Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Q1 2020 Earnings Presentation
21 slides from Mavi Giyim Sanayi Ve Ticaret A.s's earnings presentation, Jun 9, 2020
Slide 1: Q1 2020 Results Presentation
Q1 2020 RESULTS PRESENTATION June 9, 2020 0
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: Covid-19: Social Response
Covid-19 : Social Response Our first and foremost priority is the health and well-being of our employees, customers and all business partners. With this view at the center of our actions, we have ; • adopted all measures recommended by the local and global health authorities in all of our markets •
Slide 4: Covid-19: Current Business Status
Covid-19 : Current Business Status Turkey • All retail and franchise stores closed on March 19, 2020 • Gradual re-opening started on May 12, 2020 and all stores opened on June 1, 2020 • Online operations in Turkey were suspended on March 30 for increased health precaution purposes and resumed operat
Slide 5: Covid-19: Health Measures in Headquarters, Retail Stores and Warehouses
Covid-19 : Health Measures in Headquarters, Retail Stores and Warehouses 44
Slide 6: Covid-19: Business Continuity Response
Covid-19 : Business Continuity Response Product / Inventory Opex Liquidity / Cash Management Management Management • Adjustments to product • Employees: all employees • Investments deferred and purchasing plans in full continued to receive full scaled back collaboration with wage . Use of state supp
Slide 7: Q1 2020 Highlights
Q1 2020 Highlights GROUP HIGHLIGHTS1 TURKEY HIGHLIGHTS • Consolidated revenue decreased (48%) 49% 40% to 387 TRYm due to Covid-19 387 TRYm 20 TRYm related store closures Retail Sales Online Sales Revenue EBITDA Decline Growth • EBITDA for the period is 20 TRYm resulting in 5.2% EBITDA margin • Net i
Slide 8: Revenue Evolution in Sales Channels
Revenue Evolution in Sales Channels Global Revenue (TRYm) Turkey Revenue (TRYm) Channel (40%) Growth (42%) 524 648 15 27 49% 41% 144 242 387 305 39 22 (35%) (37%) 93 152 365 379 190 (48%) 197 (48%) Q1 2019 Q1 2020 Q1 2019 Q1 2020 International Revenue (TRYm) Retail Wholesale E-com (34%) Following
Slide 9: Turkey Retail Operations
Turkey Retail Operations # of Retail Stores Gross Selling Space in Turkey (Sqm K) Net Avg. 13 14 -2 Sqm/ 498sqm 498sqm 499sqm New Stores Retail Store 149.3 156.3 155.7 300 314 312 2018 2019 Q1 2020 2018 2019 Q1 2020 • With one opening and three closures, number of retail stores stands at 312 as of e
Slide 10: Sales in Denim & Lifestyle Categories
Sales in Denim & Lifestyle Categories Denim Products (TRYm) Lifestyle Products (TRYm) Denim All Knits Shirts 48% 19% 14% 70 (49%) (51%) 53 36 (49%) 26 180 Q1 2019 Q1 2020 Q1 2019 Q1 2020 92 Jackets 8% Accessories1 7% (30%) (43%) 23 Q1 2019 Q1 2020 23 16 13 Q1 2019 Q1 2020 Q1 2019 Q1 2020 % Share in
Slide 11: Online Sales Growth
Online Sales Growth Global Online Sales (TRYm) Turkey Online Sales (TRYm) % Sales 8.6% 15.0% % Sales 3.9% 7.1% 6.8% 21.6 20.2 (100%) 4.3% 5.7 9.0 55.7 58.1 3.4 169% 19.3 11.1 13% 12.6 28.2 (32%) 13.7 Q1 2019 Q1 2020 131% 5.9 International Online Sales (TRYm) 21.6 16% 25.1 % Sales 28.5% 44.3% Q1 2019
Slide 12: Consolidated Financial Metrics
