Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Investor Presentation (September 2024)
54 slides from Mavi Giyim Sanayi Ve Ticaret A.s's investor presentation, September 2024
Slide 1: Investor Presentation September 2024
Investor Presentation September 2024
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: Disclaimer on Information excluding IAS29 Provisions
Disclaimer on Information excluding IAS29 Provisions With the Capital Markets Board of Turkey’s Bulletin dated 28.12.2023 numbered 2023/81, CMB announced that issuers and capital market institutions shall prepare their annual financial statements ending on 31.12.2023 or later, in accordance with IAS
Slide 4: Mavi Business Overview
MAVI BUSINESS OVERVIEW
Slide 5: Why We Believe Mavi is Exciting
Why We Believe Mavi is Exciting 01 06 Aspirational denim-centric lifestyle brand positioning, inspiring Innovative and creative collaborations differentiating the the customer, employees, and business partners. brand, communication and growing market share driven by sustainable products and projects
Slide 6: Highly Successful Lifestyle Brand…
Highly Successful Lifestyle Brand… Business Overview Key Metrics (2023) (inc.IFRS16 and IAS29) Brand & Product (2023) • Started operations in Istanbul in 1991, Mavi today is 26,293 TRYm 4,959 TRYm 70% globally recognized as a highly successful casual lifestyle brand Brand 21% Revenue EBITDA Awarenes
Slide 7: …With Strong International Presence
…With Strong International Presence 475 411 64 5 37 Monobrand Mono-Brand International ~4,000 6,366 HQ Countries Stores in Mono-Brand Points of Sale Employees Stores Türkiye Stores TÜRKİYE EUROPE RUSSIA Retail stores: 342 Retail stores: 1 Retail stores: 16 Franchise stores: 69 Wholesale doors: ~800
Slide 8: Mavi Building Blocks
Mavi Building Blocks Brand and Product Innovations Customer Experience Omnichannel: Growing Retail and Online • Mavi continues to gain market share and new customers • ‘En Mutlu Mavi Musterisi’ (The Happiest Mavi Customer) • Instore Sales launched allowing all Mavi stores to sell while increasing fr
Slide 9: Mavi Building Blocks
Mavi Building Blocks Towards a more digital future All Blue. Timeless Quality. For All. People Oriented Culture • Digitalization and CRM investments are at the core of the • Global All Blue strategy continues to drive sustainable • Average age of Mavi employees is 26 and 80% is below company strateg
Slide 10: Retail Expertise in Turkiye
RETAIL EXPERTISE IN TURKIYE
Slide 11: Multi Pillar Growth Strategy in Turkiye Retail
Multi Pillar Growth Strategy in Turkiye Retail 01 02 03 Physical Space Growth Online Sales Growth New customer acquisition* New Store Openings mavi.com & Marketplaces 1.3 mn+ every year 411 Stores in 80 Cities Expansion of store space Average Selling Space 524sqm New Stores 600-800 sqm LFL Growth Ta
Slide 12: Strong Track Record to Pick-Up Pace …
Strong Track Record to Pick-Up Pace … # of Retail Stores Evolution in Türkiye Türkiye Retail Sales Evolution (TRYm) (w/out IAS29) Net New 7 2 7 7 Stores 13,337 10,270 342 6,694 336 327 329 2,740 2021 2022 2023 H1 2024 2021 2022 2023 H1 2024 Gross Selling Space Evolution in Turkey (Sqm k) Significant
Slide 13: Offering a Lifestyle Product Portfolio Across Women and Men…
Offering a Lifestyle Product Portfolio Across Women and Men… Minimising Fashion Risk and Seasonality With Various Styles Across Lifestyle Product Offering Non-denim Denim Knits/Jerseys Shirts Bottoms Jackets Accessories Others 37% 63% WOMEN Women Men (share) 38% 62% Denim Lifestyle MEN (share) Other
Slide 14: …And Growing Significantly in Each Category (w/out IAS29)
…And Growing Significantly in Each Category (w/out IAS29) Denim Products (TRYm) Lifestyle Products (TRYm) Shirts Non-Denim Bottoms Denim Knits/Jerseys 94% 1293 1264 125% 663 651 938 1004 5,131 75% 265 397 445 3628 85% 152 4,056 2823 2021 2022 2023 H1 H1 2023 2024 2021 2022 2023 H1 H1 2023 2024 2,642
Slide 15: Like-for-Like Stores Sales Performance (w/out IAS29)
Like-for-Like Stores Sales Performance (w/out IAS29) 42.7% 141.8% 29.5% 99.8% 80.1% Transaction1 17.3% 73.3% w/out IAS 29 # Growth (%) 5.4% 31.1% 2021* 2022 2023 H1 2024 6.6% with IAS 29 2021* 2022 2023 H1 2024 › In 2023, traffic to stores grew 7% showcasing strong consumer 86.7% demand, LFL stores
Slide 16: Diversified and Reliable Sourcing Model
