Desa Deri Sanayi Ve Ticaret A.s. · BIST:DESA
Desa Deri Sanayi Ve Ticaret A.s — Q1 2025 Earnings Presentation
47 slides from Desa Deri Sanayi Ve Ticaret A.s's earnings presentation, 2025
Slide 1: 1Q2025 Investor Presentation
1Q2025 Investor Presentation
Slide 2: Contents
01 Introduction 02 Business Overview 03 Sustainability 04 Financials 05 Appendix CONTENTS 2
Slide 3: Introduction
DESA at a Glance Shareholding Structure Financial Highlights 1Q 2025 01 Investment Summary INTRODUCTION 3
Slide 4: DESA at a Glance
DESA at a Glance Established in Stores Total Area production facility of 15.500 m² 1972 14.774 m² Sefaköy Factory & Head Office IPO Free Float Total Number production facility of 20.000 m² 2004 35% of Stores Çorlu Tannery Facility 110 1.516 Employees 2 93 17 Online DESA JV production facility of 10.
Slide 5: Shareholding Structure & Board of Directors
Shareholding Structure & Board of Directors Family Members Board of Directors Position 0,80% Melih Çelet Melih Çelet Chairman Free Float(*) 18,56% 17,97% Burak Çelet Vice Chairman and Board Member Burçak Çelet Board Member Bahar Deniz Egemen Independent Board Member Melih Çelet 10,00% Mehmet Kaan Ko
Slide 6: Financial Highlights 1Q 2025 (TAS 29)
Financial Highlights 1Q 2025 (TAS 29) Revenues TRY759mn • Revenues rose 2% YoY to TRY759mn in EBITDA TRY237mn 1Q25, with a robust gross margin of 53.5%. EBITDA Margin 31.2% • EBITDA in 1Q25 is TRY237mn, indicating a Net Income TRY122mn solid 31.2% margin. Total Assets TRY4.23bn • Net income totaled
Slide 7: Investment Summary
Investment Summary Considerable amount of FX based revenues with diversified business structure New opportunities for luxury goods’ export with the newly established Italian factory 2nd Generation in Management: Family members managing in harmony Solid cash position at the end of 1Q2025: Net cash po
Slide 8: Business Overview
Vertically Integrated Business Model Production Facilities: Turkey & Italy Sales Channels: Domestic Turkey Retail Operations Samsonite JV 02 B2B Online BUSINESS Exports Manufacturing Partner of Luxury Brands OVERVIEW 1972DESA Cross-border E-commerce 8
Slide 9: Vertically Integrated Business Model
Vertically Integrated Business Model The sole Turkish company in leather industry with a production facility located in Italy Raw Material Production Final Product Manufacturing Retail Sales Çorlu Tannery Facility Leather bag and apparel 110 stores with to process imported production in Istanbul, 14
Slide 10: Production Facilities
Production Facilities Sefaköy Factory & HQ Düzce Factory Çorlu Tannery Tuscany Factory 15.500 m² 10.000 m² 20.000 m² 2.000 m² Production of leather goods Production of clothing and Napa sheepskin, double-face Production of clothing and and apparel, Showrooms, accessories from processed and suede pro
Slide 11: Investment in Italy
Investment in Italy July 2022 January 2023 Investment decision Acceptance and installation of the machinery August 2022 March 2023 Desa Internazionale SRL established, and Mr. Simone Kick-off of the recruitments Norcini joined DESA Family as Factory Manager April 2023 September 2022 The first group
Slide 12: Italy Production Facility and R&D Center
Italy Production Facility and R&D Center 12
Slide 13: Sales Channels
Sales Channels Distribution of Domestic Revenue 11,8% 5,5% 7,3% Domestic 5,4% 7,2% 7,8% Turkey Retail Operations 82,8% 87,3% 84,9% Samsonite JV (recorded by equity pick-up method) B2B 2022 2023 2024 Online Retail Online B2B Distribution of Total Revenue Exports 33,2% 34,2% 25,1% 74,9% 65,8% Manufact
Slide 14: Turkey Retail Operations
Turkey Retail Operations 110 14.774m² Total number Store area of stores 54 37 DESA mono DESA brand stores Samsonite 2 14 DESA Franchise Samsonite JV 4 3 Online Tumi 14
Slide 15: Turkey – Marketing Efforts
Turkey – Marketing Efforts DESA continues to invest in its brand equity: DESA x Hafsanur Sancaktutan Live Yourself! • Actress Hafsanur Sancaktutan is the new face of DESA’s Fall-Winter & Spring-Summer 2025 campaigns. • The collaboration blends her bold energy with DESA’s timeless leather craftsmansh
Slide 16: Samsonite Partnership
Samsonite Partnership • In 1983, DESA became the distributor of Samsonite, the world’s largest travel products brand, in Turkey. The First Luggage Brand • In 2007, a joint venture was established, with DESA holding 40% Imported to Turkey ownership and Samsonite holding a 60% stake. • In addition to