Consolidated Financial Metrics Revenue (TRYm) Gross Profit (TRYm) Q1 2019 47.3% 45.4% normalized GM 648 (40%) with current (43%) imputed interest impact 387 is 307 45.7% 176 Q1 2019 Q1 2020 Q1 2019 Q1 2020 EBITDA (TRYm) Net Income (TRYm) 11.4% (6.9%) 20.4% 5.2% 2.4% (13.3%) 1.6% (13.3%) 133 15 (85%)
Slide 13: Operational Cash Flow and Working Capital Management
Operational Cash Flow and Working Capital Management Operational Cash Flow (Exc. IFRS16) Main Working Capital Items TRYm Q1 2019 Q1 2020 TRYm 2019 Q1 2019 Q1 2020 Trade & Other EBITDA 74.0 (26.6) Receivables 251.6 241.9 237.0 % Sales 8.8% 9.8% 9.1% Δ in NWC1 (66.9) (132.8) Inventories 496.1 508.0 61
Slide 14: Capex and Leverage Ratios
Capex and Leverage Ratios CAPEX (TRYm) Debt Breakdown (30 April 2020) % Sales 3.1% 8.2% 31.9 6% Average Cost of Debt 6% 9% EUR TRY 13.0% 20.2 7% 2% USD EUR 1.5% CAD USD 3.5% TRY RUB 13.0% RUB Q1 2019 Q1 2020 76% CAD 3.0% • Capex in Q1 2020 includes investments undertaken 94% Blended 11.1% for store
Slide 15: Business Update as of June 7, 2020 – No New Guidance
Business Update as of June 7, 2020 – No New Guidance All operations are running as of June 1, 2020 with service hour / capacity limitations Turkey Retail Update : • Selected stores operated for only 9 days in May • In the first week of June, while traffic was down around 60%, conversion and UPT were
Slide 16: Financial Update as of June 7, 2020 – No New Guidance
Financial Update as of June 7, 2020 – No New Guidance Product Management • Category planning to achieve effective sell-through and to defend gross margins • In season orders are managed more dynamically with shorter lead times and open-to-buy planning Opex Management • Continued focus on cost saving
Slide 17: investorrelations@mavi.com
investorrelations@mavi.com
Slide 18: Financial Statements
Financial Statements Income Statement (2019 figures inc. IFRS 16) TRYm Q1 2019 Q1 2020 Change (%) Revenue 648.4 387.1 (40%) Cost of Sales (341.4) (211.4) (38%) Gross Profit 307.0 175.8 (43%) Gross Margin 47.3% 45.4% Administrative Expenses (36.7) (39.2) 7% Selling and Marketing Expenses (197.8) (181
Slide 19: Financial Statements
Financial Statements Balance Sheet TRYm 31 January 2020 30 April 2020 Change (%) Cash and Cash Equivalents 310.8 756.4 143% Trade Receivables 231.1 223.2 (3%) Inventories 496.1 611.3 23% Other Current Assets 80.7 121.9 51% Total Current Assets 1,118.7 1,712.8 53% Property and Equipment 180.7 192.1 6
Slide 20: Financial Statements
Financial Statements Cash Flow Statement TRYm Q1 2019 Q1 2020 Profit¹ 10.1 (51.6) Adjustments 139.2 98.9 Cash Flow from Operating Activities 149.3 47.2 Δ in Net Working Capital² (66.9) (132.8) Income Tax Paid (0.4) (6.6) Net Cash from Operating Activities 82.0 (92.1) Capex (20.2) (31.9) Other Invest
Slide 21: Global Footprint as at 30 April 2020
Global Footprint as at 30 April 2020 Canada Europe Russia # Retail Stores: 4 # Wholesale Doors: c.1,300 # Retail Stores: 1 # Wholesale Doors: c.1,650 # Retail Stores: 18 # Franchise Stores: 15 377 Mono-Brand # Employee: 66 # Employee: 63 Stores in Turkey # Wholesale Doors: 139 # Employee: 125 55 Int
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