Diversified and Reliable Sourcing Model Quality Driven Efficient Sourcing Structure with a focus on sustainability c.86% Made in Turkey 120+ Responsible 38% Denim Suppliers (18 strategic, 38 100% of denim c.14% Imported critical) 62% Non-Denim production by local manufacturers 489 sub-manufacturers
Slide 17: Best-in-Class Loyalty Program (Kartuş) Since 2007
Best-in-Class Loyalty Program (“Kartuş”) Since 2007 9.2million 1.3million+ Loyalty Card Members New customer acquired in 2023 5.7million ~ 70% ~ 37% Active1 customers New Customers New Customers Under 35 age Under 25 age 45% 55% Woman Man ~ 5.7 million Mobile app download Happiest Mavi Customer Note
Slide 18: International & E-Com Markets
INTERNATIONAL & E-COM MARKETS
Slide 19: International Operations (2023)
International Operations(2023) 66 monobrand stores Online channels’ share in ~3,000 doors in 36 countries (22 own-opearated, 44 franchise) global 32%* USA EUROPE 2% 33% ~1.150 Wholesale: Online Retail Mono-brand retail Wholesale: Online wholesale E-com wholesale multi- Nordstrom, wholesale 21% store
Slide 20: E-Commerce Platform to Deliver Future Growth (w/out IAS29)
E-Commerce Platform to Deliver Future Growth (w/out IAS29) Global E-Commerce Revenue Turkey E-Commerce Revenue % Sales Channel % Sales 8.3% 17.1% 15.6% 12.8% 11.7% 3.8% 10.7% 11.2% 9.0% 8.7% Growth 2023 yoy 2,355 1,541 234 27% 793 749 73% 1,356 885 184 421 723 63% 207 432 89 793 120% 412 543 237 238
Slide 21: Online Sales Growth in 2024 (with IAS29)
Online Sales Growth in 2024 (with IAS29) Global Online Sales (TRYm) Türkiye Online Sales (TRYm) % Sales % Sales 8.0% 10.1% 8.0% 10.7% 1,654 1,660 10% 1,179 0.4% Channel 1,073 174 130 Growth 554 625 552 671 (25%) 0.4% (7%) 521 624 20% 809 905 12% H1 2023 H1 2024 H1 2023 H1 2024 International Online S
Slide 22: Successful Brand Strategy
SUCCESSFUL BRAND STRATEGY
Slide 23: Best-in-Class Communication
Best-in-Class Communication Aspirational denim centric lifestyle brand with celebrity endorsements Global Campaigns (2011 – 2021) Adriana Lima Lucky Blue Romee Strijd, Jordan Smith Barrett Kıvanç Tatlıtuğ Serenay Sarıkaya 3 40+ 773m+ Impression TV Advertising Campaign 3,3m Influencer Collaboration 2
Slide 24: Mavi 100 Denim chic
Mavi 100 Mavi 100, an extraordinary collection created by Mavi Denim Studio to mark the centennial of the Republic of Turkey with immense pride. For the collection, the studio, formed by Mavi’s diverse design and creative teams, reinterpreted archival inspiration through the lens of contemporary urb
Slide 25: Mavi celebrated the centennial of the Republic of Turkey with young people
Mavi celebrated the centennial of the Republic of Turkey with the young people who symbolize the future envisioned by Atatürk for our nation. Mavi collaborated with the national U17 Women's and Men's National Mavi sponsored Formula driver volleyball player Ebrar Karakurt for Water Polo teams, succes
Slide 26: Creative Collaborations Targeting New and Young Customers
Creative Collaborations Targeting New and Young Customers Being a brand close to youth, using a new communication language to connect with young generations S.E.M.T. x Mavi Marché x Mavi SS23 & FW23 SS23 • Visual Artist Oğuzcan Pelit • Mavi came together with designed the coolest t-shirt & İstanbul’
Slide 27: Creative Collaborations Targeting New and Young Customers
Creative Collaborations Targeting New and Young Customers Being a brand close to youth, using a new communication language to connect with young generations Freedom of Space x Mavi Mavi x Esra Gülmen Direct Message x Mavi SS22 FW22 SS22 • A collection elevating 90s street • Wearable Art, Mavi Way Ea
Slide 28: Growth with Young Generation
Growth with Young Generation
Slide 29: Awards and Researches 2023
Awards and Researches 2023 Mavi has been recognized as Turkey's most trusted brand among approximately 150 brands from 16 sectors according to Future Bright’s Trust Bond Index 132nd among Turkey’s Largest Enterprises and 3rd among apparel brands – Fortune 500 Survey Ranked among the ‘Brands Reflecti
Slide 30: Sustainable Growth Through Quality
SUSTAINABLE GROWTH THROUGH QUALITY
Slide 31: Mavi's Sustainability Evolution
Mavi’s Sustainability Evolution • We believe that a better world is possible with a better Mavi • On this journey to achieve the best, Mavi quality remains at the heart of what we do • Empowered by every individual we touch, particularly the Mavi employees, we all take responsibility for the better
Slide 32: Mavi All Blue Sustainability Strategy
