Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Investor Presentation (August 2017)
25 slides from Mavi Giyim Sanayi Ve Ticaret A.s's investor presentation, Aug 8, 2017
Slide 1: Analyst Presentation
Analyst Presentation AUG 8, 2017
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: Agenda
1. INTRODUCTION TO MAVI 2. OUR FUTURE STRATEGY 3. FINANCIAL PERFORMANCE
Slide 4: Introduction to Mavi
"INTRODUCTION /TO MAVI
Slide 5: Mavi is a brand of superior quality
ASPIRATIONAL lifestyle and customer-centric 1 BRAND with broad appeal and celebrity endorsements 2 Locally sourced WORLD-CLASS PRODUCTS with well segmented ranges MULTI-CHANNEL EXECUTION with robust 3 retail store economics 4 BEST-IN-CLASS COMMUNICATION STRATEGY enhancing brand awareness acros
Slide 6: Mavi: Highly Successful Lifestyle Brand
Mavi : Highly Successful Lifestyle Brand… Business Overview Key Metrics Brand & Product c.56% Started operations in Istanbul in 1991, Mavi is today globally TRY1,368m TRY177m recognized as a highly successful casual lifestyle brand With strong denim roots, Mavi has evolved into an 2016PF Revenue
Slide 7: With Strong International Presence
…With Strong International Presence Canada Europe Russia 2016PF Revenue: TRY20m 331 Mono-Brand Stores 2016PF Revenue: TRY40m 2016PF Revenue: TRY100m # Retail Stores: 8 in Turkey (2016) # Retail Stores: 4 # Retail Stores: 9 # Wholesale Doors: 1,548 # Wholesale Doors: 1,646 # Franchi
Slide 8: Mavi Offers a Lifestyle Product Portfolio Across Men and Women
Mavi Offers a Lifestyle Product Portfolio Across Men and Women … Key Product Categories 44% 17% 13% 9% 6% 11% Other3 Denim Non-Denim Bottoms T-Shirts Shirts Jackets Accessories2 Sweaters Bottoms Skirts & Dresses Women Men 44% Denim Bottoms / 56% Lifestyle 38% Women / 62% Men % of 2016A Net Revenues1
Slide 9: And Grows Significantly in Each Category
…And Grows Significantly in Each Category Denim Bottoms (TRYm) Lifestyle Products (TRYm) T-Shirts Shirts 44% 17% 13% 111.1 144.0 95.2 122.8 83.8 374.0 90.5 306.1 2014A 2015A 2016A 2014A 2015A 2016A 234.3 Jackets Accessories1 9% 6% 77.8 52.2 55.7 37.6 44.5 31.8 2014A 2015A 2016A 2014A 2015A 2016A 201
Slide 10: Minimising Fashion Risk and Seasonality With Various Styles
Minimising Fashion Risk and Seasonality With Various Styles Across Lifestyle Product Offering Breakdown by Season (units) Mavi Women Style Groups Denim Bottoms SS16; FW16; 51% 49% Gold Casual Glam Pretty Istanbul&Basics Premium Lifestyle Young Everyday Lifestyle excluding Accessories1 FW16; SS16; 45
Slide 11: Strong Track Record of Retailization in Turkey
Strong Track Record of Retailization in Turkey with Double Digit LFL Growth and Stable Store Openings and Expansions # of Retail Stores Evolution in Turkey Turkey Retail Sales Evolution (TRYm) Turkey 551 704 857 LfL 15.3% 20.1% 14.7% 14.1% Retail Growth1 Revenue (TRYm) 857 704 236 261 551 209 NA 201
Slide 12: Outstanding Double Digit LFL Growth Track Record
Outstanding Double Digit LFL Growth Track Record Healthy Combination of Drivers Underpinning Mavi’s LFL Sales Have Been Consistently Strong Strong and Sustainable LFL Growth2 2013A–2016A Average 11,8% 11,60% 4 9,9% 16%1 Transaction3 6,8% 7,3% 20,1% 19,7% # Growth (%) 15,3% 14,7% 14,1% 2013A 2014A 20
Slide 13: Complimentary and Growing Wholesale Channel
Complimentary and Growing Wholesale Channel Domestic Wholesale Net Revenues (TRYm) # Doors 70 franchised stores under long-term contracts with similar product assortment Franchised like in retail stores 70 Stores Overall mono-brand strategy is to grow retail business 249 210 192 Usually indivi