Slide 17: Exports – Manufacturing Partner of Luxury Brands
Exports – Manufacturing Partner of Luxury Brands Made in Italy – Sky is the Limit 17
Slide 18: NINETEENSEVENTYTWO Collection
DESA1972, the first NINETEENSEVENTYTWO Turkish brand featured COLLECTION on the official calendar of Milan Fashion Week, presents its women's and men's collections, inspired by the year 1972, when it launched its first handbag collection, to fashion enthusiasts. 18
Slide 19: NINETEENSEVENTYTWO Global Footsteps
NINETEENSEVENTYTWO GLOBAL FOOTSTEPS It is offered worldwide at 97 select points, with prices ranging from 900 to 3.000 EUR, featuring high-quality craftsmanship and minimalistic designs. 19
Slide 20: International Design Team – DESA1972
International Design Team – DESA1972 IVANA OMAZİC (2024) Respected and highly experienced Designer and Creative Director from well known luxury brands such as: Prada - Miu Miu - Maison Martin Margiela - Celine - Jil Sander - MCM 20
Slide 21: Cross-border E-commerce Channels: Zalando, Bol.com, Amazon.com
Cross-border E-commerce Channels: Zalando - Bol.com – Amazon.com • Zalando is Europe’s key fashion e-commerce site. • Zalando agreement was signed on Aug’22 and Sales kicked-off in Jan’23. • In 2025, we expanded our international sales channels by adding two major platforms and launched sales in fou
Slide 22: Turquality Program
Turquality Program DESA is a Member since 2006 Government support for 50% of expenses To Create a made abroad under Brand Rather than acquiring one the Turkish Brand 22
Slide 23: Sustainability
Düzce SPP* Çorlu SPP Certifications Other Initiatives 03 SUSTAINABILITY (*) Solar Power Plant 23
Slide 24: Düzce SPP
Düzce SPP • It was built on a 7500 m2 area on the Düzce Factory roof. • 1 mW Panel Capacity/ 0,8mW Installed Capacity • Started operating on August 2022 • Investment Cost of TRY 13,4 million • SPP covering 150% of factory’s consumption* • The goal is to use accessible and clean energy • Expected to
Slide 25: Çorlu SPP
Çorlu SPP • On 9th of November 2022, the Board of Directors ratified establishment of an SPP in Çorlu Factory • Built on the roof of the factory covering 3.300 m² • The output is measured as 641,55 kW on February 2024 and its license is granted in April 2024 by TREDAŞ, the local distribution company
Slide 26: Certifications: Gold Rated Leather Working Group
Certifications "Gold Rated" Leather Working Group • Accreditation: 2021 • Achieved the "Gold" level, a distinction attained by very few companies worldwide • Obtained through evaluations in 17 categories: Water and Energy Usage, Waste Management, Chemicals Used, etc. • Leather Working Group: Respo
Slide 27: All Facilities are Ratified for Sedex
Certifications SEDEX Established in 2004 All Facilities are 85.000 members in 180 countries Ratified for Sedex DESA is a member since 2005 All DESA facilities are audited by 3rd parties 27
Slide 28: Memorial Forest
Memorial Forest A total of 50,000 saplings in Gaziantep and İzmir. Support for carbon neutral initiatives and efforts to help regenerate forests damaged by fires in İzmir. 28
Slide 29: Other Sustainability Initiatives in DESA
Other Sustainability Initiatives in DESA Our upgrades to LED • We replaced the motors of our sewing machines with next-generation technology in the stores and facilities, resulted motors to prevent unnecessary energy consumption. in 40% saving of • We prioritize prevention, reduction, reuse, and rec
Slide 30: Examples of Our Social Responsibility Initiatives
Examples of Our Social Responsibility Initiatives One Hope One Life Project Continuous support to women employment with (Bir Umut Bir Yaşam Projesi) «Celentano Artisans» Every Knot is a Support for a Woman (KEDV “Her İlmek Bir Kadına Destek”) 30
Slide 31: Financials
Sales Exports EBITDA Net Profit Net Working Capital Income Statement 04 B/S - Net Cash - Ratios FX Position FINANCIALS 31
Slide 32: Sales, Gross Profit & Margin (TRY million)
Sales, Gross Profit & Margin (TRY million) 57,4% With TAS29 3.280,0 49,7% 3.892,3 60,2% 53,5% 746,4 758,5 1.934,0 1.881,5 449,2 405,8 2023 2024 Q12024 Q12025 Without TAS29 57,4% 51,4% 60,6% 55,2% 2630,9 1951,8 767,5 1.511,2 521,8 423,9 1003,0 316,5 2023 2024 Q12024 Q12025 32
Slide 33: Domestic + Exports Sales Volume
