Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Investor Presentation (December 2023)
49 slides from Mavi Giyim Sanayi Ve Ticaret A.s's investor presentation, December 2023
Slide 1: Investor Presentation December 2023
Investor Presentation December 2023
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: Mavi Business Overview
MAVI BUSINESS OVERVIEW
Slide 4: Why We Believe Mavi is Exciting
Why We Believe Mavi is Exciting 01 06 Aspirational denim-centric lifestyle brand positioning, inspiring the Innovative and creative collaborations differentiating the brand, customer, employees, and business partners. communication and growing market share driven by sustainable products and projects
Slide 5: Highly Successful Lifestyle Brand
Highly Successful Lifestyle Brand… Business Overview Key Metrics (9M 2023) (inc.IFRS16) Brand & Product (9M 2023) • Started operations in Istanbul in 1991, Mavi today is 14,189 TRYm 3,561 TRYm 65+% globally recognized as a highly successful casual lifestyle brand Brand 18.5% Revenue EBITDA Awareness
Slide 6: …With Strong International Presence
…With Strong International Presence 465 401 64 5 35 Monobrand Mono-Brand International ~4,000 6,077 HQ Countries Stores in Mono-Brand Points of Sale Employees Stores Turkey Stores TURKEY EUROPE RUSSIA Retail stores: 332 Retail stores: 1 Retail stores: 17 Franchise stores: 69 Wholesale doors: ~800 Fr
Slide 7: Building Blocks For the Future
Building Blocks For the Future Brand and Product Innovations Growing Retail Online Investments • Mavi continues to gain market share and new customers • New retail concepts (1000 m2) are developed to • A multi-team omni-channel project was launched. while increasing frequency by focusing on differen
Slide 8: Building Blocks For the Future
Building Blocks For the Future Towards a more digital future All Blue. All Better. For All. People - Oriented Culture • Digitalization and CRM investments were positioned at the • Global All Blue strategy continued to to drive • In line with the diversity & inclusivity commitment, core of the compan
Slide 9: Retail Expertise in Turkey
RETAIL EXPERTISE IN TURKEY
Slide 10: Multi Pillar Growth Strategy in Turkey Retail
Multi Pillar Growth Strategy in Turkey Retail 01 02 03 Physical Space Growth Online Sales Growth New customer acquisition* New Store Openings mavi.com & Marketplace 1mn+ every year 401 Stores in 80 Cities Expansion of store space Average Selling Space 518sqm New Stores 600-800 sqm LFL Growth* Above
Slide 11: Strong Track Record of Retailization in Turkey
Strong Track Record of Retailization in Turkey… # of Retail Stores Evolution in Turkey Turkey Retail Sales Evolution (TRYm) Net New 14 6 7 2 3 Stores 9,268 6,694 329 332 327 320 2,740 314 1,829 1,356 2019 2020 2021 2022 9M 2023 2019 2020 2021 2022 9M 2023 Gross Selling Space Evolution in Turkey (Sqm
Slide 12: 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 36% 64% WOMEN Women Men (share) 39% 61% Denim Lifestyle MEN (share) Other
Slide 13: …And Growing Significantly in Each Category
…And Growing Significantly in Each Category Denim Products (TRYm) Lifestyle Products (TRYm) Shirts Non-Denim Bottoms Denim Knits/Jerseys 103% 137% 1003 98% 663 714 98% 494 3,667 265 397 301 146 2606 152 2,642 52 2020 2021 2022 9M 9M 2022 2023 2020 2021 2022 9M 9M 1819 2022 2023 1,853 1315 Accessorie
Slide 14: Like-for-like / Same Store Sales Growth Figures
Like-for-like / Same Store Sales Growth Figures 42.7% 141.8% 101.5% 29.5% 16.4% 73.3% Transaction1 1.1% (20.8%) # Growth 20.9% (%) (11.0%) 2019 2020* 2021* 2022 9M 2023 2019 2020* 2021* 2022 9M 2023 • Traffic growth of 38% in 2022 and 10% in 9M 2023 displays continued strong consumer demand 86.7% 73
Slide 15: Impacted yet Proven Resilient to Crises
Impacted yet Proven Resilient to Crises Turkey retail operations experienced significant loss of trading hours and traffic to the stores in the trading days throughout the Covid19 pandemic period. Nevertheless, the total sales impact was limited with fast recovery. vs 2019 Q1 2020 Q2 2020 Q3 2020 Q4
