Mavi Giyim Sanayi Ve Ticaret A.s. · BIST:MAVI
Mavi Giyim Sanayi Ve Ticaret A.s — Investor Presentation (June 2018)
33 slides from Mavi Giyim Sanayi Ve Ticaret A.s's investor presentation, June 2018
Slide 1: June 2018
JUNE 2018804)
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: Key strengths: aspirational lifestyle brand, products, multi-channel, management, financials
ASPIRATIONAL lifestyle and customer- 1 centric BRAND with broad appeal and celebrity endorsements 2 Locally sourced WORLD-CLASS PRODUCTS with well segmented ranges 3 MULTI-CHANNEL EXECUTION with robust retail store economics 4 BEST-IN-CLASS COMMUNICATION STRATEGY enhancing brand awareness acro
Slide 5: Mavi: Highly Successful Lifestyle Brand
Mavi : Highly Successful Lifestyle Brand… Business Overview Key Metrics (2017) Brand & Product (Q1 2018) Started operations in Istanbul in 1991, Mavi today is globally recognized as a highly successful casual lifestyle brand TRY1,782m Revenue TRY252m EBITDA #1 c.52%3 Lifestyle With strong denim
Slide 6: With Strong International Presence
…With Strong International Presence Canada Europe Russia 363 # Retail Stores: 3 # Retail Stores: 7 # Retail Stores: 15 # Wholesale Doors: c.1,800 # Wholesale Doors: c.1,400 # Franchised Stores: 17 # FTEs: 56 # FTEs: 148 # Wholesale Doors: c.105 Mono-Brand # FTEs: 107 Stores in Turkey 63 Internationa
Slide 7: Retail Expertise in Turkey
RETAIL EXPERTISE IN TURKEY
Slide 8: Multi Pillar Growth Strategy in Turkey Retail
Multi Pillar Growth Strategy in Turkey Retail • Average 25 Net New Store Openings/year • 1 mn new customer Acquisition 290 Stores in 80 Cities Every year • LFL Growth Average 16% Annual • Expansion of store space Average Selling Space 490 sqm New Stores 600-800 sqm 77
Slide 9: Offering a Lifestyle Product Portfolio Across Women and Men
Offering a Lifestyle Product Portfolio Across Women and Men… 1 Data for Turkey retail only. 2 Including shoes. 3 Including kids. % of Q1 2018 Net Sales1 88
Slide 10: And Growing Significantly in Each Category
…And Growing Significantly in Each Category Denim Products (TRYm) Lifestyle Products (TRYm) Knits Shirts 48% 19% 16% 235 188 147 159 526 104 87 59 48 42 34 397 2015 2016 2017 Q1 2017 Q1 2018 2015 2016 2017 Q1 2017 Q1 2018 330 Jackets Accessories1 6% 6% 148 123 97 74 65 56 42 44 11 18 16 20 2015 2016
Slide 11: 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 All FW17, SS17, 48% 52% Gold Casual Glam Pretty Istanbul&Basics Lifestyle excluding Premium Lifestyle Young Everyday Accessories1 FW17, SS17, 45% 55
Slide 12: 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 27 25 26 3 Stores 1133 857 704 236 261 287 290 236 306 2015 2016 2017 Q1 2018 2015 2016 2017 Q1 2017 Q1 2018 Gross Selling Space Evolution in Turkey (Sqm k) Significant
Slide 13: 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 7.1% 6.9% 6.6% supported by strong brand awareness 1 Basket Size 3.9% • Increased traffic, ne
Slide 14: 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 6.5M 4.7M % of Turkey’s Total Loyalty Card Active Active Loyalty Card Members per Age Group (%) Population (2017) New Loyalty Card Members per Age Group
Slide 15: International & E-Com Markets
INTERNATIONAL & E-COM MARKETS
Slide 16: Growing Global Footprint
Growing Global Footprint USA EUROPE CANADA RUSSIA 15 15
Slide 17: E-Commerce Platform to Deliver Future Growth
E-Commerce Platform to Deliver Future Growth Global E-Commerce Revenue1 International E-Commerce Revenue Revenue (TRYm) 39 16 22 14 13 6 6 8 3 2 2015 2016 2017 Q1 2017 Q1 2018 2015 2016 2017 Q1 2017 Q1 2018 Mavi.com Turkey - Key Statistics Turkey E-Commerce Revenue # 1 Store in Turkey 52% Revenue fr
Slide 18: E-Commerce Potential in Turkey
