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

Mavi Giyim Sanayi Ve Ticaret A.s — Investor Presentation (December 2017)

29 slides from Mavi Giyim Sanayi Ve Ticaret A.s's investor presentation, Dec 6, 2017

  1. Slide 1: 0

    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: Mavi Business Overview

    - MAVI BUSINESS | OVERVIEW

  4. Slide 4: 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

  5. Slide 5: Mavi: Highly Successful Lifestyle Brand

    Mavi : Highly Successful Lifestyle Brand… Business Overview Key Metrics (9M 2017) Brand & Product c.52%3  Started operations in Istanbul in 1991, Mavi is today globally TRY1,350m TRY208m recognized as a highly successful casual lifestyle brand  With strong denim roots, Mavi has evolved into an Rev

  6. Slide 6: With Strong International Presence

    …With Strong International Presence Canada Europe Russia 355  # Retail Stores: 3  # Retail Stores: 9  # Retail Stores: 12  # Wholesale Doors: 1,638  # Wholesale Doors: 1,273  # Franchised Stores: 18  # FTEs: 55  # FTEs: 157  # Wholesale Doors: 122 Mono-Brand  # FTEs: 108 Stores in Turkey 6

  7. Slide 7: Offering a Lifestyle Product Portfolio Across Men and Women

    Offering a Lifestyle Product Portfolio Across Men and Women… Key Product Categories 44% 48% 17% 21% 13% 14% 5% 9% 6% 6% 11% 6% Other3 Denim All Non-Denim Products Knits Shirts Jackets Accessories2 Bottoms Skirts & Dresses Women Men 48% Denim All / 52% Lifestyle 37% Women / 63% Men % of 9M 2017 Net S

  8. Slide 8: And Growing Significantly in Each Category

    …And Growing Significantly in Each Category Denim Products (TRYm) Lifestyle Products (TRYm) Knits Shirts Denim All 48% 21% 14% 397 401 118 188 171 330 159 104 304 137 87 84 257 120 71 2014 2015 2016 9M 2016 9M 2017 2014 2015 2016 9M 2016 9M 2017 2014 2015 2016 9M 2016 9M 2017 Denim Bottoms 43% Jacke

  9. Slide 9: 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 Lifestyle excluding Premium Lifestyle Young Everyday Accessories1 FW16, SS16, 45

  10. Slide 10: Keeps Strong Track Record of Retailization in Turkey

    Keeps Strong Track Record of Retailization in Turkey… # of Retail Stores Evolution in Turkey Turkey Retail Sales Evolution (TRYm) Net New 27 27 25 22 21 Retail Stores 857 831 704 630 551 261 258 282 209 236 2014 2015 2016 9M 2016 9M 2017 2014 2015 2016 9M 2016 9M 2017 Gross Selling Space Evolution i

  11. Slide 11: Supported by High Like-for-like Growth Figures

    …Supported by High Like-for-like Growth Figures 13.6% 11.8% 9.9%3 22.4% 7.3% 20.1% Transaction2 # Growth 14.7% 14.1% (%) 1 10.8% 2014 2015 2016 9M 2017 2014 2015 2016 9M 2017 7.4% 7.7% 6.9%  Strong brand positioning & top of mind  Increased traffic & conversion driven by Basket Size 3.9%3 Growth (

  12. Slide 12: Complimentary and Growing Wholesale Channel in Turkey

    Complimentary and Growing Wholesale Channel in Turkey  73 franchised stores under long-term Franchised contracts with similar product assortment Stores like in retail stores  Overall mono-brand strategy is to grow Domestic Wholesale Net Revenues (TRYm) retail business  Usually individual multibra

  13. Slide 13: Best-in-Class Loyalty Program (Kartuş) Since 2007

    Best-in-Class Loyalty Program (“Kartuş”) Since 2007 Strong Appeal to Under 35 Across Majority of New Loyalty Card Both Genders Holders are Under 35 6.3M 4.4M % of Turkey’s Total Loyalty Card Active Active Loyalty Card Members per Age Group (%) Population (2016) New Loyalty Card Members per Age Group

  14. Slide 14: Award Winning Branding Strategy

    Award Winning Branding Strategy According to the Consumer’s Voice Survey, Mavi, with its product and service quality, is the leader of the apparel industry among the brands 40.000.000+Tv Views that create highest customer loyalty. Digital (Mediacat & IPSOS & Kalder, April 2017) 20.000.000+Impression

  15. Slide 15: Highly Experienced Management Team and Directors

    Highly Experienced Management Team and Directors 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  Founder and CEO of  Founder and CEO of