Slide 14: Our Future Strategy
@ OUR FUTURE BESTRATEGY
Slide 15: Rapidly Growing Addressable Market
Rapidly Growing Addressable Market… Evolution of Apparel Market in Turkey Value CAGR Comments 2011A-2016A 2016A-2019E 56 The apparel market in Turkey is Mavi Future Customers expected to grow at an annual expected CAGR of 7% between 13% 11% 2016 and 2019, following an annual 46 14 CAGR of 9% betwe
Slide 16: Will Enable Continued Growth in Turkey
.. Will Enable Continued Growth in Turkey Historical (2014A-16A) Future (2017-2019) Rationale Average 26 net new stores p.a. In line with historical 8.5k sqm expansion of existing trends and further >40%1 selling space growth Mavi Selling Space Growth stores in 2015 and 2016 expansion opportunities
Slide 17: Growing Global Footprint in line with Turkey growth
Growing Global Footprint in line with Turkey growth to keep 80%-20% Ratio1 International Revenue Evolution Strategic Growth Initiatives # of (TRYm) Mono- Increase Share Lifestyle 34 2016PF Brand Local Wholesale Retail of Women / Men Product Heritage Pure Online Revenue Stores # FTEs Office Expansion
Slide 18: Well-Invested E-Commerce Platform to Deliver Future Growth
Well-Invested E-Commerce Platform to Deliver Future Growth Global Mavi E-Commerce has Potential to Reach ~3% by 2019E Turkey Has a Strong E-Commerce Potential mavi.com Revenue (TRYm) 24 E-Commerce Penetration 22 Turkey Website 11 14 3.4% The percentage of E-Commerce penetration in Turkey (vs. China
Slide 19: Strong Financial Performance
3 STRONG FINANCIAL PERFORMANCE
Slide 20: Mavi Delivers Strong Operational Results
Mavi Delivers Strong Operational Results Revenue Evolution (TRYm) Gross Profit Evolution (TRYm) Gross 49% 50% 51% 48,2% 48,6% Margin (%) 1 1.368 1.053 895 698 524 1.308 428 435 310 667 208 150 2014A 2015A 2016A 1Q 2016 1Q 2017 2014A 2015A 2016A 1Q 2016 1Q 2017 EBITDA Evolution (TRYm) Net Profit1 (TR
Slide 21: Strong Cash Conversion
Strong Cash Conversion Cash Conversion1 Main Working Capital Items 118% 92% TRYm 2014A 2015A 2016PF 84% Trade & Other Receivables³ 93.8 89.1 132.9 % Sales 10.5% 8.5% 9.7% Inventories 154.7 177.3 287.8 % COGS 33.6% 33.6% 42.9% Upcoming season 126.1 138.3 203.8 2014A 2015A 2016PF US / Canada Effect 0.
Slide 22: Asset Light Business Model with Low Leverage Ratios
Asset Light Business Model with Low Leverage Ratios CAPEX Capital Structure (as at 30-April-2017) Debt Breakdown by Currency and Cost % Sales 6,9% 5,4% 4,8% 4,3% 5,0% 5x more increase in Turkey 61,5 57,1 62,6 retail selling space in 1Q Cost of Debt1 2017 vs 1Q 2016. EUR 30% TRY 11,42% - 15.94% 21,5
Slide 23: Resilient to FX Movements
Resilient to FX Movements Gross Margin Evolution (%) 49.8% 51.0% 48.6% Mavi sources approximately 80% of COGS from Turkey in TRY COGS Negotiating with suppliers / customers for adverse FX movement 2014A 2015A 2016A 155 % 121 % 148 % Data Rebased to 100 Mavi has a portion of its rents in Turkey
Slide 24: Highly Experienced Management Team and Directors
Highly Experienced Management Team and Directors to Drive Mavi’s Successful Strategy Ersin Akarlılar Ahmet Ashaboglu Nevzat Aydin Seymur Tari Chairman Independent Non- Independent Non-Executive Executive Director Non-Executive Director Director With Mavi since 1991 CFO of Koc Holding since Fou
Slide 25: Thank You
4 THANK YOU Contact : investorrelations@mavi.com
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