E-Commerce Potential in Turkey Turkey Has a Strong E-Commerce Potential E-Commerce Penetration Mavi Share of Online Sales Still Below Overall Comparable Markets 4.1% % Share of E-Commerce in Apparel and Footwear (2016)1 E-Commerce penetration in Turkey (China 20.4%, USA 11.8%, Germany 9.1%) 17 Faceb
Slide 19: Successful Brand Strategy
B SUCCESSFUL IBRAND STRATEGY
Slide 20: Best-in-Class Communication
Best-in-Class Communication According to the Consumer’s Voice Survey, Mavi, with its product and service quality, is the leader of the apparel industry among the brands that create highest customer 80.000.000+ Tv Views loyalty. (Mediacat & IPSOS & Kalder, April 2017) Digital Social Media Awards Turk
Slide 21: Brand Positioning Enhanced Through Global Collaborations
Brand Positioning Enhanced Through Global Collaborations Turkey 2012 2013 2014 2015 2016 2016 2016 2017 Adriana Lima Kıvanç Tatlıtuğ Serenay Serenay Serenay Serenay Sarıkaya İlker Kaleli Kıvanç Tatlıtuğ Barbara Palvin Sarıkaya Sarıkaya Sarıkaya Barbara Palvin Kerem Bürsin Kerem Bürsin Global 2012 20
Slide 22: Celebrities
Celebrities Richard Katherine Heidi Kate Colin Kendall Liam Branson Heigl Klum Hudson Farrell Jenner Hemsworth “Mavi is a brand of superior quality, which is the foremost attribute I look for when I, as an entrepreneur, invest because quality is always Matthew Lady Jessica Anna Fergie appreciated.”
Slide 23: Strong Financial Performance
STRONG FINANCIAL PERFORMANCE
Slide 24: Mavi Delivers Strong Operational Results
Mavi Delivers Strong Operational Results Revenue Evolution (TRYm) Gross Profit Evolution (TRYm) Gross 49.7% 51.0% 50.9% 48.6% 49.9% Margin (%) 1,782 1 1,368 907 1,053 698 1,308 524 667 428 536 208 267 2015 2016 2017 Q1 2017 Q1 2018 2015 2016 2017 Q1 2017 Q1 2018 EBITDA Evolution (TRYm) Net Profit (T
Slide 25: Strong Cash Conversion
Strong Cash Conversion Cash Conversion1 Main Working Capital Items 111% TRYm 2015 2016PF 2017 Q1 2017 Q1 2018 92% 84% 54% Trade & Other Receivables3 89.1 132.9 140.2 216.2 216.6 % Sales 8.5% 9.7% 7.9% 15.2% 11.5% -1% Inventories 177.3 287.8 320.4 289.5 338.5 2015 2016PF 2017 Q1 2017 Q1 2018 % COGS 3
Slide 26: Efficient Capex Management and Healthy Leverage Ratios
Efficient Capex Management and Healthy Leverage Ratios CAPEX Debt Breakdown (30 April 2018) % Sales 5.4% 4.8% 4.1% 5,0% 3.1% EUR Cost of Debt USD 6% 28% TRY 11.42% - 18.80% TL 72.8 29% 57.1 62.6 RUB USD 4.05% - 5.10% 47% EUR 0.00% - 3.00% 21.5 16.8 18% RUB 12.95% 72% Blended 8.18% 2015 2016 2017 Q1
Slide 27: Resilient to FX Movements
Resilient to FX Movements Gross Margin Evolution (%) 51% 51% Mavi sources approximately 80% of COGS from Turkey in TRY 50% COGS 49% Negotiating with suppliers / customers for adverse FX movements 2014 2015 2016PF 2017 Data Rebased to 100 140 163 Mavi has 2/3 of its rents in Turkey denominated
Slide 28: Highly Experienced Board of Directors
Highly Experienced Board of Directors Ersin Akarlılar Ahmet Ashaboglu Cüneyt Yavuz Chairperson Independent Non- CEO Executive Director With Mavi since 1991 CFO of Koc Holding since Mavi’s Chief Executive Officer 2006 since 2008 Primarily responsible for Mavi’s international strategy Previo
Slide 29: Thank You
THANK YOU Contact : investorrelations@mavi.com
Slide 30: 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
Slide 31: 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
Slide 32: 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 -
Slide 33: Channel Performance in line with Guidance
Channel Performance in line with Guidance Global Revenue (TRYm) Turkey Revenue (TRYm) 441 Channel 350 Growth 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
Mavi Giyim Sanayi Ve Ticaret A.S. — Investor Presentation (June 2018) on 6ix