Mavi “All Blue” Sustainablity Strategy PEOPLE PLANET • People-oriented Mavi culture • Tackling climate crisis • Inclusive business model and • Ecosystem restoration responsible value chain COMMUNITY DENIM Mavi's impact-driven • Quality first transformative power • Denim innovation and partnerships •
Slide 33: Sustainability Goals
Sustainability Goals PEOPLE Increased Achieved Achieved Target Progress BETTER.EMPOWER progress interim target yearly target achieved maintained MAVİ’S SUSTAINABILITY TARGETS Having a fully inclusive and responsible value chain by 2030. MONITORING TARGETS PROGRESS IN 2023 STATUS RELATED MATERIAL ISS
Slide 34: Sustainability Goals
Sustainability Goals PLANET Increased Achieved Achieved Target Progress BETTER.PROTECT progress interim target yearly target achieved maintained MAVİ’S SUSTAINABILITY TARGETS Becoming a climate-positive company by 2050. MONITORING TARGETS PROGRESS IN 20223 STATUS RELATED MATERIAL ISSUE Reducing Scop
Slide 35: Sustainability Goals
Sustainability Goals DENIM Increased Achieved Achieved Target Progress BETTER.TRANSFORM progress interim target yearly target achieved maintained MAVİ’S SUSTAINABILITY TARGETS Ensuring that the whole denim collection consists of sustainable All Blue products by 2030. MONITORING TARGETS PROGRESS IN 2
Slide 36: Sustainability Goals
Sustainability Goals COMMUNITY Increased Achieved Achieved Target Progress BETTER.MOBILIZE progress interim target yearly target achieved maintained MAVİ’S SUSTAINABILITY TARGETS Driving an impact-focused and measurable social change. MONITORING TARGETS PROGRESS IN 20223 STATUS RELATED MATERIAL ISSU
Slide 37: 2023 Sustainability Highlights
2023 Sustainability Highlights BETTER. BETTER. BETTER. BETTER. EMPOWER PROTECT TRANSFORM MOBILIZE 60% 53% A B 25% 83,000 Female Female score in CDP’s score in CDP’s share of sustainable All Blue hatchlings reached the sea with employment manager ratio Climate Change Forests Program products in total
Slide 38: Sustainable All Blue Collection Expanding every season with hero products
Sustainable All Blue Collection Expanding every season with hero products Natural Dye Recycled Blue • Earthy colors • Mavi Upcycle • A happy ending recycling story • Different innovative with TENCELTM Lyocell fibers and sustainable techniques and • Natural clay-based colorants • 17,756 m of fabric p
Slide 39: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE
Slide 40: Robust Performance after the Covid-19 Pandemic
Robust Performance after the Covid-19 Pandemic Revenue Evolution (TRYm) (w/out IAS29) Gross Profit Evolution (TRYm) (w/out IAS29) Gross Margin 51.3% 52.9% 53.7% 51.0% 56.1% (%) 79% 20,209 10,858 97% 15,036 8,435 10,592 8,415 5,602 4,291 4,619 2,372 2021 2022 2023 H1 2023 H1 2024 2021 2022 2023 H1 20
Slide 41: Record High Earnings (w/out IAS29)
Record High Earnings (w/out IAS29) EBITDA Evolution (TRYm) (exc. IFRS16) Net Profit (TRYm) (exc.IFRS16) EBITDA Profit Margin 16.6% 19.5% 20.7% 18.9% 21.3% Margin 9.3% 13.8% 14.4% 13.8% 15.4% (%) (%) 101% 100% 4,182 2,911 3,199 2,317 2,063 1,463 1,158 1,593 765 429 2021 2022 2023 H1 2023 H1 2024 2021
Slide 42: Financial Results (With IAS 29 Inflation Accounting)
Financial Results (With IAS 29 Inflation Accounting ) Revenue (TRYm) Gross Margin (TRYm) 49.2% 48.2% 47.5% 51.8% 25% 6% 26,293 22% 16% 21,038 16,399 12,674 15,462 10,358 7,346 8,499 2022 2023 H1 2023 H1 2024 2022 2023 H1 2023 H1 2024 EBITDA (TRYm) Net Income (TRYm) 20.0% 18.9% 19.2% 20.6% 9.2% 6.7%
Slide 43: Operational Cash Flow and Working Capital Management (with IAS29)
Operational Cash Flow and Working Capital Management (with IAS29) Cash Conversion & Operational Cash Flow Main Working Capital Items TRYm 2022 2023 H1 2024 93% 90% 99% 56% Trade & Other Receivables 1,505 1,615 1,637 % LTM Sales 7.2% 5.1% 5.0% 2022 2023 H1 2023 H1 2024 Inventories 4,005 4,355 4,690 %
Slide 44: Capex and Leverage Ratios (with IAS29)
Capex and Leverage Ratios (with IAS29) CAPEX (TRYm) Debt Breakdown (31 July 2024) % Sales 2.8% 2.3% 1.9% 3.1% Average Cost of Debt 11% 2% 9% USD TRY 46.0% 580 596 507 CAD RUB 18.4% 289 TRY USD 7.7% RUB 2022 2023 H1 2023 H1 2024 CAD 7.0% 78% Blended 38.8% Net Cash exc.IFRS16 (TRYm) › All of non-TRY d
Slide 45: FY2024 Guidance
FY2024 Guidance The macroeconomic pressures started to impact consumer spending, and we expect this trend to continue in the second half of the year. At this moment, Mavi management targets to keep the initial guidance brackets. FY2024 Guidance without IAS 29: › Total consolidated sales growth of 70
Slide 46: Mavi once again named a global climate leader!