Slide 16: Diversified and Reliable Sourcing Model
Diversified and Reliable Sourcing Model Quality Driven Efficient Sourcing Structure with a focus on sustainability 39% Denim 120+ Responsible c.80% Made in Turkey c.20% Imported 61% Non-Denim Suppliers • Turkey Retail Net Sales Split • Quality textile ecosystem • Mainly outerwear and • Well-establis
Slide 17: Best-in-Class Loyalty Program (Kartuş) Since 2007
Best-in-Class Loyalty Program (“Kartuş”) Since 2007 9.0million 1million+ Loyalty Card Members New customer acquisition annually 6.6million ~ 70% Active1 customers New Customers Under 35 age group 45% 55% Woman Man ~ 5.0 million Mobile app download Happiest Mavi Customer Note : Data for Kartuş custom
Slide 18: International & E-Com Markets
INTERNATIONAL & E-COM MARKETS
Slide 19: International Operations (2022)
International Operations(2022) 63 monobrand stores Online channels’ share in ~3,500 doors in 36 countries (22 own-opearated, 41 franchise) global 32%* USA EUROPE 2% 30% ~1.150 Wholesale: Online Retail Mono-brand retail Wholesale: Online wholesale E-com wholesale multi- Nordstrom, wholesale 23% store
Slide 20: E-Commerce Platform to Deliver Future Growth
E-Commerce Platform to Deliver Future Growth Global E-Commerce Revenue Turkey E-Commerce Revenue % Sales Channel % Sales 8.3% 17.1% 15.6% 12.8% 10.7% 3.8% 10.7% 11.2% 9.0% 7.8% Growth 9M’23 yoy 1,512 969 1,356 179 793 184 44% 490 86% 723 589 421 432 543 207 76% 412 126 89 237 479 127% 238 271 99 361
Slide 21: Successful Brand Strategy
SUCCESSFUL BRAND STRATEGY
Slide 22: 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 23: 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 24: Mavi celebrated the centennial of the Republic of Turkey with the 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 25: 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 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 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 27: Growth with Young Generation
Growth with Young Generation
Slide 28: 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 Reflec
Slide 29: Sustainable Growth Through Quality
SUSTAINABLE GROWTH THROUGH QUALITY
Slide 30: 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 31: All Blue Strategy
All Blue Strategy PEOPLE PLANET • People-oriented Mavi culture • Tackling climate crisis • Ecosystem restoration • Inclusive business model and responsible value chain COMMUNITY DENIM Mavi's impact-driven • Quality first transformative power • Denim innovation and partnerships • Responsible raw mate
Slide 32: Sustainability Goals
Sustainability Goals PEOPLE PLANET BETTER.EMPOWER BETTER.PROTECT MAVİ’S SUSTAINABILITY TARGETS MAVİ’S SUSTAINABILITY TARGETS Having a fully inclusive and responsible value chain by 2030. Becoming a climate-positive company by 2050. MONITORING TARGETS PROGRESS IN 2022 MONITORING TARGETS PROGRESS IN 2
Slide 33: Sustainability Goals
Sustainability Goals DENIM COMMUNITY BETTER.TRANSFORM BETTER.MOBILIZE MAVİ’S SUSTAINABILITY TARGETS MAVİ’S SUSTAINABILITY TARGETS Ensuring that the whole denim collection consists of sustainable All Blue products by 2030. Driving an impact-focused and measurable social change. MONITORING TARGETS PRO
Slide 34: 2022 Sustainability Highlights
2022 Sustainability Highlights BETTER. BETTER. BETTER. BETTER. EMPOWER PROTECT TRANSFORM MOBILIZE 58% A SBTi√ 27% 1 million CDP Climate GHG emission targets Engagements with the "Birlikte Çok Female employment ratio Share of the sustainable All Blue Change Program approved by the Science- Güzel Oluy
Slide 35: Sustainable All Blue Collection
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 36: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE
Slide 37: Robust Recovery out of the Covid-19 Pandemic
