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

Mavi Giyim Sanayi Ve Ticaret A.s — 9M 2018 Earnings Presentation

17 slides from Mavi Giyim Sanayi Ve Ticaret A.s's earnings presentation, Nov 29, 2018

  1. Slide 1: Nine Months 2018 Results Presentation

    Nine Months 2018 RESULTS PRESENTATION November 29, 2018 0

  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: Continued Growth and Margin Improvement in 9M 2018

    Continued Growth and Margin Improvement in 9M 2018 PROFITABLE GROWTH TURKEY RETAIL HIGHLIGHTS  Consolidated revenue increased by 32% to 1,778 TRYm 32% 46% 76% 23.5% Revenue EBITDA % of Turkey LFL Growth  EBITDA grew by 46% to 304 TRYm Growth Growth Revenue resulting in 17.1% EBITDA margin  Net Pr

  4. Slide 4: Revenue Growth in All Sales Channels

    Revenue Growth in All Sales Channels Global Revenue (TRYm) Turkey Revenue (TRYm) Channel Growth 1,448 1,108 25 65% 15 329 1,778 83% 572 1,350 430 10 262 26% 45 5 25 147 1,094 522 715 590 29% 119 831 32% 20 458 307 416 9 193 262 868 1,142 434 32% Q3 2017 Q3 2018 9M 2017 9M 2018 320 Q3 2017 Q3 2018 9M

  5. Slide 5: Strong Performance of Turkey Retail Operations

    Strong Performance of Turkey Retail Operations # of Retail Stores Turkey Retail Revenue (TRYm) Net 26 7 42 44 New 25 178 Stores 287 294 1,094 261 831 2016 2017 9M 2018 Gross Selling Space in Turkey (Sqm K) Avg. Sqm/ 484sqm 498sqm  7 net new store openings in 9M 2018 Retail Store 5.2 2.3  9 stores

  6. Slide 6: High Like-for-like Growth Figures

    High Like-for-like Growth Figures 22.8% 23.5% 14.7% 13.7% 1 14.7% 1 9.9% 14.1% 7.3% Transaction2 # Growth (%) 10.8% 2015 2016 2017 9M 2018 2015 2016 2017 9M 2018 • Brand recognition leading to new customer 8.6% acquisition and increased spending 6.9% 7.1% 1 Basket Size 3.9% • Right product at the ri

  7. Slide 7: Accelerated Sales Growth in All Categories

    Accelerated Sales Growth in All Categories Denim Products (TRYm) Lifestyle Products (TRYm) Denim All Knits Shirts 46% 22% 15% 239 165 171 118 501 401 9M 2017 9M 2018 9M 2017 9M 2018 Jackets 6% Accessories1 6% 63 70 9M 2017 9M 2018 44 53 9M 2017 9M 2018 9M 2017 9M 2018 % Share in 9M 2018 Turkey retai

  8. Slide 8: Strong Margin Improvements in GM and EBITDA; Negative FX Impact on Net Income

    Strong Margin Improvements in GM and EBITDA Negative FX Volatility Impact on Net Income Revenue (TRYm) Gross Profit (TRYm) 50.9% 52.3% 50.7% 52.4% 1,778 931 1,350 685 715 374 522 265 Q3 2017 Q3 2018 9M 2017 9M 2018 Q3 2017 Q3 2018 9M 2017 9M 2018 EBITDA (TRYm) Net Income (TRYm) 18.4% 20.8% 15.4% 17.

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

    Strong Cash Conversion, Efficient Working Capital Management Cash Conversion Main Working Capital Items TRYm 2017 9M 2017 9M 2018 102% Trade & Other 75% Receivables 140.2 211.5 242.0 % LTM Sales 7.9% 12.6% 11.0% Inventories 320.4 292.4 435.9 9M 2017 9M 2018 % LTM COGS 36.6% 35.3% 41.3% TRYm 9M 2017

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

    Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (31 October 2018) CAD % Sales 4.1% 4.1% 2.4% RU 1% Cost of Debt 8% TRY 13.91% - 37.75% USD USD 4.05% - 5.35% 72.8 15% 55.5 EUR 0.00% - 2.99% 43.0 TRY EUR RUB 13.00% 56% 20% CAD 3.70% Blended 14.63% 2017 9M 2017 9M 2018 Net D

  11. Slide 11: KPI-Focused Rent Management for Turkey Retail Stores

    KPI-Focused Rent Management for Turkey Retail Stores 183 170 135 Rent/Net Sales 110 134 110 Rent/Net Sales(i) 100 104 97 USD(i) 99 EUR(i) 18.0% 18.7% 17.8% 17.5% 2015 2016 2017 9M 2018 1 Calculated as ratio of Turkey Retail Rent Expenses divided by Turkey Retail Revenue. (i) : indexed at 2015=100 

  12. Slide 12: FY 2018 Guidance Revised

    FY 2018 Guidance Revised Initial Guidance Revised Guidance Consolidated Revenue Growth 25% 30% 25 net new stores 16 net new stores Turkey Retail Stores 13 store expansions Turkey Retail LFL Growth 16% Above 20% EBITDA Margin Above 14% 15% Net Debt/EBITDA Below 1x Below 1x CAPEX Up to 5% of Up to 4%

  13. Slide 13: investorrelations@mavi.com

    investorrelations@mavi.com 12

  14. Slide 14: Financial Statements: Income Statement

    Financial Statements Income Statement TRYm Q3 2017 Q3 2018 Change (%) 9M 2017 9M 2018 Change (%) Rev enue 521.6 715.2 37.1% 1,350.4 1,777.7 31.6% Cost of Sales (256.3) (340.9) 33.0% (665.7) (846.5) 27.2% Gross Profit 265.3 374.3 41.1% 684.7 931.3 36.0% Gross Margin 50.9% 52.3% 50.7% 52.4% Administra

  15. Slide 15: Financial Statements: Balance Sheet

    Financial Statements Balance Sheet TRYm 31 January 2018 31 October 2018 Change (%) Assets Current Assets Cash and Cash Equiv alents 266.3 283.7 6.5% Trade Receiv ables 113.0 225.1 99.2% I nv entories 320.4 435.9 36.1% Other Current Assets 61.8 77.3 25.2% Total Current Assets 761.4 1,022.0 34.2% Non-

  16. Slide 16: Financial Statements: Cash Flow Statement

    Financial Statements Cash Flow Statement TRYm 9M 2017 9M 2018 Profit¹ 84.1 101.2 D&A Expense 43.8 52.1 Net Finance Expense / (I ncome) 50.0 75.0 Tax Expense 20.3 29.5 Other Non-Cash I tems 13.9 36.8 Cash Flow from Operating Activ ities 212.2 294.6 Δ in Net Working Capital² 4.5 (74.8) I ncome Tax Pai

  17. Slide 17: Global Footprint as at October 2018

    Global Footprint as at 31 October 2018 Canada Europe Russia # Retail Stores: 3 # Wholesale Doors: c.1,800 # Retail Stores: 5 # Wholesale Doors: c.1,400 # Retail Stores: 14 # Franchise Stores: 16 368 Mono-Brand # Employee: 61 # Employee: 111 Stores in Turkey # Wholesale Doors: c.105 # Employee: 106 5

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