth (%) -5.9% 2017 2018 2019 Q2 2020* 2017 2018 2019 Q2 2020* 19.6% 20.1% • There is no LFL store set in 2020. Q2 2020 data is same stores sales growth including only open days and ad
Slide 9: Sales in Denim & Lifestyle Categories
Sales in Denim & Lifestyle Categories Denim Products (TRYm) Lifestyle Products (TRYm) Denim All Knits Shirts 45% 26% 13% (32%) (48%) 198 128 135 (39%) 67 386 H1 2019 H1 2020 H1 2019 H1 2020 235 Jackets 3% Accessories 6% (30%) (34%) 52 H1 2019 H1 2020 24 17 34 H1 2019 H1 2020 H1 2019 H1 2020 % Share
Slide 10: Online Sales Growth
Online Sales Growth Global Online Sales (TRYm) Turkey Online Sales (TRYm) % Sales 8.0% 17.6% % Sales 3.3% 10.9% 132.7% 82.9 49.3% (100%) 160.3 40.4 35.6 486% 38.9 7.0 107.3 6.9 95% 42.5 (26%) 21.8 52.0 52.8 H1 2019 H1 2020 294% 13.2 International Online Sales (TRYm) 68% 69.4 41.4 % Sales 29.3% 51.5%
Slide 11: Consolidated Gross Margins
Consolidated Gross Margins Revenue (TRYm) Gross Profit (TRYm) 51.2% 49.7% 49.3% 47.9% (22%) (31%) 1,340 (25%) (33%) 661 925 692 443 538 354 267 Q2 2019 Q2 2020 H1 2019 H1 2020 Q2 2019 Q2 2020 H1 2019 H1 2020 • Normalized gross margin with current imputed interest rate is 49.8% for Q2 2019 and 47.8%
Slide 12: Consolidated EBITDA and Net Income
Consolidated EBITDA and Net Income EBITDA exc.IFRS16 (TRYm) EBITDA inc.IFRS16 (TRYm) 15.0% 9.2% 13.3% 2.5% 23.8% 15.0% 22.2% 10.9% 297 (53%) 178 (87%) (51%) (66%) 164 104 81 101 49 23 Q2 2019 Q2 2020 H1 2019 H1 2020 Q2 2019 Q2 2020 H1 2019 H1 2020 Net Income exc.IFRS16 (TRYm) Net Income inc.IFRS16 (
Slide 13: Operational Cash Flow and Working Capital Management
Operational Cash Flow and Working Capital Management Cash Conversion (exc.IFRS16) Main Working Capital Items 73% TRYm 2019 H1 2019 H1 2020 53% Trade & Other Receivables 251.6 218.2 210.8 % Sales 8.8% 8.3% 8.6% H1 2019 H1 2020 Inventories 496.1 515.0 590.5 % COGS 34.0% 39.1% 46.8% TRYm H1 2019 H1 202
Slide 14: Capex and Leverage Ratios
Capex and Leverage Ratios CAPEX (TRYm) Debt Breakdown (31 July 2020) % Sales 3.9% 6.7% Average Cost of Debt 61.7 10% 52.8 6% 13% EUR TRY 9.5% 7% USD EUR 1.0% 4% CAD USD 3.3% TRY RUB 12.9% H1 2019 H1 2020 RUB 70% CAD 3.0% • Capex/Sales ratio is distorted given the revenue 90% decline in H1. It is pla
Slide 15: Management Outlook for 2020FY
Management Outlook for 2020FY Updated Outlook Consolidated Revenue Growth -11% (± 2%) 4 net new stores Turkey Retail Stores 10 store expansions 8.0% (±1%) (exc. IFRS16) EBITDA Margin 16.0% (±1%) (inc. IFRS16) Net Debt/EBITDA 0.1x (exc. IFRS16) CAPEX 4% of consolidated sales Important Notice: The unc
Slide 16: investorrelations@mavi.com
investorrelations@mavi.com
Slide 17: Financial Statements
Financial Statements Income Statement (inc. IFRS 16) TRYm Q2 2019 Q2 2020 Change (%) H1 2019 H1 2020 Change (%) Revenue 691.8 537.8 (22%) 1,340.1 924.9 (31%) Cost of Sales (337.4) (270.7) (20%) (678.8) (482.1) (29%) Gross Profit 354.4 267.1 (25%) 661.3 442.8 (33%) Gross Margin 51.2% 49.7% 49.3% 47.9
Slide 18: Financial Statements
Financial Statements Balance Sheet (inc. IFRS 16) TRYm 31 January 2020 31 July 2020 Change (%) Assets Current Assets Cash and Cash Equivalents 310.8 738.2 137% Trade Receivables 231.1 198.5 (14%) Inventories 496.1 590.5 19% Other Current Assets 80.7 101.5 26% Total Current Assets 1,118.7 1,628.7 46%
Slide 19: Financial Statements
Financial Statements Cash Flow Statement (inc. IFRS 16) TRYm H1 2019 H1 2020 Profit¹ 31.6 (58.3) Adjustments 273.3 208.0 Cash Flow from Operating Activities 304.9 149.6 Δ in Net Working Capital² (48.2) (10.6) Income Tax Paid (0.4) (7.7) Net Cash from Operating Activities 256.3 131.3 Capex (52.8) (61
Slide 20: Global Footprint as at July 2020
Global Footprint as at 31 July 2020 Canada Europe Russia # Retail Stores: 4 # Wholesale Doors: c.1,300 # Retail Stores: 1 # Wholesale Doors: c.1,650 # Retail Stores: 18 # Franchise Stores: 15 379 Mono-Brand # Employee: 68 # Employee: 59 Stores in Turkey # Wholesale Doors: 139 # Employee: 133 54 Inte
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