Domestic + Exports Sales Volume (‘000 Total Pieces) 781 768 587 619 350 498 350 129 128 283 311 1 4 27 31 246 55 62 101 1 111 9 0 25 25 2 2 20 95 100 7 22 6 98 27 303 271 182 175 44 134 31 2020 2021 2022 2023 2024 1Q2024 1Q2025 Bags Saddlery Apparel Textile Shoes 33
Slide 34: Samsonite Sales Volume
Samsonite Sales Volume* 246.407 209.695 175.552 103.918 74.220 63.634 40.401 2020 2021 2022 2023 2024 1Q2024 1Q2025 Domestic (*) Excluding DESA-Samsonite JV, the figures are solely from DESA owned stores 34
Slide 35: Leather and Leather Goods Exports – Turkey & DESA
Leather and Leather Goods Exports – Turkey* & DESA (USD million) • 2024 was a challenging year for luxury goods sector. + Value Adding Difference Gucci, which accounts for 45% of Kering Group’s sales, suffered a dramatic decline of over 20% YoY in Industry ≅ USD 12 / kg DESA ≅ USD 116 / kg 2024, at
Slide 36: EBITDA & Margin (TRY million)
EBITDA & Margin (TRY million) 36,9% With TAS29 29,5% 32,7% 31,2% 1.436,7 966,6 244,0 236,9 2023 2024 1Q2024 1Q2025 Without TAS29 32,7% 30,4% 32,5% 639,1 800,4 24,0% 184,2 169,4 2023 2024 1Q2024 1Q2025 36
Slide 37: Net Profit & Margin (TRY million)
Net Profit & Margin (TRY million) With TAS29 20,3% 788,2 16,1% 11,0% 121,9 360,7 3,2% 24,1 2023 2024 1Q2024 1Q2025 Without TAS29 31,4% 32,5% 14,8% 27,8% 731,3 635,1 164,1 113,7 2023 2024 1Q2024 1Q2025 37
Slide 38: Net Working Capital with TAS29
Net Working Capital with TAS29 (TRY million) 1Q2025 1.960 820 -93 -50 -26 375 -573 -120 1.105 523 Financial Investments Inventories ST Portion of LT Loans Accounts Payable Net Working Capital Cash and Equivalents Accounts Receivable Short Term Loans Employee Benefits Tax Obligations 38
Slide 39: IFRS Income Statement with TAS29
IFRS Income Statement with TAS29 TRY (million) 2023/12 2024/12 2024/2023 2024/3 2025/3 1Q25/1Q24 REVENUES 3.892,3 3.280,0 -16% 746,4 758,5 2% COGS -1.958,3 -1.398,4 -29% -297,2 -352,6 19% GROSS PROFIT 1.934,0 1.881,5 -3% 449,2 405,8 -10% General & Administrative Expenses -156,7 -157,4 0% -41,2 -46,5
Slide 40: Balance Sheet and Summary Ratios with TAS29
Balance Sheet and Summary Ratios with TAS29 TRY (million) USD (million) 31.12.2024 31.03.2025 31.12.2024 31.03.2025 Current Assets 2.873 2.866 76 Fixed Assets 1.554 1.366 36 Total Assets 4.427 4.232 112 Short Term Liabilities 1.240 998 26 Long Term Liabilities 239 186 5 Equity 2.948 3.049 80 Total L
Slide 41: Foreign Currency Position & Loans – 31.03.2025
Foreign Currency Position & Loans – 31.03.2025 Deposits & Financial Investments USD Denominated Mutual Funds USD Denominated Equivalent to USD 2,66 million Eurobonds 28,46 million TRY 1.578 million USD 41,6 million Bank Loans Net Cash USD 1,32 million Long Term Financial Liabilities 41
Slide 42: Dividends
Dividends According to the 2024 profit distribution table prepared in compliance with the Capital Markets Board’s (II-19.1) communiqué, it was approved by the shareholders at the Ordinary General Assembly that a total net dividend of 100 million TL will be distributed to shareholders in three instal
Slide 43: Appendix: Inflation Accounting
Inflation Accounting 05 APPENDIX 43
Slide 44: What is TAS29?
What is TAS29? TAS29 (TAS, Turkish Accounting Standards) is an accounting standard that regulates financial reporting in high-inflation economies. The Purpose is to present the financial statements of businesses more accurately by removing the effects of inflation. Indicators of High Inflation ◦ The
Slide 45: Summary IS with and without TAS29
Summary IS with TAS29 (TRYmn) 2022/12 2023/12 2024/12 2024/2023 2024/3 2025/3 1Q25/1Q24 Sales 4.044,4 3.892,3 3.280,0 -16% 746,4 758,5 2% Gross Profit 1.669,1 1.934,0 1.881,5 -3% 449,2 405,8 -10% EBITDA 1.338,4 1.436,7 966,6 -33% 244,0 236,9 -3% Net Income 312,3 788,2 360,7 -54% 24,1 121,9 405% Gros
Slide 46: Disclaimer
Disclaimer: This presentation has been prepared by DESA Deri Sanayi ve Ticaret A.Ş. (the “Company”) for informational purposes only and does not constitute an offer or invitation to buy or sell any securities. The information contained herein has been provided to enable interested parties to make th
Slide 47: Contact
www.desa.com.tr https://www.desa.com.tr/investors www.1972desa.com www.desainternazionale.it :investor.relations@desa.com.tr : +90 212 473 18 00 DESA Deri @desafashion @desafashion @desafashion Desa Fashion 47
DESA Deri Sanayi ve Ticaret A.Ş. — Q1 2025 Earnings Presentation on 6ix