Mavi once again named a global climate leader! Mavi becomes the first and only Turkish apparel company to achieve double A Rating for Climate Change and Water Security by CDP THANK YOU ! Contact : investorrelations@mavi.com duygu.inceoz@mavi.com
Slide 47: Financial Statements Income Statement
Financial Statements Income Statement TRYm 2022 2023 Change (%) Revenue 21,038 26,293 25% Cost of Sales (10,680) (13,620) 28% Gross Profit 10,358 12,674 22% Gross Margin 49.2% 48.2% Administrative Expenses (1,364) (1,733) 27% Selling and Marketing Expenses (6,153) (7,403) 20% R&D Expenses (179) (294
Slide 48: Financial Statements Income Statement
Financial Statements Income Statement TRYm Q2 2023 Q2 2024 Change (%) H1 2023 H1 2024 Change (%) Revenue 7,960 7,427 (7%) 15,462 16,399 6% Cost of Sales (4,063) (3,636) (11%) (8,116) (7,900) (3%) Gross Profit 3,896 3,791 (3%) 7,346 8,499 16% Gross Margin 49.0% 51.0% 47.5% 51.8% Administrative Expens
Slide 49: Financial Statements Balance Sheet
Financial Statements Balance Sheet TRYm 31 January 2023 31 January 2024 Change (%) Assets Current Assets Cash and Cash Equivalents 5,349 4,854 (9%) Financial Investments 96 63 (34%) Trade Receivables 1,435 1,312 (9%) Inventories 4,005 3,609 (10%) Other Current Assets 511 307 (40%) Total Current Asse
Slide 50: Financial Statements Balance Sheet
Financial Statements Balance Sheet TRYm 31 January 2024 31 July 2024 Change (%) Assets Current Assets Cash and Cash Equivalents 5,858 6,227 6% Financial Investments 76 1 (98%) Trade Receivables 1,583 1,603 1% Inventories 4,355 4,690 8% Other Current Assets 370 637 72% Total Current Assets 12,243 13,
Slide 51: Financial Statements Cash Flow Statement
Financial Statements Cash Flow Statement TRYm 2022 2023 Profit¹ 1,927 1,757 Adjustments 1,939 3,759 Cash Flow from Operating Activities 3,866 5,516 Δ in Net Working Capital² (311) (494) Income Tax Paid (669) (719) Net Cash from Operating Activities 2,887 4,304 Capex (580) (596) Other Investing Cash
Slide 52: Financial Statements Cash Flow Statement
Financial Statements Cash Flow Statement TRYm H1 2023 H1 2024 Profit¹ 1,167 1,519 Adjustments 2,539 2,537 Cash Flow from Operating Activities 3,706 4,056 Δ in Net Working Capital² (1,318) (26) Income Tax Paid (119) (605) Net Cash from Operating Activities 2,269 3,425 Capex (289) (507) Other Investin
Slide 53: Experienced and Diverse Board of Directors – 50% Independent, 50% Women
Experienced and Diverse Board of Directors – 50% Independent, 50% Women Ersin Akarlılar Ebru Dildar Edin Cüneyt Yavuz Chairperson Independent Non- CEO Executive Director • With Mavi since 1991 • Mavi’s Chief Executive • Council for Sustainable Officer since 2008 • Primarily responsible for Mavi’s in
Slide 54: Sustainability Governance at Mavi
Sustainability Governance at Mavi Material Sustainability Issues Sustainability Governance Analysis conducted in accordance with the AA1000 Stakeholder Engagement Standard Board of Directors Very High Priority High Priority • Water and wastewater • Digitalization and customer Committee Head (CEO) •
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