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

Mavi Giyim Sanayi Ve Ticaret A.s — H1 2017 Earnings Presentation

17 slides from Mavi Giyim Sanayi Ve Ticaret A.s's earnings presentation, Sep 12, 2017

  1. Slide 1: H1 2017 Results Presentation

    H1 2017 Results Presentation ISTANBUL, SEPTEMBER 12™ 2017

  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: Profitable Growth in Spring-Summer 2017 (H1 2017)

    Profitable Growth in Spring-Summer 2017 (H1 2017) PROFITABLE GROWTH TURKEY RETAIL HIGHLIGHTS  Consolidated revenue increased by 42% to TL 829 mn 42% 71% 63% 21.5% Revenue EBITDA Growth % of Total LFL Growth Growth (58% PF) Revenue  EBITDA grew by 71% to TL 112 mn (31% PF ) resulting with 13.5% EBI

  4. Slide 4: Boosted Revenue Growth on a Strong Second Quarter

    Boosted Revenue Growth on a Strong Second Quarter Global Revenue (TRYm) Turkey Revenue (TRYm) Channel 829 677 Growth 585 524 10 38% 328 143 246 7 21% 401 5 118 275 3 26 34 525 399 31% 216 289 Q2 2016 Q2 2017 H1 2016 H1 2017 Q2 2016 Q2 2017 H1 2016 H1 2017 Retail Wholesale Ecom Global Revenue Breakdo

  5. Slide 5: Robust Performance of Turkey Retail Operations…

    Robust Performance of Turkey Retail Operations… # of Retail Stores Turkey Retail Revenue (TRY mn) Net New 25 16 11 19 Stores 74 32 272 525 261 252 399 2016A H1 2016 H1 2017 H1 2016 LFL Growth New Store Expansion H1 2017 Gross Selling Space in Turkey (Sqm K) Avg.  Net 11 new store additions in H1 20

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

    …Supported by High Like-for-like Growth Figures 13.7% 11.8% 9.9%3 21.5% Transaction2 7.3% 20.1% # Growth (%) 14.7% 14.1% 2014 2015 2016 H12017 1 10.8% 7.4% 6.9% 6.9% 2014 2015 2016 H12017 Basket Size 3.9%3 Growth (%) LFL revenue constitutes 80% of Turkey retail revenue in H1 2017 2014 2015 2016 H120

  7. Slide 7: Accelerated Growth in Denim & Lifestyle Categories

    Accelerated Growth in Denim & Lifestyle Categories Denim Bottoms (TRYm) Lifestyle Products (TRYm) T-Shirts Shirts 44% 20% 16% 106 82 85 232 58 186 H1 2016 H1 2017 H1 2016 H1 2017 Jackets Accessories1 4% 7% 34 24 25 14 H1 2016 H1 2017 H1 2016 H1 2017 H1 2016 H1 2017 % % in H1 2017 Turkey retail net r

  8. Slide 8: Margin Targets on Track

    Margin Targets on Track Revenue (TRYm) Gross Profit (TRYm) 52.7% 52.7% 50.3% 50.6% 829 419 585 295 401 211 275 145 Q2 2016 Q2 2017 H1 2016 H1 2017 Q2 2016 Q2 2017 H1 2016 H1 2017 EBITDA (TRYm) Net Income (TRYm) 10.7% 14.0% 11.1% 13.5% 2.9% 4.5% 3.1% 4.3% 112 36 65 56 18 18 29 8 Q2 2016 Q2 2017 H1 20

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

    Strong Cash Conversion and Efficient Working Capital Management Cash Conversion Main Working Capital Items 126% 83% TRYm 2016PF H1 2017 Trade & Other Receivables 132.9 123.2 % LTM Sales 10% 8% Inventories 287.8 296.4 H1 2016 H1 2017 % LTM COGS 43% 39% TRYm H1 2016 H1 2017 Change (%) Trade & Other Pa

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

    Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (31 July 2017) % Sales 4,8% 5,3% 4,4% Cost of Debt1 EUR 62.6 30% TRY 11.42% - 16.37% TRY USD 3.20% - 4.99% 30.9 36.1 51% EUR 0.75% - 2.99% USD Blended 8.1% 19% 2016 H1 2016 H1 2017 Net Debt / LTM EBITDA  11 net new store op

  11. Slide 11: FY 2017 Guidance

    FY 2017 Guidance  Positive trading environment  26 net new store openings in Turkey  Above 16% LFL growth  EBITDA margin improvement (YoY)  Positive cash generation  Debt / EBITDA to remain below 1x 10 10

  12. Slide 12: investorrelations@mavi.com

    investorrelations@mavi.com 11

  13. Slide 13: Appendix

    Appendix

  14. Slide 14: Financial Statements: Income Statement

    Financial Statements Income Statement TRYm Q2 2016 Q2 2017 Change (%) H1 2016 H1 2017 Change (%) Revenue 274.8 400.6 45.8% 585.1 828.8 41.6% Cost of Sales (129.9) (189.5) 45.8% (290.6) (409.4) 40.9% Gross Profit 144.9 211.2 45.7% 294.5 419.4 42.4% Gross Margin 52.7% 52.7% 50.3% 50.6% Administrative

  15. Slide 15: Financial Statements: Balance Sheet

    Financial Statements Balance Sheet TRYm 31 January 2017 31 July 2017 Change (%) Assets Current Assets Cash and Cash Equivalents 158.1 203.3 28.7% Trade Receivables 109.4 99.4 (9.1%) Inventories 287.8 296.4 3.0% Other Current Assets 70.1 60.8 (13.3%) Total Current Assets 625.4 659.9 5.5% Non-Current

  16. Slide 16: Financial Statements: Cash Flow Statement

    Financial Statements Cash Flow Statement TRYm H1 2016 H1 2017 Profit¹ 18.3 35.7 D&A Expense 21.3 28.6 Net Finance Expense / (Income) 19.6 33.3 Tax Expense 5.3 11.1 Other Non-Cash Items 12.5 9.0 Cash Flow from Operating Activities 77.0 117.7 Δ in Net Working Capital² (10.9) 29.6 Income Tax Paid (5.2)

  17. Slide 17: Note on Seasonality

    Note on Seasonality  There is no significant seasonality in terms of sales volumes (no high/low season)  Slight differences resulting from item ticket price (eg: t-shirts vs jackets)  Summer and Winter constitute more «season sales» and less «previous season» sales with mark-down compared to Spri

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