  16. Slide 16: Continued Growth

    “You won’t catch me in a tie. I like comfortable clothes such as my Mavi Jeans, Belstaff jacket and Armani button-down shirt. They are comfortable enough for flights and nice enough for meetings. Richard Branson

  17. Slide 17: 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

  18. Slide 18: Will Enable Continued Growth in Turkey

    .. Will Enable Continued Growth in Turkey Historical (2014-16) 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 po

  19. Slide 19: Global Footprint to Grow in Line Keeping 80%-20% Ratio

    Global Footprint to Grow in Line Keeping 80%-20% Ratio1 Strategic Growth Initiatives Increase Share of Lifestyle 34 # of Mono- # Full Time Local Wholesale Retail Women / Men Product Heritage Pure Online Brand Stores Employees Office Expansion Roll-Out Revenues Expansions Roll-out E-Commerce Wholesal

  20. Slide 20: E-Commerce Platform to Deliver Future Growth

    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) E-Commerce Penetration Turkey 25 3.4% 22 Website 11 14 13 The percentage of E-Commerce penetration in Turkey (vs. China 17.1%, USA

  21. Slide 21: Strong Financial Performance

    STRONG FINANCIAL PERFORMANCE

  22. Slide 22: Mavi Delivers Strong Operational Results

    Mavi Delivers Strong Operational Results Revenue Evolution (TRYm) Gross Profit Evolution (TRYm) Gross 49% 50% 51% 50,8% 50,7% Margin (%) 1.3681 1,350 1,053 895 973 524 698 685 435 494 1,308 667 2014 2015 2016 9M 2016 9M 2017 2014 2015 2016 9M 2016 9M 2017 EBITDA Evolution (TRYm) Net Profit1 (TRYm) E

  23. Slide 23: Strong Cash Conversion

    Strong Cash Conversion Cash Conversion1 Main Working Capital Items 118% 92% 102% 84% TRYm 2014 2015 2016PF 9M 2017 75% Trade & Other Receivables3 93.8 89.1 132.9 211.5 % Sales 10.5% 8.5% 9.7% 12.6% 2014 2015 2016PF 9M 2016 9M 2017 Inventories 154.7 177.3 287.8 292.4 % COGS 33.6% 33.6% 42.9% 35.3% TR

  24. Slide 24: Efficient Capex Management and Healthy Leverage Ratios

    Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (31 Oct. 2017) % Sales 6,9% 5,4% 4,8% 4,7% 4,1% EUR Cost of Debt1 61.5 57.1 62.6 55.5 21% 45.6 TRY 11.42% - 16.61% USD 4.05% - 4.99% TRY USD EUR 0.75% - 2.99% 55% 24% Blended 8.5% 2014A 2015A 2016A 9M 2016 9M 2017 Net Debt /

  25. Slide 25: 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

  26. Slide 26: Thank You

    THANK YOU Contact : investorrelations@mavi.com

  27. Slide 27: Financial Statements: Income Statement

    Financial Statements Income Statement TRYm Q3 2016 Q3 2017 Change (%) 9M 2016 9M 2017 Change (%) Rev enue 387.5 521.7 34.6% 972.7 1,350.4 38.8% Cost of Sales (187.7) (256.3) 36.5% (478.4) (665.7) 39.2% Gross Profit 199.8 265.3 32.8% 494.3 684.7 38.5% Gross Margin 51.6% 50.9% 50.8% 50.7% Administrati

  28. Slide 28: Financial Statements: Balance Sheet

    Financial Statements Balance Sheet TRYm 31 January 2017 31 October 2017 Change (%) Assets Current Assets Cash and Cash Equiv alents 158.1 174.8 10.6% Trade Receiv ables 109.4 187.0 71.0% I nv entories 287.8 292.4 1.6% Other Current Assets 70.1 69.2 (1.3%) Total Current Assets 625.4 723.4 15.7% Non-C

  29. Slide 29: Financial Statements: Cash Flow Statement

    Financial Statements Cash Flow Statement TRYm 9M 2016 9M 2017 Profit¹ 52.7 84.1 D&A Expense 33.2 43.8 Net Finance Expense / (I ncome) 32.2 50.0 Tax Expense 14.7 20.3 Other Non-Cash I tems 0.8 13.9 Cash Flow from Operating Activ ities 133.6 212.2 Δ in Net Working Capital² (34.3) 4.5 I ncome Tax Paid

Mavi Giyim Sanayi Ve Ticaret A.S. — Investor Presentation (December 2017) on 6ix