Robust Recovery out of the Covid-19 Pandemic Revenue Evolution (TRYm) Gross Profit Evolution (TRYm) Gross Margin 48.3% 51.3% 52.9% 54.3% 53.2% (%) 94% 14,189 90% 10,592 7,546 7,325 5,602 3,976 4,619 2,372 2,402 1,160 2020 2021 2022 9M 2022 9M 2023 2020 2021 2022 9M 2022 9M 2023 • Gross margin improv
Slide 38: Record High Earnings
Record High Earnings EBITDA Evolution (TRYm) (exc. IFRS16) Net Profit (TRYm) (exc.IFRS16) EBITDA Profit 8.8% 16.6% 19.5% 21.4% 21.7% Margin 0.7% 9.3% 13.8% 15.9% 15.5% Margin (%) (%) 97% 88% 3,082 2,194 2,063 1,463 1,565 1,164 765 429 211 16 2020 2021 2022 9M 2022 9M 2023 2020 2021 2022 9M 2022 9M 2
Slide 39: Effective Working Capital and Inventory Management
Effective Working Capital and Inventory Management Cash Conversion1 (exc. IFRS 16) Main Working Capital Items 122% TRYm 2022 9M 2022 9M 2023 91% 83% Trade & Other Receivables3 913 1,022 1,618 47% % Sales 8.6% 11.7% 9.3% Inventories 2,308 1,823 3,291 2020 2021 2022 9M 2023 % COGS 46.2% 45.1% 39.7% TR
Slide 40: Efficient Capex Management and Healthy Leverage Ratios
Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (31 October 2023) % Sales 4.2% 3.5% 2.8% 2.4% 5% 2% 4% 344 Average Cost of Debt 295 USD TRY 41.4% CAD 164 TRY USD 7.7% 101 RUB RUB 20.0% CAD 7.6% 2020 2021 2022 9M 2023 89% Blended 38.2% Net Cash (Debt) exc.IFRS16 (TRYm) • A
Slide 41: FY2023 Management Guidance
FY2023 Management Guidance Previous (08.06.2023) Revised (19.09.2023) Revised (11.12.2023) Consolidated Revenue Growth 75% ± 5% 80% + 85% + 5 net new stores 8 net new stores Turkiye Retail Stores Confirmed 7 store expansions 7 store expansions 18% ± 0.5% (exc. IFRS16) 19% ± 0.5% (exc. IFRS16) 20% ±
Slide 42: Thank You!
THANK YOU ! Contact : investorrelations@mavi.com duygu.inceoz@mavi.com
Slide 43: Financial Statements Income Statement (inc. IFRS 16)
Financial Statements Income Statement (inc. IFRS 16) TRYm Q3 2022 Q3 2023 Change (%) 9M 2022 9M 2023 Change (%) Revenue 3,202 5,774 80% 7,325 14,189 94% Cost of Sales (1,534) (2,519) 64% (3,349) (6,643) 98% Gross Profit 1,667 3,255 95% 3,976 7,546 90% Gross Margin 52.1% 56.4% 54.3% 53.2% Administrat
Slide 44: Financial Statements Balance Sheet (inc. IFRS 16)
Financial Statements Balance Sheet (inc. IFRS 16) TRYm 31 January 2023 31 October 2023 Change (%) Assets Current Assets Cash and Cash Equivalents 3,245 4,273 32% Financial Investments 58 59 2% Trade Receivables 871 1,588 82% Inventories 2,308 3,291 43% Other Current Assets 304 399 31% Total Current
Slide 45: Financial Statements Cash Flow Statement (inc. IFRS 16)
Financial Statements Cash Flow Statement (inc. IFRS 16) TRYm 9M 2022 9M 2023 Profit¹ 1,158 2,175 Adjustments 1,013 1,840 Cash Flow from Operating Activities 2,171 4,015 Δ in Net Working Capital² (513) (1,618) Income Tax Paid (267) (335) Net Cash from Operating Activities 1,391 2,062 Capex (192) (344
Slide 46: Effects of IFRS16 on Financial Statements
Effects of IFRS16 on Financial Statements TRYm 31-Oct-23 IFRS 16 Effect After IFRS 16 Current assets 9,617 (6) 9,611 Non-current assets 1,877 690 2,567 Current liabilities 5,911 448 6,359 Non-current liabilities 530 314 844 Equity 5,053 (78) 4,975 9M 2023 IFRS 16 Effect After IFRS 16 Operating profi
Slide 47: Q3 2023 - Sales Channels Performance
Q3 2023 - Sales Channels Performance Global Revenue (TRYm) Turkiye Revenue (TRYm) Channel 86% 104% 12,360 Growth 969 94% 2,123 80% 14,189 6,047 104% 1,333 87% 5,032 475 2,701 124% 3,343 386 946 9,268 7,325 176 873 87% 4,626 100% 5,774 471 3,773 714 2,054 3,202 530 1,789 1,380 9,513 97% 267 Q3 2022 Q
Slide 48: Experienced and Diverse Board of Directors – 50% Independent
Experienced and Diverse Board of Directors – 50% Independent Ersin Akarlılar Tamer Haşimoğlu Cüneyt Yavuz Chairperson Independent Non- CEO With Mavi since 1991 Executive Director • • Mavi’s Chief • Primarily responsible • Board Member at Koç Executive Officer for Mavi’s international Group and Anado
Slide 49: 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) •
Mavi Giyim Sanayi Ve Ticaret A.S. — Investor Presentation (December 2023) on 6ix