Mavi Giyim Sanayi ve Ticaret : 2021 FY Results

March 14, 2022

Mavi increased its consolidated revenues by 92% in 2021FY, reaching TL 4 billion 619 million and posted TL 423 million in net profit, demonstrating strong growth

Turkey's leading jeans and apparel brand Mavi announced its 2021FY results. The company's consolidated revenues increased by 92%, reaching TL 4 billion 619 million. Demonstrating strong earnings growth performance, the company posted TL 423 million in net profit. Mavi recorded TL 1 billion 38 million in EBITDA with an EBITDA margin of 22.5% and an EBITDA

growth of 165%.

Mavi achieved significant growth with 94% in Turkey and 86% in international markets while maintaining its rising trend in retail and e-commerce, fueled by the normalization during the pandemic. Capturing an increase of 95% in global online sales and 104% in Turkey online sales, e-commerce accounted for 13% of total revenues. In addition to increasing its revenues in 2021, Mavi also captured volume growth across all categories and sold over 10 million denim pieces, gaining market share in women's, men's, and jeans in Turkey.

The Board of Directors will present its proposal to distribute 30% of its 2021 profit as cash dividend to the General Assembly for approval.

Chief Executive Officer Cüneyt Yavuz evaluated 2021FY:

• In 2021, we celebrated our 30th anniversary. I want to thank my entire team, business associates, investors, and customers for helping us drive Mavi forward, guided by our brand values and corporate culture.
  As a global company with a people-oriented culture and sound financial management, we closed the year with a growth rate and profit beyond expectations, thanks to our brand positioning, high quality and customer-focusstrategy of offering the right product at the right price, a flexible supply chain and product planning and inventory management mechanisms. In addition, the cash generated from our operations enabled us to increase our net cash position significantly and further strengthened our balance sheet.

Strong growth across all channels

• As foot traffic returned to pre-pandemic levels and retail operations further strengthened, LFL sales increased by 73.3% in Turkish retail stores, driven by 42.7% growth in number of transactions and 21.4% in basket size.
• With net seven store openings and expansions in eight stores, we reached 456 stores and approximately 4,500 sales points globally. We continue to enhance the physical shopping experience with a refreshed store concept and 1,000sqm store projects.
  In addition to our owned channels, we also grew and diversified our marketplace partnerships, which resulted in increasing our online sales by 95% globally and 104% in Turkey. As we maintained our e-commerce growth with Mavi's strong digitalization and CRM infrastructure, we completed our ERP transformation with the move to SAP. With freshly redesigned mavi.com, we aim to create an even better and easier shopping experience for our customers.

Our brand investments continue seamlessly

• As a people-oriented brand that always looks to the future, we will continue to focus on our long-term goals, prioritize efficiency in all our operations, shape our sustainable growth strategy through quality by considering the changing customer behaviors, and increase our market share.
• We keep our focus on what we do best, interpreting change from a jeans culture perspective and leading with denim innovations. We sold over 10 million denim pieces, including the innovative Mavi Black Pro, Mavi Icon, Mavi Pro Sport Repreve® collections, and grew our share in casual lifestyle categories with logo, sweatshirt, and sporty product groups.
• We continue to offer brand-new products, invest in our brand, make a difference with collection collaborations, and create strong customer engagement through celebrity campaigns and influencers to attract customers to Mavi. The fact that 70% of the new Mavi customers are younger than 35 is a testament that our efforts are paying off.

All Blue. All Better. For All.

• In 2021, we remained firmly focused on sustainability as one of our core values. We build our All Blue strategy on sustainable growth through quality and focus on People, Planet, Community, and Denim. This year, we made significant progress toward integrating sustainability into our corporate culture, vision, business practices, products, and growth targets. Our successful sustainability efforts as a Turkish apparel brand that discloses its carbon footprint transparently and has received a score of B,

outperforming the global industry average, were recognized with our inclusion in Borsa Istanbul (BIST) Sustainability Index. Driven by our values and corporate culture, we believe that a better world is possible with a better Mavi. So, we take responsibility for sustainability and continue to innovate. With our slogan "All Blue. All Better. For All.", we strive to do better every day and work for a better future for all. We build our strategy, which supports the United Nations Sustainable Development Goals and the United Nations Global Compact (UNGC), on four pillars: Better.Empower, Better.Protect, Better.Transform, and Better.Mobilize. We published our first sustainability report and shared our long-term sustainability goals. We aim for all our denim collections to consist of environment-friendly All Blue products by 2030 and commit to being a climate-positive company by 2050. As always,

we will continue to work with a passion for a better Mavi and a better world.

For more information: Artı İletişim Yönetimi | 0212 347 03 30 | mavi@artipr.com.tr