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

Mavi Giyim Sanayi Ve Ticaret A.s — Q1 2018 Earnings Presentation

17 slides from Mavi Giyim Sanayi Ve Ticaret A.s's earnings presentation, May 31, 2018

  1. Slide 1: Q1 2018 Results Presentation

    Q1 2018 RESULTS PRESENTATION May 31, 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 Solid Growth in the First Quarter 2018

    Continued Solid Growth in the First Quarter 2018 PROFITABLE GROWTH TURKEY RETAIL HIGHLIGHTS  Consolidated revenue increased by 25% to 536 TRYm 25% 30% 69% 20.8% Revenue EBITDA % of Turkey LFL Growth  EBITDA grew by 30% to 72 TRYm Growth Growth Revenue resulting in 13.5% EBITDA margin  Net Profit

  4. Slide 4: Revenue Growth in line with 2018 Guidance

    Revenue Growth in line with 2018 Guidance Global Revenue (TRYm) Turkey Revenue (TRYm) 441 Channel Growth 350 7 42% 536 5 129 428 55% 109 18% 13 236 306 8 18% 30% 204 173 Q1 2017 Q1 2018 247 319 29% International Revenue (TRYm) Q1 2017 Q1 2018 Retail Wholesale E-com 94 79 6 76%  Total revenue consis

  5. Slide 5: Strong Performance of Turkey Retail Operations

    Strong Performance of Turkey Retail Operations… # of Retail Stores Turkey Retail Revenue (TRYm) Net 13 25 26 3 New 18 Stores 39 306 287 290 261 236 2016 2017 Q1 2018 Q1 2017 LFL Growth New Store Expansion Q1 2018 Gross Selling Space in Turkey (Sqm K) Avg. Sqm/ 484sqm 490sqm  3 net new store opening

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

    …Supported by High Like-for-like Growth Figures 14.7% 13.2% 1 1 9.9% 14.1% Transaction2 7.3% # Growth 22.8% (%) 20.8% 14.7% 10.8% 2015 2016 2017 Q1 2018 2015 2016 2017 Q12018 • Continued customer confidence 6.9% 7.1% 6.6% supported by strong brand awareness 1 Basket Size 3.9% • Increased traffic, ne

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

    Accelerated Sales Growth in Denim & Lifestyle Categories Denim Products (TRYm) Lifestyle Products (TRYm) Denim All Knits Shirts 48% 19% 16% 59 48 42 34 148 123 Q1 2017 Q1 2018 Q1 2017 Q1 2018 Jackets 6% Accessories1 6% 18 20 16 Q1 2017 Q1 2018 11 Q1 2017 Q1 2018 Q1 2017 Q1 2018 % Share in Q1 2018 Tu

  8. Slide 8: Margin Targets Remain on Track

    Margin Targets Remain on Track Revenue (TRYm) Gross Profit (TRYm) 48.6% 49.9% 536 267 428 208 Q1 2017 Q1 2018 Q1 2017 Q1 2018 EBITDA (TRYm) Net Income (TRYm) 13.0% 13.5% 4.1% 4.7% 72 56 25 17 Q1 2017 Q1 2018 Q1 2017 Q1 2018 % Growth % Margin 77

  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 TRYm 2017 Q1 2017 Q1 2018 54% Trade & Other Receivables 140.2 216.2 216.6 % LTM Sales 7.9% 15.2% 11.5% -1% Q1 2017 Q1 2018 Inventories 320.4 289.5 338.5 % LTM COGS 36.6% 41.3% 36.6% TRYm Q1 201

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

    Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (30 April 2018) EUR Cost of Debt % Sales USD 4.8% 4.1% 3.1% 6% 28% TRY 11.42% - 18.80% TL 29% RUB USD 4.05% - 5.10% 72.8 62.6 47% EUR 0.00% - 3.00% 18% RUB 12.95% 72% 16.8 Blended 8.18% 2016 2017 Q1 2018 No currency exposure

  11. Slide 11: FY 2018 Guidance Maintained

    FY 2018 Guidance Maintained  25% consolidated sales growth  25 new retail store openings in Turkey  16% Turkey retail LFL growth  Consolidated EBITDA margin above 14%  Net Debt / EBITDA below 1x  Capex : Up to 5% of consolidated sales 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 Q1 2017 Q1 2018 Change (%) Rev enue 428.2 535.8 25.1% Cost of Sales (219.9) (268.5) 22.1% Gross Profit 208.2 267.3 28.4% Gross Margin 48.6% 49.9% Administrativ e Expenses (23.6) (29.8) 26.3% Selling and Marketing Expenses (138.5) (174.8) 26.2% R&D Expenses

  15. Slide 15: Financial Statements: Balance Sheet

    Financial Statements Balance Sheet TRYm 31 January 2018 30 April 2018 Change (%) Assets Current Assets Cash and Cash Equiv alents 266.3 203.9 (23.4%) Trade Receiv ables 113.0 192.7 70.5% I nv entories 320.4 338.5 5.7% Other Current Assets 61.8 64.7 4.8% Total Current Assets 761.4 799.8 5.0% Non-Curr

  16. Slide 16: Financial Statements: Cash Flow Statement

    Financial Statements Cash Flow Statement TRYm Q1 2017 Q1 2018 Profit¹ 17.5 25.1 D&A Expense 14.1 16.1 Net Finance Expense / (I ncome) 17.5 18.3 Tax Expense 5.3 7.6 Other Non-Cash I tems 14.3 4.2 Cash Flow from Operating Activ ities 68.6 71.3 Δ in Net Working Capital² (55.9) (33.1) I ncome Tax Paid -

  17. Slide 17: Global Footprint as at April 2018

    Global Footprint as at 30 April 2018 Canada Europe Russia # Retail Stores: 3 # Wholesale Doors: c.1,800 # Retail Stores: 7 # Wholesale Doors: c.1,400 # Retail Stores: 15 # Franchised Stores: 17 363 Mono-Brand # Employee: 56 # Employee: 148 Stores in Turkey # Wholesale Doors: c.105 # Employee: 107 63

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